Port Houston Navigator - Spring 2018 Magazine

Page 1

NAVIGATOR

SPRING 2018

2040 PORT HOUSTON

BIG JOHN AND BAHRI BAHRI’S BIGGEST LIFT EVER AT PORT HOUSTON

PORT HOUSTON INVOLVED IN BLOCKCHAIN TECHNOLOGY PILOT PROGRAM ALSO: LOWE’S DISTRIBUTION CENTER RESINS CONFERENCE HIGHLIGHTS FMC COMMISSIONER VISITS PERISHABLES BRING POSITIVE OUTLOOK FREIGHT TRANSPORTATION SECURES $30 MILLION


OneBahri

www.bahri.sa

Pioneering and integrated transport solutions

FEATURE STORY: PORT HOUSTON 2040

16

EXECUTIVE TEAM PLANS FOR THE FUTURE

4.18 NAVIGATOR

IN THIS ISSUE

6 10 15 20 22 24

A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER

THE MANIFEST PORT HOUSTON’S NEWS HIGHLIGHTS

DID YOU KNOW? INTERESTING FACTS ABOUT PORT HOUSTON

FREIGHT MOBILITY & PORT ACCESS CRITICAL TO REGION’S ECONOMY

MORE RESINS TO HOUSTON: TOP STAKEHOLDERS ATTEND SYMPOSIUM

BAHRI’S HEAVY LIFT COMPANY’S BIGGEST CARGO MOVE EVER AT PORT HOUSTON

28 30 33 34 36 38

LOWE’S NEW DISTRIBUTION CENTER COMES TO HOUSTON PORT HOUSTON FIRST PORT SELECTED MAERSK/IBM BLOCKCHAIN PROGRAM

SHIP-TO-SHORE CRANE SWAP AT BARBOURS CUT

PORT HOUSTON KEEPING SAFETY IN THE FOREFRONT

PERISHABLES BRING POSITIVE OUTLOOK SPOTLIGHT ON SMALL BUSINESS BKG GLOBAL MANAGEMENT CONSULTING


PORT HOUSTON NAVIGATOR’S EDITORIAL STAFF:

EXECUTIVE OFFICE JANIECE LONGORIA Chairman

JOHN D. KENNEDY Commissioner

DEAN E. CORGEY Commissioner

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

Chief Legal Officer ERIK A. ERIKSSON

Chief Operating Officer THOMAS J. HEIDT

Chief Port Infrastructure Officer RICHARD BYRNES

Chief Commercial Officer RICKY W. KUNZ

Chief Port Operations Officer JEFF DAVIS

Chief Financial Officer TIM FINLEY

Chief Audit Officer MAXINE BUCKLES

Chief HSSE Officer MARCUS WOODRING

Chief People Officer JESSICA SHAVER

Chief Information Officer CHARLES THOMPSON

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.

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

LESS HASSLE.

CHINA TO HOUSTON IN 25 DAYS

PORT HOUSTON DIRECT offers a higher degree of service and stability for importers and exporters. We work with BCOs to overcome logistics and service issues and our Port Houston Direct team can be contacted directly by BCOs for an immediate response.

• More Reliable • Less Congestion • Operating Port

• All Water Service • Less Complicated • Personal Service

Take a closer look at our all-water services at PortHoustonDirect.com and register with our Customer Service Portal at csp.poha.com

BRAZIL THELDON R. BRANCH, III Commissioner

ALL WATER.

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.

JOHN C. CUTTINO Brazil Representative Port of Houston Authority Rua Candelaria, 9 - Sala 413 Rio de Janeiro - RJ 20091-904 Tel. +55 (21) 2283 9956 Cel. +55 (21) 98822 4125 USA +1 (832) 239 5076 Email: jcuttino@poha.com

EASTBOUND ALL-WATER HOUSTON TRANSIT TIMES Busan.............. 22 days Ningbo............ 25 days Yantian........... 26 days Shanghai......... 26 days Xiamen........... 27 days Shekou............ 29 days

ASIA STEPHEN H. DONCARLOS Commissioner

ROY D. MEASE Commissioner

4

| NAVIGATOR SPRING 2018

MATTHEW SOLOMAN Port of Houston Authority c/o Ben Line Agencies Email: kua.msoloman@benline.com.my Tel: +60 3 7947 7333 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 Bill Hensel at 713-670-2893

Visit Port Houston online at www.PortHouston.com

PortHouston.com • 713-670-2400


ROGER THAT A MESSAGE FROM EXECUTIVE DIRECTOR

Steel tonnage saw a nice comeback over the previous year and trending upward at 3.7 million tons. We also had increases in wind energy, automobiles and general cargo through our public facilities. Container volumes were up nearly 13 percent, driven by a 22 percent increase in import loaded containers in the strengthening East Asian market.

ROGER GUENTHER

This activity has created a balance of imports to exports right at 50/50, which keeps us in a great spot for growth from the upcoming surge in plastic resins. And, lease revenues from properties supporting cargo operations were up nearly 6 percent, a new record for Port Houston. The strength of all this cargo activity drove record operating revenue of $332 million for the year, shattering the previous record of $292 million set in 2015 by 14 percent. Our combined business through public facilities generated a record total cash flow of $145 million, surpassing the $128 million record set in 2015. The cash flow generated from operations is critical to funding capital projects that are planned so we can remain in front of demand from the rapid cargo growth ahead.

“With the outstanding leadership and guidance from our Commission, our Port continues to prosper. We achieved many strategic priorities in 2017 and I am extremely proud of our staff for everything accomplished. I would like to highlight some of those accomplishments and lay out the strategic objects for 2018.” 6

| NAVIGATOR SPRING 2018

The Port Commission recently approved advertising for several projects totaling nearly $150 million dollars for expansion of our facilities. This demonstrates the commitment to investment of the future of Port Houston.

2017 HIGHLIGHTS We are committed to stay focused on our goals of People, Growth, Infrastructure and Stewardship. Our staff remains steadfast in the priorities of our Strategic Plan, which defines what success looks like at Port Houston.

PEOPLE • 2017 will be remembered because of Hurricane Harvey. But we persevered through the strength of our people and got back on track quickly by working with partners

in labor, the Houston Pilots, the U.S. Coast Guard, users of our facilities and numerous stakeholders. • With Commission leadership, our staff provided a number of assistance programs to employees impacted by Hurricane Harvey. • We partnered with the U.S. Department of Labor (DOL) program intermediary (TransPORTs) to assist in developming an apprenticeship program. We have seven employees in the program in 2018. • We completed the job description project, which is an instrumental foundation to the compensation market analysis and study in 2018.

