Port of Houston Magazine - Fall 2015

FALL

2015

THE PORT OF HOUSTON

BARBOURS CUT DEEPENING ATTRACTS BIGGER SHIPS

The National Shipping Company of Saudi Arabia General Cargo

The National Shipping Company of Saudi Arabia

General Cargo

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economies economies prosperity

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prosperity

A d d in g L ivo r n o o n t h e East b o u n d !

A d d i n g L i vo r n o o n t h e Ea s t b o u n d !

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Port of Houston Authority | Fall 2015

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Our Journey Continues

CONTENTS FALL 2015

12 FEATURE BARBOURS CUT DEEPENING ATTRACTS BIGGER SHIPS

IN EVERY ISSUE 6 A Message from Executive Director Roger Guenther

8 The Manifest Port of Houston Authority News Highlights

Helps to Open 18 H-GAC a Freight Bottleneck

Home = 20 New Enhanced Protection

26 Spotlight on Small Business AAA Asphalt Paving

Americas 2015: 22 Breakbulk Gradual Acceleration

Port of Houston Authority The Port Delivers

EXECUTIVE OFFICE

Port of Houston Authority JANIECE LONGORIA Chairman

JOHN D. KENNEDY Commissioner

DEAN E. CORGEY Commissioner

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

Chief Legal Officer Erik A. Eriksson

Chief Operating Officer Thomas J. Heidt

Chief 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

Chief Information Officer Charles Thompson

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

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

STEPHEN H. DONCARLOS Commissioner

Port of Houston Magazine’s editorial staff: Stan Swigart, manager, marketing and external communications | Bill Hensel, manager, external communications | Laura Blewitt, communications content specialist | 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

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Port of Houston Authority | Fall 2015

Fall 2015 | Port of Houston Authority

5

ROGER THAT!

A MESSAGE FROM EXECUTIVE DIRECTOR

ROGER GUENTHER

This year has been a solid year for cargo operations for the Port of Houston Authority. The successes that we have accomplished are due to the commitment of our employees and I appreciate everyone’s engagement and enthusiasm as we look forward to 2016.

Over the past few months, we have aggressively moved forward with the rollout and implementation of our Strategic Plan that was approved by our Port Commission in April. We kicked off the month of October by meeting with and engaging each and every employee at the Port Authority to talk about our Strategic Plan and our priorities for the coming year We must all have a clear vision of the road ahead as we focus together on objectives toward positive outcomes that we will measure in 2016.

Our plan is tied to our mission: to move the world and drive regional prosperity. Our mission emphasizes our commitment to delivering broad social and economic benefit to our region through global maritime trade. The Port Authority has served this region for more than 100 years, and this continues to be our fundamental purpose today.

OUR PLAN ALSO INCLUDES A VISION FOR WHAT’S AHEAD. WE ARE COMMITTED TO BECOMING AMERICA’S DISTRIBUTION HUB FOR THE NEXT GENERATION. THIS BOLD, AMBITIOUS STATEMENT CONSIDERS A FUTURE WITH THE FOLLOWING CHARACTERISTICS: • A leading national (as opposed to regional), multi-modal hub for imports and exports • A leader in efficiency, service and innovation • Increased market share, increased capacity, and improved freight mobility • A focus on paving the way for the next generation by leaving our organization better tomorrow than we found it today Carrying out this vision is possible thanks to our employees, labor, customers, partners and neighbors. The Port of Houston Authority has a strong foundation of dedicated people devoted to building a future that looks even brighter. And we are READY!

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Port of Houston Authority | Fall 2015

Moving forward, we have established four high level goals in our Strategic Plan that we must achieve to attain our vision. Those goals include:

1 PEOPLE AND ORGANIZATION People are the top priority, because they’re the folks that make everything happen. We are investing in our people and aligning our organization to deliver success for our community and the Port Authority. This month we completed the roll out of our Strategic Plan to all of our employees. Moving forward, we will align with strategic goals to strengthen communication, develop a workforce development program, and implement streamlined processes supported by technology.

