Port Houston Navigator Magazine - Fall 2017

NAVIGATOR

FALL 2017

THREE NEW SUPER POST-PANAMAX

HAVE ARRIVED!

BREAKBULK SMART PORT WIND ENERGY CARGO BOON

IMPROVING ENERGY EFFICIENCY

ALSO: PORT UP AND RUNNING QUICKLY AFTER THE STORM • FTZ CONFERENCE DRAWS BUSINESSES EXPANDED TRUCK GATE HOURS AT BAYPORT • SMALL BUSINESS PROGRAM TO CELEBRATE 15 YEARS

, HOUSTON YOU RE ASTRONOMICAL! Congratulations Champs!

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11.17NAVIGATOR 32 24 26 34 28 30 IN THIS ISSUE

A MESSAGE FROM EXECUTIVE DIRECTOR ROGER GUENTHER THE MANIFEST PORT HOUSTON’S NEWS HIGHLIGHTS WIND ENERGY CARGO IS BOON TO BREAKBULK INDUSTRY PORT HOUSTON UP AND RUNNING QUICKLY AFTER THE STORM IMPROVING ENERGY EFFICIENCY AND BUILDING FOR THE FUTURE PORT HOUSTON: THE SMART PORT

NEW EXPANDED TRUCK GATE HOURS AT BAYPORT

PORT HOUSTON’S FOREIGN TRADE ZONE CONFERENCE DRAWS BUSINESS

DID YOU KNOW? INTERESTING FACTS ABOUT PORT HOUSTON SPOTLIGHT ON SMALL BUSINESS SNAPPER JACK’S CATERING COMPANY

PORT HOUSTON’S SMALL BUSINESS PROGRAM TO CELEBRATE 15 YEARS

BREAKBULK AMERICAS 2017 CONFERENCE BRINGS LARGE CROWD TO HOUSTON

FEATURE STORY: MORE STATE-OF-THE-ART CRANES ARRIVE AT PORT HOUSTON

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PORT HOUSTON NAVIGATOR’S EDITORIAL STAFF:

EXECUTIVE OFFICE JANIECE LONGORIA Chairman

JOHN D. KENNEDY Commissioner

DEAN E. CORGEY Commissioner

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

Chief Legal Officer ERIK A. ERIKSSON

Chief Operating Officer THOMAS J. HEIDT

Chief Port Infrastructure Officer RICHARD BYRNES

Chief Commercial Officer RICKY W. KUNZ

Chief Port Operations Officer JEFF DAVIS

Chief Financial Officer TIM FINLEY

Chief Audit Officer MAXINE BUCKLES

Chief HSSE Officer MARCUS WOODRING

Chief People Officer JESSICA SHAVER

Chief Information Officer CHARLES THOMPSON

Harris County Treasurer ORLANDO SANCHEZ

FIELD OFFICES

Stan Swigart, director, marketing and external communications | Bill Hensel, manager, external communications | Laci Theriot, digital content marketing specialist | David Bray, photographer | Chris Kuhlman, photographer | John Manlove Marketing & Communications, design and layout.

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

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

BCO’S PREFER H2O Introducing PORT HOUSTON DIRECT a higher degree of service and stability for importers and exporters. Port Houston works with BCOs to overcome logistics and service issues and our Port Houston Direct team can be contacted directly by BCOs for an immediate response.

• More Reliable • All Water Service

• Less Congestion • More Accessible

• More Stable • Less Complicated

BRAZIL THELDON R. BRANCH, III Commissioner

JOHN C. CUTTINO Brazil Representative Port of Houston Authority Av. Paulista, 2300-Andar Pilotis Sao Paulo, SP Brazil, CEP: 01310-300 Tel.: +55 (11) 3280-5755 Fax: +55 (11) 2847-4550 Houston Access (832) 239-5076 Email: jcuttino@poha.com

Call or visit us online to learn more about Port Houston, The International Port of Texas.

ASIA STEPHEN H. DONCARLOS Commissioner

ROY D. MEASE Commissioner

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MATTHEW SOLOMAN Port of Houston Authority c/o Ben Line Agencies Email: kua.msoloman@benline.com.my Tel: +60 3 7947 7333 Mobile: +84 903 943 886 Head Office 200 Cantonment Road, #13-05 Southpoint, 089763 Singapore Tel.: +65 6420 9013 Fax: +65 6224 0163

For advertising opportunities contact Bill Hensel at 713-670-2893

Visit Port Houston online at www.PortHouston.com

PortHouston.com • 713-670-2400

ROGER THAT A MESSAGE FROM EXECUTIVE DIRECTOR

ROGER GUENTHER

As you would expect, the operations of the port were impacted by Hurricane Harvey. It is no surprise that when cargo activity at port facilities is totally suspended for one week, there was an impact.

And as a side note, we began our extended gate hours on Monday, Oct 2, at the Bayport Container Terminal as we had planned to do to meet the demand of our growing volume. See the story on page 26.

After closing at noon on Friday, Aug. 26, we opened our gates again on the morning of Sept. 1 and began working vessels that evening.

Our general cargo terminals also have seen an impact.

Channel conditions -- including currents, debris and obstructions from the flood waters -- limited the opening of the channel to the upper Turning Basin for several days after we were able to get to the container terminals.

