Port of Houston Magazine - Summer 2016

SUMMER

2016

THE PORT OF HOUSTON

CHANNELING THE FUTURE

The National Shipping Company of Saudi Arabia General Cargo

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Port of Houston Authority | Summer 2016

HELPING TO MEET THE WORLD’S CHANGING NEEDS

CONTENTS Summer 2016

12 FEATURE CHANNELING THE FUTURE

IN EVERY ISSUE 6 A Message from Executive Director Roger Guenther

8 The Manifest Port of Houston Authority News Highlights

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OCEMA and Ports Join Together For SOLAS

20 Gulf Shipping Conference 22

New Facilities at Port

26 Spotlight on Small Business Batterson: Paving the Path of Houston’s Future

24 Wind Energy

Port of Houston Authority The Port Delivers

EXECUTIVE OFFICE

Port of Houston Authority JANIECE LONGORIA Chairman

JOHN D. KENNEDY Commissioner

DEAN E. CORGEY Commissioner

111 East Loop North, P.O. Box 2562, Houston, TX 77252-2562 Phone: 713-670-2400 Fax: 713-670-2429 Executive Director Roger D. Guenther

Chief Legal Officer Erik A. Eriksson

Chief Operating Officer Thomas J. Heidt

Chief Port Infrastructure Officer Richard Byrnes

Chief Commercial Officer Ricky W. Kunz

Chief Port Operations Officer Jeff Davis

Chief Financial Officer Tim Finley

Harris County Auditor Barbara J. Schott

Chief HSSE Officer Marcus Woodring

Harris County Treasurer Orlando Sanchez

Chief Information Officer Charles Thompson

FIELD OFFICES

Central & South America (excluding Brazil)

CLYDE FITZGERALD Commissioner

Arturo Gamez Central & South America Representative Port of Houston Authority Avenida Aquilino De La Guardia y Calle 47 Ocean Business Plaza Building, Mezzanine Panama, Republic of Panama Tel.: +(507) 340-0205 Fax: +(281) 754-4647 Houston Access (713) 491-4607 Email: agamez@poha.com

Brazil John C. Cuttino Brazil Representative Port of Houston Authority Av. Paulista, 2300-Andar Pilotis Sao Paulo, SP Brazil, CEP: 01310-300 Tel.: +55 (11) 2847-4931 Fax: +55 (11) 2847-4550 Houston Access (832) 239-5076 Email: jcuttino@poha.com

THELDON R. BRANCH, III Commissioner

Asia Garth Harrison Port of Houston Authority c/o Ben Line Agencies Email: gharrison@poha.com Tel: +84 838 256 148 x 147 Mobile: +84 903 943 886

Head Office 200 Cantonment Road, #13-05 Southpoint, 089763 Singapore Tel.: +65 6420 9013 Fax: +65 6224 0163

STEPHEN H. DONCARLOS Commissioner

Port of Houston Magazine’s editorial staff: Stan Swigart, director, marketing and external communications | Bill Hensel, manager, external communications | Laci Theriot, digital content marketing specialist | David Bray, photographer | Chris Kuhlman, photographer | John Manlove Marketing & Communications design and layout.

This publication is not copyrighted and permission is given for the reproduction or use of any original materials, provided credit is given to the Port of Houston Authority. Additional information, address changes, extra copies, or advertising specifications may be obtained by writing to the Port of Houston Magazine.

ROY D. MEASE Commissioner

The Port of Houston Magazine is published by the Port of Houston Authority, P.O. Box 2562, Houston, Texas 77252-2562, and is distributed free to maritime, industrial and transportation interests in the United States and foreign countries.

Visit the Port of Houston Authority online www.portofhouston.com

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ROGER THAT!

A MESSAGE FROM EXECUTIVE DIRECTOR

ROGER GUENTHER

We continue to work to meet the goals of our new Strategic Plan that was adopted by the Port Commission last year, and considerable progress already has been made. With numerous employees s er ving on cross-functional teams, the partnerships that have been created enhance our ability to reach our goals.

Under the strategic goal for PEOPLE & ORGANIZATION, all employees have been engaged by completing individual goals that align with the Strategic Plan.

Additionally, we continue to work on the project to together refine job descriptions throughout the organization. That work, which is nearing completion, is important to the Port Authority and is being accomplished through employees and managers working together.