2 GROWTH

3 INFRASTRUCTURE To facilitate this growth, it is vital that we provide and facilitate the infrastructure necessary to meet demand. We will develop a facilities Master Plan and Asset Management Program while creating funding strategies to deliver capital to the program. The Port Authority will also continue to build key partnerships to influence regional infrastructure investment.

4

THERE ARE FOUR HIGH LEVEL GOALS TO IDENTIFY THE OUTCOMES NECESSARY TO ATTAIN OUR VISION

We will also continue to grow and diversify the dynamic business base at the Port Authority. In order to reach this goal, our team will create and implement a proactive market development plan, deliver cost and service advantages through innovation and efficiency, and develop and cultivate a strong brand identity.

4 STEWARDSHIP

Finally, we come to stewardship.

As the Port of Houston Authority continues to grow and drive regional prosperity, we must also focus on sustaining the business for the long-term. In order to achieve this, we strive to be an environmental leader, nurture productive relationships with all stakeholders, and operate safely and securely.

We have some lofty goals to accomplish in 2016 and the years to come. Our people are critical to making this plan successful and I’m confident that our team can deliver. We’re changing, the business is changing and the world around us is changing. Through direction, alignment and commitment, we will bring our vision to be America’s distribution hub for the next generation to fruition. I’m READY for bigger things to come. Are YOU?

Fall 2015 | Port of Houston Authority

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THE

MANIFEST

NEWS HIGHLIGHTS

PORT OF HOUSTON AUTHORITY SPONSORS INAUGURAL CONTAINER TRADE CONFERENCE

Manuel E. Benítez, Deputy Administrator of the Panama Canal Authority

This year, the Port of Houston Authority stepped in to partner with the Containerization & Intermodal Institute (CII) to host the first-ever Container Trade Outlook Conference. The Port Authority’s Executive Director, Roger Guenther, is scheduled to welcome delegates to the

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Port of Houston Authority | Fall 2015

event Nov. 18, while Chief Commercial Officer Ricky Kunz is slated to provide expert insight on cargo projects and global gateway trade outlooks on the Container Trade Outlook panel.

The conference will be hosted at the Houston DoubleTree at Bush Intercontinental Airport. Panama Canal Authority Deputy Administrator Manuel E. Benítez will deliver the event’s keynote address ahead of the highly anticipated Panama Canal expansion project, which is expected to be completed in the first half of 2016.

U.S. West Coast port disruptions and instability in global currency markets brought on a volatile year in containerized shipping markets. Panelists from the International Longshoremen’s Associations, United States Maritime Alliances and the Pacific Maritime Association will give key outlooks on upcoming union negotiations on the U.S. East and Gulf Coasts.

PORT OF HOUSTON AUTHORITY CONTROLS SPENDING WHILE GROWING CONTAINER VOLUMES Firm growth of container volumes at the Port of Houston Authority extended through August as rates showed a year-todate growth of 17 percent compared to last year.

Executive Director Roger Guenther reported at the September Port Commission meeting, that August container volumes grew 4 percent compared to the same period last year. Through August, more than 21 million tons of cargo moved across the Port Authority’s docks, firming by 8 percent year-over-year.

“With controls on our spending, we have been able to generate more than $94 million in free cash flow for the year – reflecting our efforts to self-fund a portion of our capital investment plan, which will add capacity and efficiencies to our operations,” Guenther said.

The Port Authority’s revenues reached $200 million through August. Guenther said that nearly $1 million in savings will come throughout the next decade as responsibility for the cost of channel maintenance dredging at Jacintoport Channel has moved over to the U.S. Army Corps of Engineers.

More assumptions of maintenance approvals are on the way for Barbours Cut and later the Bayport channel.

With these changes in place, $50 million in dredging costs will be saved in the next decade.

BREAKBULK AMERICAS JERRY NAGEL EDUCATION DAY HELD More than 130 students from the Houston area gathered Oct. 6 at the fifth annual Breakbulk Jerry Nagel Education Day to kick off the 2015 Breakbulk Americas Conference. Students were represented from Texas A&M Galveston, the University of Houston – Main Campus, the University of Houston – Downtown, Texas Southern University, Houston Community College and San Jacinto College.

