Port Houston Navigator - Winter 2017

NAVIGATOR

WINTER 2016

PORT HOUSTON TOPS IN GROWTH O F E A S T A S I A N I M P O RT S

CONTAINER TERMINALS DREDGING COMPLETE Wider and Deeper

ENVIRONMENTAL RESPONSIBILITY KEY AT PORT HOUSTON

ALSO: STATE OF THE PORT FREIGHT SHUTTLE INTERNATIONAL ENTERS INTO AGREEMENT BAHRI OPENS HOUSTON OFFICE HARRIS COUNTY TRANSPORTATION CONFERENCE

NAVIGATOR 12.16 IN THIS ISSUE

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

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A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER

THE MANIFEST PORT HOUSTON’S NEWS HIGHLIGHTS WIDER AND DEEPER CONTAINER TERMINALS DREDGING COMPLETE

ENVIRONMENTAL RESPONSIBILITY KEY AT PORT HOUSTON BAHRI OPENS NEW OFFICE IN HOUSTON AS EXPANSION UNDERWAY

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2016 STATE OF THE PORT A GROWING MARKET FOR HOUSTON

SHOEBOXES FOR SEAFARERS PORT HOUSTON GIVES BACK

FREIGHT SHUTTLE POTENTIAL STUDIED AT PORT

PORT HOUSTON PROGRAMS RECOGNIZED BY H-GAC

SPOTLIGHT ON SMALL BUSINESS CHRIS RANSOME AND ASSOCIATES

HARRIS COUNTY HOLDS 8TH ANNUAL INTERNATIONAL TRADE AND TRANSPORTATION CONFERENCE

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FEATURE STORY: PORT HOUSTON TOPS IN GROWTH OF EAST ASIAN IMPORTS

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

Harris County Treasurer ORLANDO SANCHEZ

Commissioner

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

The Port of Houston Authority is Port Houston

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

and with our new super post-Panamax, ship-to-shore cranes we are ready to accommodate those bigger-than-life, next generation container vessels that can now transit the expanded Panama Canal. The new cranes are just a portion of the $700 million modernization project taking place at Barbours Cut Container Terminal. It’s true everything is bigger in Texas... Better too.

BRAZIL THELDON R. BRANCH, III Commissioner

STEPHEN H. DONCARLOS Commissioner

ROY D. MEASE

Commissioner

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A PORT AS BIG AS TEXAS Call or visit us online to learn more about Port Houston, The International

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

Port of Texas.

ASIA GARTH HARRISON Port of Houston Authority c/o Ben Line Agencies Email: gharrison@poha.com Tel: +84 838 256 148 x 147 Mobile: +84 903 943 886 Head Office 200 Cantonment Road, #13-05 Southpoint, 089763 Singapore Tel.: +65 6420 9013 Fax: +65 6224 0163

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

Visit Port Houston online at www.PortHouston.com

www.porthouston.com • 713-670-2400

The five-year review that revealed that Houston ranked as the fastest-growing port in inbound loaded containers comes as data also shows the port is on track to surpass 2015’s record-breaking year.

ROGER THAT

A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER

W

ow! That was fast! The year 2016 is already in the rearview mirror. So much was accomplished by all of you, and there is much to celebrate. As we celebrate, we also will move forward to continue the solid progress we have made. It is exciting to think about the opportunities that lie ahead as we usher in a new year. As usual, we have worked together in strategically planning and are READY for a prosperous 2017.

The New Year is expected to welcome several new growth opportunities, including a surge of plastic resins that will be manufactured in our region and exported globally. Additionally, we will embrace increasing imports from East Asia and other global trade lanes, and a hope for the recovery of the energy-related cargo sector, which drives freight through our facilities. The success for the upcoming year relies on the commitment and engagement of the dedicated folks at Port Houston who continue to make things happen.

As we expand and improve our public terminals to meet the demands of growth and expansion, I’m pleased to note that the Port Commission’s approval of the $73 million 2017 Capital Plan will allow us to continue that work and deliver the most effective service possible for our loyal customers.

As has been the case in recent years, containerized cargo is a major growth area for us, with total increases in volume projected by more than 8 percent in 2017 compared to the current year.

Export loads are projected to be up 13.4 percent, while import load will increase 6 percent. Empty container movement is slated to be up 2.5 percent.

A story in this issue of the magazine focuses on Port Houston being number one in the country in growth of East Asia imports. Due to that steady growth, imports in that trade lane grew by 12 percent between 2011 and 2015, more than any other port in the United States.

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The five-year review that revealed that Houston ranked as the fastest-growing port in inbound loaded containers comes as data also shows the port is on track to surpass 2015’s record-breaking year. Container volumes topped 2.1 million TEUs (twenty-foot-equivalent units) in 2015.

Strategic projects make up the majority of the 2017 capital plan, which is focused primarily on container terminal capacity and efficiency. A total of $54 million is budgeted for those projects. Another $8 million is slated for recapitalization projects, investments required to sustain high service levels and enhance productivity. A total of $5 million will go to channel projects for development at container terminals and Dredged Material Area Management (DAMP) areas, while $6 million in remaining projects that include maintenance equipment and other replacements also is on tap.