GROWTH We continued to accomplish growth objectives, including: • Handling tremendous container volume increases that included best-in-class turn times for the 35,000 trucks per week at our container terminals, and nearly 47,000 ship-to-shore crane hours. • Our maintenance workers ensured a reliability rate of 99 percent uptime for 22 ship-to-shore cranes and over 90 percent crane availability for 81 rubber-tired gantry cranes. • We implemented new tools through our Navis system for improved interface for our customers and to allow for better business intelligence in measuring efficiencies. • We began extended gates hours for our truckers to more seamlessly handle current and future growth and better utilize our assets. • After our new brand was officially launched and pushed out to the marketplace, feedback indicated it is being well received as Port Houston’s new brand identity. • We performed a conservative in-house study of FTZ 84’s impact on Port Houston’s container volume. FTZ 84 users account for at least 11 percent of our import TEUs and 6.5 percent of overall TEUs. This is a powerful marketing tool, funded by FTZ user fees, that helps bring the real estate and economic development community to the port for more engagement.

NAVIGATOR SPRING 2018

|7


“With the strengthening of the region’s energy sector and continued investment in import distribution facilities, we believe we are in for another amazing year across all lines of business through Port Houston facilities.”

8

| NAVIGATOR SPRING 2018

INFRASTRUCTURE

STEWARDSHIP

• Infrastructure is critical to capturing continued economic activity for our region, and 2017 saw numerous achievements to keep us competitive and provide infrastructure to meet demand. We brought to substantial completion more than $200 million worth of construction contracts, including completing and putting into service both Container Yard 6 North and South at Bayport, including gantry cranes, Wharf 2 rehab at Barbours Cut and East End Yard Improvements; and receipt of three new super post-Panamax ship-to shore cranes at Barbours Cut. • Our Channel Development team continues to work with the U.S. Army Corps of Engineers to advance plans for next generation improvements to the Houston Ship Channel. Our multi-year mega-study passed the “Tentatively Selected Plan” milestone and is moving into more detailed definition. In addition, the Corps provided stellar performance coordinating efforts in Harvey recovery and plans to improve channel resiliency. • We stepped up our Asset Management program, initiating a full Facilities Inspection and Condition Assessment Program. This program will provide greater oversight of 130 docks and wharves, helping us better prioritize investment dollars. • Finally, we made strides in both long-term and near term planning, with advancements in our Port Houston 2040 master planning as well as several significant wins in federal and state grants supporting port infrastructure, security, and trucking emissions reduction.

Our Stewardship and outreach to our community had many achievements: • The Environmental Affairs department renewed the Port’s leading position as an ISO 140001 certified organization for Environmental Management, and we initiated efforts optimizing port-wide energy sustainability. • We obtained full recertification, by an external auditor, to the ISO 28000 Supply Chain Security Standard and are STILL the only Port Authority in United States with this certification. • The CyberSecurity Development Program kicked off in late 2017. Continual improvement on information and cybersecurity will be ongoing in 2018. • Coordinated and hosted four Chairman’s Citizen Advisory Council (CCAC) meetings to educate members and solicit community feedback. • Our Lost Time Incident Frequency Rate went down from 1.11 to 0.97 (per 200,000 man hours worked) compared to industry standard of 3.5. • Although the M/V Sam Houston experienced major closures due to A/C replacement and shoaling issues from Harvey, more than 16,000 people boarded for educational tours of the channel. • Community engagement has been outstanding, with record participation by employees. Events included the fourth annual Park to Port Bike Ride; oyster reef restoration; working with the Houston Food Bank, the Adopt-a-Beach program; Junior Achievement; and a special Thanksgiving project benefitting community

members and Port Houston employee families affected by Harvey. • Small Business and Education Outreach efforts continued. That group participated in more than 250 outreach activities, many post-Harvey events. Staffers were instrumental in leading the revived apprenticeship program; worked closely with most of the 1006 companies registered as local small businesses; and remain highly engaged with more than 1,200 students in the maritime education program at local high schools, colleges, and universities. These are just a portion of the many accomplishments in 2017.

HELLO 2018! We have established an action plan for 2018 with objectives focused on the four goals of our strategic plan. Priorities include exceeding safety standards, implementing environmental leadership strategy plans, developing a plan for inland cargo growth, establishing and completing milestones of the ship channel mega-study with the Corps, (as improvements are critical for our channel’s future) and doing an initial draft for Master Plan 2040. Again, I am proud of what our employees have accomplished and thrilled with their motivation. Our team remains strategically engaged in our mission and vision and stand READY to deliver the priorities for Port Houston in the coming year. NAVIGATOR SPRING 2018

|9


MANIFEST

based holding company that oversees investments in real estate, financial assets, the automotive industry and construction. DonCarlos represents the Harris County Mayors and Councils Association. He has served on the Port Commission since Sept. 2013 and chairs the Governance Committee.

PORT HOUSTON NEWS AND HIGHLIGHTS

BRANCH, DONCARLOS, KENNEDY REAPPOINTED TO PORT COMMISSION

DonCarlos was elected as Mayor of the City of Baytown in May 2006 and is an attorney with Reid, Strickland & Gillette, L.L.P. He is Vice Chairman of the Board of Directors of the Baytown Chamber of Commerce and is a member of the East Harris County Bar Association.

Port of Houston Authority Commissioners Theldon Branch, Stephen H. DonCarlos and John D. Kennedy were recently appointed for new two-year terms.

Originally appointed to the Port Commission in December of 2012 by Harris County, Kennedy is chairman of the Port Commission’s Procurement and Small Business Development Task Force and serves on the Governance Committee.

Branch was originally appointed to the Port Commission in September of 2013 and represents the City of Houston. He serves on the port’s Procurement and Small Business Development Task Force and the Audit Committee.

He retired from the U.S. Army as a colonel after 27 years of military service and was the City Manager of Nassau Bay for more than 10 years. He also represents the port on the Board of the Bay Area Houston Economics Partnership.

Branch has an extensive professional background in both the public and private sector. He is the Chairman and Chief Executive Officer of The Branch Companies, a privately held Houston-

Port Commissioners serve two-year terms without pay.