The Port of Houston Authority participated in the open session career fair during the second half of the day. Port Authority Trade Development Manager Ty Reasonover was there to answer questions and give career advice to interested students. The Port Authority offers multiple 10-to-12 week summer internship opportunities each year to undergraduate and graduate students across a wide range of career fields. The Port Authority will begin accepting applications for the 2016 summer program in late January.

“Our goal here at Education Day is to ‘inform and entice’ you enough so that you become a part of this action-oriented industry known as breakbulk,” Breakbulk Education Day Coordinator Elizabeth Wetzel said.

Fall 2015 | Port of Houston Authority

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PHA CELEBRATES SECOND ANNUAL PARK TO PORT RIDE The Port of Houston Authority partnered with the Hermann Park Conservancy to host the second Annual Park to Port Bike Ride Oct 3. Nearly 1,000 participants enjoyed a 20-mile bike ride between the Bill Coats Bridge in Hermann Park to the Port of Houston in sunny and beautiful weather. Riders traveled east along Brays Bayou to the Port’s Turning Basin, where the Port Authority hosted a turn-around celebration with food, music and other fun activities.

Port of Houston maintenance staffers were a huge help setting up the site and Port Authority volunteers greeted riders warmly and welcomed them to the port. Riders and volunteers were treated to an appearance by the Port Authority’s antique fire truck and a special fireboat demonstration at Brady’s Landing.

“Many Houstonians don’t realize that we have one of the country’s busiest ports within a short bike ride distance from the center of town,” Port Authority Manager of Community Relations Leslie Herbst said. “This event allowed the Port Authority the opportunity to showcase our region’s largest economic engine, which is right here in Houston’s own back yard.”

A post-ride celebration was held at Hermann Park and all proceeds of the ride benefited the Hermann Park Conservancy.

RESOLUTION PASSED TO HONOR COMMISSIONER FITZGERALD The Port Commission of the Port of Houston Authority passed a resolution to honor Commissioner Clyde Fitzgerald for his service as President of the International Longshoremen’s Association South Atlantic and Gulf Coast District. Chairman Janiece Longoria lauded Commissioner Fitzgerald for more than 50 years of service on the Houston waterfront. Commissioner Fitzgerald began working as a longshoreman at the Houston Ship Channel at age 16, and was elected president of Local 28 of the International Longshoremen’s Association 10 years later. After 20 years of service in that capacity, he was elected selected Local 28 president of the International Longshoremen’s Association’s South Atlantic and Gulf Coast District in 1990, and was elected president in 2002. After 13 years of leadership as president, he became president emeritus in 2015. He serves as vice president of the International Longshoremen’s Association and holds membership on its executive council. He was appointed to the Port Commission in June 2013 and reappointed in January 2015.

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.

THE INVESTMENT CONTINUES

Bigger. Faster. Ready.

THE PORT OF HOUSTON AUTHORITY recently welcomed four super post-Panamax cranes that are just one portion of the $700 million modernization project taking place at our Barbours Cut Container Terminal. These new ship-to-shore cranes will accommodate today’s generation of large container vessels that will be calling on our terminals following the expansion of the Panama Canal.

Port of Houston Authority America’s Distribution Hub for the Next Generation

www.portof houston.com

| 713.670.2400

ATTRACTS

DEEPE

BIGGER S

BARBOURS CUT

ENING

SHIPS

40 to 45 feet OPERATING DRAFT

CHANNEL ENHANCEMENTS 300 feet

INCREASED WIDTH TO

CONTAINERIZED TRADE TEU FORECAST

(in millions)

Loaded and Empty TEUs

5

4 BARBOURS CUT

3 BAYPORT

2

TOTAL

1

2012

2015

2025

2035

Transportation Cost Savings – Containerships and Tankers 40 ft. compared to 45 ft.