Liquidity projections show sufficient resources to fund capital plans through 2018.

Primarily because of the increased production of petrochemical-related commodities for export along the Houston Ship Channel, we are projecting a hike of between 300,000 to 500,000 TEUs between 2017 and 2020.

Additionally, our Trade Development Action Plan calls for securing more new direct Trans-Pacific Asia services and developing import food, beverage and perishable commodities from Latin America and the Euro-Med regions.

Port Houston is well positioned for the future cargo demand expected for our region. We have planned strategically for accommodating this growth efficiently and competitively, enabling the economic engine of our region to grow and create new jobs.

We are indeed READY!

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TEXAS’ SENIOR SENATOR TOURS BARBOURS CUT TERMINAL Sen. John Cornyn, Texas’ senior senator, toured the Barbours Cut Container Terminal in early November, seeing firsthand the ongoing improvements at the Port of Houston Authority’s first container terminal.

The facility opened in 1977.

THE MANIFEST PORT HOUSTON NEWS AND HIGHLIGHTS

Cornyn met with Executive Director Roger Guenther and Port Authority staff members and was provided an overview of the port prior to the tour, which included visiting and observing International Longshoremen’s Association workers.

BACK TO SCHOOL SEASON BRINGS MORE STUDENTS TO PORT BOAT TOUR A record number of boat tours have been conducted this fall by the Maritime Education and Outreach department on the M/V Sam Houston. Students from technical high schools and maritime colleges are taking the opportunity to visit the Port of Houston through the Port of Houston Partners in Maritime Education Program.

Nearly 200 students were hosted on multiple trips aboard the Sam Houston Oct. 6 for Manufacturers Day, along with staff from Storage and Processors, Inc., a steel coil toll processing steel and coil storage facility inside the Port of Houston. Other scheduled waterside tours in October and November included Jack Yates, Galena Park, Deer Park and Stephen F. Austin high schools. Students enrolled in these programs have the opportunity to receive dual course credits and gain exposure to the port and the petrochemical industries through their curriculum.

“It’s that time of the year where these programs are swinging into full gear,” noted Gilda Ramirez, senior director of Small Business and Education Outreach.

“These students get an educational glimpse of the possibilities for a career in logistics, security, transportation and many other related fields. The boat tour is a fun way for them to explore and see the movement and operations along the port from ships and barges to warehouses and yards.”

Cornyn also boarded a truck to witness a Rubber Tired Gantry crane demonstration and boarded a container vessel and visited with the ship’s captain and bridge crew. Additionally, he toured and operated a wharf crane.

The Barbours Cut terminal was busy during the visit by the senator and his staff, with three vessels working there. Barbours Cut is undergoing modernization, with $700 million earmarked for improvements at the facility in coming years. Four new wharf cranes were installed at the terminal in 2015.

Executive Director Roger Guenther and Sen. John Cornyn

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COOPER/PORTS AMERICA JOINT VENTURE BEGINS OPERATIONS Port operator Ports America and maritime services provider Cooper /T. Smith have merged their breakbulk operations at the Port of Houston Authority into a new joint venture called Cooper/Ports America (C/PA).

Additionally, C/PA agreed to acquire all the assets of Shippers Stevedoring and Chaparral Stevedoring under its operations. The new joint venture officially began operating as of Oct. 1.

PORT HOUSTON GETS NEW WEBSITE WITH REBRANDING Along with a new Port Houston brand, a new and improved website for the organization, PortHouston. com, is up and running. Leading up to a logo unveiling by Executive Director Roger Guenther and port executives to employees at the November 14 quarterly huddle, a cross-functional team was created to re-develop the port’s external website. The website called for a new design, created by John Manlove Marketing and Communications. Content owners were assigned to write copy for the departments within their divisions.

“There were a lot of things to consider when building the new website domains, required transparency documents, internal technical applications and most importantly, the structure. We wanted the site to navigate well and be accessible to our customers, partners and external audiences. It’s more than just a marketing tool,” said Laci Theriot, digital content marketing specialist. The site began with an internal audit and inventory and took eight months to produce, noted Theriot.

The new website contains a terminal toolbox, a customer-friendly portal that tracks containers, vessel schedules, terminal safety manuals and berth applications, as well as a new M/V Sam Houston boat tour reservation system, small business development compliance system and a new blog with short stories covering the Port of Houston region.

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Integrated Marine Services LLC, the empty container yard facility located adjacent to the Port of Houston Authority’s Barbours Cut Terminal that offers intermodal equipment and depot services in Barbours Cut, Texas, will also be part of the new joint venture.

Ports America is an independent marine terminal operator and stevedoring company that operates in more than 42 ports and 80 locations in the U.S. In a statement, the company said it handled 13.4 million TEUs, 2.5 million vehicles, 10.1 million tons of general cargo and 1.7 million cruise ship passengers in 2015.

Established in 1995, Cooper/T. Smith has operations on all three U.S. coasts. It also has operations in Brazil and Mexico.