Leadership development has and will continue to be one of the major points of emphasis as we move forward together.

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Port of Houston Authority | Summer 2016

GROWTH

Under the goal of GROWTH, the Lynx Customer Access Portal was completed and is undergoing enhancements. Hardware has been purchased and approval has been given for software enhancements for a Lynx mobile app to include gate queue cams.

More GROWTH is evident with the new Asian all-water services by Maersk and Mediterranean Shipping Co. under the 2M Alliance banner, which is now operating.

The first vessel arrived at our docks in June.

INFRASTRUCTURE

Additionally, a plan to develop a strong brand identity has been completed and a brand rollout target will be announced in the coming months. Subsequently, the redesign of the Port Authority’s website also is underway to align with the brand rollout. Internal and community brand research surveys have been completed and customer surveys will be done.

On the INFRASTRUCTURE side, the Bayport South Master Plan has been completed. Funding has been received for the Peninsula Road Improvement Project, while a TIP grant was awarded for the Broadway rail project.

Consultants have been identified for the development of Barbours Cut master planning.

PEOPLE

In regard to STEWARDSHIP, the Community Engagement Plan was approved, and Port Authority participation increased from 74 percent to 98 percent from 2012 through 2015.

Additionally, an access control system was added to the Barbours Cut Administration Building.

STEWARDSHIP

Our hard-working staff at the Port Authority is key to making this plan successful. Our people are working every day toward accomplishing our goals this year and in coming years, and I am confident that ultimately we will realize our vision to be America’s distribution hub for the next generation.

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THE

MANIFEST

NEWS HIGHLIGHTS

“ SEE SOMETHING, HEAR SOMETHING, DO SOMETHING” CAMPAIGN LEADS TO SPIKE IN CALLS

The local “See Something, Hear Something, Do Something” campaign by the Port of Houston Authority Police department has resulted in a nearly 70 percent increase in calls, according to Port Police Chief Mark Smith.

The campaign was launched locally last May, and the Port Authority has seen a 69 percent increase in calls since that time, Smith said. The calls range from suspicious items seen in and around buildings to suspicious people on port property.

The "If You See Something, Say Something™" campaign was originally implemented by the New York City

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Metropolitan Transportation Authority. It is licensed to the U.S. Department of Homeland Security (DHS) as a nationwide campaign.

In July 2010, DHS launched the campaign in conjunction with the U.S. Department of Justice's Nationwide Suspicious Activity Reporting Initiative (NSI), with the goal of training state and local law enforcement to recognize behaviors and indicators of terrorism and terrorism– related crime.

PHA SMALL BUSINESS PROGRAM CONTINUES TO GROW

vendors were construction-related businesses, while the same number of businesses that joined were goods and services providers.

The small business program, which was created in 2002 to aid small businesses in Harris County and surrounding counties, now has an enrollment of about 1,000 small businesses, Port Authority statistics show.

Since inception, awards and commitments to small businesses have totaled $449 million, for a 41 percent small business participation rate.

Almost 100 new certified small business vendors were registered and added to the Port of Houston Authority’s Small Business Development program during 2015.

Of the 98 vendors added to the program in 2015, a total of 46 were professional service providers. Another 26

Last year, the Port Authority participated in more than 300 external events that reached out to more than 6,500 small businesses.

The Small Business Development Program is a raceneutral and gender-neutral program with a small business participation goal of 35 percent annually.

PORT AUTHORITY WELCOMES SUMMER INTERNS Summer internships began May 23 with twelve college students from all around the country joining the Port of Houston Authority staff. The twelve-week internship program is designed to expose undergraduate and graduate students studying various fields to the maritime industry and provide an outstanding educational and work experience.

The 2016 intern class started off its first week by meeting with Executive Director Roger Guenther, as well as taking a boat tour of the port on the M/V Sam Houston. The interns were also later recognized and welcomed by Chief Operating Officer Tom Heidt at the June 15 organizationwide huddle event.

This summer, the interns will be supporting various departments: Operations, Human Resources, Internal Audit, Media Relations, Security, Project and Construction Management, Accounting, Environmental

Affairs, Safety and Information Technology. The team of interns has been assigned a group project to deliver to Port Authority leadership at the end of the program.

