NAVIGATOR
SPRING 2017
FOCUS ON INFRASTRUCTURE AT P O RT H O U S T O N T E R M I N A L S
A COOL MOVE
IGLOO MAKES A CHANGE IN CARGO STRATEGY
NEW AUTOMOTIVE TERMINAL ACTIVE AT BAYPORT
Port Security and Emergency Management Teams Moving Ahead
MOBILE COMMAND CENTER ROLLS INTO PORT HOUSTON
ALSO: BAYPORT TURNS 10 CHAIRMAN LONGORIA APPOINTED TO THIRD TERM RESINS DRAW CROWD COUNTY COMMISIONER RODNEY ELLIS VISITS THE PORT
NAVIGATOR 4.17 IN THIS ISSUE
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A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER
THE MANIFEST PORT HOUSTON’S NEWS HIGHLIGHTS
IGLOO CHANGE IN IMPORT CARGO STRATEGY A COOL MOVE
NEW AUTOMOTIVE TERMINAL ACTIVE AT BAYPORT PORT SECURITY AND EMERGENCY TEAMS MOVING AHEAD WITH NEW TECHNOLOGY AND RESOURCES
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BAYPORT CONTAINER TERMINAL 10 YEARS STRONG
READY FOR RESINS: PORT HOUSTON HOSTS SYNTHETIC RESIN SYMPOSIUM
DID YOU KNOW? INTERESTING FACTS ABOUT PORT HOUSTON
LONGORIA REAPPOINTED AS PORT COMMISSION CHAIRMAN
SPOTLIGHT ON SMALL BUSINESS HOSPITALITY CLEANING SOLUTIONS
FEATURE STORY: KEEN FOCUS ON INFRASTRUCTURE AT HOUSTON TERMINALS
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
Chief Audit Officer MAXINE BUCKLES
Chief HSSE Officer MARCUS WOODRING
Chief People Officer JESSICA SHAVER
Chief Information Officer CHARLES THOMPSON
Harris County Auditor BARBARA J. SCHOTT
DEAN E. CORGEY Commissioner
Harris County Treasurer ORLANDO SANCHEZ
FIELD OFFICES
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.
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
STEPHEN H. DONCARLOS Commissioner
ROY D. MEASE Commissioner
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For advertising opportunities contact Bill Hensel at 713-670-2893
Visit Port Houston online at www.PortHouston.com
PortHouston.com • 713-670-2400
“We are committed across the organization and stay focused on our goals of People, Growth, Infrastructure and Stewardship.”
ROGER THAT
A MESSAGE FROM EXECUTIVE DIRECTOR
As 2017 is well underway at a furious pace, we are thrilled about what is in store for the upcoming year. The opportunities just get better, yet the challenges will undoubtedly be greater. We will strategically approach them for continued success. The most exciting thing about this is that we have awesome Port Houston people who look forward to that challenge, and are READY and committed to work with our stakeholders to keep our port and our busy waterway in position to grow and prosper. But I will first take a moment to reflect on a few of the accomplishments and financial results from 2016, which was another amazing year. I am proud of all that our staff was able to achieve, working with our partners and stakeholders, and under the leadership of our Commission.
ROGER GUENTHER
In 2016, 34.8 million tons of cargo was handled through the port facilities that we operate and lease. Container activity continued to climb steadily (up 2 percent versus 2015), and bulk cargo showed healthy gains, while steel imports were down as expected for the year due to the soft breakbulk and energy market that was encountered across the nation. Total revenue for the year was $289 million, only off by 1 percent from the record year in 2015. And through close monitoring of spending, we were able to generate net cash flow of $120 million for 2016, just 6 percent below the prior year. We will continue to reinvest cash generated from operations into our ongoing infrastructure necessary to support the growth and efficiency of our port. These are solid results in spite of the impact of a softer breakbulk market across the nation due to a soft energy market, particularly as it relates to the amount of drilling in our region.
These solid results, which are in line with our original budget, are a credit to the leadership of the Port Commission and the dedication of our staff and all of our partners to remain successful and competitive for the economic well-being of our region. Our staff remains steadfast in the priorities of our Strategic Plan. Although too numerous to name all of our achievements, some include: PEOPLE • Completion of Internal Communications and Employee Engagement surveys -- with a more than 50 percent participation rate • Leadership Development training for the Senior Management team
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• Huddling up with employees and leadership in 24 different events, with plans to continue GROWTH • Our operations team, including the outstanding labor we hire every day, supported the growth in containers seamlessly while handling more than 30,000 trucks per week on average, and maintain ing our ship-to-shore cranes that operated more than 39,000 hours at a reliability of more than 99 percent • Even with continued demand, our vessel productivity and truck turnaround times at our terminals remained at the highest of industry standards INFRASTRUCTURE • At Bayport, we started construction of Wharf 2, completed Yard 6, added berms and Freight Station Road • At the Turning Basin, we updated multiple structures and initiated a comprehensive facilities inspection and condition assessment program • Our ship channel efforts continue to work in cooperation with the US Army Corps of Engineers; we launched the Ship Channel mega-study and completed all new construction on our way to 45 foot depth • Our contract for deepening and widening Barbours Cut and Bayport channels is essentially complete and we look forward to completion of the Bayport flare project by the corps later this year STEWARDSHIP • We maintained our role as an environmental leader, being recertified under the ISO 14001 program • Recipient of the 2016 Guardian of the Bay award • Our Maritime program continues to thrive as we now have more than 1,200 students participating in programs in five local high schools. And 12 students received $1000 scholarships from the Partners in Maritime Education Program. • Our outstanding community engagement last year included the Park to Port Bike Ride; Oyster Reef Restoration; Adopt a Beach; Operation Turkey; and many other volunteer efforts and outreach to the community. That included numerous opportunities for me to address various city councils along the channel and update them on our activities. This year promises to be an amazing year. As you know, we have been planning for several years for this new wave of plastics to be exported around the world that should begin to ramp up during the latter part of this year. Additionally, we will continue to focus on and invest in the growth of our employees through performance and recognition and leadership development programs.