Bayport 45' x 400'

AVERAGE ANNUAL EQUIVALENT BENEFITS

$ 20,060,000

Barbours Cut 45' x 300'

$ 18,620,000

Transportation Cost Savings – Containerships Only 40 ft. compared to 45 ft.

Bayport 45' x 400'

$ 18,230,000

Barbours Cut 45' x 300'

$ 18,620,000

Spurred by ongoing growth and the widening of the Panama Canal, the Port of Houston Authority has completed a key milestone in accommodating postPanamax ships. Those vessels are expected to bring stronger international trade opportunities from the AsiaPacific region and around the world while generating exciting economic growth for the Gulf Coast region.

The Port Authority finished its initiative to deepen and widen the channel adjacent to the Barbours Cut Container Terminal Sept. 15, delivering the Port Authority’s first deeper-draft container terminal. The enhancement brings the channel’s previous operating draft from 40 to 45 feet and its width to 300 feet. The change means the channel matches the depth of the Houston Ship Channel, which was deepened to accommodate 45-foot drafts from the Gulf of Mexico to Boggy Bayou. That project was completed in June 2005.

The Houston Pilots Association gave the Port Authority approval to receive vessels with up to a 45- foot operating draft at the Barbours Cut facility in late September. Days later, a vessel drafting at 41 feet with TEU capacity of 5,700 called at the terminal.

SPURRED BY ONGOING GROWTH

“This call marks a milestone in the next generation of container capacity for the Port Authority. The vital need for a deep-draft channel was clearly shown as a ship immediately took advantage of the new draft upon arrival,” Port Authority Executive Director Roger Guenther said.

And soon that surge to loading abilities will be shared by a neighboring facility.

The channel adjacent to the Port Authority’s Bayport Container Terminal will be brought to a 45-foot operating draft in the first half of next year in conjunction with the opening of an expanded Panama Canal in 2016. The Bayport and Barbours Cut channels expansions will also accommodate expected growth in chemicals and petroleum products vessel traffic while adding to containership operations efficiency at both channels. The Panama Canal Authority is adding a third set of locks to its waterway that will enable bigger and more efficient vessels to easily transport cargo between the Atlantic and Pacific coasts. In late September, the Panama Canal Authority reported its expansion program is 93.1 percent complete.

AND THE WIDENING OF THE PANAMA CANAL, THE PORT OF HOUSTON AUTHORITY HAS COMPLETED A KEY MILESTONE IN ACCOMMODATING POST-PANAMAX SHIPS.

As the Panama Canal widens, the Port of Houston will become a fierce competitor for larger vessels looking to discharge or load along the Asia-Pacific to U.S. trade route. But ongoing operational hiccups and labor strikes at West Coast ports have already led to tremendous container growth volumes for the Port of Houston Authority in 2015. Thanks to the Port Authority’s competitively priced supply chain alternatives, container volumes at the Port of Houston boomed by 17 percent year-on-year through August. Once larger post-Panamax ships have the option to move directly through the Panama Canal, volumes are expected to rise even higher. The Port Authority moved more than 21 million tons of cargo across its facilities in the first eight months of 2015. The Port of Houston is the biggest port in Texas and the Port Authority already handles about two-thirds of all the containers that move through the U.S. Gulf of Mexico.

The Port Commission expects to spend about $80 million for dredging the channels in front of the container terminals, and will solely fund the project with Port Authority operating income. In addition to dredging the channels, improvements at the Barbours Cut and Bayport channels include terminal enhancements, berth modifications and larger capacity of federal placement area that will be made for future dredged material. The construction contract for the work was awarded to Orion Construction L.P. The U.S. Army Corps of Engineers (USACE) the Port Authority worked together to get the dredging projects under way with a combination of electric and diesel-powered dredges. The channels are being widened or realigned by up to 100 feet to better accommodate a growing fleet of postPanamax ships. These vessels can carry more than twice as much container cargo as Panamax ships, with capacity for 8,500 or greater TEUs.

From an environmental standpoint, about half of the expected 6 million yards of total material collected from the two channels will be for beneficial use to raise levees.