Our Barbours Cut and Bayport Container Terminals rebounded quickly, combining to work 26 vessels during the first week after ramping up operations. While we are aware of 12 container vessels that bypassed or omitted their Houston call, much of the inbound container cargo has ultimately discharged in Houston.

Because of the disruptions caused by the storm, many vessels that bypassed Houston dropped cargo at other ports. For example, we have received barge shipments of containers from Savannah and New Orleans that were discharged at those ports. We are still receiving import cargo that was discharged at hub ports, such as Freeport, Bahamas, and continue to make its way back to our facilities.

Additionally, we continue to see elevated discharge volumes through our facilities as we receive much if not most of the containerized cargo that was diverted.

“We are getting close to being back to normal, and have been able to recover from Hurricane Harvey due to the incredible effort and response by our dedicated employees who worked before, during and immediately after the storm.”

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We resumed gate operations on that Friday, Sept. 1, with a healthy volume of traffic. We also opened a gate on Labor Day and have resumed our normal gate hours since that time. We even opened a gate on Saturday of the following weekend to serve our customers and work off the tremendous backlog of vessel activity.

Even with having to adapt due to disruptions, we have seen no extraordinary truck turn-times post-Harvey.

That’s thanks in large part to our staff members, who have done an admirable job through this recovery.

As of this writing, City Docks 8 and 9 remained unavailable due to obstructions in the actual turning basin. City Docks 28, 29, 30 and 31 remained unavailable because of an adjacent dry dock that was submerged in the channel.

The net effect for August reflects the impact of cargo during that week of inactivity. General cargo terminals were down 16 percent versus the same month last year.

Container volume saw a nine percent decrease in TEUs versus August 2016. However, overall container volume is still 10 percent higher year-to-date. And overall tonnages for 2017 for Port Houston facilities year-to-date totals more than 25 million tons, up from 23 million tons at this time last year.

Recapturing a lot of that cargo, at both our general cargo facilities and container terminals look promising for September. We have been extremely busy since reopening after Harvey.

We are getting close to being back to normal, aside from the channel limitations, and we have been able to recover due to the incredible effort and response by many, many dedicated employees who worked before, during and immediately after the storm. Many of our folks went above and beyond to ensure that Port Houston was safely and quickly placed back into operation to serve our customers.

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The list of examples include but are not limited to: • First responders, dispatchers and our EOC leadership, some who couldn’t leave for a few days during the storm • Maintenance, Operations and ILA personnel who returned to ensure we were ready for operation on that Friday and began to orchestrate a plan to accommodate a tremendous level of activity at our terminals • IT personnel who showed up as soon as they could make it to our facilities to check and fix a few things prior to opening • We had folks at home remotely processing payroll to keep that process seamless • Some members with the M/V Sam Houston who stayed with the boat to ensure its security • We had others at the command center as soon as they could safely arrive, calling fellow employees and checking on their status so that we could respond to their needs

I also received a note from the South Carolina Ports Authority that they have collected more than $7,000 in donations to help Port Houston employees in their recovery efforts.

We are grateful for their generosity and for making the lives of our employees a bit easier as they recover.

I would like to express my sincere appreciation and thanks to our Commission for their leadership and guidance, and to our staff for all that you do to ensure we are READY for the challenges and opportunities ahead.

“More than 100 members of our port family were severely impacted by the floods and will be recovering for a period of time, like many, many others in the community. And our port family was right there to help them begin the recovery process.”

More than 100 members of our port family were severely impacted by the floods and will be recovering for a period of time, like many, many others in the community. And our port family was right there to help them begin the recovery process. Those that were not able to come in to work were helping fellow employees with work that needed to be done to their flooded homes, or help them get out to a safe and dry place to stay.

These are just a few of the many examples of the acts of service to our organization and to others that make this a truly outstanding organization. Although there are just too many to name individually, I would like to just give a hand to our staff for their remarkable efforts.

And throughout the storm, I was amazed at the outpouring of support from our colleagues and friends at other ports around the nation, calling to lend a hand in any way that they could.

I just want to give special mention to a couple of ports.

Georgia Ports Authority and their maritime community who loaded up four 20’ containers with much-needed supplies (including canned goods, water, blankets, cleaning supplies… you name it) and trucked these to Houston after the storm, specifically for our employees.

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in infrastructure, and pursued dredging projects to keep the Houston Ship Channel moving forward.

Harris County Commissioner Jack Morman of Precinct 2 offered Longoria a resolution from Harris County, and U.S. Congressman Brian Babin provided a congressional recognition for her significant impact to the maritime community and the state of Texas.

MANIFEST PORT HOUSTON NEWS AND HIGHLIGHTS

PORT CHAIRMAN RECOGNIZED AS “MARITIME PERSON OF THE YEAR” AT ANNUAL MARITIME DINNER Port Commission Chairman Janiece Longoria was honored with the prestigious “Maritime Person of the Year” award at the Greater Houston Port Bureau’s Annual Maritime Dinner August 19.

Although Texas Governor Greg Abbott could not be in attendance, he asked the Port Bureau to present Longoria the Governor’s “Yellow Rose of Texas” award. The Yellow Rose of Texas Award is given only through the Office of the Governor to recognize women for their significant contributions to their communities and to Texas in the preservation of Texas history.