NATIONAL OCEANIC ATMOSPHERIC ADMINISTRATION VISITS PORT HOUSTON Rear Admiral Tim Gallaudet, Assistant Secretary of Commerce for Oceans and Atmosphere for the National Oceanic and Atmospheric Administration, met with Port Houston staff Jan. 11 at the port’s executive building. Port staff, industry stakeholders and NOAA representatives discussed how the port uses NOAA’s products, services and partnerships to further improve Galveston Bay’s ecosystem and navigation safety to support the nation’s economy and environment. third of America’s gross domestic product. Gallaudet was previously a rear admiral in the U.S. Navy, where his most recent assignment was Oceanographer of the Navy and Commander of the Navy Meteorology and Oceanography Command. From daily weather forecasts, severe storm warnings and climate monitoring to fisheries management, coastal restoration and supporting marine commerce, NOAA’s products and services support economic vitality and affect more than one-

10

| NAVIGATOR SPRING 2018

Port Houston management provided an overview of the greater Port of Houston highlighting its economic impact to the nation. Topics such as channel development, environmental stewardship, navigational safety and Hurricane Harvey response efforts were also covered. Port Houston is the local sponsor of the Houston Ship Channel and uses real-time oceanographic and hydrographic data to further support the navigational needs of the waterway.

NAVIGATOR SPRING 2018

| 11


FEDERAL MARITIME COMMISSIONER DAN MAFFEI TOURS PORT Port Houston executives hosted U.S. Federal Maritime Commissioner Daniel B. Maffei at the port’s Turning Basin Terminal and Bayport Container Terminal for a tour and briefing Jan. 25. The leaders discussed Port Houston’s history, trade involvement and Houston exports. The Federal Maritime Commission is responsible for regulating the country’s international ocean transportation system for the benefit of U.S. exporters, importers and the U.S. consumer.

Immediately prior to being sworn in at the FMC, Commissioner Maffei was a senior fellow at the Center for the Study of the Presidency and Congress and served briefly as a senior advisor at the U. S. Department of Commerce. Port Houston is recognized as the premier gateway of international commerce. The greater Port of Houston, which includes the port’s eight public terminals, along with more than 190 privately owned industrial terminals, ranks first in the nation in foreign waterborne tonnage.

A native of Syracuse, New York, Commissioner Maffei’s career in government spans more than twenty years. He served two terms as a member of the House of Representatives from 2009 to 2011 and from 2013 to 2015.

The Port Coordination Team, a group of local agency and industry personnel, was recently awarded a Public Service Commendation by the commandant of the U.S. Coast Guard for its efforts related to Hurricane Harvey. The award was signed on behalf of the commandant by Rear Admiral Paul Thomas, 8th District Commander, and presented during a ceremony at the Lone Star Harbor Safety Committee meeting Feb. 2. Led by the U.S. Coast Guard, the committee conducted conference call meetings daily before, during and after the storm event to provide updates on port closures, vessel traffic and other Houston Ship Channel matters. “As a port region, it is important for all of us to communicate with our partners about channel traffic measures and operations. We

TEXAS FARM BUREAU MEMBERS VISIT PORT HOUSTON

NEW VESSEL, MSC VITTORIA, CALLS HOUSTON

Port Houston hosted the Texas Farm Bureau Ag Lead XIII members during their Southeast Texas session at the Bayport and Barbours Cut container terminals for a visit and tour.

Port Houston was the first U.S. port of call during the inaugural voyage of the MSC Vittoria, a new larger vessel on the TA6 MedGulf service rotation.

The bureau representatives discussed cotton, grain, beef and other agriculture products coming through the port as well as Port Houston container operations. The bureau is a membershipbased agricultural organization for independent farmers and ranchers.

The vessel’s total capacity, which called at the Bayport Container Terminal Jan. 26, is about 8,089 TEUs.

Port Houston Senior Trade Development Manager Ty Reasonover provided a presentation and overview of the port’s history, structure and facilities. Chief Commercial Officer Ricky Kunz discussed port security, environmental and channel development efforts in the Houston port region. “Texas agriculture is marketable world-wide. The port delivers an efficient and cost-effective service to bring these products to market,” said Kunz. Cotton and grain are two of the port’s historic specialized commodities. Although at Port Houston Facilities, most

|

HOUSTON-GALVESTON AREA PORT COORDINATION TEAM RECEIVES COMMENDATION FROM COAST GUARD

12 NAVIGATOR SPRING 2018

all have to get the port back in business after a major weather situation,” said James Prazak, chair of the Lone Star Harbor Safety Committee. Port Houston was back up and running just five days later, working 26 vessels during the first week. The Port Coordination Team group consists of ship pilots, public and federal agencies, ports, private terminals, waterway operators and other trade associations. “These waterways of national economic significance demand resiliency and the prompt restoration of commerce following any disruption to the Maritime Transportation System,” said Steven Nerheim. “VTS Director for U.S. Coast Guard, Houston-Galveston Sector. The Port Coordination Team and its companion, the Texas Joint Hurricane Response Team, are central to that process.”

The 1,066 foot by 42.8 foot ship is replacing the MSC Stella, which started calling Houston in 2013. Port rotations in the service include Freeport, Bahamas, Sines, Portugal, Naples, Italy, Barcelona, Spain and Veracruz, Mexico.

agriculture products are shipped by containers, Port Houston also has a Public Grain Elevator facility for bulk grain exports. Texas is home to the largest cotton gin, according to the Bureau. “It’s important for these Bureau members to see how their production is directly tied to what we do here at the port,” added Kunz.

“There is continued investment into our facilities, both landside and waterside, to handle the next generation of vessels to call the U.S. Gulf Coast,” said Ryan Mariacher, Port Houston director of container terminals. Three new neo-Panamax cranes are slated to arrive at the Bayport Container Terminal later this year. Port Houston also recently expanded its truck gate hours at this facility to help meet customer demand.

Operations are continuing to expand at Port Houston to remain well ahead of the demand for cargo produced by the local petrochemical industry.

NAVIGATOR SPRING 2018

| 13


PORT HOUSTON HOLDS ANNUAL FOOD DRIVE The port’s three-week food drive was a success. The donations went directly to supporting the Houston Food Bank and its efforts of feeding over 800,000 people each year. Port Houston employees donated nearly 1,000 pounds of food and additional monetary donations, which will ultimately provide over 1,200 nutritious meals. These contributions will help feed families, seniors and individuals throughout the Southeast Texas region. The Houston Food Bank is the largest of its kind in the United States, with distribution to over 600 relief charities in 18 counties. This nonprofit organization provides 83 million nutritious meals to food pantries, soup kitchens, senior centers and other agencies throughout the region.

Items donated include pasta, canned goods, water and other nonperishables. Port Houston also partnered with the Houston Food Bank in 2017 for the backpack buddy project. Leslie Herbst, Port Houston Director of Community Relations and Events said, “We want to help fill the lives of people in need. The Houston Food Bank has an extensive reach here in our region, and they make these donations accessible to so many communities where hunger is apparent.” The food drive is the port’s first community-driven program of the year. “Our community engagement has been outstanding, with record participation by Port Houston employees in 2017,” said Executive Director Roger Guenther at a recent public meeting.

