Port Houston Navigator - Fall 2016

NAVIGATOR

FALL 2016

BUILDING A BRAND A New Era for Port Houston

First Vessel Arrives

AT ENTERPRISE’S ETHANE EXPORT FACILITY

Oyster Reef RESTORATION UPDATE

The tradition continues

PORT HOUSTON HOSTS BREAKBULK AMERICAS 2016

NAVIGATOR 9.16 IN THIS ISSUE

Welcome to the newly renamed port magazine, Port Houston Navigator, produced in tandem with our new Port Houston brand. We hope you enjoy it.

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A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER

THE MANIFEST PORT HOUSTON’S NEWS HIGHLIGHTS PORT HOUSTON GIVES BACK TO THE BAY WITH OYSTER REEF RESTORATION PROJECT FIRST VESSEL ARRIVES AT ENTERPRISE’S ETHANE EXPORT FACILITY

FEATURE STORY: BUILDING A BRAND A NEW ERA AT THE PORT

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TAKING HOUSTON TO NEW HEIGHTS FTZ AND ECONOMIC DEVELOPMENT PROGRAM GROWING

PORT HOUSTON TO HOST BREAKBULK AMERICAS 2016

PERISHABLES ROUNDTABLE AT PORT DRAWS CROWD

SPOTLIGHT ON SMALL BUSINESS CROUCH ENVIRONMENTAL

PORT HOUSTON NAVIGATOR’S EDITORIAL STAFF:

EXECUTIVE OFFICE JANIECE LONGORIA Chairman

JOHN D. KENNEDY

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

DEAN E. CORGEY Commissioner

FIELD OFFICES CENTRAL & SOUTH AMERICA

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 Port Houston. Additional information, address changes, extra copies, or advertising specifications may be obtained by writing to the Port Houston Navigator.

The Port Houston Navigator is published

by Port Houston, 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.

(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 THELDON R. BRANCH, III Commissioner

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

ASIA STEPHEN H. DONCARLOS Commissioner

ROY D. MEASE

Commissioner

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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

For advertising opportunities contact John Manlove Marketing & Communications 281-487-6767

Visit Port Houston online at www.PortHouston.com

A PORT AS BIG AS TEXAS The Port of Houston Authority is now Port Houston and with our new super post-Panamax, ship-to-shore cranes we are ready to accommodate those bigger-than-life, next generation container vessels that can now transit the expanded Panama Canal. The new cranes are just a portion of the $700 million modernization project taking place at Barbours Cut Container Terminal. It’s true everything is bigger in Texas... Better too. Call or visit us online to learn more about Port Houston, The International Port of Texas.

www.porthouston.com • 713-670-2400

ROGER THAT

A MESSAGE FROM EXECUTIVE DIRECTOR

In order to develop a strong brand identity, we needed to examine the perception of the port in the international markets as well as our regional communities.

We did that.

A

s we watched the world’s greatest athletes at the Summer Olympics in Rio, it became clear those elite competitors didn’t get where they are by accident. They are authentic, representing achievement at a world level. The Port of Houston is no different. Our brand must represent who we are to the world and what we stand for and like these athletes, it must be authentic and come from the inside, out. That means the entire Port team must be engaged and part of our distinct brand identity.

ROGER GUENTHER

The new brand is “Port Houston: The International Port of Texas.” We intend to use the brand to market the port throughout the world as we continue to strategically expand and succeed.

So how did we get there? It was in early 2014 that we initiated a renewed emphasis on strategic planning aimed at defining our goals, mission and vision for the future.

One of the four major goals identified in this strategic planning process was to grow and diversify the business base by developing a strong brand identity and a proactive market development plan.

In order to develop a strong brand identity, we needed to examine the perception of the port in the international markets as well as our regional communities. We did that.

Surveys of Harris County residents told us that the community is proud of the Texas maritime industry and that port activity creates good jobs, security and safety for the citizens of Texas.

Surveying our major international customers told us that we are more responsive to their needs as compared to our competition.

Chairman Janiece Longoria and Executive Director Roger Guenther at Barbour’s Cut Terminal

The new brand identity is one factor in our growth plan that ensures we continue to serve our communities and customers into the next generation.

As a part of our Strategic Plan, we also are committed to investing in our people and organizing for success.

We are currently implementing changes that will help to streamline internal communications, adding more tools, revising existing tools, and improving the way we give and receive feedback. Now it’s time to shift our focus to employee engagement.

We are committed to building a culture that encourages all employees to feel like a member of the port family, and understand what that means.

Employee engagement is not just about individual employees. Employee engagement is critical to accomplishing our strategic goals as well as promoting our brand in the global marketplace.