Other keynote speakers at the event included Brenda Hellyer, chancellor at San Jacinto College, Neil Chapman, president of ExxonMobil Chemical, Jim Teague, chief executive officer of Enterprise Products Partners and Pat Studdert, president and chief executive officer of Buffalo Marine Service, Inc.

More than 700 industry executives, government officials and colleagues attended the event to support the Chairman. City of Houston Mayor Sylvester Turner provided a city proclamation on behalf of Longoria, and highlighted the Port of Houston’s accomplishments and her leadership to the organization.

Studdert awarded Longoria with a customized glass heart, noting that she is the “heart of the port,” a person who cares deeply about the Houston Ship Channel and the companies and individuals who support the waterway.

“Our port is the maritime port to the world, and tonight we honor Chairwoman Longoria for her leadership over the past 15 years,” said Turner on his official Twitter account.

“I am honored to have been selected by the Greater Houston Port Bureau as the Maritime Person of the Year for 2017,” said Longoria.

“I consider it the highest distinction for maritime industry service.”

Under her leadership, Port Houston has reached a historic high of handling more than two million loaded container units in 2015, seen steady increases in revenues, made significant investments

Longoria is longest-serving Chairman at the port is the only woman to have ever held the position on the Port Commission.

The event was held at the Bayou City Event Center.

GULF COAST INDUSTRY FORUM HIGHLIGHTS HOUSTON AS THE “IRREPLACEABLE PORT” Port Chairman Janiece Longoria provided a port update focused on Hurricane Harvey during Economic Alliance Houston Port Region’s Gulf Coast Industry Forum Sept. 20-21.

“Our quick return to serving ship channel industries and Port Houston customers was made possible by the extraordinary teamwork of our port staff, stakeholders and the maritime industry who pulled together 24/7 to make this happen for the good of our region,” said Longoria.

Chairman Longoria also provided updates regarding continued growth and investments along the Houston Ship Channel.

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it was noted that Port Houston has seen 24 percent growth in imports and is the seventh largest container port in the U.S.

Houston is home to the largest petrochemical complex in the U.S., supplying significant products that drive the nation and its economy.

“Houston is one of the most profitable trades. The route is a profit leader for ocean carriers,” said Bill Ralph, president of R.K. Johns and Associates, who was a member of the panel.

Port Houston Senior Director of Trade Development John Moseley served as moderator for a global shipping panel, where

Port Houston was the presenting sponsor for the event, which was held at the Pasadena Convention Center.

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PORT HOUSTON RECEIVES ECONOMIC IMPACT AWARD FROM THE INDOAMERICAN CHAMBER OF COMMERCE OF GREATER HOUSTON Port Houston received the Economic Impact Award from the Indo-American Chamber of Commerce of Greater Houston at the chamber’s annual gala Sept. 30.

Port Chairman Janiece Longoria accepted the honor on behalf of the organization. As one of the world’s busiest ports, the business activity in the greater Port of Houston generates more than one million jobs throughout Texas and $265 billion in statewide economic impact.

CLEAN & GREEN CELEBRATES

10 Years!

BUFFALO BAYOU: 10 YEARS CLEAN AND GREEN Working with Shell Oil Company and the Buffalo Bayou Partnership, Port Houston helped create the Buffalo Bayou “Clean and Green” Program in 2007. Earlier this year, the partnership celebrated the 10th anniversary of the program. Port Houston is proud of its success, which was spearheaded in large part by the efforts of former Port Commissioner Elyse Lanier.

The year-round “Clean and Green” program was designed to eliminate trash from Houston’s historic Buffalo Bayou, including where it meets the Port of Houston, one of the world’s most dynamic seaports. Trash in Buffalo Bayou is a recurring issue due to the city’s unique storm water drainage system and the waterway current. This environmental beautification project uses supervised community service workers to help clear the banks and surface of litter and trash.

“The port long has been a significant economic driver for our region and our state and we are working hard to make sure that continues,” Chairman Longoria said.

Port Houston provides a strategic gateway for cargo and has been instrumental in the city of Houston’s development as a center of international trade. It is home to a sprawling petrochemical complex, which is the largest in the nation and the second largest in the world.

Over the last decade, the partnership’s field crew and community service workers have collected over 20,000 cubic yards of trash and debris, a milestone of environmental stewardship. This figure equates to more than 800 garbage truckloads of trash – enough trash to fill a football field more than 12 feet high.

The project has also been made possible by the cooperation of other public agency partners, including the Harris County Flood Control District, Harris County Constable Precinct 6, and the Greater East End Management District.

PORT EMPLOYEES VOLUNTEER AT OYSTER REEF RESTORATION PROJECT

Team members took turns bagging, carrying and stacking over 350 bags of recycled oyster shells along the designated oyster bar. Overall, Port Houston volunteers bagged and transported over five tons of oyster shells and created an impressive 50 feet of new oyster reef bars!

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The chamber focuses on local jobs by encouraging exports to India, and on bilateral trading opportunities.

The program start was celebrated Sept. 4, 2007, in a packedhouse ceremony at Port Houston’s Sam Houston Boat Tour Pavilion at the Turning Basin.

