spotlight: us ports

FUNDING FRENZY

US ports are rejoicing in a range of funding from a variety of sources, improving both infrastructure and environment and, importantly, creating more jobs

Discretionary port funding worth more than $241m was announced by the US Department of Transportation in December last year which aims to improve port facilities in 19 different states including Gulf ports. The money is to be used for 25 projects provided through MARAD’s Port Infrastructure Development Program (PIDP).

The PIDP is in its third year and has already awarded $492m for 32 projects of regional and national economic significance within its first two years. The programme supports efforts by ports and industry stakeholders to improve facility and freight infrastructure to ensure the nation’s freight transportation needs, present and future, are met. It provides planning, operational and capital financing, and project management assistance to improve ports’ capacity and efficiency.

The projects that were awarded grants include coastal seaports, Great Lakes ports and inland river ports.

“These investments will support the shift to cleaner transportation, which will create more economic activity and good paying jobs,” says the acting maritime administrator Lucinda Lessley. “The PIDP is an important part of building back

better for our ports, our communities, our economy and our people.”

By announcing these awards now, the department is carrying out a promise in the Biden-Harris Port Action Plan that will take action to address supply chain disruptions by helping to increase federal flexibilities for port grants; accelerate port infrastructure grant awards; initiate new construction projects for coastal navigation, inland waterways and land ports of entry; and launch the first round of expanded port infrastructure grants funded through the Bipartisan Infrastructure Law.

The law aims to rebuild the US’s roads, bridges and rails; upgrade and expand public transit; modernise ports and airports; improve safety; tackle the climate crisis; advance environmental justice; and invest in communities that have too often been left behind.

In the future, the Bipartisan Infrastructure Law will provide $450m annually in funding for the PIDP programme for fiscal years 2022-2026, or a total of $2.25bn.

Some of the projects to be funded under this announcement include: Bayport Container Terminal expansion at the Port of Houston, constructing a fourth ro-ro berth at the Port of Brunswick, a new rail storage yard at Bay St Louis, a river pier project at Tell City, Indiana, port resiliency improvements at Delcambre, Louisiana and $52.3m to help boost rail capacity at the port in Long Beach, with a new locomotive facility, 3,048m support track and extensions of five existing tracks to speed up freight movement while cutting down the number of truck trips required.

all systems go

Vopak Moda Houston has announced that its marine terminal in the Port of Houston is now fully operational. Located in Houston’s refining and petrochemical region and close to multiple ammonia, hydrogen and nitrogen pipelines, Vopak Moda Houston is the first greenfield terminal development in the Port of Houston in more than a decade. It is a joint venture between Royal Vopak and Moda Midstream.

Designed to handle very large gas carriers, as well as smaller vessels and barges, Vopak Moda Houston is the only waterborne ammonia terminal in the Port of Houston with deepwater capabilities. The facility is directly connected via pipeline to the Port of Houston petrochemical complex.

It also operates a unit train rail loop served by all three main rail lines. The company has completed construction of its rail infrastructure for the storage and handling of pressurised gas for a global energy company.

Houston hits top spot

The Port Commission of the Port of Houston Authority has announced the US Army Corps of Engineers has ranked the Houston Ship Channel Number One in total tonnage in the US. The channel handled more than 275 million short tons of cargo during 2020, exceeding the next largest port by more than 50 million tons.

“This ranking highlights the need to continue to make channel improvements and expedite Project 11 through the widening and deepening of the Houston Ship Channel, to ensure sustainable opportunities for our community and industry for generations to come,” says chairman Ric Campo.

The channel helps sustain 3.2m jobs and contributes $802bn annually to the US economy.

Qatari investment

The government of Qatar has announced plans to invest at least $10bn in US ports and has approached international banks for financing to help boost its ties with the US.

“The Qataris have been preparing for almost a year to test the waters with US port investments,” Michael Frodl, a US-based adviser on projects including maritime security, commerce and infrastructure, was quoted as saying.