TRIBUTES ABOUND FOR SMALL BUSINESS PROGRAM’S FIRST 15 YEARS Port Houston’s small business development program recognized more than 15 years of the program’s success and a half a billion dollars in awards to local small businesses in the Houston region at a tribute event presented with Houston First Feb. 27 at the George R. Brown Convention Center.

|

valuable insight about port procurement opportunities, the language of contracts and lessons for success as a business owner.

Port Houston’s staff participated in over 250 small business outreach events in 2017. More than 1,000 local small business are registered in the port’s small business development program.

“Port Houston’s Small Business Development Program is an important economic tool to broadly spread opportunity,” said Port Chairman Janiece Longoria.

A total of 650 small business have graduated from Port University, a program designed for local entrepreneurs focusing on gaining

Port Houston is a premier gateway for international commerce and the Port Houston Small Business Program is a gateway for small businesses to thrive and prosper.

14 NAVIGATOR SPRING 2018

ROSEATE SPOONBILLS ARE IN THE PINK

DID YOU KNOW THAT ROSEATE SPOONBILLS BREED AND MIGRATE ALONG THE TEXAS GULF COAST? SPORTING DEEP PINK PLUMAGE, MANY PEOPLE MISTAKE THEM FOR FLAMINGOS, WHICH ARE CLOSE RELATIVES. BUT FLAMINGOS ACTUALLY ARE MUCH LARGER AND HAVE LONGER NECKS. Spoonbills can be found around the marshes, estuaries and bays of Galveston Bay and near Port Houston’s container terminals.

The port’s small business efforts received a number of awards in recent years, including the Our Great Region Excellence Award by the Houston-Galveston Area Council and the City of Houston Office of Business Opportunity’s Community Partner of Year Award for the port’s Interagency Mentor Protégé Program with local agencies.

MANIFEST

DID YOU KNOW?

The Roseate Spoonbill breeds in only three states in the United States, including neighboring Louisiana and also Florida. The breeding range in Texas extends for more than 500 miles along the coast, generally from Port Arthur to Poor Isabel, according to the Texas Breeding Bird Atlas. Spoonbills can be spotted in Texas between March and October. Along the coast, Spoonbills eat shrimp, shrimp eat algae and the algae make their own red and yellow pigments, called carotenoids, according to Texas Parks and Wildlife. Some scientists believe that the pink coloration that the roseate spoonbills get as they mature is tied to their diet of carotenoid-rich organisms like shrimp.

the marsh grass. Large trees there provide a roosting habitat for larger birds such as these. Other bird species, such as Blue Herons and Egrets, are also not strangers to these local lands as well. Port Houston works with organizations like the Galveston Bay Foundation to support the environmental and wildlife habitats of these kinds of interesting creatures. As the local sponsor of the Houston Ship Channel, Port Houston works to identify beneficial uses for the dredged material and has successfully created and managed more than 3,000 acres of wetlands in Galveston Bay. Port Houston also manages environmental conditions for 6,000 acres of dredge material placement areas along the channel. As part of its efforts to be a good neighbor to nearby communities, Port Houston also tests dredged material and performs mosquito and vegetation control on levees near its facilities.

Recently, the dredge islands near the port’s Barbours Cut Container Terminal have undergone further development, beyond

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.

NAVIGATOR SPRING 2018

| 15


2040 PORT HOUSTON

Work on Far-Reaching Plan is Moving Forward Work on a blueprint for Port Houston’s future is under way, at the same time some record-setting growth currently is keeping cargo streaming across the port’s docks. 16

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 17


2040 PORT HOUSTON

That includes strengthening public awareness, and looking beyond the port gates as well. The Port is working with the Texas Department of Transportation and H-GAC, as well as federal grant sources, to focus on increasing capacity in the rail and road networks. That way, the cargo can move as quickly and seamlessly as possible. The main focus of the ongoing master plan zeroes in on what port needs to look like not only in the near term, but also in the medium term and long term, said Port Houston Chief Infrastructure Officer Rich Byrnes. “We have a mission and a vision of driving regional prosperity and being the supply hub for the next generation for a large portion of the U.S.,” Byrnes notes. “The impacts of the port

The continued focus on infrastructure at Port Houston is key, Executive Director Roger Guenther told attendees at the January Port Commission meeting.

indicate the 3 million TEU level is not far off, particularly given

continues unabated, Port Houston 2040 could be a critical

the anticipated surge in exports as expanded petrochemical

roadmap. For example, container volumes alone were up nearly

facilities come online. That surge is expected to materialize

13 percent in 2017, steel was up and increases were logged

this year.

“Our infrastructure is critical towards capturing continued economic activity for our region,” Guenther said. Near term, in addition to new ship-to-shore cranes at Barbours Cut that were delivered last year, and three more cranes under construction for delivery to the Bayport Container Terminal, in 2017 Port Houston brought to substantial completion more than $200 million worth of construction projects. Those included completing and putting into service container Yard 6 North and South at Bayport, including gantry cranes, and the rehabilitation of Wharf 2 at Barbours Cut along with East End Yard improvements there. Moving forward, the capital plan over the next ten years will exceed $2 billion, with similar amounts needed beyond that to support innovation and sustain growth through 2040. “These are large investments, but the dividends they pay in driving the economy are well worth it, just as our city founders knew 100 years ago,” Byrnes added.

An initial draft of the Master Plan entitled “Port Houston 2040” is slated to be completed this year. Port Houston executives already have been meeting to map out the path forward. If the current and projected growth for the next few years

area on the economy are about $600 billion nationwide, 2.4 million jobs related and 1.2 million jobs related in Texas. So we need to make sure that the port is doing the right thing to sustain that economic engine that supports the economy.”

It makes people believe differently.

in wind energy, automobiles and general cargo. Continuing growth requires preparation and well -planned investments.

Port Houston already is the fastest-growing of the top ten container ports in the United States, according to data from

The 2010 U.S. Census found that the eight-county Houston

PIERS. If container trends from 2017 continue, Houston

region had 5.8 million residents and 2.7 million jobs, according

could overtake both Norfolk and the Northwest Alliance – The

to the Houston-Galveston Area Council (HGAC) . By 2040,

ports of Seattle and Tacoma combined -- within two to three

the region is expected to have a total of 9.6 million residents,

years, projections indicate.

or nearly four million more residents, the council determined.

concentrated in ports benefitting from the newly expanded

Increases in population trigger increases in cargo, particularly

Panama Canal, like Port Houston and the Port of Savannah.