Engagement also means recognizing our accomplishments, having trust in the organization, and developing and maintaining good working relationships. A highly engaged workplace not only enhances job satisfaction, but it also can improve work performance and increase productivity, safety and customer satisfaction.

That’s why a survey of employees is about to be conducted. To know how we can improve, we first must know what we need to improve. The results of the survey will be used to drive an Engagement Plan that will include a rewards and recognition program and offer recommendations on how to improve and strengthen employee engagement.

WE ARE READY FOR BIGGER THINGS TO COME!

Our new graphic logo signifies what the port means to communities as well as our international customers. It is red, white and blue, proudly carries the Texas star and stands for Quality Service.

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SOUTH AFRICAN CITRUS TRADE SOLID IN HOUSTON The recent delivery of 2,800 cartons of oranges from South Africa highlighted the third season of importing South African citrus to the Port of Houston. Houston is the only port in the Southern U.S. approved by U.S. Department of Agriculture’s cold treatment program for this specific fruit, noted John Moseley, Senior Director of Trade Development for Port Houston.

MACS Maritime Carrier Shipping GmbH & Co., a German-based carrier, has purchased two new vessels, M/V Diamond Land and M/V Green Cape, which will bring more navel oranges, a South African summer citrus, from Cape Town to Houston on its Gulf Africa Line (GAL) service.

“With the complexity of federal requirements on imported perishables, we are pleased that we have been able to accommodate this produce from the Southern Hemisphere,” Moseley said. The port is working to develop more options for imported fruits and vegetables in order to improve quality and lower cost for consumers. Fruit is pre-inspected by USDA in Cape Town prior to shipment. The importer, usually a local grocery store chain, must enroll with USDA and their product must be approved.

The process of cold treatment is to exterminate insects and larvae by maintaining a sufficiently low temperature for a pre-determined period of time.

“The U.S. imports approximately 40,000 tons of South African citrus into Philadelphia and New York each year, and we look forward to growing our volumes into Houston on our direct sailings from Cape Town during this 3rd season of the program,” said David Groves, Director of MACS Maritime Carrier Shipping, LLC. “The Port of Houston provides a gateway to better service retailers in the Gulf and Mid-Western states who previously relied on distribution via the Northeast.

We have overcome certain bottlenecks in the Houston supply chain through our good co-operation with local authorities and cold storage providers, which restricted growth during the first two seasons of these citrus imports.”

Photo Courtesy of MACS Maritime Carrier Shipping, LLC.

THE MANIFEST PORT HOUSTON NEWS AND HIGHLIGHTS

MAGELLAN MIDSTREAM PARTNERS BUILDING TERMINAL ON CHANNEL Magellan Midstream Partners has announced plans to build a new high-capacity marine terminal to handle refined petroleum products on a newly acquired tract of nearly 200 acres along the Houston Ship Channel.

The company plans to build a facility to handle approximately one million barrels of refined products and ethanol storage and a new marine dock capable of handling Panamax-sized ships or barges with up to a 40-foot draft.

The estimated cost of the project is $335 million. Magellan expects the terminal to be operational in early 2019.

NEW SEAFARERS’ CENTER PEDESTRIAN BRIDGE PLANNED FOR TURNING BASIN Port Houston’s Project and Construction Management team is gearing up to design and build a pedestrian bridge from the Executive Office Building parking lot to the anticipated new Seafarer’s Center, which will be opening for business in January 2017. The Center, which is home to many mariners between voyages, will host various events for the maritime community.

“The center of the proposed building will have a new restaurant, and we need a dedicated pathway for employees and guests,” noted Roger Hoh, Director of Project and Construction Management.

Plans include a short jogging trail, wheel chair ramps and more parking.

Summer Intern and University of Houston civil engineering student Mah-rukh Muhammad, gave a presentation on the bridge to port staff, which concluded that there were several proposed routes in the beginning of the planning process, and research was done to determine the best type of materials and foundation to use for the project.

Evaluations confirmed that a 28 ft. foot aluminum structure, which included the foundation, was the recommended option.

The project is expected to begin in January 2017.

Magellan also is building a 36-inch pipeline between the partnership’s existing Galena Park terminal and the new Pasadena terminal to enhance connectivity and distribution options for both facilities. Additionally, Magellan is connecting its existing 18-inch Texas City-to-Pasadena pipeline to the new facility.

Magellan said it also will be developing opportunities for additional connections to third-party refineries, pipelines and terminals within the Gulf Coast region.

“Demand for refined products export capabilities from the Gulf Coast continues to grow, and Magellan is well-positioned to take advantage of these opportunities due to our extensive pipeline and terminals network,” Michael Mears, chief executive officer, said in a prepared statement.