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THE MANIFEST PORT HOUSTON NEWS AND HIGHLIGHTS
Clyde Fitzgerald
Roy D. Mease
Dean E. Corgey
PORT COMMISSIONERS REAPPOINTED TO PORT COMMISSION Clyde Fitzgerald, Roy D. Mease and Dean E. Corgey have been reappointed to the Port Commission. Fitzgerald was reappointed by the Harris County Commissioners Court Dec. 20, 2016. He serves on the port’s Audit committee and chairs the Pension and Benefits Committee. He is a veteran of the Port of Houston and the International Longshoremen’s Association (ILA), and is a member of the ILA’s Executive Council. Mease was reappointed to the Port Commission Jan. 17, 2017, by the Pasadena City Council. An active member of the community, Mease serves on the port’s Procurement and Small Business Task Force.
He is chairman of the Pasadena Second Century Corporation, which is the city’s economic development entity and helped Pasadena earn the annual Community Economic Development Award for 2013, awarded by the Texas Economic Development Council (TEDC). Corgey was reappointed by the Houston City Council Jan. 25, 2017, and serves on the port’s Pension and Benefits Committee. He has been vice president of the Seafarers International Union (SIU), and has been responsible for the Gulf Coast region since 1990. He supervises SIU activities ranging from Charleston, South Carolina, to Brownsville, Texas. Port Commissioners serve two-year terms without pay.
PORT CHAIRMAN JANIECE LONGORIA SELECTED AS 2017 MARITIME PERSON OF THE YEAR The Greater Houston Port Bureau recently announced that Janiece Longoria, Chairman of the Port Commission, has been named the 2017 Maritime Person of the Year. She will be recognized at the Port Bureau’s annual maritime dinner August 19, 2017. “We are excited to honor Chairman Janiece Longoria as our 2017 Maritime Person of the Year,” said Capt. Bill Diehl, President of the Greater Houston Port Bureau. “Chairman Longoria’s leadership has been instrumental in advancing our competitiveness as a port region.” The Port Bureau’s annual maritime dinner attracts more than 700 leaders from the maritime, energy, petrochemical and transportation industries. Attendees represent every
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major terminal along the Houston Ship Channel, as well as shippers, carriers, pilots, tugs and other critical parts of the maritime supply chain. Longoria will be the third Port Commission chairman honored with this award, following Ned Holmes in 2014 and Jim Edmonds in 2006. Past honorees have also included Patrick J. Studdert of Buffalo Marine Service, Inc., ExxonMobil and County Judge Ed Emmett of Harris County. “I am honored to have been selected by the Greater Houston Port Bureau as the Maritime Person of the Year for 2017,” said Longoria. “I consider it the highest distinction for maritime industry service.”
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program to help provide jobs for graduating students. The Port of Houston generates 1.2 million indirect jobs that are along the Houston Ship Channel,” added Ramirez. Port Houston invests in maritime education to prepare the next generation for the growing opportunities in the industry. In 2016, 12 students received $1,000 scholarships from the Port of Houston Partners in Maritime Education Program. More than 1,200 students participate in the program through six local Houston area high schools.
PARTNERS IN MARITIME EDUCATION PROGRAM RAISES COMMUNITY AWARENESS
NEW HARRIS COUNTY COMMISSIONER RODNEY ELLIS TOURS PORT Commissioner Rodney Ellis visited the Port of Houston Feb. 23 for a briefing and tour. Ellis recently joined the Harris County Commissioners Court as commissioner for Precinct One after having served the Houston area for 25 years in the Texas Senate.
The Port of Houston Partners in Maritime Education Program is starting off 2017 with various outreach programs to engage the community about maritime education initiatives. Port Houston staff and leadership participated at the “Maritime and Logistics Partners Symposium” at the Houston Pilots’ offices in Deer Park Feb. 7. The event provided organizations exposure to the maritime initiatives available for preparing for the next generation of leaders through the Port of Houston Partners in Maritime Education Program. Community partners, industry representatives, high schools and colleges shared their workforce needs, required educational training and career opportunities. Port Commissioner Dean Corgey, who is also vice president of the Seafarers International Union for the Gulf Coast, highlighted the importance of replenishing the industry’s ranks with internship and apprenticeship programs to prepare for the next surge in maritime employment demand. Port Houston also partnered with various chamber of commerce organizations for the annual maritime educators’ boat tour aboard the M/V Sam Houston Feb. 23. “This is a great networking opportunity for our partners, and what better way for our guests to experience them at the port than by a waterfront tour. It gives you a different perspective of industry,” said Gilda Ramirez, senior director of small business and education outreach. The port’s Maritime Education department also participated at the Houston Hispanic Forum’s Career and Education Day Feb. 18 at the George R. Brown Convention Center. “We want to further encourage industry to get involved with the Port of Houston Partners in Maritime Education
Port Chairman Janiece Longoria and Port Commissioner Clyde Fitzgerald welcomed Commissioner Ellis and his staff and provided an overview of the port with Executive Director Roger Guenther.
PORT HOUSTON PARTICIPATES AT TEXAS PORTS ASSOCIATION RECEPTION Port Houston Executive Director Roger Guenther presided over the Texas Ports Association (TPA) reception in Austin as president of the organization Feb. 22. The event provided Texas ports the opportunity to meet with legislators and discuss state policy and funding matters ranging from freight mobility and infrastructure to environment and security. During the event, TPA honored Lt. Governor Dan Patrick, Chairman Brandon Creighton and the other members of the Texas Senate Select Committee on Ports with their “Port People of the Year” award. The Texas Ports Association is an industry organization whose mission is to advance the development of Texas ports and strengthen the economy of the State of Texas. “With the expanded Panama Canal, the domestic production of energy and booming petrochemical manufacturing, commerce at Texas ports is growing and there are greater opportunities to connect our state to the global marketplace,” Guenther said. Texas port activities represent a significant amount of the total State Gross Domestic Product (GDP).