Most of the growth in ports is

consumer goods and other imports. At the same time, the petrochemicals renaissance is driving exports, particularly

The leadership at Port Houston also is looking at the highest

plastic resins.

and best use for the general cargo terminals and best use of real estate. Beyond preparing for cargo, Port Houston 2040

One focus of the Port Houston master plan will be the

will look at additional priorities, including continued development

container facilities. The threshold of 2.4 million twenty-foot-

of the Houston Ship Channel; stewardship of key resources

equivalent units (TEUs) was surpassed in 2017 and projections

including security and environment; and the Port’s connections to our community and broad range of stakeholders.

|

18 NAVIGATOR SPRING 2018

With Trustmark as your true financial partner, you can expect expert advice, tools and technology to help manage your business’s finances—freeing you to turn your great idea into a lasting mark.

WHAT’S THE MARK OF A GREAT IDEA?

People you trust. Advice that works.

Member FDIC

trustmark.com

People you trust. Advice that works.

From Kiplinger's Personal Finance, May © 2017 The Kiplinger Washington Editors. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

NAVIGATOR SPRING 2018

| 19


Port Houston has made significant strides of late regarding port accessibility to keep freight moving throughout the region. The port’s Freight Mobility Department works for increased investment in critical rail, road and barge transportation initiatives that facilitate moving freight to and from public and private facilities along the Houston Ship Channel.

PORT ROAD ACCESS PROJECT AT BAYPORT CONTAINER TERMINAL – $9.6 million in state funding will help expand Port Road at Bayport to six lanes, providing additional capacity to meet growing cargo demand and will improving road drainage. The PTRA has recently made its own capital investments, which have tripled to $18 million annually over the past eight years. This has helped improve customer service levels from 72 percent to 93 percent in recent years. “A lot of organizations like PTRA are doing their parts to contribute to improving the freight system. We value these partnerships, which will not only benefit Houston, but Texas and the entire United States,” said Mann. “We are also researching and investing in opportunities that help port users get in and out of our facilities even more efficiently than before,” added Mann. The port is working with road and rail sectors pursuing other innovations that could help to reduce potential congestion and truck emissions. For example, the port’s Environmental Affairs Department works with the trucking community to support grants that help upgrade engines to reduce overall emissions.

These projects are not only important to residents and businesses, but they also help facilitate commerce and growth, increasing transportation options and reducing costs while maintaining safety, noted Bruce Mann, director of Freight Mobility for Port Houston.

Freight Mobility Port Access &

CRITICAL to Region’s Economy More than $30 million of federal and state funding has been secured recently for some key projects to improve freight mobility in the Houston area.

20

| NAVIGATOR SPRING 2018

“Port Houston strategically evaluates and fosters opportunities outside our gates for the benefit of the greater Houston port region,” Mann said. “We work with regional transportation leaders and organizations on projects that are most critical to the region’s multimodal transportation capacity.” Government and industry partner groups include the Texas Department of Transportation (TxDOT), Houston-Galveston Area Council (H-GAC), Harris County, Houston and local cities, as well as Port Terminal Railroad (PTRA), class 1 railroads, trucking Companies, Economic Alliance Port Houston, Transportation Advocacy Group and many local chambers of commerce. “What is important is how freight gets to where it needs to go,” County Judge Ed Emmett remarked at a recent trade and transportation conference. “Freight drives the Texas economy.”

The port’s freight mobility group is also exploring potential new innovations like a regional freight shuttle, an automated, grade separated, all-electric guideway system for containers that may have cost benefits along with environmental and safety benefits. Open access to road and rail networks will continue to be critical to the port’s success and future of Houston’s freight mobility. “Our work isn’t done,” said Rich Byrnes, Port Houston’s chief infrastructure officer. “Imports will continue expanding to support Texas’ growing population and exports are being driven by a sea-change in manufacturing of plastic resins. To stay ahead of the growth, we have nearly thirty additional freight mobility projects to help pursue.” Texas had the highest-ranked freight plan in the American Transportation Research Institute’s research report on best practices for state freight plans. Port Houston continues to focus on mobility systems and infrastructure to ensure the industries it serves can continue supporting the region’s robust economy.

Through this coordination and partnership, freight advocates and stakeholders have recently made strategic investments and attracted over $30 million of federal and state funding to conduct three key projects, which include: THE BROADWAY DOUBLE-TRACK PROJECT – This $23 million PTRA project will eliminate one of the largest area rail bottlenecks near Broadway Street east of Brady’s Island. This project will begin in 2018. THE PENINSULA ROAD IMPROVEMENT PROJECT – This $12 million state and county supported project will add lanes, improve rail crossing safety, and improve access to the CARE and Jacintoport general cargo terminals. Groundbreaking is expected in early 2018.

NAVIGATOR SPRING 2018

| 21


The Port of Houston is expected to see a significant increase in plastic resins in coming years, with projections reaching four million tons by 2021. Those resins, a byproduct of the petrochemical process, are increasing because of the huge plant expansions taking place along the Houston Ship Channel in recent years. Much of them are expected to cross Port Houston’s docks in the form of exports, reported Nick Vafiadis, Vice President, Global Polyolefins and Plastics, for IHS Chemical at Port Houston’s annual Synthetic Resin Symposium Jan. 23.

MORE

RESINS TO HOUSTON: Top Stakeholders Attend Port’s Synthetic Resins Symposium “The collaboration of industry stakeholders in a forum like this is the key to the success of our port. As the dominant

The polyethylene product makes some of our most used daily consumer products, from bags and toys to cups and car parts.

ADDED RESINS, MORE GROWTH There is more volume of resins coming. Another wave is headed to Gulf Coast due to the fact some of the packaging and production facilities slated to come on line in 2017 were delayed due to impacts of Hurricane Harvey.

opportunities ahead,” said Port Chairman Janiece Longoria.

“We see great promise in Houston, presently and in the future,” added Nick Fafoutis, Senior Vice President and Chief Commercial Officer for CMA CGM.

PORT RESIN SYMPOSIUM: A SUCCESS Nearly 280 beneficial cargo owners, shippers, ocean carriers, and logistics providers attended the conference. Port Houston has 17 all-water services for container shipping to and from ports around the globe. The port is unique in the fact that it is one of the few operating ports in the nation.