“We are pleased to expand our marine storage capabilities to meet the strong industry demand for both domestic and international exports while solidifying our strategic position as a key provider of storage and transportation services in the Gulf Coast region.”

If warranted by additional demand, the new Pasadena facility could be expanded to include up to 10 million barrels of storage and up to five docks, including the potential for Aframax-sized vessels with a draft up to 45 feet.

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SMALL BUSINESS PROGRAM HOSTS INDUSTRY FORUM Every quarter, the Port Houston Small Business and Education Outreach department organizes industry forums. On July 27, representatives from McCarthy Building Companies, Inc., a heavy marine and civil construction contractor, came to the Port to speak to small businesses in the Houston region about how to do business with their organization. More than 50 small business representatives participated.

Photo courtesy of Henry De La Garza- Houston Pilots PIO

LOCAL NAVIGATION EXPERTS OFFER THIRD BROWN-BLUE WATER COORDINATION COURSE The third brown-blue water coordination class was held August 15-16 at the Houston Pilots office in Deer Park. A total of 50 participants attended the event, which was put together under the leadership of George Burkley of the Maritime Pilots Institute and David Foret, President of the ACTion Group Companies.

Attendees learned about the port’s small business program enrollment process, implementation for major projects, procurement methods and training opportunities, as well as what a prime contractor looks for when hiring subcontractors, including expectations for safety, bonding, insurance and responsiveness.

“These forum events are designed for small businesses to meet other contractors outside of the port and expand their networks. Each forum opens the door for connections. Some of these companies just need the right resources,” said Small Business Coordinator Priscilla Burroughs.

It all started from a ship and tow incident where the Pilot Board Recommendation Committee (PBRC) recommended that the Houston Pilots create a training course to enhance communication between barges and tow waterway operators, pilots and the U.S. Coast Guard.

Topics discussed were tow ship interaction, waterways management, inland radar plotting, risk of collision and ship handling characteristics. Attendees included various stakeholders in the Houston maritime community, and the event is supported by the Lone Star Harbor Safety Committee.

The event became a success almost immediately after it was created. For example, the day after the first course was held in 2015, the vice president of the Houston Pilots, Sean Arbogast, was able to avoid a potential incident on the channel from what he had learned from the workshop.

Foret noted there is more than 1,000 years of experience in the classroom. “The valuable knowledge of the class came from the participants,” Foret said. “It gives you a snapshot lens of the traffic and situations on the waterway through the eyes of the industry.”

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In addition to the industry forums, the port ’s Small Business team actively partners and sponsors a number of outreach workshops, expos and oneon-one development sessions throughout the year.

The semi-annual Port University course, a staffdriven initiative to help promote Port Houston’s Small Business Program and provide insight into the procurement process of the Port.

McCarthy, which recently constructed some of the wharves at Barbours Cut, currently has three projects at the Port of Houston. “These projects require the help and support from the people in this room,” said Fitz O’Donnell, Project Director for McCarthy. Every McCarthy hard bid project (CSB) pursued at the Port meets the mandatory 15 percent small business, O’Donnell noted. “We are always looking for good people to work with,” he said.

Lone Star Harbor Safety Committee

WELCOMES NEW

CAPTAIN OF THE PORT PETER MARTIN

Photo courtesy of U.S. Coast Guard - Sector Houston/Galveston

The Lone Star Harbor Safety Committee (LSHSC), formerly known as HOGANSAC, met August 5 under the leadership of LSHSC Vice Chair, Capt. George Pontikos, in partnership with the U.S. Coast Guard Captain of the Port and Sector Houston-Galveston Commander, Peter F. Martin.

Capt. Martin, who succeeded Capt. Brian Penoyer during a change of command ceremony in June 2016, previously served as the Coast Guard’s Chief of Search and Rescue.

The Lone Star Harbor Safety Committee provides a public forum to address Marine Transportation System (MTS) issues. There is particular emphasis on navigation safety-related matters involving the ports of Houston, Galveston, Texas City and Freeport, including the associated waterways of the Gulf Intracoastal Waterway and offshore lightering zones.

THE MANIFEST

As recognized by the U. S. Coast Guard and the Department of Homeland Security, harbor safety committees have been identified as a key to safe, efficient and environmentally sound operations.

The Lone Star Harbor Safety Committee has several subcommittees and working groups, including Maritime Education and Outreach, Navigation Operations, Dredging and Marine Construction, Waterways Utilization and Safe Refuge Coordination.

“Our regional ports and waterways are tremendously important to both the local and national economies,” Martin said. ““The Houston Ship Channel alone accommodates nearly 280,000 transits annually of all types of commercial vessels. Increasing port congestion, frequent low visibility and persistent shoaling in critical navigation channels affirms that the work of the Lone Star Harbor Safety Committee is more relevant now than ever before.”