“This is not your average internship,” said Alia O’Neill, Human Resources Generalist at the Port Authority. “We understand the value of on-the-job experience and support the growth of our profession. This is a once-in-a-lifetime opportunity for PHA to spread our knowledge base to the next generation. These are the future leaders of the port business.”

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HURRICANE SEASON BRINGS PREPARATIONS TO PORT ing beacons and outdoor sirens once installed,” Dowda said. “We’ve also received a Port Security Grant for a new mobile command center (MCC), which should be active by the end of 2016. Technology, like Port Alert powered

by At Hoc and a new MCC, will help with quicker, faster response in these situations. We are ready.”

With the beginning of hurricane season June 1, the Port of Houston Authority’s Health, Safety, Security and Emergency Management (HSSE) division has been planning ahead in the event of a potential storm. In May, the Port of Houston Authority Office of Emergency Management participated in “Hurricane Preparedness Week” by sending daily hurricane preparedness e-mail tips to all employees. In June, the Office of Emergency Management will also be hosted a small tabletop hurricane drill for all department leads.

The Office of Emergency Management is actively involved with various industry and community organizations such as local emergency planning committees, the Houston Urban Area Security Initiative and a Marine Firefighting workgroup in the region. They also communicate with the U.S. Coast Guard, the National Weather Service and the Texas Department of Emergency Management regularly in response to a variety of events, including severe weather and natural disasters.

Additional information about hurricane preparedness or this year’s hurricane season outlook for Harris County is available in the “Ready” booklets located in the lobby of the administration buildings at each terminal.

HSSE likes to incorporate exercises as part of its program and considers communication with everyone involved to be an important factor in success, said Jessie Dowda, Emergency Preparedness Coordinator for the Port Authority. For example, the Port Alert system was recently used during the Tax Day floods and also is used to communicate when drills and other tests are being conducted.

“Our Port Alert system includes a mobile app and will eventually be able to communicate with emergency alert-

THE MANIFEST spotlights news briefs exclusively from Port of Houston Authority, its customers, trading partners, and community stakeholders. Submit information in the form of a letter or press release via e-mail to bhensel@poha.com or via fax 713-670-2564.

The Port of Houston Magazine does not guarantee publication and reserves the right to edit submissions for content and style.

THE INVESTMENT CONTINUES

Bigger. Faster. Ready.

THE PORT OF HOUSTON AUTHORITY recently welcomed four super post-Panamax cranes that are just one portion of the $700 million modernization project taking place at our Barbours Cut Container Terminal. These new ship-to-shore cranes will accommodate today’s generation of large container vessels that will be calling on our terminals following the expansion of the Panama Canal.

Port of Houston Authority America’s Distribution Hub for the Next Generation

www.portof houston.com

| 713.670.2400

MARITIME CHAN PROJECTS STEAM AHEAD

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NNEL MING

A host of key waterway improvements at the Port of Houston and beyond are converging at roughly the same time, highlighting the critical importance of maritime channels to economic development.

Together, they likely will play a significant role in the continued growth of international commerce at the port.

In addition to the long-awaited opening of the Panama Canal’s third set of locks, the other new projects largely focus on improvements to the Houston Ship Channel, which, like the canal, is a century-old feat of civil engineering. The long-term aim is to make the ship channel deeper, where viable, and safer.

THE BAYPORT FLARE One of the ventures involves the Bayport Flare, a large, deep zone of about 72 acres that has been in need of engineering modifications for years. At issue is the ease of turning vessels safety around the confluence of the Houston Ship Channel and Bayport Channel.

Now, a creative solution to the persistent problem that has vexed pilots and planners alike may be right around the corner. Port of Houston Authority Executive Director Roger Guenther described the move as an “innovative solution” in partnership with the Corps. That solution will allow for the beneficial use of the clay to be mined and used to address environmental restoration of marshes along the channel. It should also make for safer waterways.

“This project will make it easier for the pilots to maneuver deep draft vessels from the Houston Ship Channel into and out of the Bayport terminal channel.

Despite the importance of the development, a complex mix of fiscal and policy constraints of the U.S. Army Corps of Engineers had combined to keep some navigation safety issues from being resolved, Guenther noted. But now, the Corps and the Port Authority are working together to address environmental restoration and navigation as a cost-shared project.