The keynote speaker at the port’s resins event was Dave Morgan, Senior Vice President of Chevron Phillips Chemical Company, one of the major businesses that has been investing into Houston polyethylene projects. “The Houston region provides a long-term feedstock advantage,” said Morgan.

| NAVIGATOR SPRING 2018

Pedersen noted that the added Trans-Pacific all-water service in 2016 by the 2M Alliance, comprised of Maersk and MSC, operating between the U.S. Gulf of Mexico and Asia and calling first at Port Houston, was one of the most successful service launches that the shipping company has ever had.

IHS Markit forecasts that Port Houston will be the dominant export player in coming years. “Houston’s resin facilities are world class, technology driven and some of the best on the planet,” added Vafiadis.

Port Houston’s freight mobility department is working with transportation partners to focus on roads, highways and rail projects that will improve access to the port. “Houston will continue to be the place to move plastics,” said Port Houston Freight Mobility Director Bruce Mann.

22

A panel of ocean carriers with Maersk Line, CMA CGM and COSCO Shipping discussed readiness and container capacity for resin exports. “Port Houston is a great key partner. We are excited about the Houston market,” Christian Tangen Pedersen, Vice President, Head of Trade and Marketing, for Maersk Line.

This is a good thing for Houston, as the global outlook is becoming more robust. Analysts believe that there will be two million more tons of polyethylene produced than expected a year ago.

port in the nation for the movement of plastic resins globally, Port Houston is ready to efficiently handle the growth

CARRIERS SHARE OUTLOOK ON HOUSTON EXPORTS

READY FOR RESINS “Our port offers connectivity, capacity and the required equipment to handle this export demand,” said John Moseley, Senior Director of Trade Development at Port Houston. Houston’s population growth and the housing markets are two reasons why the port’s export volumes are expected to increase. Port Houston is continuing to invest in port facilities and infrastructure expansion to remain well ahead of the demand for cargo produced by the petrochemical industry. Shale continues to drive U.S. natural gas and production growth as Houston remains the largest epicenter for petrochemicals.

NAVIGATOR SPRING 2018

| 23


BAHRI’S HEAVY LIFT:

THE COMPANY’S BIGGEST CARGO MOVE EVER AT PORT HOUSTON Bahri Logistics’ M/V Bahri Hofuf V.16 discharged the heaviest piece of cargo the company has ever handled on its new state-of-the-art 26,000 dwt Bahri Class RoCon vessels at Port Houston’s city dock 31 Jan. 30.

24

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 25


BAHRI’S HEAVY LIFT: A floating crane was deployed to help move the cargo, which consisted of five pieces ranging from 70 metric tons to 266 metric tons.

quite a remarkable operation at the time. The equipment has once hailed as capable of handling just about any cargo in the Gulf. “Big John is a Port of Houston legend,” said Randy Stiefel, Port Houston director of general cargo operations.

NOT YOUR AVERAGE CARGO

MORE THAN JUST MOVING BREAKBULK

“It was a very exciting move,” said Clifford Kuhfeldt, a regional manager for sales at Bahri Logistics. “It went off without a hitch.”

At January’s Port Commission Meeting, Executive Director Roger Guenther reported that the port had increases in wind energy, automobiles and general cargo at its facilities in 2017. Steel tonnage also rose with a total of 3.7 million tons, which is above average. Total port waterborne tonnage was record setting at 38.3 million tons – the highest ever for Houston’s port.

Port Houston Executive Director Roger Guenther said handling cargo that heavy is unusual. “It’s much larger than any run-of-the-mill, everyday lift that we have,” Guenther noted. Bahri Logistics is one of the top 10 breakbulk carriers in the world. It operates six new state-of-the-art multipurpose vessels with 26,000 DWT each on a regular liner schedule. Bahri’s vessels connect the United States to Saudi Arabia and major ports in the Gulf, Indian subcontinent and the Mediterranean.

FLOATING CRANE “BIG JOHN” SUPPORTS PROJECT

“With the strengthening of the energy sector in our region as well as continued investment in distribution facilities for import goods, we believe we are in for another amazing year across all lines of business through Port Houston facilities,” said Guenther. It’s your unordinary projects like Bahri Logistics heavy lift discharge that will continue spread Port Houston’s footprint as the largest breakbulk gateway in the U.S. Port Houston is set to host the global Breakbulk Americas Conference in October 2018 for the seventh year.

What is “Big John?” The auxillary heavy-lift crawler revolving crane has been moving project cargo pieces to and from ships, barges and docks at Port Houston since 1967. The crane was once known as pulse of the Houston Ship Channel although there are alternative ways to move cargo on ships. The crane was originally built in Minnesota. Big John is a part of the port’s history, after being first owned and operated by Green Bayou Terminal with a capacity to lift large and heavy objects weighing up to 500 tons. This was

Top executives with Bahri Group presented Port Houston with a beautiful ship model of Bahri’s M/V Jazan, a 26,000 dwt roll-on/roll-off cargo vessel March 6 at the port’s executive building.

26

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 27


Big Retailer Lowe’s

Moves Import Cargo Across

Port Houston Docks

When Lowe’s signed a lease several months ago with supply chain logistics company NFI for almost 250,000 square feet of warehouse space on Houston’s northeast side, it was a direct reaction to the devastation wrought by Hurricane Harvey. But its ongoing growth in the Houston region and beyond is not. The fast-growing population in Houston and in Texas makes the region a good candidate for some future expansion. Lowe’s already has 143 stores located in the Lone Star State, with 23,000 employees and three distribution centers. The major home improvement retailer called Port Houston an important partner for the company. In 2018, Lowe’s is

Inventory management is one key area Lowe’s is focusing on, particularly given the increasingly competitive landscape in the sphere of home improvement retailers. Inventory management is particularly important at Port Houston, as well, given that more than 2.4 million twenty-foot-equivalent units (TEUs) of goods were handled in 2017 just at the two container terminals, Bayport and Barbours Cut. Lowe’s said its experience moving cargo through Port Houston has been positive.

“We use lot of different gateways coming into the U.S. from Asia, and Houston is one,” said Rick Gabrielson, Lowe’s vice president of transportation. “It is an important gateway for us.” Some major changes are underway at Lowe’s, as they company announced in late March that Robert Niblock plans to retire as chairman, president and CEO and the board of directors has initiated a search for his successor.

projecting that its total sales will increase about 4 percent and the company said it expects to add about ten home improvement and hardware stores. Lowe’s already operates a total of 2,152 home improvement and hardware stores in the United States, Canada and Mexico, which represents about 214.9 million square feet of retail selling space. Ranked at No. 40 in the Fortune 500 list of companies, the big retailer uses Houston as a gateway for its Texas and Southern markets. Those goods can range from tools to building products.