Port Houston Director of Channel Development Mark Vincent gave a presentation about the Houston Ship Channel, while Chief Commercial Officer Ricky Kunz discussed trade development. Senior Director of
Small Business and Education Outreach Gilda Ramirez highlighted the port’s maritime education efforts. The delegation was given a tour of the Bayport Container Terminal before boarding a Port of Houston fireboat for a tour along the ship channel led by Chief HSSE Officer Marcus Woodring. Both tours provided the commissioner and his staff a perspective on the volume of commerce at the port, its impact on the economic health of the region and the diversity of the stakeholders that contribute to the port’s operations. “Charting new waters today at Port Houston. Seeing the Houston Ship Channel from a different vantage point,” said the commissioner on his official Twitter account.
EMPLOYEES DONATE TO ANNUAL FOOD DRIVE Port Houston recently hosted a three-week food drive benefiting the Houston Food Bank. Port Houston employees donated more than 540 pounds of goods and nearly $600 in monetary donations. These contributions are equivalent to 2,577 pounds of food or 2,147 meals that will help feed families, seniors and individuals throughout Southeast Texas.
“We are proud to support the Houston Food Bank and its mission to lead the fight against hunger,” said Leslie Herbst, community relations manager for Port Houston. “With all of the energy and excitement happening around the Super Bowl game in Houston, we had such an overwhelming response that we extended the food drive an additional week this year.” The Houston Food Bank is a nonprofit organization that provides nutritious meals to the community and is America’s largest food bank, with distribution to a network of 600 hunger relief charities. Those charities cover 18 southeast Texas counties, providing 79 million nutritious meals to food pantries, soup kitchens, senior centers and other agencies. Port Houston staff volunteers with a number of community events and programs throughout the year. “The port is committed to being a responsible neighbor and community member in the region, and maintaining that commitment is an important part of our success as a port,” Herbst said.
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U.S. COAST GUARD RECOGNIZES HOUSTON MARINERS WITH PUBLIC SERVICE AWARD
TRANSPORTATION STALWART STEVE STEWART REMEMBERED The Port Commission recently recognized Steve Stewart, chairman and former president of Gulf Winds International, who passed away in January.
In a special ceremony during the Feb. 10 meeting of the Lone Star Harbor Safety Committee, the Port of Houston Fire Department, two veteran Houston Pilots and two tugboat captains from G&H Towing were presented Meritorious Public Service Awards by the U.S. Coast Guard.
“He was a wonderful human being who worked tirelessly to support industry-wide economic growth and development at the local, state and regional levels,” Chairman Janiece Longoria said at the port’s public meeting Jan. 31.
STATEWIDE AWARD PRESENTED TO PORT HOUSTON EMERGENCY MANAGER Port Houston Emergency Manager Colin Rizzo received the Lou Harrell Emergency Manager of the Year Award at the Emergency Management Association of Texas (ETMA) Symposium in San Marcos March 7. The award recognizes and honors a member whose comprehensive emergency management program epitomizes the best in Texas emergency management practices.
They were lauded for their heroic actions and response to the M/T Aframax River accident and resulting fire in the early morning hours of Sept. 6, 2016, on the Houston Ship Channel. The award is the second-highest recognition presented by the Coast Guard organization.
“We have lost one of our great partners. There is not a person in this room that did not know Steve; we are going to miss him very much,” Longoria added.
Rear Admiral David Callahan, commander of the Eighth Coast Guard District, and Capt. Peter Martin, Sector Houston-Galveston commanding Officer, presented the awards to Houston Pilots Captains Michael McGee and Michael Phillips, tug captains Douglas Scott and William Curry and port fire chiefs Glenn Hood and Kirk Beverung.
After graduating from Lamar University with a Bachelor of Science degree in marketing, Stewart spent the next 23 years in international shipping with responsibility in all areas of transportation and logistics with primary emphasis on commercial development.
During the incident, the tugboat crews helped get the vessel safely back to the dock, while the pilots utilized the extreme maneuver of dropping both anchors during
The criteria for the award includes developing and implementing a highly effective program in the absence of other sophisticated programs and agency support, applying innovative ideas or creative techniques to enhance the local emergency management program and managing an extraordinary response effort to a major disaster. Rizzo is the first emergency manager at the port. He has successfully championed communication and information sharing through the use of Public Safety Broadband (FirstNet), extensive mass communication systems and the purchase and implementation of a new Computer Aided Dispatch (CAD) that connects the port to more than 20 regional agencies. “Port Houston is extremely proud of Colin Rizzo and his whole department. He continues to innovate and respond at levels fully deserving of this significant statewide recognition,” said Port Houston Chief HSSE Officer Marcus Woodring. Along with all of these communication projects, Rizzo acquired grant funding to cover 75 percent of the costs for a nearly $1 million regional asset, the port’s new Mobile Command Center and received his Certified Emergency Manager designation. He has responded to countless emergencies, including the high-profile Aframax River Fire on the Houston Ship Channel in September of 2016 and the Apache Helicopter Crash near the port’s Bayport Auto Terminal in December of 2016.
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Credit: Houston Pilots PIO- Henry De La Garza
the fire to prevent hitting another tanker docked at a facility on the channel. The port firefighters arrived at the scene, extinguishing the blaze, which had burned for an hour and a half. The Port Commission also honored the mariners at a public meeting Jan. 31. “This incident is a good example of the coordination of pilots, tugs, fireboats, dock personnel and oil spill responders working together as a team to minimize a serious incident said Port Chairman Janiece Longoria. “Your assistance to the response was invaluable.”
st th & 21st Wednesday & Thursday, September Wednesday & Thursday, September 20th & 2120 Credit: Gulf Winds International
Stewart held senior and executive-level positions with large international transportation companies both in the United States and Europe prior to founding Gulf Winds International. He also served on a number of important maritime industryrelated educational and community boards. Gulf Winds International is full-service third-party logistics company that focuses on warehousing, land transportation, distribution and consolidation, with operations located in the Port of Houston Turning Basin.
