Port of Houston Magazine - Summer 2015

SUMMER

2015

THE PORT OF HOUSTON

The Future Has Arrived

CONTENTS SUMMER 2015

12 FEATURE A NEW ERA: CRANE ARRIVAL MARKS NEW ERA AT BARBOURS CUT, PORT AUTHORITY

IN EVERY ISSUE 6 A Message from Executive Director Roger Guenther

8 The Manifest Port of Houston Authority News Highlights

34 Spotlight on Small Business MB Western

Not Only Way to 18 Cranes Build for the Future

Continuing to Call 20 Maersk at Port of Houston Authority

Ports Highlighted at 22 Green Port of Houston Authority

26 Port Police: Silver Anniversary

Port of Houston Authority The Port Delivers

EXECUTIVE OFFICE

Port of Houston Authority 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 People Officer Phyllis Saathoff

Chief Commercial Officer Ricky W. Kunz

Chief Port Operations Officer Jeff Davis

Chief Financial Officer Tim Finley

Harris County Auditor Barbara J. Schott

Chief HSSE Officer Marcus Woodring

Harris County Treasurer Orlando Sanchez

DEAN E. CORGEY Commissioner

FIELD OFFICES

Central & South America (excluding Brazil)

CLYDE FITZGERALD Commissioner

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

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

THELDON R. BRANCH, III Commissioner

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

STEPHEN H. DONCARLOS Commissioner

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

Port of Houston Magazine’s editorial staff: Stan Swigart, manager, marketing and external communications | Bill Hensel, manager, external communications | Esther de Ipolyi, contributor | David Bray, photographer | Chris Kuhlman, photographer | Gilbreath Communications, Inc. design and layout This publication is not copyrighted and permission is given for the reproduction or use of any original materials, provided credit is given to the Port of Houston Authority. Additional information, address changes, extra copies, or advertising specifications may be obtained by writing to the Port of Houston Magazine.

ROY D. MEASE Commissioner

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

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

4

Port of Houston Authority | Summer 2015

DALLAS +1 DAY

24 days Yantian to Houston • Multiple direct all-water services via the Panama Canal • 7th largest US container port and #1 in US Gulf • 8,000 + TEU vessels handled • Strategic gateway for Texas and Central US • Extensive Intermodal Network • 45 FT channel deepening projects underway

Port of Houston Authority America’s Distribution Center

Check out our all-water services at

www.portof houston.com/map

Eastbound All-Water Houston Transit Times Busan Yantian Shanghai Xiamen Chiwan Ningbo Hong Kong

|

713.670.2400

23 24 24 25 27 27 28

ROGER THAT!

A MESSAGE FROM EXECUTIVE DIRECTOR

ROGER GUENTHER

OUR OPERATING AND FINANCIAL PERFORMANCE THIS YEAR CONTINUES TO BE SOLID AND AHEAD OF BUDGET PROJECTIONS. All segments of our operation are strong and our operating revenues are ahead of the prior year, while expenses have remained steady, resulting in increased net operating income and cash flow.

It is the individual contributions of every employee at the Port of Houston Authority that collectively make our team so effective. Together, we will continue to grow our business, improve our performance and build a dynamic culture for future success.

Now that our Strategic Plan has been approved by the Port Commission, cross-functional teams have been appointed internally and are working on delivering the objectives of our strategic goals.

One of the strategic goals that is necessary to becoming America’s distribution hub for the next generation involves growing and diversifying our business base. In order to reach this goal, we need to develop and implement a proactive market development plan, deliver cost and service advantages through innovation and efficiency and develop a strong brand identity.

6

Port of Houston Authority | Summer 2015

BUILD NEW FACILITIES MAINTAIN EXISTING INFRASTRUCTURE

&

A proactive marketing strategy to further develop the Port of Houston Authority’s current brand is required to promote the Port Authority as the choice location for transportation and logistics activity. With the Port Commission’s approval, we have put out a request for proposals for an experienced, full-service creative marketing agency to help us with that endeavor. Our growth initiative will further develop and strengthen the Port Authority’s position—and the success of our region.

Our cargo facilities continue to be extremely active, with record amounts of freight crossing our wharves. Our staff, across the organization, has done a tremendous job ensuring that containers, general cargo and steel flow efficiently through our terminals during continued spikes in activity.