As part of that partnership, the Port Authority is working on the engineering design for the construction project to advance the schedule of environmental restoration of marshes along the channel that had been deferred, in part by beneficially using clay that will be mined near the flare.

The Houston Pilots also favor the project, noted Captain Robert Shearon, the organization’s presiding officer.

"The Houston Pilots continue to support the Port of Houston Authority as it improves the Houston Ship Channel," said Captain Robert Shearon, presiding officer. "Since 1916, the Houston Pilots and

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the Port of Houston have enjoyed a collaborative relationship serving the needs of the State of Texas.”

Some 94 Houston Pilots board and guide more than 20,000 ships and vessels each year, providing commercial navigation on the winding and narrow Houston Ship Channel. The channel is the busiest waterway in the United States, yet maintains one of the best safety records in the maritime industry.

Still, continued improvements to the channel are important. The Corps plans to award the dredging contract for the work around the Bayport Flare by September. Work should begin 60 to 90 days after that and take about three to four months to complete, according to PHA Director of Channel Development Mark Vincent.

The contract work is expected to start soon after the completion of the deepening and widening of the Bayport Ship Channel, which Guenther noted in May “is part of the Port Authority’s effort to be ready for expanded commerce as Houston and Texas grows, and as the new Panama channel locks come on line.”

That just happened.

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THE PANAMA CANAL After years of construction, work on a third set of locks at the Panama Canal has been completed and larger PostPanamax vessels began transiting the expanded waterway June 26. The completion of that project is expected to reap positive benefits for the Port of Houston. The original opening of the Panama Canal occurred in 1914, the same year the Houston Ship Channel opened. Those two projects actually share a historical link, since they were part of the same federal legislation in the United States Congress.

Coupled with successfully addressing the navigation issues with the Bayport Flare – along with completion of the dredging of the Barbours Cut channel last year and the Bayport channel later this year at the Port Authority’s container facilities – the multitude of channel improvements altogether will position the port to accept deeper draft Post-Panamax container vessels.

THE MEGA-STUDY But that’s not all. Throw in the launch in May of a new four-year study to plan future improvements for the

Houston Ship Channel, and the impact within several years is likely to be much greater. The Port Authority, which is the local sponsor of the federal channel, is supporting the work of the Corps on that study.

Meetings were held May 17 and May 19 to inform the public about the proposed study to prepare an Environmental Impact Statement for the Houston Ship Channel 45-Foot Expansion Channel Improvement Project. The meetings also allowed for public comment on the project.

The study is aimed at identifying and evaluating modifications to the ship channel to improve efficiency and safety.

The estimated $10 million cost of the Houston Ship Channel Feasibility Study will be shared by the Corps and Port Authority.

The four-year project includes studying a deeper channel as far upstream as economically justifiable — including areas not modified in more than 60 years.

Galveston Bay. Because of the channel’s significance and potential for improvements throughout, the project is considered a “mega-study.”

The study will look at extending the 45 foot Houston Ship Channel further upstream, possibly bringing 40 feet of water up to the Loop 610 bridge (Sidney Sherman Bridge) and will consider deepening within the Turning Basin for improved ship efficiencies.

The goal is to identify improvements for navigation efficiency, promote safety and facilitate infrastructure for national economic benefit, Vincent noted.

“This is a great opportunity to modernize our channels and help assure the Port of Houston continues to serve its neighbors, provide jobs and remain a hub for commerce as Houston and Texas grow,” Vincent said. “The U.S. Army Corps of Engineers has streamlined its processes and will deliver the report years sooner than previously possible.”

Other study areas include the Bayport and Barbours Cut ship channels and the long stretch of the channel across

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A HOST OF KEY WATERWAY IMPROVEMENTS AT THE PORT OF HOUSTON AND BEYOND ARE CONVERGING AT ROUGHLY THE SAME TIME, HIGHLIGHTING THE CRITICAL IMPORTANCE OF MARITIME CHANNELS TO E C O N O M I C D E V E L O P M E N T.

OCEMA AND PORTS JOIN TOGETHER FOR SOLAS 18

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The 19 ocean carrier members of the Ocean Carrier Equipment Management Association (OCEMA) have joined with six major East and Gulf Coast ports, including the Port of Houston Authority, to develop a common streamlined “Terminal Weighing Approach” to providing verified gross mass (“VGM”) at port locations.