Port Houston’s team joined Galveston Bay Foundation volunteers July 22 for this year’s Oyster Reef Restoration Project.

Port Houston enjoyed a large turnout, as 34 volunteers showed up at the Sweetwater Bay Preserve in Galveston, ready to work.

MANIFEST

The Indo-American Chamber of Commerce of Greater Houston was established in 1999 to address an increasing need to educate local businesses and the Indo-American community at large about doing business with India.

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.

Projects like these are especially important because oyster habitats are vital to the health of Galveston Bay, effectively filtering nutrients, fine sediments and toxins from the water column. A single oyster can filter up to 50 gallons of water a day.

Oysters are also a valuable indicator species, meaning that their presence in the water can be used to gather information on the overall health of our waterways.

“We always appreciate the chance to partner with Galveston Bay Foundation,” said Garret Berg, assistant community relations manager for Port Houston. “Our team accomplished a lot and we really enjoyed working on a project that directly focuses on environmental stewardship.”

Port Houston also worked with the Foundation at the Texas General Land Office’s Adopt-A-Beach Program at Morgan’s Point in September of this year.

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MORE STATE-OF-THE-ART

CRANES FOR PORT HOUSTON

THREE NEW SUPER POST-PANAMAX CRANES JUST DELIVERED TO BARBOURS CUT TERMINAL A trio of massive new ship-to-shore cranes for Port Houston’s Barbours Cut Container Terminal that departed China July 23 aboard a specialized heavy load carrier arrived at the port Oct. 23.

Top Port Houston executives and others were among those under bright blue skies in Morgan’s Point to witness the arrival of the M/V ZHEN HUA 13, which carried the towering state-of-the-art cranes. The booms on the cranes were raised after the vessel entered the Houston Ship Channel. Storms that blew through the region a day earlier delayed the delivery, but also ushered in picture-perfect weather.

The new cranes, which stand 270 feet high, will replace three older ones at Barbours Cut. The new cranes are just one part of a $700 million modernization program under way at Barbours Cut to increase cargo-handling efficiency and capacity.

plastic resins tied to plant expansions that are underway along the Houston Ship Channel. An estimated $50 billion in plant expansions have been undertaken since 2012. Resins and plastics already are the top export at Port Houston.

Increasingly larger container ships calling the port require faster and larger cranes for the most efficient cargo handling.

“This is another big step in our investment ijn infrastructure to handle the increased volume and larger vessels that continue to call at our terminals,” Guenther noted during the October Port Commission meeting. That meeting was held Oct. 23, just before the cranes were delivered to Barbours Cut.

BIGGER CRANES, MORE EXPECTED TEUS In addition to new cranes, other improvements --including wharf and container yard reconfiguration measures -- are expected to increase terminal capacity. A total of 14 ship-to-shore wharf cranes and 44 rubber-tired gantry cranes (RTGs) are currently operating at Barbours Cut. The terminal now has seven super postPanamax cranes.

The current operating cranes being put out of service for the new ones have been operational since 1978 and 1981. The newest cranes are expected to be operational during the first quarter of 2018.

The $33.5 million purchase of Port Houston’s newest super postPanamax cranes was approved by the Port Commission in 2015.

The new cranes won’t be used immediately; they will require two to three months of preparation, which will include some training for personnel. The advanced equipment will boost the process of loading and unloading vessels.

The cranes were constructed in Shanghai by ZMPC, an experienced equipment manufacturing company that specializes in large-scale container machinery and bulk cargo handling products.

CONTAINERS ARE US Barbours Cut, the first container terminal to serve the Gulf Coast, is celebrating its fortieth year of operations this year. The construction of the terminal was considered somewhat risky before it opened in 1977, but it has helped catapult Port Houston to become the leading business container terminal in the U.S. Gulf of Mexico.

A RISING TIDE FOR EXPORTS AND IMPORTS “Considerable improvements are being made by Port Houston as we strategically prepare for expected growth,” Port Houston Executive Director Roger Guenther said about the increased investments in port facilities. “These cranes are a good example of how we continue to focus on our infrastructure.”

It is anticipated that the U.S. Gulf of Mexico region will see steady growth in coming years due to increased production and export of

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Port Houston also owns and operates the Bayport Container Terminal. Port Houston’s container facilities together are responsible for nearly 70 percent of all of the container cargo business along the Gulf Coast, and 95 percent of the container activity in Texas. In addition to the Barbours Cut cranes, more new ship-to-shore cranes for the Bayport terminal, which opened in 2007 and is being built out in phases, are under construction and expected to be delivered in early 2018.

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Wind Energy Cargo is

BOON TO BREAKBULK INDUSTRY

Texas is the leading state in the nation for wind energy, and many of the materials needed to supply that industry are coming across Port Houston’s docks.

From wind blades to nacelles, the large breakbulk cargo

Small electric wind turbines were used in rural areas in

has become a familiar sight on the docks in recent years.

the United States as early as the 1920s, according to the

The equipment moves out of the port by both truck and

foundation, and prototypes for larger machines were built

train, often being shipped to wind farms in Texas and

in the 1940s. But things have changed since then, and

beyond. Texas alone has more than 40 wind farms.

wind is coming on stronger than ever.