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THE MANIFEST 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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And more new cranes are on the way in coming months for both terminals, as the expansion of Bayport and modernization of Barbours Cut continues. Three new super post-Panamax ship-to-shore cranes for Barbours Cut are under construction now and scheduled for delivery in July of this year. And three new cranes for Bayport also are under construction and scheduled to arrive early next year. In a novel twist, one new Bayport crane will be equipped with hardware and software allowing it to be operated remotely. This pilot project will allow staff to assess benefits of remote operation.
A KEEN FOCUS ON INFRASTRUCTURE AT PORT HOUSTON TERMINALS The big ship-to-shore cranes at Port Houston’s Bayport and Barbours Cut container terminals got a workout in 2016, logging more than 39,000 hours. They proved highly capable, with a reliability rate of above 99 percent. It marked the first full year of operation for the four new super post-Panamax cranes at Barbours Cut, which began operating in late 2015.
Projections call for continued growth at the container terminals in 2017, with twenty-foot-equivalent-units (TEUs) expected to increase by 9 percent. Export loads are expected to grow by 13.4 percent and import loads, 6 percent. Empties are projected to be up to nearly 3 percent. The strong growth is – at least in part – tied to a surge in plastic resin exports that is expected to gain strength later this year as expansion projects undertaken by private industry along the Houston Ship Channel come online. An estimated $50 billion in such projects have been launched during the past several years. The plastic resins being produced are a byproduct of the petrochemical process, and a majority of those resins are expected to move across Port Houston’s docks.
TRUCKIN’ Despite the continued demand at the container terminals, Port Houston’s operations team – aided by organized labor -- supported the growth in 2016 and was able to handle an average of more than 30,000 trucks per week. The flurry of activity centered on infrastructure at the container terminals stretches to other terminals, as well. While work on Bayport’s Container Yard 6 North was completed in 2016, and construction of Wharf 2 there began, a variety of structures at the Turning Basin terminal were updated in 2016, and a comprehensive facility condition assessment program was undertaken there. Repairs to Wharf 1 at the Turning Basin are set to begin during the second quarter of this year, while work also is scheduled in other areas of the terminal. Dredging of the channels in front of the container terminals has been essentially completed, while work on the Bayport flare project by the U.S. Army Corps of Engineers is underway and is expected to be completed later this year. Finally, the so-called “mega-study” that is being done jointly between the port and the Corps -- focused on areas of the Houston Ship Channel that could be deepened further -- also has been launched.
WE’VE BEEN WORKING ON THE RAIL, ROAD Expansion also is moving ahead on the rail front. Port Houston Executive Director Roger Guenther noted during a recent Port Commission meeting that negotiations were held with the Texas Department of
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Transportation, Harris County and the railroads to move projects forward at the Broadway DoubleTrack rail line. “Connecting inland is critical,” Guenther said. TXDOT also funded the Peninsula Road project that will address the bottleneck at one of the busiest truck avenues near the port.
HOUSTON IS CENTER FOR BREAKBULK On the breakbulk side, much of Port Houston’s breakbulk activities are driven by import steel. Through the first two months of 2017, it has been flat compared to the same period in 2016, according to Chief Port Operations Officer Jeff Davis. But progress on breakbulk infrastructure continues. During the past two years, Port Houston has completed an 18-acre breakbulk yard, added stern ramp Ro/Ro capabilities to an existing facility, and recently began operations at the Bayport Auto Terminal (see story, page 19). The 18-acre yard was built adjacent to an existing 15-acre yard, because demand was greater than the existing yard was able to handle for project cargo and wind energy. The Ro/Ro ramp was added based on customer demand. The auto terminal, which is located at Bayport, was opened as a result of the existing cruise facility being repurposed for import automobiles. Demand drove the decision for auto processing and distribution facilities. Steel products such as pipe, slabs, and coils will continue to be a staple of Port Houston’s non-containerized cargo, Davis said. Port Houston’s cargo mix also includes wind energy, project cargo, bulk commodities, self-propelled machinery, and cement. Port Houston has enjoyed great success due to its diverse facilities. The terminals are designed to handle a wide range of cargo types and customer needs, from grain to steel to heavy lift project cargoes to wind turbines and blades. The public terminals at the port include ample capacity, with 55 deep-water docks dedicated to general cargo needs as well as tremendous rail and road infrastructure serving hundreds of acres of facilities. For all the terminals that the Port Authority operates or leases, tonnage totaled 34.8 million tons in 2016, 3 percent lower than record-setting 2015. Steel imports were down as expected for the year, but container volume and bulk products increased. Total revenue for the year was $289 million and was only off one percent compared to the year before.
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Before Igloo Products Corp. shifted its cargo from the West Coast to Port Houston, the company thoroughly researched the move. That research delved into a variety of areas, including capacity, cost, potential changes in product lead times and whether services like drayage at the port were sufficiently robust. The Katy-based company -- which specializes in coolers and drink containers -- also reviewed infrastructure and expansion plans that were on the drawing board at Port Houston at the time. That was in 2012. In early 2013, Igloo executives decided that half of all of its import goods would be shifted to move across Houston’s docks. But by late 2013, chatter about longshoreman contract issues on the West Coast was growing louder. So the company decided to perform an updated risk assessment. This time, the decision was made to totally shift away from moving cargo through the Port of Long Beach and instead move virtually all of Igloo’s import containers across the docks in Houston. The switch to all-water service represented a major change for the 1,200-employee company.
“Houston has been offloading in a day,” Poole said. “Overall turnaround has gone down, which is very big for us. That is very important.” The only delays Igloo has suffered recently, which other companies that ship products also have felt, have been tied to the bankruptcy of the big carrier Hanjin and because of the Chinese New Year. The Igloo executive said after shifting its cargo to move through Houston, it became clear that one reason it could realize more efficiencies is because Port Houston has solid employees throughout its organization, from top to bottom. “Houston is a very well-run port,” he said.
IGLOO’S CHANGE IN IMPORT CARGO STRATEGY
A COOL MOVE!