THE MANIFEST spotlights news briefs exclusively from Port Houston, 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. Publication is not guaranteed and the magazine staff reserves the right to edit submissions for content and style.

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BUILDING A A NEW ERA AT THE PORT The challenge was daunting. How do you capture the very essence of the biggest port in Texas, the most successful port on the U.S. Gulf of Mexico, which also is largely considered one of the most prominent ports in the entire world?

The answer? Devise a branding campaign with a logo that on one hand highlights the famed Lone Star State, while on the other features a simple yet bold and modern maritime theme. Then couple that with a memorable slogan that promises to stand the test of time.

That’s how “Port Houston: The International Port of Texas” came into being.

REACHING INTERNATIONAL WATERS And international it is, with the port leading the nation in exports and helping catapult the state of Texas to number one in the country in exports for thirteen years running.

While a recent survey done in Houston and Harris County showed the Port of Houston is viewed quite favorably by the community area citizens, particularly when it comes to being a significant job creator, the results also showed that many people were unsure what the port does and how.

That’s where a strong brand can help tremendously, experts say, because it can educate and elevate the identity of a company or entity. That’s also what Executive Director Roger Guenther told employees when the groundwork began being laid earlier this year for development of the new brand.

Guenther kept employees apprised of the work as it progressed, and the brand was set to be officially unveiled September 15.

message -- something memorable that would connect the outside world to the port.

So after a competitive bidding process, John Manlove Marketing and Communications, a creative marketing and advertising agency, was chosen to work on the branding.

Already knowledgeable about the Houston Ship Channel community, the firm worked under the guidance of Director of Marketing and External Communications Stan Swigart to convince the port’s executive leadership team this process would be special not just for them, but for all Port Authority staff.

One of the four major goals identified in this strategic planning process was to grow and diversify the business base by developing a strong brand identity and a proactive market development plan. With the post-100 year legacy of the port, there was an opportunity for the institution to officially tell its story.

DEVELOPING THE BRAND It all started in early 2014, when the port initiated a renewed emphasis on strategic planning aimed at defining its goals, mission, and vision for the future. The port is a unique organization in itself wearing two major hats with distinct responsibilities: one being the government entity that sponsors the Houston Ship Channel and governs the waterway; the other the commercial side that facilitates commerce and trade, the business end of the Port Authority.

This branding project would mix the two as one to showcase the port.

LAUNCHING THE PHA BRAND RIGHT The effort could be one of the organization’s biggest challenge ever. This wasn’t about just producing a new logo to support trade development campaigns or promotions, it was about developing an identity with a personality and

BRAND RESEARCH SPEAKS FOR ITSELF Preparations went on for months.

Research was conducted to find out how the community, employees and customers associated with the Port. The results showed that the public viewed the Port Authority positively, but just didn’t know exactly what the organization does. This was an opportunity to fill in that empty connection and build awareness.

The branding team knew the game plan, but needed one more thing to pull the project off: employees. The port’s strategic goals include people and organization, and what better way to get employees involved?

Cross-functional teams were developed for tasks related to the brand rollout, including, media relations, logistics, internal and external signage, technical matters and most importantly, the big organization-wide brand reveal event to the employees. While these members of the branding team had been working diligently behind the scenes, they soon became brand ambassadors.

“Being chosen to be a part of the new brand rollout is a once-in-a-career opportunity. Rolling out the new brand to port employees first and generating the excitement for our organization now and for future generations

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is being a part of history in the making. Engineers like me usually don’t get the chance to work directly with the marketing side of the business,” said Project Manager Brenda Trevino.

Trevino helped lead the brand rollout technical team, to support any ITrelated needs.

PORT EMPLOYEES CONTRIBUTE TALENTS TO ROLLOUT But that’s not all, since unveiling a new brand is the perfect time to develop a new website. The branding team created another cross-functional group to develop the content and participate as website representatives on behalf of their divisions. The website development process consisted of four stages: audit and organization, structure and layout, content creation and design. The website is scheduled to go live in mid-September.

Finally, the branding team had to decide on a logo, ultimately approved by the Chairman of the Port Commission and executive leadership. The results from the brand research came into play when designing the logo. The colors, fonts and detailed features had to explain the one big question: Who/What is the organization? The marketing team wanted everyone to grasp and understand the brand when they saw it for the first time.

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A NEW BEGINNING, A NEW DAY AT THE PORT Plans called for the executive director to introduce the new brand to employees in the front of the port’s Executive Building on the big day, where the new logo was set to be unveiled. Plans also were in place for hundreds of employees to gather along the first floor of the Executive Office Building, and for the event to be streamed live to the Bayport and Barbours Cut Container Terminals.