PORT POLICE SUPPORTS COMMUNITY WITH SILVER SANTA PROJECT The Port Police department volunteered December 19th at Jacinto City Healthcare, a local retirement and assisted living facility in Houston, bringing Christmas cheer to more than 100 residents. Port Houston’s Police and Security departments provided gift bags, pillows and blankets to the residents while entertaining them with holiday music, snacks and games.

The Silver Santa project idea came about a few years ago when Police Chief Mark Smith was visiting family and friends during the holidays. “I noticed that it was very quiet, and not a lot of people visiting the nursing homes in December. I wanted to do something for local seniors, so I came up with the Silver Santa project,” he said.

This year, the Port Houston Police and Security department raised $2,800 towards the Silver Santa project through paper ornament donations and various fundraisers, internal functions and meetings. The project requires several months of planning led by a steering committee of port police and security personnel.

“Port employees contribute to the cause,” said Chandra Spurlock, Port Security Officer. “We are proud to keep the Silver Santa project running for the second year in a row. It is important for us to consider those who can’t spend the holidays with their loved ones.”

The Port Police department also participated in several other outreach opportunities in October, including “National Night Out” and “National Coffee with a Cop Day.” Both programs are utilized to increase community engagement of law enforcement.

PORT HOUSTON PARTICIPATES IN OPERATION TURKEY Port Houston employees and their families celebrated the Thanksgiving holiday by volunteering their time and efforts at this year’s Operation Turkey event.

Operation Turkey, a volunteer organization with its roots in Texas, focuses on ensuring those in need receive a warm meal on Thanksgiving Day. The organization’s success continues to grow and has spread nationally to several major cities around the country.

The holiday event received a tremendous outpouring of local support and brought together more than 1,000 volunteers. Individuals and families joined together in a wide variety of activities, including meal preparation, cooking, packaging, delivering warm meals and creating care packages for those in need.

Younger children had the special role of decorating the care packages with colorful pictures and encouraging words.

In 2015, Operation Turkey hand delivered more than 30,000 meals to the homeless and less fortunate. This year, the organization was able to serve some 40,000 meals and continues to progress. “The event was the perfect opportunity to serve others before we serve ourselves,” said Garret Berg, community relations assistant manager for Port Houston. “It was special to see the great turnout of Port Houston employees, meet their families and friends, and share in the spirit of Thanksgiving.”

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PORT CHAIRMAN RECEIVES HONORARY DISTINCTION FROM PRINCESS OF BELGIUM

ROLLER COASTER ROLLING ACROSS PORT HOUSTON’S DOCKS The first in a series of shipments of parts to build a new roller coaster at SeaWorld San Antonio moved across the docks at Port Houston in late November.

The roller coaster, which is called “Wave Breaker: The Rescue Coaster,” is scheduled to debut in the summer of 2017, according to SeaWorld. At least four more shipments are scheduled to move across the docks through February.

Once assembled, the roller coaster will include a variety of features that SeaWorld describes as a “jet ski-style car design” that will allow riders to lean into a series of banked turns. The coaster will reach heights of more than 60 feet and the majority of the coaster’s 2,600 feet of track will be directly over water.

THE MANIFEST

SeaWorld, which now focuses on animal welfare, said the new roller coaster will enable riders to feel what it is like to race alongside its animal care team and veterinarians as they try to help rescue animals in distress.

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.

Prime Storage Terminal & Pipeline Hub Two permitted, ready-to-develop sites on 700+ acres near the Port of Corpus Christi, TX The royal medal of distinction was bestowed in early December by Princess Astrid of Belgium to Port Houston Chairman Janiece Longoria, recognizing her leadership in the maritime industry.

Port Commissioner Chairman Janiece Longoria was bestowed, by royal decree, the distinction of Commander of the Order of the Crown by HRH Princess Astrid of Belgium at the Port of Antwerp and Port Houston’s joint supply chain seminar December 8. The theme of the seminar was “building the supply chain of the future.”

Chairman Longoria was given the award for her lifetime of meritorious service, the port’s efforts in developing bilateral trade with Belgium and her leadership in the maritime industry since joining the port commission in 2002. She was appointed Chairman in 2013 by the City of Houston and Harris County. “Port Houston is committed to its deep long standing partnership with the Port of Antwerp. Our organizations will continue this tradition by further developing trade, sharing best practices and building on the legacy of those leaders that came before us,” she said.

Port Houston and the Port of Antwerp have been sister ports since 2014 and have collaborated closely to improve cargo flows and help joint customers in both of sides of the Atlantic to improve the supply chain by delivering true value to beneficial cargo owners, ocean carriers and all parties in the supply chain.

Willem Dillen, head of business development for Antwerp Port Authority, and John Moseley, senior director of trade development for Port Houston, provided a presentation on their collaboration.

“Supply chains have become more challenging and our ports share a lot of business, common customers and similarities, especially involving the petrochemical industry. We joined together in this effort in order to make the supply chain between our ports more resilient, robust and efficient. This is how our customers will benefit from port collaboration between Houston and Antwerp,” remarked Moseley.

The ±552-acre Ingleside Terminal features ±2,434 feet of waterfront designed for two Aframax ship berths on La Quinta Channel (45-foot draft, permitted for 52 feet.)