This action is in response to changes in the Safety of Lige at Sea convention regarding new mandatory container weight verification requirements on shippers. This requirement went into effect July 1.

OCEMA and the ports filed an agreement with the Federal Maritime Commission regarding the cooperative effort. In addition to Houston, the other ports involved are the South Carolina Ports Authority, Georgia Ports Authority, North Carolina State Ports Authority, the Port of Virginia and the Massachusetts Port Authority.

The Terminal Weighing Approach aims to ensure fluidity at major East and Gulf Coast ports and to provide shippers, carriers and terminals with a simple means of compliance with the SOLAS VGM requirements.

Under the proposal, marine terminals would weigh a container on certified terminal scales, pursuant to the equivalency decclared by the U.S. Coast Guard.

This weight could then be used to fulfill the U.S. exporter’s IMO SOLAS VGM requirement. The approach would provide flexibility for shippers at participating ports. Details of the proposal are still being vetted.

OCEMA had planned to incorporate the common Terminal Weighing Approach in the OCEMA Best Practice as an additional accepted method of submitting VGM at the participating port locations.

The SOLAS issue was a topic of discussion at the JOC Gulf Shipping Conference sponsored by the Port Authority and held in Houston in June.

Best practices for beneficial cargo owners were shared leading up to the launch in July. Equivalency, discrepancy and inconsistency within industry were primary concerns addressed.

“As a port, we have to know how to respond operationally to this prerequisite from a terminal and shipping standpoint,” said Jeff Davis, Chief Operations Officer of the Port of Houston Authority. “Our day-to-day business will be affected in the long run, and we want our customers to know that we support this new rule and are equipped to meet the maritime industry regulations.”

“Our position is to develop a common streamlined weighing approach to provide VGM data or allow the shipper an opportunity to provide their own VGM. Meeting compliance and working with various shippers, carriers and freight forwarders is critical.”

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First JOC Gulf Shipping Conference A Success

The Port of Houston will be the gateway of choice for ExxonMobil as its expanded facilities come on line and produce more polyethylene products for export, a company official told attendees at the inaugural JOC Gulf Shipping Conference in June.

“Resins are guaranteed to come to the port as they are produced locally,” said Perry Padden, ExxonMobil Chemical’s distribution and logistics manager for the Americas. “The Port of Houston is right in our backyard and the most effective way to move product.”

Padden’s remarks came during a frank opening roundtable discussion at the first-ever Houston conference, which kicked off June 13 with 275 industry professionals attending. The roundtable was focused on the Gulf of Mexico’s future as a container gateway. The Gulf is a busy area where import and export cargoes from all major trade lanes can reach and supply American consumers.

INAUGURAL EVENT HIGHLIGHTS HOUSTON AS A MAJOR CONTAINER PORT “The interest in moving cargo through U.S. Gulf ports is clearly evident,” said Port of Houston Authority Executive 20

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The arrival of a single vessel that called the Port of Houston 60 years changed the face of global trade.

Director Roger Guenther, who provided opening welcome remarks. “The renaissance of the petrochemical industry, the pending opening of the expanded Panama Canal and growth trends in the regional consumer base all present opportunities for containerized freight growth. The U.S. Gulf Coast continues to be a vibrant and growing region.”

Guenther also served on a panel of port industry leaders during the conference. He noted that Port of Houston’s primary markets are the energy sector and resins, with population growth driving more import cargo through the Panama Canal. The Port Authority’s cargo moving through the Panama Canal from Asia has grown from virtually zero 12 years ago to about 24 percent today, he said. He attributed the increase in cargo to a consistent and reliable supply chain to the Houston region via all water services.

EXPANDING U.S. GULF REACH AND ASIA TRADE LANES The symposium covered the latest market trends, problems and solutions emerging for cargo owners importing and exporting through the Gulf. One highlight of the conference was the shipper-carrier roundtable led by executives from Academy Sports and Outdoors, ExxonMobil

Chemical Company, Mediterranean Shipping Company (MSC) and Maersk Line- North America contributing their perspectives of the region’s containerized cargo capabilities and potential.