For the first half of 2015, we have handled nearly 20 million tons of cargo, growing 5 percent year-over-year.

We continue to see excellent growth and execution at both container terminals, which combined have shown 20 percent growth in loaded boxes.

This activity, along with controlling expenses, has yielded $76 million in cash flow this year that will be put to work in redeveloping our facilities to generate prosperity for the communities surrounding the Houston Ship Channel.

These funds support our capital improvement plan that will expand the service offering to our customers and bring prosperity to the area. Yet as we look to the future capacity needs of the port, it will take a combination of these cash flows we generate as an enterprise plus funding from other sources to sustain that growth in service offering.

Over the last two years, we have been negotiating a new $300 million interim financing program to support our capital improvement plan. We received final approval from the Texas Attorney General’s office and approval from the Port Commission to execute these agreements and documents. It appears likely that we will need the interim financing in 2016 to encumber funds for the present capital plan.

However, this is an interim solution. Even with approval of this $300 million interim financing program, we will need a long-term option to continue to fund our capital plan. I can’t emphasize enough the challenges that we face with funding over the next decade to build new facilities and maintain existing infrastructure to meet the demands of the Port Authority. We will continue to evaluate long-term funding strategies as we seek to generate economic return and prosperity for our community and region. n Summer 2015 | Port of Houston Authority

7

THE

MANIFEST

NEWS HIGHLIGHTS

CONFERENCE IN PANAMA FOCUSES ON CANAL EXPANSION AND TEXAS

Port of Houston Authority Chairman Janiece Longoria and Executive Director Roger Guenther traveled to Panama recently to join a host of Texas leaders at a conference on the expanded Panama Canal’s impact on the state.

Sponsored by the Texas Lyceum, attendees at the conference included Texas Secretary of State Carlos Cascos, Texas Land Commissioner George P. Bush and past and present executives of the Panama Canal Authority.

The Port of Houston Authority has invested significantly in infrastructure during the past three years and is ready for expanded trade through its facilities.

More than $1 billion in capital needs during the next five years also has been identified.

The Port Authority’s rapid growth is being fueled by the energy renaissance, population growth and the Panama Canal expansion. Container trade between East Asia and Houston alone makes up 25 percent of the Port Authority’s total imports. The Port Authority is working to bring additional all-water service through the canal to the port, and staff is exploring and developing an even more diverse range of cargo, as well as additional trade lane services.

8

Port of Houston Authority | Summer 2015

HOUSTON-BASED CHINA CONSUL GENERAL MEETS WITH PORT AUTHORITY EXECS

Executive Director Roger Guenther, left, with Ambassador Qiangmin Li, Consul General of the People’s Republic of China.

Top executives of the Port of Houston Authority met with the consul general of the People’s Republic of China in July to discuss international trade and commerce.

Ambassador Qiangmin Li, the consul general based in Houston, was greeted by and met with Executive Director Roger Guenther, along with trade development officials. The briefing focused on cooperating with China, the anticipated impact of the expansion of the Panama Canal on the Port of Houston and trade zone policies.

“The Port of Houston is very, very important,” Ambassador Li said.

The Asian trade lane is the fastest-growing trade lane for the Port Authority and discussions about further commercial expansion of trade with China also were held.

A tour of Bayport was provided to the consul general’s delegation after the briefing that was held at the Turning Basin terminal. That tour included boarding and viewing one of the Port Authority’s emergency response vessels.

CONGRESSIONAL LEADERS TOUR PORT OF HOUSTON

The Port of Houston Authority facilitated a tour of the Port of Houston June 5 for Congresswoman Janice Hahn, Congressman Ted Poe and Congressman Brian Babin.

They visited the Port of Houston and learned more about the national impact of the por with a particular focus on security and safety measures.

The visit was arranged upon the invitation of Congressman Poe, who along with Congresswoman Hahn of California co-chairs the PORTS Caucus, which represents more than 100 ports across the nation.

Babin’s district includes parts of the port.