The ±158-acre San Patricio Aggregation Hub site is located ±18 miles from Ingleside Terminal site via a pipeline right-of-way partially acquired.

For more detailed information, including obtaining a confidentiality agreement and offering schedule, please contact John Littman 713.963.2862; Kelley Parker 713.963.2896; Tim Thomas 713.963.2837; or Coe Parker 713.963.2825.

The seminar was held at the Four Seasons Hotel.

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Export to Surge in 2017

PORT HOUSTON

TOPS IN GROWTH OF EAST ASIAN IMPORTS

The five-year review that revealed that Houston ranked as the fastest-growing port in inbound loaded containers from East Asia comes as data also shows the port is on track to surpass 2015’s record-breaking year. Container volumes topped 2.1 million TEUs (twenty-foot-equivalent units) in 2015.

Port Houston is now the third-fastest growing port in the nation in terms of loaded TEUs and continues to grow, according to Senior Director of Trade Development John Moseley.

Although just a dozen years ago or so Port Houston had minimal container traffic from Asia, today that business comprises about 28 percent of the port’s container trade. Maersk Line and Mediterranean Shipping Co. began operating a new direct allwater container service between the U.S. Gulf and Asia in April, with the Port of Houston as the first inbound port of call. This alliance enhances existing weekly Asian services operated by CMA CGM and COSCO.

The growth of East Asian imports is higher at Port Houston than any other port in the nation, statistics show. Due to steady growth, imports in that trade lane grew by 12 percent between 2011 and 2015.

Significantly, the widening and deepening of the Bayport container channel was being completed in December, meaning both of Port Houston’s container terminals are at 45 feet deep and able to accommodate larger ships. Coupled with the other improvements, that was a critical step in building the foundation for future growth.

NOT JUST IMPORTS

That’s one reason why port leadership has focused intently on infrastructure improvements in recent years, including both landside and waterside improvements. New Super Post-Panamax wharf cranes were recently put in place, for example, and others are on order. Other improvements range from new container yards to docks to dredging.

The timing of all those improvements – though planned -couldn’t be better, since a surge in exports also is expected as 2017 unfolds. Petrochemical companies expanding their facilities along the Houston Ship Channel will be coming on line soon, leading to a surge in plastic resins, a byproduct of the petrochemical process. Those resins subsequently move across Port Houston docks as exports.

As a result of natural growth and the anticipated surge, Port Houston’s total revenue for 2017 is projected to grow 8.8 percent, fueled in large part by container traffic. Export loads

are expected to be up by 13.4 percent, with import loads up by 6 percent and empty units up by 2.5 percent. The growth in containers is expected to increase revenues by 8.2 percent in 2017.

Overall, U.S. container trade with Asian countries increased 3.2 percent year-over-year to nearly 21.1 million twenty-footequivalent units during the 12-month period that ended March 31, according to Journal of Commerce PIERS data. For the same time period, U.S. exports fell 0.3 percent to slightly less than 6.5 million TEUs. Imports, which make up the lion’s share of that trade, jumped 4.7 percent to 14.6 million TEUs. Among top 10 ports in the U.S., Houston led growth with an increase of 14.1 percent, according to the PIERS figures.

HOLIDAY CHEER? The end of 2016 may prove healthy for ports and retailers alike.

Recent projections by the National Retail Federation and Hackett Associates indicate imports at retail container ports were expected to be up 4.4 percent in November compared to the same time last year, with a slightly larger increase in December.

The National Retail Foundation is forecasting a $655.8 billion in holiday sales, a 3.6 percent increase over last year. While cargo volume does not correlate directly to sales – since just containers are counted, not the value of the cargo -- NRF says that can serve at least as a barometer of the expectations of retailers.

Cargo volume for all of 2016 is expected to total 18.6 million TEUs, up 2.2 percent from last year, according to the foundation.

The total volume for 2015 was 18.2 million TEUs, up 5.4 percent from 2014. The first half of 2016 totaled 9 million TEU, up 1.6 percent from the same period in 2015. January 2017 is forecast at 1.54 million TEU, up 3.6 percent from January 2016; February at 1.49 million TEU, down 3.2 percent from last year, and March at 1.38 million TEU, up 4.6 percent from last year.

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CONTAINER TERMINALS DREDGING COMPLETE WIDER AND

DEEPER

The widening and deepening of the Bayport ship channel has been completed, meaning the channels at both of Port Houston’s container terminals now are 45 feet deep and able to accommodate larger ships. Their depth matches the depth of the Houston Ship Channel.

This is an example of good teamwork with the Army Corps of Engineers - committing to completing special studies in a year - something that typically takes three times that long.

Mark Vincent,

Port Houston Director of Channel Development

The final work on the Bayport dredging was done in midDecember and completed a roughly two-year job by the contractor, Orion Marine Group. The channel in front of the Barbours Cut container terminal was completed in 2015. The estimated $80 million to complete the dredging in the two channels was funded solely by the port.