The executive director then explained the new brand to employees.

The new brand identity, “Port Houston: The International Port of Texas” was derived from multiple elements throughout the branding process. The colors (red, white, and blue) represent the Texas port and its history. The logo showcases ships, the star of Texas and the area that was essentially dredged to make a massive port and channel that we all know as a significant economic engine today. Houston has been called “the town that built the port that built the city.”

THE BRAND IDENTITY: PORT HOUSTON This brand identity consists of three recognizable traits: the port is competent, practical and sincere. Port Houston’s promise is delivering confidence. The brand position communicates three things, which could be called a triple threat: the largest port on the Gulf Coast, the biggest port in Texas and the only port in Houston. The brand messaging also creates brand extensions that continue the evolution of individuality, characteristics and excellence of the port. The era of Port Houston has only just begun.

BUILDING A

“Being chosen to be a part of the

new brand rollout is a once-in-acareer opportunity. Rolling out the new brand to port employees first and generating the excitement for our organization now and for future generations is being a part of history in the making...�

Brenda Trevino, Project Manager

Port Houston and the Galveston Bay Foundation (GBF) recently partnered to restore vital oyster reef habitat in part the bay. This volunteer event was held on July 16 at the Sweetwater Preserve on Galveston Island, and assisted with the construction of new reef along 2,000 feet of shoreline. The Sweetwater Lake Oyster Bar Breakwater, created during this event, was constructed entirely by Port Authority volunteers.

As part of a continued devotion to be an environmental leader, the “Give Back to the Bay” event was created to engage Port Authority team members in stewardship efforts that benefit Galveston Bay, home to part of the Houston Ship Channel, our region’s largest economic driver.

and grow, newly constructed oyster bar breakwater will promote better water quality in Galveston Bay for years to come and will also provide a habitat for other marine species, such as shrimp, fish and crabs as well as a protected area for marsh restoration.

Port Houston gives back to the bay with Port Houston is proud to show its commitment to the environment and location community through volunteer efforts, said Leslie Herbst, Community Relations and Events Manager. “The Oyster Reef Restoration Project is a fun and educational event for all ages, and provides our Port Authority team members and their families the opportunity to positively impact areas where we all live, work and play,” Herbst said.

More than 40 individuals comprised of port employees, their friends and families worked together to create vital habitat for new oysters.

Attendees bagged over 2.5 tons of shells, and then placed approximately 230 of the bagged shells into the bay, constructing several 25-foot segments of oyster bar breakwater. Along with other previously bagged shells, the Port Houston team deployed, in total, 3.7 tons of shells into the bay.

Oysters act as a natural filtration system in the bay, filtering silt and contaminants from the water. A single oyster can filter up to 50 gallons of water a day. By providing young oysters with a hard surface such as recycled shells on which to settle

“Increasing habitat, improving water quality, and the opportunity for learning more about the ecology of Galveston Bay are just some of the reasons why the port decided to host this event.

It is a great cause,” said Leah Oberlin, Director of Environmental Affairs.

Oyster larvae are free-floating in the water column and require a hard surface on which to attach and begin to develop. While oyster larvae can grow on just about anything, such as piers, rocks and bottles, they prefer to attach to other oyster shells.

By returning the recycled oyster shells to the bay, the baby oysters, also known as spat, have plenty of space to call home.

Hallie Carter, Habitat Restoration Coordinator for the Galveston Bay Foundation said, “As a result of Hurricane Ike, over 50 percent of the oyster reefs in Galveston Bay were destroyed. In order to help restore and enhance the local oyster populations, the Galveston Bay Foundation partners with local restaurants to recycle oyster shells and return them to the bay as new oyster habitat. Since 2011, over 530 tons of oyster shells have been recycled

by GFB.”

After the recycled oyster shells are quarantined via a six month “sun curing” process, they can be placed back in Galveston Bay to provide new homes for baby oysters. One of the ways that the Galveston Bay Foundation returns these shells to the bay is through the construction of “oyster bar” breakwaters. The oyster bar breakwater is constructed by placing the recycled oyster shells into mesh bags and then stacking those bags in pyramid shapes in the water.

Because of continued efforts like this, Port Houston was selected to be the government recipient of the Galveston Bay Foundation’s “2016 Guardian of the Bay” award. This award is given to organizations, entities and individuals that are committed to protecting the bay. The luncheon honoring the Port Authority will be held Sept. 27 at the Hilton Americas hotel in Downtown Houston.