The elected representatives visited Shell’s Deer Park refinery before taking a tour by boat of the Houston Ship Channel. Delegation participants included Port of Houston Authority Port Commissioners John D. Kennedy and Stephen DonCarlos, along with federal partners Captain Brian Penoyer, commander, U.S. Coast Guard Sector Houston-Galveston; Leslie FlemingLuczkowski, assistant port director, U.S. Customs and Border Protection (CBP) and Captain Mike Morris, presiding officer, Houston Pilots.

CBP provided the group a demonstration of its Vehicle and Cargo Inspection System (VACIS) at the Port Authority’s Bayport Container Terminal.

The Port of Houston has a robust and successful port security program that is based on the collaboration and cooperation of the 150 individual companies and terminals that comprise the overall port. The tour allowed members to see firsthand how the port functions and collaboratively coordinates safety and security measures.

The Port of Houston Authority works closely with all its partners on the federal, state and local levels, as well as those in the private sector.

UNITED STATES COAST GUARD CELEBRATES 225TH BIRTHDAY The United States Coast Guard’s 225th birthday August 4 was recognized by Chairman Janiece Longoria during the July meeting of the Port Commission of the Port of Houston Authority.

The Port Authority and Coast Guard work in concert to proactively identify areas of concern to reach a common goal, the chairman noted during the meeting. She said it is of critical importance the partners work together on a daily basis to help facilitate international commerce and keep the region safe.

On August 4, 1790, President George Washington signed a law authorizing construction of 10 revenue cutters, Chairman Longoria noted. Under the leadership of Alexander Hamilton, the nation’s earliest fleet of cutters was established. The U.S. Revenue Cutter Service was one of five federal services that eventually would make up the Coast Guard, which was established under control of the Treasury Department.

Summer 2015 | Port of Houston Authority

9

SUCCESSFUL CRUISE SEASON WRAPS UP AT POHA A successful 2014–2015 cruise season, which stretched from midOctober through mid-April, recently wrapped up at the Port of Houston Authority.

Princess Cruises, which initially began service from the Bayport Cruise Terminal in 2013, sailed the 3,080-passenger Emerald Princess out of Houston for 24 sailings and carried a total of 73,000 passengers.

Norwegian Cruise Line, returning to cruise from Houston after a hiatus, sailed the Norwegian Jewel from the Bayport terminal. The Jewel made 28 voyages during the season and carried more than 71,000 passengers.

The next cruise season for the Port Authority will begin in November.

PHA RECEIVES HIGHEST HONOR Chairman Janiece Longoria announced at the June Port Commission meeting that the Port of Houston Authority has been awarded the 2015 Platinum Leadership Circle Award.

The Port Authority has maintained the Leadership Circle award for four consecutive years, and this year PHA again received the highest distinction — platinum level.

“Congratulations to the finance, accounting and audit groups for the hard work and commitment you have shown in maintaining this prestigious award for a fourth consecutive year,” Chairman Longoria said to the audience.

The Texas Comptroller of Public Accounts launched the Leadership Circle program in 2009 to spotlight entities that provide financial transparency online.

To qualify for this award, local governments must open their books to the public online in a user-friendly format.

According to the Texas Comptroller’s website, the platinum level represents entities that go above and beyond providing financial transparency in local government.

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

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

A New ERA Crane Arrival Marks New Era at Barbours Cut, Port Authority 12

Port of Houston Authority | Summer 2015

The delivery of four new Super Post-Panamax ship-to-shore (STS) cranes has ushered in a new era at the Barbours Cut Container Terminal, since those cranes are key elements of the extensive refurbishment of that facility.

Work is continuing this summer to ready the cranes, which tower 289 feet, or nearly 30 stories high. They were ordered from and built by Konecranes and are the largest STS cranes ever constructed by the company.

The equipment was transported up the Houston Ship Channel May 5 as a 73-day journey across the seas that began in February culminated. The arrival of the cranes made a memorable sight as the vessel carrying them rounded Morgan’s Point, where a throng of well-wishers, which included Port Authority executives and elected officials, welcomed them.

These new electric cranes can lift and lower a loaded container at twice the speed of the cranes currently in use at the Barbours Cut terminal. Two are expected to be fully operational by September and the other two in October.

“As part of a significant upgrade of our Barbours Cut Container Terminal, these new Super Post-Panamax cranes will accommodate the significantly larger vessels that will be calling on our container terminals after the expansion of the Panama Canal,” says Port Commission Chairman Janiece Longoria. “International trade, primarily containerized cargo, continues to expand rapidly at our facilities.