That discussion led to acknowledging the new Asian all water service by the 2M Alliance, a partnership of two of the world’s largest ocean carriers. Maersk and MSC’s “Lone Star Express” and “TP18” selected Houston as the first U.S. inbound port of call. Soren Egholm, Vice President, Trade and Marketing, for Maersk Line North America, called the move an investment driven by customer interest as well as Houston being a significant port for Asian exports. Both shipping conglomerates looked for solutions following the West Coast ILWU disruption.

Joe Morales Jr. of Polyolefins America, a producer of resin, provided insight of what the future holds as a result of massive new petrochemical plants coming online in Texas. With the nation being rich in natural gas and shale giving market a cost advantage on feedstock, Texas could generate more than 500,000 TEUs by 2020. Companies like Shell, Chevron Phillips and Dow Chemical expect to work with ports to have a presence in this market.

The JOC Gulf Shipping Conference concept was developed from the annual TPM conference in Long Beach, Calif. with hopes of assembling the right suite of engaging speakers and messages into a Gulf Coast theme. The Port Authority saw the host-sponsorship as an opportunity to promote longevity and growth to the area, following under the organization’s strategic plan.

ANTICIPATED NEW ALL-WATER SERVICE BEGINS The first vessel, the M/V Maersk Danang, arrived at the Port Authority’s Bayport Container Terminal on June 5. This service connects the U.S. and the Houston Ship Channel region to major Trans-Pacific markets. as the current container forecast in Houston growing with the booming petrochemical plant industry and increased resin exports. The Port Authority already supported two existing weekly Asian services via the Panama Canal, operated by CMA, CGM, COSCO and Hanjin.

“We now have three all-water Asian services,” commented John Moseley, Senior Director of Trade Development for the Port of Houston Authority.

“Houston is a one-for-one container port; for every import coming in, there in an export going out. With our 2 million TEU record in 2015, we are thrilled to bring more containers to the Port of Houston.”

GULF COAST: MORE THAN JUST THE THIRD U.S. COAST Port Authority Chief Commercial Officer Ricky Kunz said the conference is a huge event for ports in the Gulf of Mexico.

“We realized a couple of years ago that it was necessary to try and focus on the container traffic that moves via the Gulf of Mexico- the third coast of the United States,” Kunz said. “The timing of this event could not be better with the Panama Canal expansion and the ever-changing shipping alliances. It’s all about keeping up with current events from a port perspective. When it comes to business, nothing substitutes to in-person communication or a one-on-one meeting.”

RESINS BOOMING IN HOUSTON Last year, Gulf ports showed a resilience in export trade as the region handled 12 percent of outbound traffic with the Port of Houston moving 65 percent of Gulf container volume. A container trade and market outlook presentation by Brian Fielkow of Jetco Delivery further concluded that the Gulf Coasts’ strengths are: a pro-business environment, population centers, forward-thinking leadership, geographically natural trading and excellent labor and management.

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NO CHANNEL, NO PORT: New Private Facilities Bring More Business to Houston Ship Channel Region The Houston Ship Channel is a conduit of three ports and a massive marine highway of trade. Private industry surrounding this economic engine has continued to expand its docks and terminals in order to remain competitive along the 52-mile waterway by investing in their downstream operations. With over 150 total companies on the channel trying to stay on top of the nation’s current economy slump, the time for waterfront improvements and expansions has never been better for Texas refineries.

These efforts most certainly have a positive influence on the Port of Houston’s success as being more than just the home port of the channel, but a driving economic engine that serves the waterway as well. The ship channel is simply the key to a great port.

INDUSTRY TAKING RISKS AND OPPORTUNITIES; SEE REWARDS The petrochemical, bulk, steel and pipeline companies also realize the importance of marine transportation, shipping and the maintenance that comes along with having a significant amount of marine assets.

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Construction of the world's largest ethane export terminal continues at the Enterprise Products Partners facility on the Houston Ship Channel and is on schedule to begin service in the third quarter of 2016. The terminal at Morgan's Point will feature a combined operating rate of approximately 200,000 barrels per day across two docks and an 18-mile, 24-inch diameter pipeline provides a supply connection to Mont Belvieu. Approximately 90 percent of the capacity is under long-term contracts that ramp up through 2018.