The commitment to expansion that was cited by Igloo at Port Houston is ongoing, resulting in continued economic development to keep the port competitive. In 2016 alone, for example, Port Houston started construction of Wharf 2 and completed Yard 6 at the Bayport container terminal, added berms and Freight Station Road. Additionally, the contract for deepening and widening the channels at the Barbours Cut and Bayport channels was essentially completed in 2016. Additionally, the Port Commission awarded a contract for the design of Container Yard 7 at Bayport March 21.
“We found confidence in the Port of Houston Authority’s ability to handle large container volumes through the port and the Port Authority’s commitment to expansion, as well as the timely availability of containers,” Poole said.
Although it took a few days less to get its import products to the Port of Long Beach, Igloo has discovered it actually saves time and money by shipping through Port Houston because it is more efficient. The company noted that its import products, which previously could remain on a vessel for several days, now are offloaded in a much timelier manner.
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The company sells about 15 million hard-sided coolers a year to mass retail, clubs, specialty sporting goods and marine stores. All of those coolers are made in Katy. Igloo also sells about 6.5 million soft-sided coolers annually to the same retail outlets, and all of those coolers are imported from China. The company also has begun importing its new hydration products, which include durable items made of stainless steel or polypropylene.
PORT HOUSTON’S COMMITMENT TO EXPANSION
But Igloo hasn’t looked back. Today, the veteran provider of coolers – the company was established in 1947 to provide metal water coolers for workers in the Texas oilfields -- is pleased with the change it made to its import strategy. The customer service that it has received from Port Houston has been solid, said Patrick Poole, Senior Director Supply Chain for Igloo.
It was because the company’s imported volumes grew more than 200 percent between 2010 and 2013 that it began eyeing the need for a potential new strategy involving imports, since the process had become riskier. Igloo began developing a much more comprehensive strategy for countries other than China, as well as for inbound freight.
The international designer, manufacturer and marketer of coolers, drink containers and supporting accessories offers more than 500 products sold in more than 100,000 retail stores around the globe.
“We found confidence in the Port of Houston Authority’s ability to handle large container volumes through the port, and the commitment to expansion, as well as the timely availability of containers.”
Patrick Poole Igloo Senior Director Supply Chain
All of those efforts are intertwined, and necessary. Port Houston statistics show container volume increase by 2 percent in 2016 compared to the record year enjoyed in 2015, approaching near 2.2 million twenty-foot-equivalent units. Cargo that was diverted during 2015 was successfully retained, and Port Houston increased its container volume across most of its trade lanes in 2016. Projections call for even more growth at the container terminals in 2017, with container twenty-foot-equivalent units expected to increase by 8.8 percent. Export loads are anticipated to grow by 13.4 percent and import loads, six percent. Empty units are projected to be up by 2.5 percent.
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NEW
AUTOMOTIVE
TERMINAL ACTIVE AT
BAYPORT
Straight from the manufacturer, scores of shiny, newly built vehicles are being processed at a new automotive warehouse at Bayport operated by Auto Warehousing Company (AWC) of Tacoma, Wash. AWC is conducting its business from the repurposed cruise terminal at Bayport. The lease of the automobile terminal at Port Houston allows AWC to discharge new vehicles and perform accessory work for an auto distribution business. The first ship, M/V Grande Sierra Leone, which is operated by a partnership between Grimaldi line and Euro-Mediterranean, arrived Nov. 30.
The automotive warehouse operation represents new business for Port
“Growth in the state of Texas makes Houston a primary market for
Houston, as the port continues to expand. It is also new business for AWC,
automobiles. We wanted to increase our production in Texas to avoid
which came to Texas in search of its own expansion opportunities.
congestion as there is a lack of space on the East Coast.”
AWC’s initial development search started in February of 2016 as part of a
The leadership team that is in place at the new Houston facility is
narrow search for just 10 to 12 acres of property -- and the company now
headed by Fritz Ward, terminal manager, who came from AWC’s Baltimore
has a sprawling 33-acre property instead. A total of 60 additional acres
Transformation Center, and Janet Sams, operations manager, who was
could be developed depending on future cargo volumes. AWC can provide
managing one of AWC’s Chicago operations.
services such as body repair, vehicle inspections, accessory installation, storage and surveys.
“We enthusiastically welcome AWC at the new Bayport Ro-Ro Terminal,” said John Moseley, Senior Director of Trade Development for Port Houston.
“We are open for business,” noted Stephen Seher, chief executive officer
“This is a new piece of business that adds jobs, generates revenue
and chairman of the board of AWC, a family-run company. The company,
and further diversifies our book of business. Adding to the successful
which employs about 1,700 people, has enjoyed steady growth since it
relationships we’ve had for years with Volkswagen, Audi and Porsche.
was purchased in 1991.
The initial manufacturer contract with Auto Warehousing calls for handling
Port Houston is the perfect gateway to import and distribute finished vehicles.”
about 20,000 imported vehicles per year. Rolling cargo is a good fit for the terminal as parking is readily available and vessels can arrive at berth and quickly discharge rolling stock. Auto Warehousing hopes to create about 20 jobs during the first phase of their operations. Additional indirect jobs created will include longshoremen and truckers. “Our management is convinced that with the opening of this terminal, the opportunity to handle product that originates on the East Coast of Mexico is a real opportunity to grow the business,” said AWC Co-President Ben
AWC’s impressive range of industry customers include Acura, Fiat/ Chrysler, Ford, General Motors, Honda, Kia, Hyundai, Mazda, Mitsubishi, Subaru and Toyota. The company’s first customer at the Houston terminal was Fiat Chrysler, and the first shipment of about 400 cars were imported vehicles from Europe. Those vehicles were distributed to dealerships by truck, although AWC is eyeing rail as it looks to the future. The company also is looking at high and heavy equipment. “Opportunities are here in Houston for export,” Stephen Seher said.
Seher. “This terminal will open up the door with other manufacturers looking to utilize the short sea or south central port operation.