More trade means more jobs and economic activity for our region and state in support of our mission.”

The preparation for the work at the biggest container terminal on the Gulf Coast has been methodical, with considerable time and effort involving numerous staff members, says Chief Port Operations Officer Jeff Davis.

“Four years ago, the Port of Houston Authority completed a master plan for upgrade of the Barbours Cut Terminal; dredging the BCT channel, improving the capacity of the container yard, and arrival of the Konecranes are all components of that master plan,” Davis says. “We will continue along this path ensuring Barbours Cut Terminal is ready to provide service to larger vessels and increased volumes while operating at efficient service levels.”

The new cranes have a much greater cargo-handling capacity than the current cranes at Barbours Cut, equal to that of the cranes at the Bayport Container Terminal, says Paulo Soares, managing director of operations at the Port Authority.

The cranes have a 65-long ton capacity and the ability to handle two 20-foot containers at the same time, he notes.

And if a cargo hook is used, their capacity increases to 80 long tons.

It took several days to remove the cranes from the vessel that carried them from South Korea.

14

Port of Houston Authority | Summer 2015

“The cranes have a 65-long ton capacity and the ability to handle two 20-foot containers at the same time; And if a cargo hook is used, their capacity increases to 80 long tons.”

“It is a 10 to 12-hour process to unload each crane,” Soares notes.

Once operational, the new state-of-the-art equipment promises to make the Port Authority’s first container terminal even more competitive. Coupled with the ongoing build-out of the Bayport Container Terminal, the Port of Houston Authority is expected to continue to be the go-to container port in the U.S. Gulf of Mexico. Already, more than two-thirds of the containers that move through the gulf come across Port Authority docks.

Loaded container units at Bayport and Barbours Cut have increased more than 20 percent this year compared to last year, Executive Director Roger Guenther noted at a recent meeting of the Port Commission. He said the increase illustrated the efficiency of the Port Authority’s operations “as well as the need to recapitalize and further develop those key assets to support continued growth of our region’s economy.”

“International trade , primarily containerized cargo, continues to expand rapidly at our facilities. More trade means more jobs and economic activity for our region and state in support of our mission.”

The Port of Houston has market access to more than 100 million consumers in the heartland of the United States. Projections show regional population growth around Houston will continue to drive consumer demand, which in turn will drive the growth of import container cargo across the Port Authority’s docks, as well as support infrastructure like distribution centers.

The growth in container trade through the Port of Houston and the increase in Super Post-Panamax ships coming to the port require faster and larger cranes for even more efficient containerized cargo handling. The expansion

of the Panama Canal will be complete in 2016, and this will allow larger Post-Panamax vessels to transit the canal and bring more cargo through the Port of Houston.

The Port Authority is preparing for the rapid growth ahead, investing more than $1 billion in a five-year modernization plan that is in its final phase of expansion and improvement projects. These investments include both dredging and infrastructure projects and in 2015 alone, the Port Authority is undertaking about $200 million in capital improvements.

The channels in front of the Port Authority’s container terminals both are being deepened from 40 to 45 feet, matching the depth of the Houston Ship Channel.

Barbours Cut is substantially complete, while the Bayport channel is expected to be completed around year’s end, well before the Panama Canal expansion project is finished.

After all the improvements at Barbours Cut are made, terminal capacity there is expected to jump from 1.2 million TEUs to 2.5 million TEUs. In addition to the new wharf cranes, extensive rehabilitation of two wharves is being done, along with additional improvements to two container yards and the purchase of eight new Rubber Tired Gantry cranes.

The nearly $50 million contract for the new shipto-shore cranes was approved by the Port Commission in 2013. n

1,505 TONS

65 LONG TON CAPACITY

New

Super

73-day journey across the seas

30 STORIES HIGH

Post-P anamax r

SHIP-TO-SHORE CRANES

2X

WORKING FASTER

fully operational by October

CRANES NOT ONLY WAY TO BUILD FOR THE

FUTURE FUTURE FUTURE FUTURE While much attention has focused recently on big new cranes that are aimed at building for the future at the Port of Houston Authority, a host of other steps that don’t grab the spotlight are under way with a similar goal.