THE PORT AUTHORITY MOVED MORE THAN

21 MILLION TONS

OF CARGO ACROSS ITS FACILITIES IN THE FIRST EIGHT MONTHS OF 2015.

Along with the Port Authority’s facilities, private facilities nearby will benefit from the access to larger ships. The investment in the channels is projected to generate more than $2.9 million monthly, or $35 million annually in combined local, state and national economic benefits, according to an analysis study by the USACE. “This investment demonstrates our commitment to drive economic prosperity for the region and further ensures that the Port Authority is America’s distribution hub for the next generation,” Port Commission Chairman Janiece Longoria said.

The dredging of the Barbours Cut and Bayport channels is part of a larger, 10-year enhancement project that will be finished by 2023. The Port Authority plans to invest at least $1.7 billion in the improvements. n Fall 2015 | Port of Houston Authority

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H-GAC Helps to Open a Freight Bottleneck As the Port of Houston Authority’s transportation network and loading activities continue to grow, the need for more robust freight access has captured the attention of local stakeholders.

The Houston-Galveston Area Council (H-GAC) acknowledged the Port Authority’s fast development in its September Transportation Policy Council meeting by voting to approve and fund an integral freight project that will ensure the Port Authority maintains competitiveness and efficiency in its transportation network.

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Port of Houston Authority | Fall 2015

Port Commission Chairman Janiece Longoria, who serves as the Port Authority’s representative on the Houston-Galveston Area Council (H-GAC) Transportation Policy Council, announced at the September Port Commission meeting that the Port Authority will be included in the 2015 Transportation Improvement Program (TIP) Call for Projects.

The council voted in favor of funding the Port Authority’s Broadway Second Main Rail Track project in 2016, which will remove a key freight rail logjam serving the region. The $21.3 million project is forecast to generate up to $63 million in economic benefits. Through the Port Terminal Railroad Association (PTRA), freight railroads will step in to fund the local match portion at a 50/50 cost share of the project.

The project will replace the bridge and reconfigure the railway segment of the track. The project’s greatest benefits come from reduction in transport costs derived from a decrease to railroad delays and improvements to local air quality. Not only will diesel emissions from the locomotives be reduced, but truck traffic will be reduced thanks to the increase in capacity on a double-track segment.

Adding a second track to the bridge will bring strong economic opportunities for the greater Houston region alongside the Port Authority and railroads, allowing shippers to move freight by train, which is a cleaner transportation mode compared to trucks.

A second presentation given by H-GAC provided recommendations to the organization’s Technical Advisory Council for approval and inclusion in the current TIP and funding for 2017 surrounding Precinct Two’s Federal Road Alternate Evacuation Route Grade Separation.

Chairman Longoria remarked that both projects are essential to maintaining the lowest cost option for supply chains amidst Texas ports. She also encouraged Port Commission meeting attendees to vote in favor of the November 2015 Harris County bond election for transportation network enhancements.

The TIP that will include funding for the Broadway Second Main Rail Track project received nearly 200 applications for funding, representing more than $4.5 billion in projects. The fiscally constrained financial plan of transportation projects will receive federal funding throughout the next four years. n

NEW HOME =

ENHANCED

The Port of Houston Authority’s fire department has focused on improving responsiveness and safety ever since voters approved a bond to fund firefighting equipment for the port in 1924. Recently, three new emergency response vessels that are the most sophisticated of their kind replaced an aging fleet.

The Port reviewed locations for the new vessels to enhance maximum response time. This led to the closing of the fire station at Woodhouse Terminal in Galena Park, and the construction of a new facility at the Turning Basin.

“We discovered that a majority of the land-based calls for service were in the Turning Basin area,” explained Port of Houston Authority Fire Chief William Buck. “The response time from Woodhouse was slower with our trucks being stopped by trains and vehicle traffic.

“Also, the majority of ships were docked in the Turning Basin as well. The thought was that a move to the

Turning Basin would increase response time when and where it was most needed. The speed of the new fireboats also means we can cover more water faster to provide better coverage than with the retired vessels.”