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Port Security and Emergency Management Teams
MOVING AHEAD WITH NEW TECHNOLOGY AND RESOURCES NEW MOBILE COMMAND CENTER ROLLS INTO PORT Port Houston was awarded a FEMA Port Security Grant in 2015 to replace its existing Mobile Command Center. The port selected MBF Industries of Sanford, Fla. to build the MCC to support port emergency operations, and the mobile center was delivered in March 2017.
“It’s a regional asset that can improve response along the entire Houston Ship Channel,” said Colin Rizzo, emergency manager for Port Houston. Mobile command centers can be invaluable tools during emergency situations, whether natural disasters, heightened threat alerts or to address other conditions. They can be dispatched anywhere throughout the region if needed and can be a vital infrastructure asset.
PORT JOINS INFRASTRUCTURE INDUSTRY LIAISON PROGRAM The State of Texas has selected Port Houston to join its Infrastructure Industry Liaison Program. The port will coordinate with the State Intelligence Fusion Center as a resource for maritime-related information and reports, providing real-time information and reporting suspicious activity. “This is a new program through the Texas Dept. of Public Safety, and we were chosen to join 30 petrochemical and marine organizations and representatives in the first class along with Lubrizol Corporation, Shell Deer Park and Freeport LNG,” said Marcus Woodring, Chief HSSE Officer for Port Houston. Liaison officer programs are networks of trusted volunteers and law enforcement officers who are selectively recruited and trained to partner with fusion centers, which house a diverse group of local, state and federal law enforcement agencies. Being involved in the program will increase opportunities for Port Houston to secure its facilities and assets from crime and build a partnership with the state in regard to security measures. “We are the only port active in the program so far, and it is an honor that they selected to us to participate,” added Woodring.
A new Mobile Command Center was delivered to Port Houston in March that promises to greatly improve the response capability of the port’s emergency management due to its state-of-the-art technology. During major incidents, it will serve as a central meeting
NEW FIRE TRUCK ADDED TO PORT FLEET Also, Port Houston has a new fire truck to support and protect the Turning Basin and surrounding areas of the port’s Fire Station No. 1. Built by Pierce Manufacturing, Inc., the 2016 Enforcer Pumper fire engine is loaded: it features LED lighting, rescue and hazmat supplies and firefighting equipment. The fire engine was approved by the Port Commission at its January 2016 meeting. This fire engine is replacing the existing fire engine at Station No. 1,
which was not a Class A fire engine that is needed for structural fire-fighting requirements. Over the past few years, numerous fires were difficult to battle due to water pressure, volume and water supply of the previous fire engine. In order to protect port assets; a Class A fire engine was needed to ensure that a fire could be rapidly mitigated. Even with the help from mutual aid departments, the Port of Houston fire department is often the first fire engine on scene for several minutes and our mutual aid agreements require that we maintain apparatus capable of responding within our jurisdiction in order to receive aid. The fire department responded to more than 644 total calls in 2016.
HOUSTON SHIP CHANNEL SECURITY DISTRICT STAYS READY A key partner on the security front is the Houston Ship Channel Security District. The organization, known for supporting and contributing to security projects in the Houston Port Region, represents over 225 chemical, refining and logistical service companies. The funds received through the district provided new boats, firefighting equipment, IT infrastructure, training and helicopter maintenance for the municipalities. The District is a political subdivision of the State of Texas created by Harris County Commissioners Court in 2009. Commissioners Court appointed Craig Nelson to the Houston Ship Channel Board of Directors Jan. 10. “Several of the port’s emergency response vehicles and boats have been provided or supported through the Houston Ship Channel Security District,” added Chief HSSE Officer Marcus Woodring, who serves on the district board on behalf of the port.
HISTORIC RECERTIFICATION ACHIEVED Port Houston has been granted its historic 4th certification cycle for the ISO 28000:2007 Security Management System for its Turning Basin, Old Manchester, Woodhouse, Bayport and Barbours Cut terminals. The mission of the Health, Safety, Security and Emergency Response Division of Port Houston is to safely protect and secure people and commerce. Since being originally certified in 2008, this certification demonstrates that the port not only meets federal maritime security requirements, but goes above and beyond to maximize port security while expediting the flow of commerce and demonstrates our commitment to continual improvement. “We are looking forward to making more security-focused accomplishments like the ISO certification in the near future, ” said Facility Security Officer Mike Ziesemer. “We are dedicated to preserving the physical security of our port, and strive to provide the best security resources available for a port engaged in global commerce. The nation depends on us as an economic driver to the State. These initiatives are about protecting and securing the port.”
place for first responders to establish the incident command.
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! g n o r t S s r a e Y 10 Bayport Container Terminal
FEBRUARY MARKED THE TEN-YEAR ANNIVERSARY OF THE BAYPORT CONTAINER TERMINAL, AND THE FACILITY IS CONTINUING TO
DEVELOP INTO ONE OF PORT HOUSTON’S MOST PRIZED ASSETS.
Owned and operated by Port Houston, the Bayport Container Terminal is considered the most modern and environmentally friendly container terminal on the United States. Gulf Coast today. “We are proud of the growth of the Bayport Terminal since its opening a decade ago. Its success and positive impact on jobs and the economy is due to the leadership of our Port Commission, staff, and all of our partners,” said Port Houston Executive Director Roger Guenther. “There is an amazing future ahead of us that will bring tremendous opportunities as well as challenges that we will continue to tackle and keep Port Houston and our busy waterway at the forefront of prosperity. We are ready for the future.” The Bayport terminal is the sister to the Barbours Cut terminal, which was among one of the first container terminals on the U.S. Gulf Coast when it opened in 1977. Now, Barbours Cut is undergoing a massive modernization 40 years later, while Bayport marks the evolution of the container business along the Gulf of Mexico with major highlights such as nine ship-to-shore cranes, 39 rubber-tired gantry cranes, eight weekly vessels and 25,000 truck gate moves a week. It was on February 8, 2007, when more than 800 attendees gathered for the grand opening near the west side of Galveston Bay to witness firsthand the beginning of the newest container facility at the Port of Houston. The first ocean carrier to call the terminal was CMA-CGM, now the third largest carrier in the world.