The bottom line: like the new cranes, these moves are aimed at enhanced customer service by improving efficiencies at Port Authority terminals, which will benefit both the Port Authority and its stakeholders.

Take the acquisition of an advanced berth scheduler software module, for example. The Port Commission recently approved amending a contract with Navis LLC to license and install the N4 Advanced Berth Scheduler software module at Barbours Cut, Bayport and the Turning Basin terminals.

The module effectively updates a Port Authority process for scheduling arriving and departing vessels at the 68 general cargo and container terminal berths. The move is expected to provide greater efficiencies in berth management.“By taking this step, the Port Authority is continuing to provide improvements that we think will help PHA staff and our external stakeholders as well,” said Jeff Davis, chief port operations officer.

The new module will provide greater schedule visibility for all external stakeholders by producing a realtime published vessel schedule. That will benefit ocean carriers and truckers, as well as brokers, freight forwarders, and other users.

Another handy tool is the installation of the Lynx web portal interface for the terminal operating system at Barbours Cut and Bayport. The new equipment will allow customers to access information such as container movements, vessel schedules, equipment availability and other shipping details.

“This will provide efficiency enhancements for truckers at our container terminals to better interface and increase visibility with our operating systems,” Executive Director Roger Guenther reported to the Port Commission.

The Port Commission in April awarded a contract to Versiant Corp. for the procurement and installation of the interface. Additional functionality is available for the web portal through two enhancements, which are the Application Programming Interface, or API, and a trucker registration program.

The APIs will be used to retrieve information about container activity, along with sending information to the container terminals. The trucker registration allows the Port Authority to recognize critical details for each truck that enters the container terminals. Those details would include the name of the truck’s company, its license plate, gross weight and physical details like the number of axles and the fuel type. n

Summer 2015 | Port of Houston Authority

19

MAERSK The Port of Houston Authority will continue to receive and welcome calls from Maersk Line, the world’s biggest shipping company, as well as its affiliated shipping services, SeaLand and Safmarine.

“We remain committed to serving all of our customers for whom the Port of Houston is a critical gateway to their supply chains.”

–Timothy Simpson, Maersk The Port Commission of the Port of Houston Authority in May authorized the termination of a lease with Maersk Group and its affiliated companies operating at the Barbours Cut terminal, a mutually agreed move that was seen as beneficial to both parties. The transition went smoothly and concluded in late July.

The lease termination will result in the Port Authority having the ability to distribute container volumes evenly between its two container facilities. The change should result in improved service to truckers through common gates, more flexibility for ocean carriers for berth and crane availability and greater container yard efficiencies.

Maersk left no doubt that it would continue to call Port of Houston Authority docks.

Continuing to Call at Port of Houston Authority “We remain committed to serving all of our customers for whom the Port of Houston is a critical gateway to their supply chains,” said Timothy Simpson, who is head of Maersk’s Marketing and Communications division located in Florham Park, N.J. “The Port Authority is a valuable partner and we will work with them to ensure there are no service disruptions as a result of this change.”

Maersk began a vessel sharing agreement with MSC earlier this year by forming the 2M Alliance. The 2M North Atlantic Service made the first call by a Maersk ship at Bayport recently.

The Port Authority is investing heavily in infrastructure at its container terminals and other facilities and will continue to deliver a high level of service to Maersk and every other carrier, noted Ricky Kunz, chief commercial officer at the Port of Houston Authority.

“Our strong relationship with Maersk remains intact and we will continue to deliver high-caliber service to that carrier and all our customers,” Kunz said.

In 2015 alone, the Port Authority expects to commit about $275 million for various capital projects.

Approximately $184 million will be allocated to the Port Authority’s container terminals, which involves continuing development of Bayport and modernization at Barbours Cut. The channels in front of both the Barbours Cut and Bayport terminals are being deepened from 40 to 45 feet to match the depth of the Houston Ship Channel. n

experience how

we stack up.

Your business partner providing world-class material handling equipment and service.

Taylor, Yale, Ottawa/Kalmar, Trackmobile, Genie Aerial Equipment, Sellick Rough Terrain Forklifts, and much more!