So while the Port of Houston historically has been a critical

TEXAS LEADS NATION

fixture of the energy industry – primarily because of fossil

Today, Texas easily leads the nation in wind energy,

fuels -- its role is expanding as the number of wind energy

producing more than the next three states combined.

producers have expanded.

Iowa is second, Oklahoma is third, California is fourth and Kansas is fifth.

The amount of wind energy components moving across Port Houston’s docks is up about 95 percent through

More than 22,000 people in Texas work in the wind energy

August of 2017 compared to the same time period a year

industry, which continues to grow. The Bureau of Labor

ago, records indicate. Port Houston handled 56,677 tons

Statistics projects that the fastest-growing occupation

through August, compared to just more than 29,000 tons

between 2014 and 2024 will be wind turbine technicians.

through August of 2016.

Wind turbines have become a regular part of the landscape in some parts of West Texas.

Much of the wind power equipment is coming from China, although the manufacture of wind energy equipment in the

Texas was among the first states to pass a renewable portfolio standard,

United States has been increasing, as well.

which is a regulation requiring increased production of energy from renewable sources.

From a historical standpoint, the use of wind for power in the United States was between 1870 and 1930, when thousands of farmers across the country used wind to pump water, according to the Wind Energy Foundation.

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The growth in the industry in Texas is highlighted by its

The growth of the industry has been a boon for some

record-setting power generation. Consider this: on a single

ranchers in the state, providing extra income that has

night in February of 2016, Texas winds supplied more than

helped them maintain their land.

45 percent of the Texas power grid’s needs, according to records of the Electric Reliability Council of Texas (ERCOT).

OTHER BREAKBULK CARGO

Incidentally, Texas is the only state in the United States with

Some other breakbulk cargo such as steel has shown gains

its own power grid.

in 2017, according to the most recent statistics. Records through August shows that steel is up by 42 percent, an

The largest wind farm in Texas is the Roscoe Wind Farm.

increase of 677 tons compared to the same period in 2016.

About 200 miles west of Fort Worth Roscoe sports a total

The amount of steel being handled this year continues to

of 634 wind turbines and has a wind energy capacity of

ebb and flow. Steel is one of the port’s strategic imported

781.5 megawatts.

commodities, particularly because Houston has so much

10% WIND AND SOLAR ENERGY COMBINED

ACCOUNTED FOR 10 PERCENT OF U.S.

ELECTRICITY GENERATION IN MARCH OF 2017

oil and gas activity. Steel also is a major component used

RENEWABLES HIT RECORD

in construction and for the manufacturing of automobiles

Wind and solar energy combined accounted for 10 percent

and machinery.

of U.S. electricity generation in March of 2017, which is the highest ever recorded, according to the U.S Energy

A variety of improvements were made at Port Houston’s

Information Administration.

general purpose facilities in 2016 and the first half of 2017.

A total of 41 multipurpose wharves handle steel and other

“Based on annual data for 2016, Texas accounted for

breakbulk cargo.

the largest total amount of wind and solar electricity generation,” the EIA said in a report. “Nearly all of this generation was from wind, as Texas generates more wind energy than any other state.”

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However, there was some blockage of the Houston Ship Channel, with

channel costs the U.S. economy as much as $281 million dollars per year.

silting after the storm at the container terminals and other areas and

Chairman Longoria has noted that the impact of Hurricane Harvey highlights the importance of the channel as a critical component of the national economy.

an obstruction in the channel at the Turning Basin Terminal where a dry dock sank. Initial attempts to salvage that structure were unsuccessful, and it ultimately had to be lifted using chains.

Port Commission Chairman Janiece Longoria announced that Port

CHANNEL SILTING A BIG FOCUS

Port Houston Up and Running Quickly after the Storm Despite the havoc wreaked by Hurricane Harvey, Port Houston resumed business mere days after the massive storm hit the Texas Gulf Coast. Port Houston’s terminals did not flood and there was no damage to cranes or other infrastructure.

Houston would reopen its terminals for business Friday, Sept. 1,

HARDEN THIS ASSET

after having been closed for several days after the storm hit. She

“We must also look at improvements to this waterway that make it

said that although vessel movements remained restricted because of

more resilient and reduce the impacts of future weather events,” she

swift current in the channel from continued significant inflows, it was

stressed. “We believe that rather than just returning the channel to its

important to resume landside receipt and delivery of containers at our

pre-storm depth and width, we must enhance its efficiency and we

terminals in advance of commencement of vessel operations.

must build in resiliency to make it better for ever-growing demand.”

BIG LABOR DEFINED LABOR DAY

The Chairman stated also that part of the channel’s recovery is to

Vessel operations resumed later in the day. After opening, the container

“harden this asset to make it better for the future,” which may include a

terminals operated throughout the Labor Day weekend. Members of the

channel that is deepened and widened.

International Longshoreman’s Association (ILA) worked on Labor Day, which traditionally is a day off for them.