“The development of the ethane terminal at Morgan’s Point is part of Enterprise’s larger strategy to build a premier waterborne network with locations at key points along the Gulf Coast,” said Jim Teague, Chief Operating Officer at Enterprise Products. “Combined with our comprehensive, integrated midstream system, these terminals provide growing supplies of North American production with unsurpassed access to the most attractive domestic and international markets.”

The most recent bulk liquid dock addition on the Houston Ship Channel is Watco Greensport’s north ship dock #1,

now operated by Kinder Morgan. “We are anticipating a steady long term growth of ship traffic on the Houston Ship Channel. New docks, like Kinder Morgan’s newest dock at Watco, will better position the port for increased trade, especially once energy related trade finds its new equilibrium and we start feeling the effects of the new Panama Canal. That being said, there are approximately 30 more potential docks on the drawing board,” said Port Agent JJ Plunkett, of the Houston Pilots, who is also on the executive leadership team for the Lone Star Harbor Safety Committee. Several other docks will be commissioned in the upcoming year, including Enterprise’s new ethane export docks at Barbours Cut, Kinder Morgan’s dock on Light Company Road and LBC Houston’s dock #4 in Bayport.

THE PORT AUTHORITY FACILITATES AND SUPPORTS PERMIT PROCESS Being the local sponsor of the Houston Ship Channel, the Port of Houston Authority works with the terminals in the beginning stages of this “coming on line” process for docks. After hydrographic surveys are performed and dredging plans are created, all facilities must apply for a marine construction permit from the Port and go through a navigation safety evaluation with the Houston Pilots as part of the Port’s permit process. They must also meet all U.S. Army Corps of Engineers permit and license requirements as well as go through a security review by the U.S. Coast Guard prior to any dredging.

Capital projects like these require advanced communication and planning with various maritime agencies and organizations. One of the most challenging aspects of the preparation for construction of a new dock facility is finding a location for disposal and performing the necessary testing and surveying needed for recently updated federal approval process required to use the selected placement area. The approval process can be further complicated due to the lack of dredge material placement capacity in the Houston and surrounding areas.

PERSEVERE: DISPOSAL CAPACITY PROBLEM WON’T STOP DREDGING Some federal (U.S. Army Corps of Engineers) disposal locations are coming to their end of life, some with less than 15-20 years remaining, which is an impending prob-

lem as private industry keeps progressing with more capital improvements, digging several million cubic yards more than were ever planned for. “The infrastructure growth is certainly positive, but private industry needs to be accommodated in the federal placement areas so that their dock siltation can be maintained in a way that does not unnecessarily limit the draft of vessels coming to a private berth.

That kind of situation is not good for business,” said David Casebeer, Houston Ship Channel Project Manager.

The Port of Houston Authority is partnering with the Corps of Engineers to find solutions for these dredging issues. The ever increasing placement capacity challenges may mean that these private facilities may need alternative options such as beneficial use, hopper barge transport, underground storage, geo-tubing sediment or offshore placement. Although dredging is a pricy expense, there is no doubt that by not having the special trade around would mean that today’s commerce would eventually come to a halt. Dredging is necessary for the continued success of the Port of Houston.

DREDGING NEVER QUITS – CHANNEL DEVELOPMENT REMAINS AN ASSET “Private industry has all of this dredged material, and they need a place to put it. Those terminals cannot be overlooked. As a port, our role is to facilitate and accommodate commerce and navigation,” said Mark Vincent, Director of Channel Development for the Port of Houston Authority. “The reality is that the maritime industry would not exist without dredging - and without private industry there would be no channel, and without a channel, there would be no port. No Channel, No Port.”

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WIND ENERGY: A N RESOURCE SERV PORT OF HOUSTO

Outside the walls of the Port of Houston Authority Executive Building, you see many wind energy towers throughout the Turning Basin Terminal. With Texas being the leading state for wind-generated energy, there is no surprise that these products are special equipment that port stevedores and distributors believe are instruments 24

Port of Houston Authority | Summer 2016

of great possibilities. These 280-foot towers consist of a nacelle or generator, which carries a mount, hub and a fan with three blades ranging anywhere from 100 to 180 feet on top. The wind turbines convert the kinetic energy in the wind into mechanical power, a fundamental resource needed to generate electricity.