A new station was built for the four-man crew, their equipment and the shift assistant chief. The equipment includes a Hazmat unit, a fire engine, and the assistant chief’s apparatus or truck with a command center in the back. There is one assistant chief per shift covering all three port fire stations.

The new station, which was built to be able to withstand a Category 3 hurricane, sports a new floating dock for Fireboat 1. The new dock allows the fireboat to rise and fall with storm and tidal surge.

One room at the new station is for the cascade air filling system. This special compressor recharges the breathing systems on the fireboat. The medical supplies needed for all

STATION 1

PROTECTION three fire stations are also stored there in clean and climatecontrolled conditions.

The fire department’s longstanding tradition of mutual aid does not change with the move from Galena Park.

“We handle mutual aid calls with Galena Park, Houston and surrounding ship channel communities,” said Buck. “We work frequently with the Houston Fire Department on rescues out of ship holes which are high angle, confined space rescues. It requires specialized techniques.

“With our proximity, we usually have the man out before Houston gets on the scene. We turn over the victim to Houston’s patient care so that their ambulance can transport to a hospital.”

Among the most highly trained firefighters in the state of Texas, the port’s firefighting team constantly works to maintain its excellence. n

Breakbulk G RADUAL

Americas k 2015: AC CEL ER ATI ON A tone of cautious optimism permeated throughout the 26th annual Breakbulk Americas conference as a slowing global economy and steep reductions to oil and gas activity could threaten momentum in heavy-lift, project and breakbulk cargo markets.

Representatives from the Procurement Executives Group (PEG) keynoted the conference sessions hosted by the Port of Houston Authority at the George R. Brown Convention Center in downtown Houston. The duo lent valuable insight with an overview of the global economic environment and trends in market sectors most important to project cargo and breakbulk industries.

Peter Jessup, Amec Foster Wheeler Group Vice President of Supply Chain Management, and John Mika, CB&I Global Director of Procurement in the Oil & Gas Group, predicted a gradual acceleration in the global economy.

World GDP is forecast to pick up from 2.6 percent in 2015 to 3.1 percent in 2016, according to Jessup.

The world’s economic health is certainly looking brighter than developments in the oil and gas sector. Energy industry customers and contractors are making significant cuts in personnel as they begin reorganizing and rationalizing their company structures.

The U.S. rig count dropped 60 percent since late last year, according to Mika, while global upstream spending is expected to decline by 20 percent in 2015 and by three to eight percent in 2016.

A slowdown in upstream oil and gas exploration and production is liable to deter some project cargo activity. But the oil and gas oversupply and related low pricing environment has a silver lining for the Port of Houston Authority.

The one bright spot from the engineering, procurement and construction (EPC) perspective lies in the build-out of the North American gas crackers and petrochemical complex, which is the lifeblood of the Port Authority’s future export prospects.

“Downstream petrochemical companies and other stakeholders plan to invest $35 billion in upgrades and expansions along the Houston Ship Channel, and the exportable volumes of plastic pellets will surge in years to come,” Port of Houston Authority Chief Commercial Officer Ricky Kunz said.

And though the oil and gas slowdown brought the Port of Houston Authority’s record-high steel volumes back to a normalized level for 2015, business through its facilities has been strong this year due to the diverse mix of cargo handled at its terminals.

Port of Houston Authority Chairman Janiece Longoria welcomed a packed exhibition hall to provide the conference session’s opening remarks.

“We are diligently preparing for the rapid growth that lies ahead along the Houston Ship Channel,” Chairman Longoria said.

The Port Authority continues to make investments in its infrastructure to capture increasing opportunities at its breakbulk port, which is the largest in the nation. Terminal road improvements will provide increased mobility and efficiencies for handling breakbulk cargo. And development of new acreage next to Wharf 32 will add much-needed area for laydown space and cargo movement.

Wharf 32 is designed to handle project and heavylift cargoes specifically. A Barnhart crane capable of handling heavy lifts of up to 700 metric tons resides at the Port Authority’s facilities, Chairman Longoria told the Breakbulk Americas crowd.