EMPLOYEE PROGRAMS ENACTED After the storm, the Port Commission authorized Guenther to establish

Both Chairman Longoria and Executive Director Roger Guenther hailed

programs designed to assist employees who had experienced damage

the recovery work done by numerous employees and stakeholders like

or loss of their property. Two programs were put in place. An employee

the ILA and others during and after the massive storm.

assistance loan program provides short-term, interest-free loans to employees who were impacted. The goal of the loan is to “bridge

For example, Port Houston telecommunications experts Juan Sanchez

the gap” between the disaster event and when the employee is able

and Tom Sauls came in early for their shift Aug. 25 to relieve the

to secure longer term recovery resources. The amount of the loan

outgoing shift so they could try to beat the weather.

requested can be between $500 and $2,500. Additionally, an employee catastrophic assistance fund program was put in place to provide

“Saturday morning, we started hearing from employees that were

assistance to employees who have experienced loss of, or damage to,

flooded in or unable to come in,” said Robert Unverzagt, emergency

all or a significant portion of his or her real estate or personal property.

management telecommunications supervisor.“ Juan and Tom were

This program is funded by employee donations of leave time hours.

forced to stay on duty for the remaining duration of the storm due to

Maximum benefits available under this program (up to a maximum

impassable roads and port closure.”

of $5,000 per qualified employee) are subject to an individual needs assessment and funding availability.

During this time, Sanchez received word that his apartment had flooded. He lost everything in his apartment and yet he continued to

In announcing the opening of Port Houston after the storm, Chairman

work diligently to keep the port and first responders safe, Unverzagt

Longoria expressed her appreciation for the “extraordinary efforts and

added.

steady leadership” of County Judge Ed Emmett of Harris County, Houston Mayor Sylvester Turner and other county and city officials in addressing

SILTING AND SHOALING AND SHIFTING SANDS

the impact from Hurricane Harvey. She also lauded Port Houston staff,

Port leaders have has stressed that maintaining the Houston Ship

maritime industry members and port community members for their

Channel’s depth is critical to commerce. A study conducted by the Texas

extraordinary volunteerism.

Transportation Institute determined that a loss of one foot of depth in the

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Improving energy efficiency and building for the future Port Houston is expanding a new energy efficiency program to save money on energy expenses. Initially limited to the Executive Building, the program will be extended to other Port Houston facilities and terminals.

From lighting and air conditioning to electrical cargo handling equipment, the port will save a significant amount of money by using products that are eco-friendly and use less power and omit a certain amount of emissions.

For example, it is now a port-wide mission to use only LED light bulbs. “The port is one of Houston’s highest energydriven businesses and currently 30 percent of the electricity demand is from lighting at the port’s facilities,” said Adithya Dahagama, who manages energy and sustainability programs at Port Houston.

The initiative that is focused on air conditioning is expected to reap considerable dividends over time.

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P T

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“With this new energy efficiency plan, the port now has a cost savings of up to $56,000 a year in air conditioning at the Executive Office Building,” said Central Maintenance Electrical Foreman Eric Dickinson. “We will have the capability to control 100-ton-sized A/C units and monitor our air conditioning zone cycles.”

: THE SMAR

Today, the port’s Executive Building has all LED lighting because 3,585 T8’ bulbs were replaced starting in 2012, including bulbs at the parking lot and many of the wharves at the Turning Basin Terminal. Port Houston’s environmental affairs and maintenance departments have recently conducted an inventory of the lights to be replaced with LEDs across warehouses and wharves at the port’s other major terminals. Currently, the maintenance department is testing operational compatibility of LED options at Bayport to convert the container terminals through this program.

“Incandescent light bulbs would burn out frequently, and the newer LED bulbs have a longer life. In addition to reducing energy costs, replacing the incandescent bulbs helps the port ensure safe lighting conditions at the terminals,” added Dahagama.

The Sam Houston Pavilion and tour boat have LED lighting equipment as well. LEDs put off less heat, and therefore the demand on and use of the air conditioning cooling systems is lessened.

The port will reduce electricity demand by saving up to a million kilowatt hours every year with the new building management system it is planning, which will be an 18-month process of renovations. The building automation system is a set encompassing system that can control everything related to building energy load in one place.

Other steps are being taken, as well. The port is working with Centerpoint Energy, who provides incentives to improve energy efficiency of businesses and institutions. The port is eligible for up to a million dollars in energy efficiency incentives, which makes it a smart investment to participate in Centerpoint’s program.

“Our goal with this energy project is to reduce our asset and facility operational costs, including building maintenance expenses, and we’ve seen the results by mitigating future environmental impacts. When you reduce electrical consumption, you reduce air emissions at the electricity plant site,” said Ryan Dixon, lead environmental compliance coordinator for Port Houston.

“Smart buildings also allow you to manage your use of power. This not only benefits our people, but it showcases our ongoing stewardship within our organization and its operations. Sustaining business for the long term, delivering cost and service advantages through innovation and efficiency and operating safely and securely are all Port Houston goals that we strive to meet as an entity,” added Dixon.

The building automation project falls in line with the port’s modernization and improvement efforts as well as its environmental leadership strategy, which is a successful merging of economics and environmentally benign practices. These smart environmental initiatives will benefit the future of the port in years to come.

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NEW EXPANDED TRUCK GATE HOURS AT BAYPORT Expanded gate hours were put in place at Port Houston’s Bayport

As an operating port, Houston is also proactively expanding hours

Container Terminal Oct. 2 to help meet increased customer demand.

of operation in response to forecasts that call for additional record growth in coming years, particularly as new petrochemical facilities

Bayport hours of operation will expand to 7 a.m. to 11 p.m., with

along the Houston Ship Channel come on line and produce more

the in-gate closing at 10 p.m. to allow truck drivers to be served by

plastic resins.

closing time.