The Bayport flare area, which is part of the Houston Ship Channel, is a large and deep zone of about 72 acres designed for deep draft vessels to safely make the turn in and out of the Bayport Channel. Engineered modifications to the flare are expected to make turning easier and improve navigational safety in the area.

Port Houston Director of Channel Development Mark Vincent hailed the completion of the dredging. “This is an example of good teamwork with the U.S. Army Corp of Engineers – committing to completing special studies in a year – something that typically takes three times that long,” Vincent said. “The team succeeded, and approvals from Washington to return the channels to federal control occurred very soon after construction was complete.”

The passage in early December of a water resources bill by Congress that included the Water Resources and Development Act (WRDA) was applauded by Port Commission Chairman Janiece Longoria during December’s Port Commission meeting. She noted it “includes many priorities for improving navigation on our waterways,” including providing the Corps authority to fix navigation safety problems like the Bayport flare. She thanked Sen. John Cornyn, Sen. Ted Cruz and Congressmen Gene Green and Brian Babin for their efforts to secure these provisions to benefit the port.

“The project benefited the port, the Corps, and the environment,” Vincent added “Our project beneficially used dredge material for dike construction, so the Corps will have far more capacity – millions of cubic yards – than when our work began.

Our environmental mitigation included construction of new public oyster reefs and perpetual land conservation in a wetlands bank.”

Meanwhile, the U.S. Army Corps of Engineers has awarded a contract for improvement to the Bayport flare and restoration of marshes nearby, a project that will provide safer and more efficient navigation on the Houston Ship Channel. The dredging for this project is expected to begin in January of 2017.

Considerable planning and design work by the Port of Houston Authority staffers during the first part of the year led to the flare contract being awarded, Executive Director Roger Guenther noted. Work on the flare project will be coordinated with current dredging in the ship channel near Bayport.

“This is a big contracting milestone that culminates seven months of work by PHA to plan, design, and get approvals for multiple projects,” Guenther said during a recent meeting of the Port Commission of the Port of Houston Authority. “I want to commend the efforts of our staff and partnership with the U.S. Army Corps of Engineers to get this done. We are thrilled to get this project underway!”

The work on the Bayport flare is expected to allow for the beneficial use of the clay there to be mined and be used for environmental restoration of marshes along the channel. At the same time, it should be easier for vessels to be turned safely around the confluence of the Houston Ship Channel and Bayport channel.

The Corps in late September awarded a $26.6 million contract to Weeks Marine specifying that the material mined from the Houston Ship Channel would beneficially be used to construct marsh dikes at Atkinson Island. It also would provide for additional placement area capacity for future dredging requirements while implementing marsh creation within Galveston Bay. In addition, the work will resolve a navigation safety concern on the ship channel, the Corps noted. Port officials and the Houston Pilots have been working for some time to address those concerns. The ship channel is one of the busiest waterways in the United States, yet maintains one of the best safety records in the maritime industry.

A new four-year study to plan future improvements for the ship channel was launched earlier this year. As the local sponsor of that channel, the Port Authority is supporting the work of the Corps for the study.

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Port Houston is the first port authority in the world to attain the newest international standard for environmental management systems, meeting a stringent new set of criteria in the process.

Known as ISO 14001:2015, the new standard requires significant organizational changes before the designation can be awarded, and steps already have been taken by port environmental department officials to meet those goals.

First in World to Meet New Standards Environmental Responsibility Key at Port Houston

The ISO 14001 Environment Management System (EMS) is an internationally recognized environmental management standard that was put in place in 1996.

Open to any company or agency, the program is described as a systematic framework to manage the immediate and long-term environmental impact of an organization’s products, services and processes.

The new standards require that an organization consider environmental performance in its strategic planning.

Additionally, they require the port to strengthen the relationship between the core organization and environmental management system, including aligning with other ISO standards, such as the Security Management ISO certification that the port has in place. The standards also emphasize ownership of environmental management for top-level management. Risks and opportunities must be assessed and managed in line with best practice guidelines.

“Because of the port’s proactive long-range strategic planning initiatives and objective to be an environmental leader, Port Houston was particularly well positioned to achieve this distinction,” Oberlin said.

In 2002, Port Houston became the first U.S. port authority to attain the international standard for environmental management systems. Being able to meet the necessary goals and then taking it to the next level makes for a stronger organization, Oberlin said.

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C

iting the importance of Port Houston as one of the busiest ports in the world, Bahri is opening a key

office in Houston as the company pursues what it calls significant expansion plans in North America.

The announcement of the opening of its second office in the United States – Bahri Americas has been headquartered in Baltimore since 1992 -- was made at the Breakbulk Americas conference in Houston in September. That conference is now held annually in Houston.

Bahri calls at the Port Houston’s Turning Basin terminal.

Bahri

General

Cargo

operates

six

state-of-the-art

multipurpose vessels that have an average age of less than three years. The vessels all are designed to carry project, Ro-Ro, breakbulk and container cargo simultaneously.

Bahri is the leading direct RoCon liner service provider from the U.S. to the Middle East and Indian subcontinent, according to Steven Blowers, country manager for USA Bahri General Cargo. That corridor is one of its most profitable routes, he said in a prepared statement.