“In the last 12 months, we have successfully moved more than 9,000 metric tons of project export cargo across these docks,” Chairman Longoria said.

“Maintaining and improving efficiency at the public terminals is critical to our customers’ success as well as our own.”

Facilities located along the Houston Ship Channel currently make up 38 percent of the total U.S. petrochemical and petroleum production and refining

volumes. But as this corridor’s stake grows in years to come, the Port of Houston is the ideal entry point for breakbulk cargo via Wharf 32.

The Port Authority is also the largest steel port complex in North America with 47 highly efficient general cargo and heavy-lift docks.

Its extensive rail and highway network and multiple local logistics service providers connect goods to all of the important nearby markets.

Strategically located on the central Gulf Coast, the Port Authority touts a range of 144 million consumers within 1,000 miles.

The Port of Houston Authority hosted the 26th annual Breakbulk Americas conference in Houston this year after being named the primary host port in 2014. In its fourth year as host port, the Port Authority sponsored the Evening Welcome Reception Oct. 6. The fourday conference, produced by Breakbulk Events & Media, drew nearly 5,000 delegates from 70 countries and ran from Oct. 5 to Oct. 8.

“We are excited to be naming Houston our home for the foreseeable future,” Breakbulk Events & Media Americas Sales Director Christian Blair Thompson said. “Being in the center of the oil and gas industry, as well as the largest breakbulk terminal city just makes the perfect fit. And our exhibition numbers continue to increase since choosing to remain in Houston.”

The bustling exhibition hall featured the world’s major carriers, freight forwarders and more than 40 ports that handle specialized heavy-lift, project and breakbulk cargo and roll on/roll off (ro-ro) logistics.

Logistics specialists and companies from all facets of the EPC sector also had a strong presence at the showcase.

Vigilant hopefulness was apparent throughout the conference sessions and even the event planning, as the global economic slowdown and reduction in oil prices has generated uncertainty in the breakbulk industry.

“All of Houston’s business with the oil and gas sector is really what fuels our city, and in this economy with the current price per barrel, we were a bit apprehensive and anticipated a few issues on-site as a result. However, this is not the case. The vibe on the floor is absolutely exciting. Breakbulk really does love calling Houston home and it shows,” Thompson said. n

“In the last 12 months, we have successfully moved more than 9,000 metric tons of project export cargo across these docks.”

-Chairman Longoria

SPOTLIGHT ON SMALL BUSINESS Quite a Ride for AAA Asphalt Paving Gate 1 road improvements.

Mike Hoffman, president of “It was a total rebuild of AAA Asphalt Paving, Inc., was Gate 1 road from Cargo Bay persuaded to plant roots in Houston Road, the new dedicated truck just after the 1980s oil bust began entrance, to Steel Processors. They to turn around. Hoffman sold a did a great job on that project,” restaurant he operated in Huntsville, Port Authority Mentoring Program Ala., to join a small construction Manager Pedro Gonzalez said. outfit that, as his company’s Now Hoffman’s team is name suggests, specialized in Mike Hoffman, President, left working at the Turning Basin lower asphalt services.

Rayferd Colburn, General Superintendent, right level and recently finished work at After working on small parking the executive building parking lot. AAA Asphalt is also lot patching jobs for a couple of years, AAA Asphalt’s lending a hand in ongoing improvements at the Bayport customers started handing Mike and his team blueprints and Barbours Cut terminals. for projects beyond asphalt paving.

While current low oil prices have caused some economic “We got in during a time when Houston was coming slowdowns in the Houston area, Hoffman’s crew is not back and there weren’t a lot of companies around to service feeling the impact, as its construction portfolio is diverse those construction needs like underground storm sewers, and 90 percent driven by public projects. concrete paving — different things. Now we do road work “I think that with the widening of the Panama Canal and big, heavy construction. It’s been quite a ride!” and the work that the Port’s doing to support that, the Hoffman has since brought his company to 70–78 Port is a huge part of the diversification that’s keeping employees. One of AAA Asphalt’s bigger road construction Houston going.” projects with the Port of Houston Authority was performing

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