Oyster Reef Restoration Project

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First Vessel arrives at ENTERPRISE’S Ethane Export Facility

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Enterprise Products Partners has completed construction of the world’s largest ethane export terminal at its Morgan’s Point facility on the Houston Ship Channel. The first vessel, M/V JS INEOS INTREPID, arrived August 18 at the terminal, which is Enterprise’s first Port Houston ship dock, and loaded 275,000 barrels of ethane, bound for INEOS’s facilities in Europe.

The vessel was guided into the Houston Ship Channel by Houston Pilots Presiding Officer Robert Shearon. A Navy veteran and ship master, Shearon took the opportunity to make history when he volunteered to bring in the anticipated vessel. “I personally wanted to do it,” Shearon said. “It’s not every day that a facility of this capacity joins our waterway. We are fortunate to have these export operations here in Houston.”

Ultimately, the export terminal will have the capability to load fully refrigerated ethane at rates up to 10,000 barrels per hour utilizing two docks and an 18-mile, 24-inch diameter pipeline that provides supply from Enterprise’s Mont Belvieu salt dome storage complex. The terminal is expected to operate at approximately 200,000 barrels per day and has approximately 90 percent of the operating capacity committed under long-term contracts.

“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, CEO of 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.”

Partners in June of 2014. The second berth at the terminal will be coming on line later this year. The 30-year agreement is a significant transaction for the Port Authority that will enhance the value of the existing lease with Enterprise.

“The energy renaissance in the state of Texas is further illustrated with the arrival of the first Ethane ship to Enterprise Products at its new Port Houston facility,” Port Commission Chairman Janiece Longoria said. “As the port continues to generate jobs and economic impact for the entire region, we are excited to share this historical event with Enterprise. Our long-term lease with Enterprise underscores our mission and vision to ‘grow and diversify the business base’ and ‘sustain the business for the long term.”

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a major North American provider of midstream energy services. The company acquired several Oiltanking terminal properties along the Gulf Coast in 2015.

Port Houston, which is host to the largest petrochemical manufacturing complex in the U.S., leads the nation in exports. With shale drilling in demand and oil ban lifted, Enterprise Products will soon have the largest export facility in the country.

The Port of Houston Authority leased the waterside portion of this property to Enterprise Products

Photo Courtesy of Henry De La Garza- Houston Pilots PIO

THE TRADITION CONTINUES:

PORT HOUSTON TO HOST BREAKBULK AMERICAS The 27th annual convention is expected to draw a wide variety of cargo project specialists, freight forwarders, shippers and logistics providers, taking advantage of the forum to learn, build and explore opportunities of the trade.

The programming is put together by Breakbulk Events and Media, which is known worldwide for its events and publications. The goal of the convention is to connect logisticians with project cargo owners, EPCs and others in the supply chain. Global firms, ports and local companies attend while selected speakers address important regional topics, issues and their effects on the region. Breakbulk Americas is just one of the six global events produced throughout the year.

Executive Director Roger Guenther will be giving the opening remarks on Tuesday, September 27 on behalf of Port Houston. Chairman Janiece Longoria is also scheduled to address the convention.

“The timing of Breakbulk could not be better with Port Houston as the host sponsor and the recent launch of our new brand,” said Ricky Kunz, Chief Commercial Officer. “This is our time to show our customers what our new brand identity is all about. It is important that they know and see it. We are Port Houston.” The port scheduled the brand launch for later in the year because of the depth and exposure of the conference, noted Kunz.

Breakbulk Americas, the biggest convention of its kind in North America, is set to take place September 26-29 at the George R. Brown Convention Center. Houston, the largest breakbulk gateway in the U.S., has been home for the event the past several years, although the conference initially was held only in New Orleans.

Workshops and sessions scheduled for this year’s event include project freight management, heavy lift for ocean transport, industry economic challenges, import and export banking for capital projects, wind and steel cargo management, project oversight, global freight outlook and cargo risk assessment. Notable speakers include representatives from BBC Chartering, Drewry Shipping Consultants, WoodGroup Mustang, Norton Rose Fulbright and Bechtel Global Logistics.

“Breakbulk Americas is unique in the fact that that there are so many different things going on in one place.” said Ricardo Arias, Trade Development Manager for Port Houston. “This is not your typical trade event- there are hundreds of exhibitors. From golf tournaments and the BUSINESSrun to Jerry Nagel Education Day, the event has something to offer for everyone, both professionally and socially. Our team looks forward to it every year.”

Last year, Breakbulk Americas brought 5,000 industry delegates to the City of Houston. The conference has an estimated economic impact of $3.6 million to the greater Houston region, taking into consideration revenues driven by hotel accommodations, transportation and restaurant services throughout the event. In its fifth year as host port, Port Houston is sponsoring the evening welcome reception on Tuesday, September 27. The tradition of Breakbulk Americas will continue to grow with the recent Panama Canal expansion attracting more imported goods to the U.S while Houston remains significant to commerce.