While the chain’s recent earnings fell somewhat short of analysts’ expectations for 2017, same store sales were up by more than 4 percent, which was higher than expected. Lowe’s also just announced an expansion of its partnership with SherwinWilliams. Under that partnership, Lowe’s will become the only nationwide home center to offer top stain brands as well as top paint brush and spray paint brands. Founded in 1946 and based in Mooresville, NC, Lowe’s is the second largest home improvement company in the world. Lowe’s started out as a small-town hardware store, selling goods ranging from washtubs to overalls, along with horse collars and work boots.

28

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 29


Port Houston First Port selected for Maersk/IBM BLOCKCHAIN Program Port Houston is the first port in the United States selected to participate in a pilot joint venture spearheaded by Maersk and IBM aimed at commercializing blockchain technology to improve the global supply chain.

30

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 31


Maersk/IBM Blockchain Program

The initiative by Maersk and IBM is to deliver a vendorneutral technology platform to equally support and benefit all participants, which they view as a critical feature for logistics in the future. The companies said the aim of the new company will be to offer a jointly developed global trade digitization platform built on open standards and designed for use by the entire global shipping ecosystem. It will address both the need to provide more transparency and simplicity in the movement of goods across borders and trading zones. Executive Director Roger Guenther said Port Houston is excited to be the port chosen to be a part of the emerging technology pilot project. “Ports are critical links in the supply chain and creating more visibility of information to our customers and users of Port Houston facilities only enhances the efficiency of the movement of cargo,” Guenther said. “We are excited to be the port chosen to be a part of this pilot project and have begun to preliminarily test the exchange of information through this technology during the initial phase.” Blockchain is a technology using a highly secure public ledger platform to verify and record transactions and share with others. The shared ledger is validated in real time, with participants being able to view the location, ownership and condition of freight. Maersk and IBM began collaborating in June 2016 to build new blockchain-and-cloud-based technology. The companies believe access to more complete and standardized information among traders, shipping lines, freight forwarders, ports and terminals, customs officials, ground transportation companies and banks is critical to improving the supply chain. In announcing the venture, Michael J. White, former President of Maersk Line in North America, and CEO of the new company noted in a prepared statement that “a vast amount of resources are wasted due to inefficient and error-prone manual processes. The pilots implemented over the past year confirmed our expectations that, across the industry, there is considerable demand for efficiency gains and opportunities coming from streamlining and standardizing information flows using digital solutions.” He added that the ambition of the companies is to apply what they learn to establish a fully open platform whereby all players in the global supply chain can participate and extract significant value.

SHIP-TO-SHORE

CRANES

SWAP AT BARBOURS CUT

P o r t Inc. Cut

Houston and Industrial Cranes Services, performed a “crane swap” at the Barbours Cut Container Terminal to regroup the remaining old generation ship-to-shore cranes March 11. This will provide better customer service for vessel calls and prepare the facility for the next phase of wharf renovation.

“We are in the process of reshuffling our older cranes to better service vessels as we prepare for the next phase of dock reconstruction at the terminal,” said Ryan Mariacher, Port Houston director of container terminals. ”ICS was contracted to assist with the project.” The Barbours Cut Container Terminal received three new cranes in October 2017. A new set of ship-to-shore cranes are expected to arrive at the Bayport Container Terminal later this year. Port Houston has a $275 million capital improvement plan for 2018. Those funds will be used for facility improvements and expansion at the Bayport and Barbours Cut Terminals. Some of these projects include increasing container yard capacity, wharf expansions and the additional super postPanamax ship-to-shore cranes.

“We look forward to further expanding our ecosystem of partners as we progress toward a global solution,” he said in the statement. Solutions from the joint venture are expected to be available within several months.

32

| NAVIGATOR SPRING 2018

NAVIGATOR SPRING 2018

| 33


PORT HOUSTON:

Over the last several years, Port Houston has made significant enhancements in its safety culture and performance. In 2017, the port’s Lost Time Incident Frequency Rate went down from 1.11 to 0.97 (per 200,000 man hours worked) compared to industry average of 3.5.

Port Houston’s safety policy is based on the principal that all injuries are preventable, with absolutely no tolerance of unsafe conditions or behaviors. The port’s safety committee consists of a cross functional team of port employees across the organization who develop investigation protocol and safety

KEEPING SAFETY

IN THE FOREFRONT The port’s safety department holds routine meetings with operations and maintenance employees as well as truckers. “It’s important for us to also educate the companies out there working on our behalf. We all have the same objective – to get the job done right without causing potential incidents,” said Port Houston Safety Lead Matt Chapman. Port Houston holds a professional membership with the National Safety Council and the American Society of Safety Engineers. Port Houston’s responsibilities also include facilitating safety audits and incident investigations. The port is a member of the Lone Star Harbor Safety Committee, an organization that provides a public forum to address Marine Transportation System (MTS) issues with 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.

Port Houston has been stepping forward with its recent safety initiatives to ensure a healthy and safe work environment for employees, tenants and visitors alike.

34

| NAVIGATOR SPRING 2018

There has been nearly 3,500 observation audits completed on port property since 2014. The port also recently adopted smart device use standards for employees to prevent distractions while driving vehicles, operating machinery and walking through parking lots or crosswalks. “This was good timing as the State of Texas changed the regulation on texting while driving last year,” added Chapman.

training courses and procedures, review and support safety communications, define rule regulations and delineate and manage safety auditing. Port employees have also made a personal commitment to a safe work environment by immersing themselves in the safety culture. The port is committed to continual improvement of its operations and the prevention of injury and illnesses by focusing on health, safety, quality, productivity, cost effectiveness and environmental improvement. Additional training programs throughout the organization have been put in place to make sure Port Houston is ready for the next big project underway. Prior to most internal or external meetings held at Port Houston, a safety moment is provided as a reminder to keep safety first at the workplace. Last year, Port Houston participated in the National Safety Month campaign, which raises awareness for safety and focuses on reducing leading causes of accidents and deaths at work, on the road and in our homes and communities through leadership, research, education and advocacy. Part of the port’s mission of “moving the world” is to be a good steward through facilitating safe navigation and enabling global maritime trade. “Our motto is work safe, live safe and be safe,” added Chapman.

NAVIGATOR SPRING 2018

| 35


Perishables PERISHABLES BRING POSITIVE OUTLOOK Port Houston has been pursuing more refrigerated cargo in recent years as capacity for storage and shipping is growing in the Houston region. Houston has four main refrigerated warehouses companies that are strategically located near the port and offer, repackaging, quality control, cross-docking, distribution and other value added services. With the Barbours Cut and Bayport Container terminals operating more than 800 reefer plugs and even more at Jacintoport Terminal, Port Houston is a gateway for this specialty cargo. Some the Port of Houston’s top perishable import commodities include bananas, citrus, grapes, pineapples and other miscellaneous fruits.