In addition to announcing the new Houston office, Bahri also unveiled a new product called “BahriData” The company called it an innovative model intended to improve the company’s operating performance and to drive data innovation within the global shipping industry.

“With the opening of a second office in the U.S. in Houston, home to one of the busiest ports in the world, Bahri General Cargo coupled with its data innovation models will look to provide unmatched customer service through the provision of leading technology-driven value-added onshore and offshore services,” Blowers said.

Bahri said it is committed to play an integral and leading role in realizing the Kingdom of Saudi Arabia’s 2030 Vision by continuously enhancing and expanding its services and presence across the world, enabling the opening of new trade routes. Bahri has an estimated 2,400 employees across its global network of offices in Saudi Arabia, United Arab Emirates, the United States and India.

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2016 STATE OF THE PORT:

A Growing Market for Houston Solid performance continues at Port Houston, Port Authority Chairman Janiece Longoria told a crowd of port stakeholders, partners and public officials at the Greater Houston Partnership’s annual State of the Port event Nov. 9.

Dredging at Barbours Cut finished in 2015, while Bayport is expected to be complete by the end of the year. The Houston Ship Channel is the busiest waterway in the nation with more than 9,000 vessel calls a year.

HIGH OPERATING REVENUES, SOLID CONTAINER THROUGHPUT The Port of Houston’s public and private marine terminals generate an economic impact of over $265 billion, which is 16 percent of the state’s gross domestic product. Since 2011, this has grown by more than 46 percent to an estimated $85 billion increase in total economic value to the state, Longoria noted.

Barbours Cut terminal investments are underway with the 40th anniversary approaching soon, since the terminal opened in 1977. Three new Super Post-Panamax wharf cranes are currently under construction and will be arriving from China in May 2017. Bayport expansion plans call for additional container yard projects in the works, she remarked.

She also reported that the Port Authority continues to implement action items through the organization’s strategic plan and discussed the port’s four strategic goals: people and organization, stewardship, infrastructure and growth.

“Partnership is essential to success in any enterprise, and the bedrock of that success comes from the people involved,” Longoria said.

The action items developed and pursued under people and organization have been employee goal setting, an internal communications plan, a successful 2016 internship program and a master plan near completion.

STEWARDSHIP: MEETING GLOBAL STANDARDS In regard to stewardship, the Chairman commended the port’s safety, environmental, cybersecurity and maritime education efforts. Milestones include being the first port in the world to meet the new ISO 14001 2015 requirements for environmental management compliance and investing $3.5 million for maritime education efforts within a five- year period.

Freight mobility initiatives are becoming a priority by focusing on congestion and transportation inefficiencies. “Open and fluid access to road, highway and rail networks are critical to our success and to the success of our region,” said Longoria.

INFRASTRUCTURE: INVESTING IN THE PORT’S FUTURE The Chairman then provided a dredging update by announcing that the channels at the port’s container terminals have been dredged from 40 to 45 ft. to match the depth of the Houston Ship Channel to prepare for larger post-Panamax ships.

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At the Turning Basin’s High Level Road, the entry to the general cargo facility, has been enhanced to increase efficiencies for delivering breakbulk cargo, she added.

GROWTH: DEVELOPING AND DIVERSIFYING THE BUSINESS BASE On the commercial front, the Port Authority has increased carrier services, its Foreign Trade Zone #84 program and developed engaging industry conferences that draw professionals to Houston.

The Port Authority attracts many supply chain representatives, terminal operators, and shipping customers by sponsoring and participating in various industry conventions and events hosted in Houston, such as Breakbulk Americas and the JOC Gulf Shipping Conference.

The port is expanding into the refrigerated cargo arena, currently pursuing the development of a new transload facility at its Bayport Container Terminal.

KEEPING UP WITH TRADE AND MARKET TRENDS Real estate developments, new ocean carrier services, increased authorizations for the port’s FTZ program and the resins boom continue to show a pattern of growth for Houston as a major player of trade.

Overall, the port continues to be strong. Partnership, innovation and service continue to make the Port of Houston and the Houston Ship Channel the maritime highway and economic engine from Texas that could.

The event was held at the Omni Hotel.

The Greater Houston Partnership is a nonprofit organization made up of local business leaders who seek to impact a positive influence on the city’s economy and region.

Port Houston has been giving back this holiday season by collecting employee donations for the Houston International Seafarers’ Center to support the Shoeboxes for Seafarers Program.

During the holidays, the center and a number of other groups and religious organizations from across Houston fill and wrap more than 10,000 shoeboxes for visiting seafarers from 70 different countries. Boxes are filled with a variety of toiletries and personal items, such as soap, toothbrushes, new socks and playing cards. Additionally, every box is carefully wrapped so the boxes become special gifts for those who receive them.

Port Houston team members donated more than $1,000 in support of this program. Most of the contributions were used to purchase, fill and wrap roughly 80 boxes, with the remainder of the donations going directly to the center in support of the various services they provide year-round to seafarers.

“Shoeboxes for Seafarers is a great program that brings a little festive cheer to traveling mariners who are away from their families during the holiday season,” said Leslie Herbst, community relations and events manager for Port Houston.