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Taking Houston to New Heights:

PORT’S FTZ AND ECONOMIC DEVELOPMENT PROGRAM GROWING

Shane Williams, Port Houston FTZ Program Manager

The annual Foreign Trade Zone (FTZ) Conference organized by the Port of Houston Authority was held August 25 in Houston. This workshop educated industry about the benefits of the FTZ program.

Speakers at the 2016 FTZ conference included representatives from the U.S. Foreign Trade Zones Board, Ernest and Young Global Trade, IMS Worldwide and Mitsubishi Caterpillar Forklift America.

The Port of Houston Authority manages Foreign Trade Zone #84. Today, the Port of Houston is home to a wide variety of FTZ sites, including many facilities beyond the waterfront as well as private terminals, warehouses and factories such as Manchester Terminal, Enterprise Products and Kinder Morgan.

A Foreign Trade Zone site can be a very beneficial tool for a company involved in foreign trade. It is a designated area in which foreign and domestic merchandise is generally considered by the U.S.

Economic development has been a primary focus of Port Houston in recent years, and steady strides are being made as efforts are expanded, including those involving Foreign Trade Zone #84. government as being outside U.S. Customs territory. Merchandise may be brought into an FTZ without a formal customs entry, import quotas and most other import restrictions. Duties and excise taxes are not assessed until the merchandise enters U.S. commerce. Customs duties on imported goods entering the FTZ can be delayed until the cargo is removed from the zone. No duty is paid if the merchandise is exported directly from the zone.

“Over the past year, the FTZ program has grown allowing us to work with many new companies,” said Shane Williams, FTZ Program and Economic Development Manager at the port. “We now have over 25 organizations involved and have seen a major increase in manufacturing and created good paying jobs in America. The FTZ conference is a testimony to that. It is a great investment from a trade perspective.” “There have also been efforts at the port to provide educational training and tours to businesses looking to do trade in this region; they see the port as an asset, but they are not sure how to get started or begin the process, Williams added.

“We are the shining star of the export world and this kind of outreach will bring more businesses to Houston. Many companies are catching onto the FTZ bandwagon. They want to move where the best exporting is and are looking to relocate here, which is a great thing for the city and economy.”

The port’s new Economic Development department has also been working with local economic development groups including Economic Alliance Houston Port Region, Greater Houston Partnership, Bay Area Economic Partnership and many other organizations in surrounding cities and municipalities. Key activities have included educating local partners about FTZ, roundtable discussions, site selector events and the development of a task force to discuss plastics converters, firms that make finished goods from raw plastics resins.

Houston is experiencing a renewed wave of interest from the national logistics community as a location for new import and export-oriented distribution centers to complement our existing distribution center for retailers such as Walmart, Rooms-to-Go and Home Depot. The Port Authority’s Economic Development is working with local economic development partners to help the region capture these leads.

It is an exciting time for the Houston Port Region, said Chad Burke, president of the Economic Alliance Houston Port Region, which tracks a number of ongoing construction projects.

“The home to the nation’s largest petrochemical complex with over 150 plants has seen in excess of $40 billion in announced capital projects over the last four years, and we continue to see strong growth prospects in the projects we are tracking,” Burke said. “That construction means more jobs to support the construction, maintenance and operation of those facilities, as well as expected growth in all the companies that provide services to the petrochemical industry.

“We are well positioned as a region to attract the global production of chemical products made from the feedstock of natural gas. The port and its partners are working hard to capitalize on our assets, history and infrastructure to continue to capture that investment from around the world,” Burke added.

Port Houston was the presenting sponsor of Economic Alliance Houston Port Region’s Gulf Coast Industry Forum held in August.

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Perishables Roundtable

AT PORT DRAWS CROWD “It was very helpful,” said Van Etten, who handles business development in the Gulf region for NDS. The group was welcomed by Chief Commercial Officer Ricky Kunz, who said he was thrilled at the turnout and the interest being shown in the movement of perishable goods.

“ This is an important area of international trade that we intend to continue to build on moving forward,” Ricky Kunz Chief Commercial Officer Ricky Kunz welcomed attendees to the port’s first Perishables Roundtable workshop Sept. 7 With demand for refrigerated cargo facilities increasing throughout the United States, a firstever “Perishables Roundtable” workshop was held at the port in early September. The goal of the open forum was to improve communication between all stakeholders within the port’s perishables community, and the event drew significant interest.

“Houston is the perfect place for transporting perishables,” said John Moseley, Director of Trade Development for Port Houston. “We want to better serve our customers by identifying opportunities to improve and implement actionable solutions that improve the process between all parties involved.”