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“Ultimately, this $1.4 billion facility will nearly triple the port authority’s container handling capacity,” noted former Port Chairman Jim Edmonds when he presided over the ribbon cutting that signified the opening of the first phase of the new terminal. Since that time, the growth that the late chairman had envisioned has been strong and steady. The terminal was originally designed to have a total of seven container berths with the capacity to handle 2.3 million TEUs on a complex, which includes 376 acres of container yard and a 123-acre intermodal facility. Features today include a state-of-the-art terminal operating system providing expedited visits for trucks and web based customer interfaces between shippers, truckers and ocean carriers expanding transparency through logistics. The terminal’s environmental benefits include the preservation of 956 acres of diverse coastal habitat, 200 acres of new marsh, 173 acres of wetlands created or enhanced and the preservation of a 128-acre buffer zone. Currently, Port Houston has been building out its Bayport Container Terminal to accommodate and support industry demand and infrastructure. In 2015, a five-year master plan included $540 million of capital improvements for Bayport. “We have also implemented many ideas to help our customers track and monitor their cargo, such as the implementation of Navis N4, the Lynx Customer Service Portal and the Mobile Container Tracking Application. The
Port of Houston is now very technology-driven since we first opened the gates at Bayport,” said Candice Armenoff, Customer Service Manager for Port Houston. The Port of Houston handles about 68 percent of all the containerized cargo in the U.S. Gulf of Mexico and has surpassed the two million TEU mark both in 2015 and 2016,” said John Moseley, senior director of trade development for Port Houston. “Since Bayport’s inauguration ten years ago, we have surpassed two million TEUs in total annual throughput at our container terminals,” Moseley said. “Total trade growth for the Bayport Container Terminal has increased significantly since it opened in 2007; representing nearly half of Port Houston’s overall container throughput today. “The port’s continued investment in infrastructure, technology and innovation has resulted in a best-in-class experience for our growing list of customers. Our strong growth and positive results are the proof,” Moseley added. The Bayport Container Terminal was a vision – an infrastructure achievement that has immensely added growth, prosperity and economic impact to the greater Houston Port Region and the State of Texas. Port Houston’s Barbour’s Cut Container Terminal will have its 40th anniversary in July.
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READY FOR RESINS:
Port Houston Hosts Synthetic Resin Symposium Port Houston welcomed nearly 300 beneficial cargo
“Houston has the most active pipeline network in the
owners, supply chain professionals and exporters at its
country with 450 million tons of volume annually,” added
Synthetic Resin Symposium Jan. 24. Resin, also known as
Ruthe. More than half of the region’s jobs depend on
polyethylene (PE), is a top export for Port Houston.
freight intensive industries, he noted. Private and public investments, including new construction sites and jobs, will
For several years, Port Houston has been preparing for the upcoming surge of resins to meet demand from petrochemical partners along the Houston Ship Channel. With more polyethylene production facilities coming on line on the Gulf Coast through 2019, the anticipated resin exports boom was the primary focus of the event.
benefit the growing demand.
As a plan of action, federal funding opportunities and groups like the Greater Houston Freight Committee are evaluating these industry trends and recommending projects that will further advance Houston’s freight potential.
Executive Director Roger Guenther provided welcome remarks. He focused on some of the port’s operations initiatives
“This is a time for Houston to be innovative and come up
to prepare for petrochemical industry growth, including
with possible solutions that will drive the economy and
infrastructure and facility investments, dredging and future
region. The port is doing that with the freight shuttle study,”
expanded gate hours at the Port Houston container terminals.
said Ruthe. The proposed rail system study agreement was signed by Freight Shuttle International (FSI) and Port
Cal Dooley, President and CEO of American Chemistry
Houston in August 2016.
Council, and Nick Vafiadis, Global Business Director for IHSMarkit, highlighted current and future manufacturing
Karen McKee, Vice President of Basic Chemicals for
projects and production forecasts. “The U.S. chemical
ExxonMobil Chemical, provided the keynote lunch address as
industry provides over 15 percent of the world’s chemicals,”
Port Houston’s senior management followed in the afternoon
reported Dooley.
with discussions on how the port’s container terminals are ready for the wave of exports through recent dredging,
Thanks to massive new investment, U.S. chemical export
technology investments and infrastructure planning.
is expected to grow by the equivalent of 810,000 TEUs of containers by 2020, according to Dooley.
“Houston has the busiest U.S. channel. As a port, we are primed for exports,” said Mark Vincent,
Jeff Norwood, General Manager of the Port Terminal Railroad
Port Houston’s director of channel development,
Association, and Hans Michael-Ruthe, Chief Transportation
who spoke on the port’s dredging projects and
Planner for the Houston Galveston Area Council, shared
provided an overview of the Houston Ship
major regional freight mobility initiatives and expansion
Channel waterway. (continued)
projects to support infrastructure. “PTRA member lines have invested in over $82 million in maintenance and expansion over the last six years,” said Norwood on PTRA’s efforts preparing for future export growth.
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ExxonMobil Chemical’s Logistics and Distribution Manager
Some of the upcoming Houston expansion projects include
Perry Padden described the petrochemical company’s
major petrochemical companies such as Chevron Phillips,
projected impact on Port Houston including a projected
ExxonMobil and Dow Chemical.
increase in net U.S. exports of nearly $30 billion by 2030. “Port Houston is well positioned to support this growth, but
“This conference is a great platform to encourage dialogue
efficient logistics capability is critical for Texas business to
with our customers and partners on trends and trade activity
be globally competitive,” said Padden.
in the region to continue developing the Houston market. Port Houston is ready for resins,” said Port Houston Chief
A packaging panel reviewed local opportunities for bagging
Commercial Officer Ricky Kunz.
resin. “Houston is the best place to be for exporting and packaging resin,” said Frank Vingerhoets, President of
The event was held at the Sheraton Houston North Hotel at
Katoen Natie, who noted that Houston is the number one
Bush Intercontinental Airport.
packaging hub for the U.S.