“The Houston International Seafarers’ Center serves as a home away from home for the men and women that travel aboard ocean-going vessels, and this is one of the unique and special services they provide. Port Houston is proud to be one of the many community partners who assist with these efforts,” she said.

The port has contributed to the project, which began early in the 1970s, for more than 40 years. “For most of these seafarers, this is the only gift they will receive this holiday. They are gone for about nine months out of the year, and receiving a box means the world to them,” said Reverend David Wells of the Seafarers Center.

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Freight Shuttle Potential Studied at Port Houston The innovative new study, which has been ten years in the making, would mean that the Port of Houston would have greater potential to accommodate containers, meet shipping carrier demands and increasing cargo volumes. Although still early in the process, all parties hailed the potential of the system.

A memorandum of understanding between the Port of Houston Authority and Freight Shuttle International was signed in September to evaluate potential freight shuttle deployment options in the Port of Houston area.

A demonstration of the Autonomous Freight Shuttle System, co-sponsored by Governor Greg Abbott, Texas A&M University System Chancellor John Sharp, the Texas A&M Transportation Institute and FSI also was conducted. The agreement is the perfect example of a strong partnership between university research and industry investment, Abbott noted.

The system will use single, remotely controlled transporters carrying truck trailers or shipping containers, powered by linearinduction electric motors, noted Abbott. Researchers say that the proposed system borrows some of the best functionalities from both truck and rail transport, only using about one-third the energy required by diesel trucks.

Port Authority Chairman Janiece Longoria said that throughout its 102-year history, the Port of Houston has pursued innovation and technological advances to meet demand and protect the environment. “The Freight Shuttle has the potential to reduce future freight congestion, transportation costs and air emissions, and we support these goals,” Chairman Longoria said.

Port Authority Executive Director Roger Guenther stated that container volumes at the Port Authority continue to grow and officials are always on the lookout for additional efficiencies.

“We’ve continually innovated our terminals to accommodate that demand through expanded capacity and increased cargo velocity,” Guenther said. “The potential that the Freight Shuttle

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provides to complement the existing road and rail transportation system and contribute to economic growth and creation of jobs is truly exciting.”

FSI acknowledged the value of the partnership with the Port Authority for the success of this project. “Innovation requires challenging current ways of thinking,” said Gordon Dorsey, Vice President, FSI Commercial Development. “FSI has come up with a practical and elegant solution to freight transportation, but it also requires partnerships to come together to bring ideas into reality.”

FSI’s Chairman and President, Stephen Roop stated, “We’ve been developing the freight shuttle concept for over a decade, but now it is a real, tangible system which people can see, and that makes a difference in attracting partners to support future development, refinement and deployment. This agreement with the Port of Houston is an encouraging sign.”

Port executives traveled to Bryan/College Station to attend the ceremonies, with the demonstration and media briefing planned for the project announcement. “Landside infrastructure connecting freight through the Port to and from the customer is a priority. Studying the feasibility and opportunity of technologies such as this one, which compliments all modes of freight transportation, is critical to our future,” Guenther added.

Port Authority Freight Mobility Director Bruce Mann remarked, “We will continue to evaluate all options for freight mobility to avoid congestion. This system is technology that will work with existing modes of transportation.”

The Freight Shuttle Study was a trending topic at the 2016 Harris County International Trade and Transportation Conference at NRG Park held in November.

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THE PORT OF HOUSTON: THE GATEWAY OF NORTH AMERICA HARRIS COUNTY HOLDS 8TH ANNUAL INTERNATIONAL

Port Houston Authority leaders highlighted growth and progress at the port during the eighth annual Harris County International Trade and Transportation Conference at NRG Center in early November.

Harris County has long been known as a robust center of international trade and home to one of the world’s busiest ports. The Houston port region provides a vital and essential gateway for trade linking North America with international markets around the globe, while trade developments have the capacity to impact the local and national economy.

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representatives of the Journal of Commerce, Port Freeport and Kiewit Energy Group.

“As our container volume continues to grow, we will maintain success by working with our stakeholders to ensure efficient cargo movement,” Guenther said. ”Fluidity begins with a productive workforce, and we have a great one in our partnership with the ILA. Good communication with our customers, carriers and truckers through enhanced technology and available information in today’s world will only increase cargo velocity through our facilities. We are ready for future growth that is imminent in Houston.”

This year’s theme focused on the future of trade and transportation in the HoustonGalveston metropolitan area, as well as economic opportunities in the region.

Harris County Judge Ed Emmett provided opening remarks, with an emphasis on freight issues in Texas and the U.S.

Another session of logistics experts from ExxonMobil, Jetco Delivery and LyondellBasell Industries discussed manufacturing expectations.

The most popular trends of the one-day conference were the increase in competition between the trucking and rail industry and congestion of Houston cargo traffic with higher demands for manufactured goods.