The Bayport Container Terminal currently averages 5,000 truck Port Houston is one of the few U.S. ports to make this kind of gate

transactions per day.

hour accommodation, noted Jeff Davis, chief port operations officer for Port Houston.

Along with the upcoming gate hours, Port Houston is in the process of updating its Gate Operating System for Bayport and Barbours Cut terminals.

“This will provide even more improved customer service for Port Houston. It’s a good thing for our day-to-day operations,” said Davis.

“We are switching over to a new, quicker and more efficient gate system to be able to speed up the time and accuracy of gate transactions.

The port is currently working on phasing the gate extensions at

This will assist with the expected increase in volumes coming our

Barbours Cut Terminal at a later date.

way and also benefit our customers with a quicker transaction time and increased customer service abilities,” said Candice Armenoff,

Port Houston container volume increased by 14 percent during the

customer service manager for container terminals at Port Houston.

first half of 2017, driven mainly by record loaded import growth of 26 percent. Port Houston led the top ten container ports in the U.S. in

Bayport is now 100 percent converted to the system and Barbours Cut

import growth during that same time.

will start converting to the program in October, noted Armenoff.

Record regional population growth, Houston’s low-cost environment

In addition to that equipment program, Port Houston will receive three

and strategic location have fueled expansion of Houston’s import

new ship-to-shore cranes at its Barbours Cut Container Terminal

distribution center cluster.

ready to handle super post-Panamax vessels in October.

“Houston is rising as a big-box market, thanks to strong population

Times are exciting at Port Houston and growth is at the forefront of the

growth and the expansion of e-commerce and consumer goods,” said

leading container port on the U.S. Gulf Coast.

Jeff Benghaus, executive vice president and industrial lead at JLL Houston. “This year, the market is set to deliver a record seven warehouse and distribution facilities of greater than 400,000 square feet,”

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24 NAVIGATOR FALL 2017

“This is not only a valuable benefit for our port, but the extended hours tie directly to our strategic plan that we adopted to grow and diversify the business base.”

Ricky Kunz Chief Commercial Officer for Port Houston

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FTZ

Port Houston’s Foreign Trade Zone Conference Draws Businesses

More than 100 attendees learned the benefits, costs, best practices and processes of operating business in a foreign trade zone at Port Houston’s FTZ conference August 24.

Foreign Trade Zones were originally designed as an economic development tool to promote capital investments and trade, as well as manage imports.

Port Houston manages Foreign Trade Zone #84, which includes many privately owned and port-owned sites located throughout the Houston region and Harris County, Texas. Currently, FTZ #84 contains 9 magnet sites, 26 general purpose zones and 13 traditional subzones. In 2016, more than $6 billion worth of cargo moved through zone #84 and a total of 13 new FTZ sites were added.

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26 NAVIGATOR FALL 2017

As the Houston region’s population continues to grow, FTZ #84 has seen a huge increase in authorizations as more large importers and exporters learn the financial perks to utilizing the program.

The official also highlighted that Houston’s economy is strong, with the city being recognized for a significant amount of undergraduate jobs. Nearly 420,000 people in the U.S. are employed with foreign trade zones.

The primary benefits typically come in the form of import duty and tariff savings. Some of the largest companies in the world use the program, including ExxonMobil, Intel, Dell, General Electric and BMW.

The main foreign products received in U.S. FTZs include vehicles, consumer products and electronics, oil, petroleum and electrical machinery.

State Senator Paul Bettencourt and attorney Sam Webb of the Cox Law Firm discussed the Texas economy and the impact of foreign trade zones.

“FTZs are essential policy to promote manufacturing and exports,” the senator said. “The FTZ program is the best weapon that you can manage as a business.”

“Harris County is one of the most diverse counties or regions in the U.S,” said Webb.

Texas is the top state for FTZ activity in regards to merchandise received and exports. A total value of $660 billion was received into active FTZs in 2015, noted an Ernest and Young Global Trade representative.

FTZs allow for distribution, storage, repackaging, testing and inspection, assembly, repair and manufacturing. No duty is paid if merchandise is exported directly from the zone. Public benefits of the program include expediting international commerce, encouraging export activity and creating employment opportunities.

“FTZs help encourage activity and value added at U.S. facilities,” said Camille Evans, senior analyst at the U.S. Foreign Trade Zones Board.

The event was held at the Hilton Houston Post Oak Hotel.

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SMALL BUSINESS IS BIG BUSINESS:

Port Houston’s Small Business Program

Celebrates 15 Years

economic

services occurring at the port. We are grateful to work with

development organizations, and public/private agency partners.

these organizations,” said Gilda Ramirez, senior director of small

efforts

with

area

chambers

of

commerce,

business and education outreach for Port Houston.

PARTNERSHIPS AND INVESTMENTS Service agreement partnerships have been implemented to

DRIVING BUSINESSES AHEAD

expand outreach opportunities and better serve community

“Our vision at the port is to move the world and drive regional

groups in the Houston area with nearly $400,000 invested

prosperity, and these groups help us do just that,” Ramirez added.

annually to support diverse organizations and agencies advocating for various communities.