“We think that a shrewd investor with the US$10bn the Qataris desire to put into American port infrastructure is likely to look at the under-served East Coast first and foremost. “The West Coast is getting all the US government and private investment attention, while the East Coast is long overdue for improvements.” Frodl said ports with easy access to highways and rail lines would be a priority.

“We’d be looking at ageing mediumsized ports south of Boston and north of Jacksonville,” he added.

A Middle East-based source said the investments would be backed by debt, which would be linked to the port assets, adding that Qatar was in early discussions with banks to look for a structuring adviser.

on the up

Galveston Wharves has had a phenomenal year, according to Rodger Rees, port director and chief executive. He describes it as a strong year for cargo.

“We expect to end the year with total cargo of 5m tons, the highest since 2016. We saw growth in almost all types of cargo, including bulk liquids, bulk fertiliser, wind and general cargo, roll-on/ roll-off cargos, and new cars. More cargo tonnage means more jobs for union workers, ship pilots, stevedores, truck drivers and others who move these cargos. Improvements to our West Port Cargo Complex and a new, privately operated cargo laydown yard also contributed to our growth.”

He also highligted the cruise business. “After a one-and-a-half-year suspension, the cruise business began operating safely and sustainably this year. This is great news for the port because our cruise business typically generates about 65% of our annual revenue. We use net revenues to fund critically needed maintenance and capital improvement projects prioritised in our master plan. It is also great news for cruise fans and the thousands of people working in cruiserelated jobs.”

The port is also undertaking a dredging programme. “For the first time in a decade, the US Army Corps of Engineers is dredging the federal portion of the Galveston Ship Channel to its maximum permitted depth of 47 feet [14m]. When completed next year, we

will be able to bring in larger grain ships, which should boost our cargo numbers,” he adds.

With funding unavailable to dredge the federal portion of the ship channel for more than a decade, silting has prevented larger bulk cargo ships from calling on the port. The project is expected to remove 5-6m3 yards of silt and allow the port to reach its full potential. Liquid cargoes such as fuel and bulk cargoes such as grain and fertiliser account for more than half of the port’s tonnage each year.

In June, the port became the second Texas port to be certified by Green Marine, a voluntary environmental programme for North America’s maritime industry. Guided by this scheme, the port staff is researching, planning and implementing several environmental programmes. From improving air quality to reducing waste, Galveston Wharves is identifying ways to make long-term changes to improve the environment.

In 2021, the port’s engineering department undertook major capital improvement projects, including the port’s portion of Pier 10 improvements, new interior roadways, and the West Port Cargo Complex.

The port is also looking to improve the West Port Cargo Complex to accommodate more cargo. The $30m expansion and improvement project will increase the cargo area to almost 90 acres, improve infrastructure and position the port to further diversify its business.

giant developments

Titan Florida, a subsidiary of Titan America, has announced the construction of a 70,000 ton dome at its Port Tampa Bay Terminal, making the terminal one of the largest of its kind in the US.

The new $35m investment in its Tampa mega-terminal will increase and upgrade Titan’s import capacity and expansion of its low carbon cements and cementitious products, such as fly ash and slag. Apart from the new dome, the investment will bolster Titan’s existing 60,000-ton bulk storage and logistics infrastructure.

“Florida is one of the 10 US mega regions and has a booming economy,” says Randy Dunlap, president of Titan Florida. “Titan’s investment in our state signifies a commitment to support our customers in the infrastructure, residential and commercial sectors with high-performance products, while contributing to mitigating climate change.”

With an expected completion date of early 2023, the new dome follows other recent investments at Titan’s Pennsuco plant in Medley, Florida. These projects, exceeding $20m, include the construction of a processed engineered fuel facility and investments in natural gas infrastructure and equipment.

Together, these projects enable the conversion of kiln fuel at Pennsuco from coal to lower carbon alternatives, substantially reducing the plant’s environmental footprint as well as eliminating municipal waste from local landfills.

“The major expansion and upgrade of our Port Tampa import terminal comes ahead of accelerating market growth and major investments in Florida’s infrastructure,” says Guillermo Haberer, commercial vice president of Titan Florida. “It is welcome news for our customers, who seek high performance green products and solutions that support their critical growth initiatives.”