Port Houston Executive Director Roger Guenther participated on a port panel centered on port needs. Also participating on that panel were

Organizations such as the Greater Houston Freight Committee serve as platforms to solve these logistics and supply chain challenges. Noted influential

TRADE AND TRANSPORTATION CONFERENCE AT NRG CENTER

impacts to freight mobility include the Panama Canal expansion, conveyance technology and the FAST (Fixing America’s Surface Transportation) Act. An infrastructure discussion by Hans-Michael Ruthe, Chief Transportation Planner at Houston GalvestonArea Council (H-GAC) highlighted the importance of industry and stakeholders working together on state-level freight needs and Vann Cunningham, a rail consultant, provided insight on the advantages of today’s rail systems.

The lunch keynote speaker was Union Pacific President and Chairman Lance Fritz, who focused on the company’s efforts to ensure Houston railroad capacity in the long-term.

Port Houston FTZ and Economic Development Manager Shane Williams provided an overview on the port’s container facility investments at Barbours Cut and Bayport. Some of the Bayport infrastructure highlights included the new state of the art entry gate, additional yard acreage and Wharf 2 construction. He noted that Barbours Cut capital investments through 2018 comprise a total of $700 million in improvements.

Williams’ presentation included the benefits of the port’s FTZ program, which currently has over 40 different sites. FTZ users receive merchandise free of duty and are subject to fewer restrictions.

“In regard to the program, we are looking at import benefits. FTZs do locally. Houston is one of the nation’s export leaders,” said Williams. A total of 14 new companies have entered into FTZ #84 in 2016, in which members have increased since 2012 when Williams assumed the role as FTZ Manager.

“We wanted to take the program to new heights,” Williams said.

Concluding the conference was Dr. Stephen S. Roop, Founder and Chairman of Freight Shuttle International, who talked about the recent freight shuttle study and the proposed rail system at the Port of Houston. An agreement to study its use in the region was signed earlier this year.

The port was the diamond sponsor of the conference.

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Program recognized

by H-GAC Port Houston has been recognized by the Houston-Galveston Area Council for advancing the vision of the councils’ “Our Great Region 2040 Plan.”

The recognition was highlighted during the December meeting of the Port Commission of the Port of Houston Authority, when Jeff Taebel, director of community and environmental planning for the Houston-Galveston Area Council, announced that the port was receiving its highest honor, the Excellence Award.

The award specifically cited Port Houston’s Small Business Development and Maritime Education programs. Chairman Janiece Longoria noted that the recognition was welcome news.

“We are very pleased to receive this,” Chairman Longoria told Taebel. ”This means a great deal to us.”

Through 2015, the small business program, which was established in 2002, had generated awards and commitments to small business programs totaling more than $433 million. Port Houston also has developed a comprehensive maritime education program to help youth pursue careers in the maritime industry. In 2015, more than 1,000 students participated in the program in six area high schools in the Houston, LaPorte, Pasadena and Galena Park school districts. The port also works with area colleges to provide maritime education.

Port Commission Chairman accepted the Excellence Award from the Houston-Galveston Area Council during December’s commission meeting. From left are: Port Commissioners Roy Mease, Stephen DonCarlos and Clyde Fitzgerald, Senior Director of Small Business and Education Outreach Gilda Ramirez, Port Commissioners John Kennedy, Dean Corgey and Theldon Branch.

The Houston-Galveston region is comprised of 134 cities in 13 counties within the area, which sports more than six million residents. The Our Great Region 2040 plan is a blueprint for the area to be one of the best places to live and work by 2040.

Hundreds of organizations from across the area are involved in the effort.

Another award highlighted during the port commission meeting was Port Houston being named Community Partner of the Year at the Champions of Diversity Awards Ceremony sponsored by the City of Houston Office of Business Opportunity. That award was accepted by Commissioner Dean Corgey on behalf of the port at a ceremony Dec. 8.

Additionally at December’s port commission meeting, Executive Director Roger Guenther announced that Port Houston had surpassed two million twenty-foot-equivalent units (TEUs) for the year just through November. Last year, more than 2.1 million TEUs were recorded for the entire year.

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CHRIS RANSOME AND ASSOCIATES:

SURVEYING PORT OF HOUSTON WATERS One of the responsibilities of any marine dredging project is hydrographic surveying, the science of measuring the depth of the water, particularly at inland docks and structures that can silt up over time. Chris Ransome and Associates, Inc. has been a longtime operator on the Houston Ship Channel, with a history of performing soundings along the Texas Gulf Coast.

Chris Ransome, President of CRA, is a geophysicist by trade and had developed the survey departments of Wimpol, Inc. and Aquanav in the U.S. before starting his own business. Since the company’s founding in 1988, CRA’s services have grown to single beam and multi-beam depth soundings, sidescan sonar surveys, underwater inspections and underwater sediment sampling. Prior to dredging, the soil of the berth or virgin material must be tested for various analytes to ensure that the sediment being removed is not contaminated.

“We strive to be the leading provider of hydrographic survey solutions. Houston is our primary home, while we work all over the nation,” said Ransome.

“The Port Authority plays a big role with dredging needs of our clients by ensuring the future and investment of our port’s infrastructure. I believe channel development is critical for the success in any marine environment, and we do our part to provide the surveying services needed to make that happen.”

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