Participants at the forum at the included buyers and sellers, importers and exporters, retailers, brokers, cold storage warehouses, ocean carriers, truckers and the public agencies involved in the trade.

During the program, Moseley discussed the perishables market in Houston and beyond. Texas State Plant Health Director Stuart Kuehn discussed Houston and the cold treatment program that is in place, while Customs and Border Protection Area

Deputy Port Director Leslie

Luczkowski addressed the group regarding the perishables

inspection process.

Attendees like Peter Van Etten of National Drayage Services indicated they found the workshop useful.

The Houston area currently has several reefer facilities and will be adding more in the next few months.

Typical perishable items moving through the Port of Houston’s terminals include fresh fruits, vegetables, pharmaceuticals, prepared foods and meats.

The Port is currently working with AGRO Merchants Group, a cold supply chain provider, to develop a new refrigerated storage facility at the Bayport Container Terminal. Upon its completion, the new cargo facility at the Port Authority will add significantly to the state-of-the-art infrastructure that’s already in place at Bayport, which opened in 2007 and is one of the newest container facilities on the Gulf Coast.

Many container carriers are focusing on reeferintensive services to compete with specialized reefer services, according to Drewry’s Reefer Shipping Market annual Review & Forecast, which was released last year.

The Port of Houston Authority has two container terminals – Bayport and Barbours Cut -- and already handles about two-thirds of all containers that move through the U.S. Gulf of Mexico. A massive modernization effort is transforming Barbours Cut, which opened in 1977, while the newer Bayport facility continues to be built out. The temperaturecontrolled facility is the latest development there.

Negotiations between the Port Authority and AGRO regarding construction and operation of the refrigerated cargo center had been under way for some time. Plans call for the facility to open in 2017.

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CROUCH ENVIRONMENTAL: CONSULTING HOUSTON’S PORT COMMUNITY In 1994, Kay and Greg Crouch were tired of the corporate world and their day-to-day routines.

The environmental industry veterans were ready for a change. Entrepreneurship was the obvious answer, and they had the expertise to form the little company that could. That’s when they founded Crouch Environmental, a leading Houstonbased environmental consulting and public communications firm. Years later, that team of two grew to a staff of twelve.

Kay Crouch, Board Chair of Crouch Environmental, had tenure at the Texas Water Commission (now the TCEQ) as a regulator for hazardous and solid waste, which led to her successful environmental permitting career, including serving as an Independent External Review Peer (IEPR) board member for large-scale U.S. Army Corps of Engineers projects nationwide. Greg Crouch, Board Vice Chair, developed his consulting career, knowledge and background by working on large pipeline and engineering projects for top oil and gas corporations such as Halliburton NUS. One of their most notable projects was the Texas Parks and Wildlife (TPWD) Battleship TEXAS Dry Berth Project from 2011 to 2014, which entailed the relocation of the 100-year-old Battleship Texas from the Houston Ship Channel in LaPorte to a permanent dry-berthed home at the San Jacinto Battleground State Historic Site. The state owns Battleship Texas, and due to the site’s current condition, its age and a legislative mandate, the project required environment assessment and strategic communications.

Today, Crouch provides its services to federal and state agencies, local municipalities and private enterprises - including Port Houston. With a deep understanding of environmental permitting and regulatory matters, the Crouch Environmental team serves on a variety of projects with the U.S. Army Corps of Engineers, Texas General Land Office, Harris County Engineering and the Texas Department of Transportation, among others. These projects range from wetland delineation and mitigation to land development and public outreach services.

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Due to the nature of environmental consulting, Crouch’s environmental services tie in seamlessly with their community engagement, outreach and public involvement efforts, including NEPAcompliant public meetings and hearings, graphic design, print production, web development and video productions. This branch of the business developed over fifteen years ago when Kay and Greg Crouch realized there was a demand for public information and participation when delivering technical, engineering projects. This idea – to provide public communications services – led to the creation of an award-winning team of consultants who specialize in communicating about projects with significant regional benefits or impacts.

SPOTLIGHT ON SMALL BUSINESS

Currently, Crouch Environmental is assisting with Port Houston’s Community Engagement Plan and cross-functional team. The plan provides the framework for the port to engage and support local communities.

Crouch also worked on the port’s Bayport Container Terminal Environmental Impact Statement before the facility opened in 2007.

“We are fortunate to work with organizations like Port Houston. Our job as consultants is to help drive that the port is not only a good environmental steward, but also our lifeline here in Houston.

The significance of our port and the steadfast environmental responsibility that the port takes for the Houston Ship Channel cannot be understated.

I am so happy to help advise and create that message,” said Leslie Hollaway, President of Crouch Environmental.

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