Offering New, Used, Rental, Parts and Service – visit us at www.briggsindustral.com

Briggs EquipmEnt i 8787 Wallisville road i Houston, texas 77029 i (800) 833-5498

Be the first to know about news, updates, and special offers by staying connected with Briggs Equipment: www.facebook.com/briggsequipment @briggsequipment

Green Ports

at Port of Hous

s Highlighted

ston Authority The U.S. Trade and Development Agency (USTDA) chose to showcase the Port of Houston Authority during a series of reverse trade missions focused on green port technologies for delegations from Latin America in recent months.

The delegations — one from Mexico and Panama, one from Colombia and Peru, and another from Brazil — were briefed about environmental best practices for major port operations by the Port Authority’s Environmental Affairs division. Top executives also met with the groups.

One of the primary objectives of the visit, which also was attended by the U.S. Department of Commerce, was to create new relationships between the Latin American and U.S. ports. The USTDA is focused on supporting the development of Latin American maritime infrastructure that is environmentally friendly, while also creating commercial opportunities for the U.S. maritime industry.

In addition to briefings at the Executive Office Building, two delegations toured the Bayport Container Terminal and the other toured Barbours Cut. The delegates were informed of the Port Authority’s innovative methods used to control stormwater pollutions, noise and lighting at the Bayport Terminal as well as the Port Authority’s air quality program.

In-depth presentations were provided to each group by Ken Gathright, senior environmental compliance coordinator.

Bilingual interpreters actively participated in the discussions, which included extensive question and answer sessions. Two of the delegations were accompanied during their visits by Leah Oberlin, the new director of environmental affairs for the Port Authority.

The reverse trade missions occurred about the same time as the announcements of two significant grants from the Environmental Protection Agency’s Diesel Emission Reduction Act (DERA). Those grants are helping the Port of Houston Authority continue its longstanding commitment to improve regional air quality. Both help replace older diesel trucks with ones that have cleaner burning engines.

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston

Authority to formally announce one of the two DERA grants.

The nearly $900,000 grant will have a match by Richardson Companies and Gulf Winds of $1,680,142.

“We celebrate that the Port of Houston is growing and thriving, while still reducing pollution,” Administrator McCarthy said. “The DERA program is a good investment for both business and the environment.”

The Port Authority partnered with the Environmental Defense Fund, an environmental nonprofit advocacy group whose core values promote environmental solutions that make a lasting difference in the world, in developing the DERA grant application that included support letters from Houston Galveston Area Council (H-GAC), Air Alliance Houston, and the North American Strategy for Competitiveness. The funds will replace 25 drayage trucks operating in the Port of Houston (13 for Richardson, 12 for Gulf Winds).

Certified engines that are model year 2011 or newer will power the new trucks. McCarthy noted the new trucks will be 90 percent cleaner and help reduce 111 tons of NOx, 5.0 tons of particulate matter, 5.1 tons of hydrocarbons and 35 tons of carbon dioxide over the lifetime of the project.

These reductions are important to overall air quality in the Houston-Galveston area.

“Reducing fuel costs and improving air quality are important roles in the fabric of port operations, the economy and air quality.”

H-GAC Partnership Earlier in April, the Port Authority was also awarded a $900,000 DERA grant that will expand the HoustonGalveston Drayage Truck Program implemented by the Port Authority and H-GAC. Combined with a match of $900,000 from drayage truck owners, the grant through the H-GAC Drayage Truck Program will replace 14 older drayage trucks (model years 1995–2003) with new 2010 EPA/CARB-compliant trucks with Class 8 engines.

“Through our partnership with the Port Authority, H-GAC has been able to replace more than 200 trucks since 2009,” said Shelley Whitworth, H-GAC’s Air Quality Program manager. “This is a great cooperative effort and one of the most cost-effective ways that we can achieve air emissions reductions for our region. It’s beneficial for both the port and the community.”

In its entirety, through its Clean Vehicles Program, H-GAC has replaced more than 3,000 heavy-duty vehicles since 2002.

Over the life of the replacement trucks, reductions of 57.64 tons of NOx, 2.5 tons of particulate matter, 3.2 tons of hydrocarbons, and 21.2 tons of carbon monoxide are anticipated. This project has support from Air Alliance Houston, Public Citizen and EDF. “Reducing fuel costs and improving air quality are important roles in the fabric of port operations, addressing both the economy and air quality,” said Oberlin. “The Port Authority has a long history of obtaining these types of grants and successfully utilizing them to improve air quality. In partnership with H-GAC, the Port Authority continues to focus on environmental stewardship while maintaining the economic stimulus the port provides our region and Texas.