NATURAL ING THE ON

nology with their products, many of which move through Houston, a big energy market. “These towers are more than just fans- they are the best in quality, and a great option for those looking for green-based solutions,” said Randy Stiefel, Director of General Cargo Operations at the Port of Houston Authority. “However, transporting these towers by trucks is a different story as there are challenges with permits required for each state you pass through on the road”.

Beginning decades ago with traditional windmills pumping water and grain, organizations like the American Wind Energy Association now call this wind power supply “a clean source of electricity for American consumers.” In Texas alone ranks first in the country for both installed and under construction wind capacity, with 17,710 MW of installed wind capacity. The Port of Houston Authority has been able to make use of its acreage areas to accommodate these towers.

SHAPING THE WIND EVOLUTION Because of the size of the towers, not every port is equipped to handle this type of high, wide and heavy cargo. They can clog a large facility quickly. Sometimes the jobsite is not quite ready to receive the tower parts, but that’s not the case with the Port of Houston Authority’s city docks.

PHA’s Turning Basin facility is a big transit terminal that has ample space. The Port Authority has the capability of building unit trains inside the Port for rail transport, and do this quite often. From a trade perspective, the golden rule for the Port Authority is getting cargo like this in and out, quickly, safely and efficiently. That’s helped make the port the biggest breakbulk port in the country.

ALL ABOUT EFFICIENT POWER Manufacturers of these turbines include China-based Goldwing, the world’s largest supplier and number one company in gross sales, and Vestas, another global industry power leader, which is headquartered in Denmark.

Both companies are changing the standard of wind tech-

“These towers are gigantic and can be sourced domestically, although many come from overseas,” said Ricardo Arias, Trade Development Manager for the Port of Houston Authority. It’s no secret that the oil and gas industry has taken a hit recently and the demand for electric power is increasing. The Port wants to be on the cusp of new developments of this trade. There are many products coming to and from here every day, but wind energy is one of the rare commodities- versatility (the ability to offer the space, the rail and highway connectivity and the ocean carrier options connecting to ports around the world) is what makes it work at the Port of Houston.

Summer 2016 | Port of Houston Authority

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SPOTLIGHT ON SMALL BUSINESS

Batterson: Paving the Path of Houston’s Future

When you drive on High Level Road and make your way to the entrance of Port of Houston Authority Executive Building parking lot, the infrastructure appears to be top quality. Credit the construction and solid concrete surfaces to the highway construction service company Batterson.

Operating widely in the Houston area and throughout Texas, the small company prides itself on its hard-won reputation for quality and dependability, its operations capability, loyal workforce and an experienced management team.

“As guests arrive at the Port, we want them to feel welcomed,” said Pedro Gonzalez, P.E. Small Business Mentoring Manager at the Port of Houston Authority.

“It’s not just about a one-time experience, but we want them to come back. Working with Batterson has allowed the Port Authority to maintain our front commercial property here at the Turning Basin. Efficient parking space is always a better logistics solution. Batterson is a great partner and representative for our small business program.”

In 1929, Batterson LLP was founded by veteran C.K. Batterson, who originally started his entrepreneurship in the tire business. Four generations later, the company progressed to traffic buttons, and then later pavement markings for roads and highways as well as traffic control.

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Port of Houston Authority | Summer 2016

Their organization has grown from just a local family business to nearly 100 full-time employees. They eventually adopted the traffic function of their business in the 90s when they saw an apparent market demand.

Today, Batterson works with major transportation entities such as TXDOT, and covers projects throughout residential subdivisions, refineries, chemical plants and strip centers throughout the city. “We come in after the asphalt is resurfaced by contractors and mark the parking and road lines, install wheel stops and then replace the traffic signs. We are the go-to subcontractor for all things traffic, which in Houston is always evident these days. The city’s population is growing,” said Dallas Batterson, Human Resources Director.

“We have been involved in some historical Houston projects, including the recent highway 290 construction and the original Astrodome and Colt 45 stadiums. The Port of Houston Authority is an asset to the city. We take great pride in the quality of our work on all of our clients’ jobs, but the various projects that we have done at the port are an extra feather in our cap because of what it means to our city’s history and the importance that it plays in the country’s economy. Houston is a city with no limits, and the Port is a big part of that.”

Summer 2016 | Port of Houston Authority

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