NEW PERISHABLES EVENT A SUCCESS Port Houston also recently hosted a Perishables Summit Feb. 14-15 as a platform to engage with exporters, growers and industries involved with the perishables trade focusing on imports of fruits and vegetables. Topics discussed at the event included best practices for the supply chain, market challenges and reefer capacity. Networking opportunities and match making sessions between exporters and buyers were also organized. Tours were provided of the ports terminals and third-party warehouses with perishable-related operations. The U.S. Customs and Border Protection, U.S. Department of Agriculture and the Food and Drug Administration highlighted best practices for importing perishables, food safety regulations, cold treatment programs as well as other customs exams processes. The two-day event, which included tours of some of Houston’s refrigerated warehouses and port facilities, was developed to improve communication between all stakeholders of Port Houston’s perishable community. The inaugural event featured a diverse group of Latin American produce export trade organizations and U.S. produce buyers.

36

| NAVIGATOR SPRING 2018

SOUTH AFRICAN CITRUS TRADE CONSISTENT IN HOUSTON “Houston is the best gateway for importing perishables,” said John Moseley, senior director of trade development for Port Houston. “Retailers and importers save time and money by using Houston instead of alternative ports because of our direct services from Central and South America and our ability to shorten transit times. Short transit time and speed to table is what keeps the product fresh and price competitive.” During the past several years, deliveries of containers of oranges from South Africa highlighted several consistent seasons 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. “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 cooperation with local authorities and cold storage providers, which restricted growth during the first two seasons of these citrus imports,” said David Groves, Director of MACS Maritime Carrier Shipping, LLC.

RELATIONSHIPS WITH COMMUNITY, INDUSTRY AND CUSTOMERS VALUED The port is an active member of the perishables community through the Houston Fresh Fruit and Vegetable Association and the Perishables Marketing Association. In 2017, most of the top imported commodities in Houston included oil and gas products, however, there has been an uptick in perishables, according to the Customs Border and Protection Houston office.

“It’s important that these market representatives understand the processes and steps that are taken for the inspections of these products to make the shipping process smoother for everyone,” said Mark Segall, Insect Identifier for the U.S. Department of Agriculture. In 2017, Port Houston handled nearly 2.5 million TEUs, a record for its container operations, which the port had only surpassed two million TEUs in 2015. Port Houston also had a 12 percent growth in loaded container imports in 2017, which a lot of that cargo comes from Europe and East Asia. “It’s been a team effort with our industry partners and stakeholders, and investments are being made here at the port to continue providing solid customer service,” added Moseley.

NAVIGATOR SPRING 2018

| 37


SPOTLIGHT

BKG GLOBAL MANAGEMENT CONSULTING: THE PROJECT MANAGEMENT EXPERTS

ON SMALL BUSINESS

INTEGRATED TRANSPORT & LOGISTICS SOLUTIONS From general/steel cargo vessel stevedoring, freighthandling, trucking, storage (incl FTZ) to steel on barge and COB (Container on Barge) transport services & intermodal trucking, we have you covered. Locations: Port Houston, Greensport, Baytown and Mobile, Alabama.

“It doesn’t take a lot of people to do the job, it just takes the right people,” shares Shanita Johnson, owner of BKJ Global Management Consulting. When it comes to project management in the maritime industry, people, process and procedures are priority. BKJ Global Management Consulting helps companies with project management and process execution, assisting with project policy standards and workflow. The company also strives to develop and improve processes, increase profits and productivity, as well as decrease operational costs. Johnson, with over 20 years of information technology

She is currently working on an information technology

experience, started her company in 2014 as a leap

contract with the port developing strategies for a more

of faith. She was Vice President of Stewart Lender

efficient project implementation process. She also

Services, a division of Stewart Title, an insurance and

continues to work with other clients - nonprofits, churches,

real estate company, but knew her passion had always

schools and now has a team of three employees since

been to become a business owner. “It was a journey,”

exploring the port’s small business program.

she added on the transition. Her one client grew to multiple clients, but she always had her eye on Port Houston projects. One day she was at lunch talking about work, and

“The port is very visible at events and the employees put in the time to invest and help entrepreneurs like me get started. I love the culture at the port and the atmosphere,” said Johnson.

another professional whom she never met happened to see her, make small talk and ask what she did for

“What makes BKJ different is that we understand how

a living. That person happened to be Port of Houston

to apply and customize strategies to the business. It’s

Authority Chairman Janiece Longoria.

the big picture that matters most.”

Longoria suggested that she reach out to the port’s small business department for opportunities with the small business development program. Johnson attended training classes, workshops, events and networked as much as she could to spread the word about her venture. “I was able to meet port staff and it took me two years to be awarded a contract. I kept being persistent, worked hard and it paid off,” added Johnson.

|

38 NAVIGATOR SPRING 2018

HOUSTON, TEXAS

Stevedoring, Steel Storage/Warehousing (including FTZ) & Trucking: Kelly, Chance or Steve@richardsoncompanies.com Intermodal Trucking: Howard@richardsoncompanies.com; Jason@richardsoncompanies.com COB (Container on Barge) Service: Rainerl@richardsoncompanies.com; krish@richardsoncompanies.com Port Houston TBT: 713-673-1110 (also for COB Service) • Greensport: 713-455-8802

MOBILE, ALABAMA

Stevedoring, Steel Storage/Warehousing & Trucking Mike@richardsoncompanies.com • 251-432-0081

www.RichardsonCompanies.com Stevedoring and Freighthanding • Barge Transport Services • Foreign Trade Zones • Warehouse and Outdoor Storage • Trucking Steel by Rail Handling Services • Green Transport Barge Terminal Facility (Partnered with JR Intermodal) Barge Terminal Facilities and Storage (Baytown)


PO Box 2562 • Houston, Texas 77252-2562

PRSRT STD US Postage PAID Houston, TX Permit #1395

WE ARE THE INTERNATIONAL PORT OF TEXAS! We are responsible for over 1.2 million Texas jobs and with our new super post-Panamax, ship-to-shore cranes, we can accommodate the next generation of container vessels that now transit the Panama Canal. The new cranes are just a portion of the $1 billion modernization project that further establishes Port Houston as the leading port on the Gulf Coast.

PortHouston.com • 713-670-2400


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.