Oberlin took over as director in April.

“I am extremely honored to be part of the Port of Houston Authority, which serves as a powerful economic engine for the region and Texas while ensuring that environmental stewardship is incorporated into all business decisions, best management practices, and programs,” said Oberlin.

The replacement trucks in the H-GAC program will also have GPS units installed to provide H-GAC and the Port Authority data on idling and port operations. H-GAC will provide feedback to fleet owners and operators for potential fuel savings and emissions reduction opportunities.

Periodic workshops and events will educate the operators and service personnel on proper maintenance and operation of clean diesel and alternative field engines purchased through both DERA grants.

“The announcement of these new EPA grants is very much appreciated as they will certainly help the Port of Houston Authority in its commitment to environmental stewardship and improving air quality in the region,” said Port Commission Chairman Janiece Longoria. “At the Port Authority, balancing business with environmental stewardship is a key priority. We always strive to work in harmony with our communities at large and the environmental community in particular.”

Since 2008, EPA has funded through DERA grants nearly 60,000 pieces of clean diesel technology through the National Clean Diesel Campaign. These technologies include emissions and idle control devices, aerodynamic equipment, engine and vehicle replacements, and alternative fuel options. The projects meet critical local air quality needs by deploying both proven and emerging technologies much earlier than would otherwise occur. n

Summer 2015 | Port of Houston Authority

25

SILVER

Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce Protect secure people commerce

26

Anniversary

Port of Houston Authority | Summer 2015

Professional, Highly Trained and Unique Although they are commissioned Texas Peace Officers just like any police officer in Texas, the Port Police have duties no other Texas police officer performs. And they have been doing it for 25 years.

“We are there when a ship arrives and when it departs,” explains Port Police Chief Mark Smith. “We help spot where the ship will dock by obtaining the spotting instructions from Operations. We help maneuver it to wharf where Operations wants the ship.”

“Just a few feet off, the next ship can’t get in to wharf.

We work with the boatmen who do the lines and coordinate with them where the lines need to be to not affect the next ship’s space. We must spot it the first time. Failing to do so costs time and money to the port.”

On April 2, 1990, the State of Texas officially commissioned the Port Police as a police department.

Although there has always been some form of security officers at the port, it was not until then that the state of Texas officially commissioned the Port Police. Their

duties, however, are somewhat different than a police officer out on the streets of any community in Texas. The police department’s mission statement reads: “Protect and Secure, People and Commerce.”

“Because of the nature of what we do at the port, on a daily basis we don’t do what the average street cops do, but we can,” said Smith. “I’m proud of how our officers serve the port. I seldom receive complaints, and thank God, we haven’t been shot at or had to use deadly force against anyone.”

That doesn’t mean that the Port Police don’t stay busy.

The 48-member force is made up of certified peace officers who have more than two years’ experience on the street before joining the Port Police. They have already attended the Police Academy and are then trained at the port regarding their duties. In addition to the state-mandated biennial training, the department places a high emphasis on continual improvement through additional training and improving marksmanship skills.

Summer 2015 | Port of Houston Authority

27

The police department’s mission statement reads: “Protect and Secure, People and Commerce.”

Officers with the Port Police are different from the contract security guards who man the gates to the port’s facilities.

“The security guards do access control as well as random checks and inspections on vehicles,” said Smith. “If they have any issues, they call for the Port Police. We handle any potential threat or disturbance by confronting the individuals, telling them the rules and asking them to leave the property if they don’t have the correct credentials. We have all the legal authority, including arrest powers, that any police officer has.”

Despite an average 112 incident responses per day, Smith characterizes the port as a “pretty easygoing place.

There are hardly any fights, hardly any thefts — not like it is out in the streets. But were ready and can handle anything 28

Port of Houston Authority | Summer 2015

from a simple disturbance to an active shooter.”

The chief is being modest. The Port of Houston Authority has built a national reputation for innovative leadership, and the Port Police department has been at the forefront. In 2004, a $2.8 million Port Coordination Center was opened to be the communications command center for the Port Coordination Team in times of disaster.