DID YOU KNOW?
“PORT HOUSTON” WAS NAME OF FIRST FIREBOAT
Port Houston’s first fireboat was named Port Houston. It was featured
The story went to say that another distinct advantage compared to a
on the cover of the port’s magazine in November of 1926.
steam-power fireboat is that little fuel needs to be consumed when the boat is idle.
The accompanying story stated: “With the rapid development of the Port of Houston, it soon became apparent a fireboat was urgently
“Immediately upon an alarm being received, the full power of the
needed to protect the property of the City and Navigation District, as
vessel can be produced at once and she can leave for her destination
well as the private wharves along the channel, as the fire equipment
ready to meet any emergency as promptly as the crew can go to their
around the Turning Basin is limited in its scope, therefore at an
stations,” the story said.
election held July 25, 1924, a bond issue in the sum of $300,000.00 was authorized and made available for the construction of such a
But the history of the port actually stretches back many years before
boat.”
that first fireboat was acquired in the 1920s. Sailing craft were navigating Buffalo Bayou in the late 1830s. In a report written by a civil
“Thanks to massive new investment, U.S. chemical export is expected to grow by the equivalent of 810,000 TEUs of containers by 2020.” Cal Dooley, President & CEO American Chemistry Council
The firm of Cox & Stevens, naval architects based in New York, was
engineer named George Staley to General Sidney Sherman in 1846
retained to design and supervise the construction of the vessel. The
(the bridge over the Houston Ship Channel at the Turning Basin is the
firm investigated options and decided that a diesel electric feature
Sidney Sherman Bridge), Staley recommended that a harbor be built
would be incorporated into the design because it would offer
on the waterway somewhere between Houston and Harrisburg and
advantages for a fireboat. Not only is the fuel economy of the diesel
the channel be improved. The rest, as they say, is history. Although
engine an advantage, the diesel electric combination forms an ideal
those improvements were long coming, the deepened Houston Ship
installation, the story noted.
Channel officially opened in 1914.
“Electricity is produced by three large Diesel Electric Generators
Not only was the first fireboat named Port Houston, that name
situated amidships, the current thus formed being sufficient not only
also adorned the port’s magazine in its early days. The port is now
at full capacity to supply all the firefighting appliances on the boat,
being marketed worldwide as Port Houston, with a tagline of “The
but also without interruption to propel the boat itself through the use
International Port of Texas.”
of motors attached directly to the shafting,” the story stated. “The advantages of the flexibility of this system are obvious, as at any time the current can be directed where most needed, either to accelerate the speed of the boat through the water or to produce maximum discharge of water for firefighting purposes, as may be desired.”
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Janiece Longoria, the first Hispanic and first female chairman of the Port Commission, was reappointed to the position Jan. 9 during a joint session of the Houston City Council and Harris County Commissioners Court. The chairman’s two-year term, her third, will be her final term.
LONGORIA REAPPOINTED AS PORT COMMISSION CHAIRMAN
The longest-serving member of the Port Commission, Chairman Longoria has served as chairman since January of 2013. She also chairs the Port Commission’s Audit Committee and serves on the Governance Committee and Pension and Benefits Committee.
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After her initial appointment, she created the Citizens Advisory Council to help foster open communication between communities and the Port Commission. Chairman Longoria is an honors graduate of the University of Texas and received her J.D. from the University of Texas School of Law in 1979. She is on the board of two public companies, CenterPoint Energy, Inc. and Superior Energy Services, Inc., both based in Houston. She is the former vice-chairman of the University of Texas System Board of Regents, was just appointed as a regent again, and is a former board member of the University of Texas Investment Management Company.
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She is active in many nonprofit organizations. Chairman Longoria currently serves on the board of directors of the University of Texas Law School Foundation, the Greater Houston Partnership, the Texas Medical Center and of the Board of Visitors of the UT MD Anderson Cancer Center. She has received numerous honors and recognitions for her community service and board service, including the Distinguished Alumnus Award for the University of Texas, the Sandra Day O’Connor Award for Board Excellence and the Female Executive of the Year Award from the Houston Hispanic Chamber of Commerce. She also has been recognized as a “breakthrough woman” and was inducted into the Hall of Fame by the Greater Houston Women’s Chamber of Commerce.
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CLEANING THE PORT WITH HOSPITALITY When you walk into the doors of Port Houston’s Executive
Hospitality Cleaning Solutions’ operations cover a variety
Building, you see nice, clean floors and a warm, yet
of industries, including schools, industrial facilities, retail
professional environment. The one behind-the-scenes
shopping centers, churches and government agencies.
of the tidy offices and lobby is Hospitality Cleaning
“I wanted our business to be unique and consistent,
Solutions. When port employees leave in the evening for
supporting our vision to provide efficient janitorial
the day, the HCS team is just getting started. The premier
services. We are much more than a hospitality provider,
commercial janitorial company based in Spring, which
and hope to continue making places like the port look
is owned and operated by Gregory and Monica Wyles,
welcoming,” Wyles said.
began its services at the port in 2014. Once an engineer, Gregory Wyles spent the early days of his 20-year hospitality career working for major hotels and even abroad on cruise ships, but he always wanted to start his own company doing what he loved. Today,
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“Port Houston’s Turning Basin facility was one of our first major clients, and we now serve Barbour’s Cut and Bayport. We strive to meet the needs of our clients through our core values: honesty and integrity. Communication and project management is key to keeping our clients happy,” said Gregory Wyles. “Delivering the best cleaning experience possible is important. We are in a customer service-based industry.” “Port Houston has been most satisfied with the level of service from the cleaning company,” said Adrian Price, Office and Building Services Manager for Port Houston. “HCS went through a competitive bidding process to get our contact, and we have been very pleased,” Price said. “They have also gone the extra mile to get involved with our organization through our Small Business program, which says a lot about their passion for doing what they do.”
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