It has become a national model. During the past year, a large training and seven-office facility has been added to the Port Coordination Center.

“The new facility offers us a rideout location for any type of emergency,” explained Smith. “If there is an event that requires an extended stay, we can berth men and women separately for long stretches. Otherwise, it can open up and be a large training room.”

In 2008, the Port Authorities Security Management System (SMS) was certified to ISO 28000:2007, making Houston the first Port Authority in the world to receive this international security designation. The certification was achieved after a three-year process of developing the system and its application to the Port Police and the perimeter security operations at both the Barbours Cut and Bayport container terminals.

The Manchester Liquid Bulk Terminal was added to the list of certified facilities in 2009, and in March 2011, these three terminals were re-certified through 2014. In March 2014, the Port Authority was recertified for a third time and a fourth terminal, the Turning Basin Breakbulk Terminal, was added with an ISO 28000 certification through 2017.

This international standard sets out stringent requirements for a security management system that incorporates all aspects of business management. ISO 28000:2007, in particular, was developed as a response to industry demands for enhanced supply chain security.

Measures developed by the Port Authority to meet these standards include improvements in security processes, procedures and practices, more detailed and efficient monitoring and documentation, broader training of the Port Authority police force and security partners, and more efficient processing of vehicles through its gates.

The world has become a more dangerous place, and the Port Police have evolved to become a premier maritime security force. n

The Port of Houston Authority has built a national reputation for innovative leadership, and the Port Police department has been at the forefront.

Top five Port Police activities in 2014: Area Check (13,824) Vessel Movement (6,723) Open/Close Gate or Door (5,893) Courtesy Transport (3,180) Traffic Control (2,592)

SPOTLIGHT ON SMALL BUSINESS MB Western fits right in the middle construction and heavy concrete.

MB Western Industrial Since its beginnings, MB Contracting Co. started with two Western has worked with the employees, “M” and “B” (Billy Port of Houston Authority on McMayon and Steve Bosley). numerous projects, including McMayon and his business partner, repair and rehab work on about Bosley, had previously worked half of the fender system at together for another contractor before the Turning Basin. This work they started their own company 26 involved demolition of the existing years ago. Today, the company has timber fender system, driving 50 employees and thrives in its own Billy McMayon, Steve Bosley in new piling and erecting a medium-sized niche. timber-faced steel frame fender system to the wharves.

“We’re in the middle, not small, not big, but we fit in “We have at least one project ongoing with the very well,” says Bosley. “We operate efficiently and work Port Authority at all times,” Bosley says. “The Port hands-on to get the job done. We are also proud of our Authority has always been straightforward with us, safety record.” and staff members are honest and easy to work with.”

As a general contractor, MB Western serves “MB Western has done a lot of work for the the needs of private industry, as well as municipal, Port Authority and knows our processes,” says state and federal construction in the Gulf Coast Brock Lewis, PHA Chief Construction Manager. area. The company’s experienced staff is able to “They’re reasonable, personable and have solid, handle all types of industrial construction and old-school values.” maintenance and specializes in pile driving, marine

is proud to welcome

Daniel Jenkins III, M.D. And

The Harrisburg Eye Clinic Comprehensive Eye Exams • Glaucoma Diabetic Eye Exams • Cataracts Eye Injuries • Industrial Accidents • Safety Glasses

Saturday Hours Available!

Spanish speaking Doctor & Staff!

(713) 928-3375 7438 Harrisburg Blvd.

Houston, Texas 77011

The Port of Houston PO Box 2562 Houston, Texas 77252-2562

PRSRT STD US Postage PAID Houston, TX Permit #1395

We’ll Help You Steer the Right Course

Positive signs of recovery are on the horizon but we know the course is difficult.

At Cooper/T.Smith, we’ve been dedicated to holding down your cost of doing business since our founding in 1905. From our great-grandfathers’ day to the present, difficult economic times have taught us to control costs, eliminate waste and increase efficiency. Our obsession with paying attention to detail and keeping our pencils sharp saves you money. And that helps keep your course true.

Stevedoring

Logistics

Tugboats

Midstream Transfers

Terminal Operators

www.coopertsmith.com

Restaurants

Forest Products