More than 20 small business will contribute to the anniversary event, supplying floral decorations, catering and other various

With 15 years of steady development, Port Houston is

services needed to make the night a success.

partnering with Houston First for a tribute and celebration honoring the port’s small business program scheduled for

“Our small business team is one of the busiest outreach offices

early next year.

in Houston. They are in the field engaging with the community almost daily,” said Port Chairman Janiece Longoria at a recent

“The event provides an opportunity to recognize those small

public meeting.

businesses that have contributed to the many projects and As one of the nation’s busiest ports, the greater Port of Houston

Port Houston’s Small Business Development Program is

generates nearly $7 billion in business activity annually.

designed to help contractors make good faith efforts to include small business participation in a variety of contracts. The

2017 marks the program’s 15th year of actively supporting

program also provides networking, training and workshops for

the community’s workforce and Port Houston has reached

small businesses seeking business opportunities.

a new milestone: providing over half a billion dollars in awards and commitments to local small businesses.

EXPANDING THE WORKFORCE But that’s not all – Port Houston partners with several local

The program is race and gender neutral with an annual overall

agencies for the Interagency Mentor Protégé Program. These

35 percent small business participation goal applicable to certain

organizations include Houston ISD, the city of Houston,

eligible Port Houston formal contracts valued at over $50,000.

Houston Community College, Houston METRO and Houston

It makes people believe differently.

First Corporation.

HALF A BILLION STRONG Port Houston Commissioners approved and implemented the

The Interagency program provides many opportunities to small

Small Business Development Program in 2002 as an economic

businesses who are ready to grow and achieve success

development tool to aid small businesses in Harris County and

through connecting with these organizations, and exists to

the surrounding eight county areas.

strengthen effective working relationships and foster long-term stability between established companies and local agencies.

The intent of the program is to engage local small businesses and

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provide companies an opportunity to participate in Port Houston’s

Without a doubt, Houston’s small businesses are strong. Port

procurement process as well as provide information about other

Houston staff participated in over 300 events in 2016 reaching

small business activities happening around the region.

out to over 7,000 small businesses through joint collaboration

28 NAVIGATOR FALL 2017

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NAVIGATOR FALL 2017

| 29

BREAKBULK AMERICAS

2017 CONFERENCE

BRINGS LARGE CROWD TO HOUSTON Breakbulk Americas is the biggest show for project cargo and breakbulk transportation specialists in the Americas.

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Port Houston, the largest breakbulk and general cargo port complex in North America, hosted the 28th annual Breakbulk Americas 2017 conference in Houston for the sixth time. The event had an estimated economic impact of $3.6 million to the greater Houston region.

“We are thrilled to once again host this annual event, bringing thousands of top-tiered shippers together with breakbulk and general cargo service providers,” said Port Chairman Janiece Longoria, who provided a welcome video message at the event.

Industry presentations throughout the conference included a compliance micro-seminar, an oil and gas outlook, deep water market trends, cargo supermarket project implementation, cargo safety and efficiency, steel challenges and a shippers panel on the logistics supply chain.

Nearly 5,000 shippers, freight forwarders and industry representatives from around the world gathered at the annual trade show and exposition held Oct. 17-19 at the George R. Brown Convention Center in downtown Houston.

“We are continually working to diversify our overall cargo mix at our port, and that includes our breakbulk facilities. Breakbulk Americas has become a tradition for us here in Houston, and we are proud of that.”

Breakbulk Americas is the biggest show for project cargo and breakbulk transportation specialists in the Americas, with special events, workshops and one of the largest trade and maritime exhibition halls of its kind.

30 NAVIGATOR FALL 2017

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DID YOU KNOW? IMPORTS FROM CHINA DATE BACK TO EARLY DAYS OF PORT Imports from China are nothing new at Port Houston. One

such example involved the shipment of hundreds of bales of Grandchildren of first director of the port, B.C. Allin, at 2012 ceremony.

human hair from China nearly a century ago.

Allin, an engineer from Chicago, had relocated to Texas with

Allin was posthumously inducted into the Texas Transportation

That’s according to Benjamin Casey Allin III, the first director

the U.S. Army during World War I. Under his leadership after

Institute Hall of Fame in 2012 in a ceremony held at

of the port, who assumed his duties in 1919. In his book

he joined the port, the Houston Ship Channel expanded

Brady’s Landing on the Houston Ship Channel. All six of his

“Reaching for the Sea,” Allin wrote that the hair from China

significantly. He patented a cargo handling railway layout

grandchildren attended the ceremony.

was the only material strong enough yet fine enough to be

to shorten turnaround times and made numerous other

used in making filter cloths for the production of peanut

improvements that led to the port growing to become one of

The book by Allin, who subsequently worked at other

butter. That was before tough plastics such as nylon was

the largest ports in the country.

ports after serving for 12 years at the Port of Houston, was

perfected, and Allin noted the human hair could certainly be

published in 1956, four years before his death.

labeled as “odd” cargo.

“Thousands of Chinese must have sold the hair from their heads in order that American schoolchildren could be furnished with peanut butter,” Allin wrote. He called it “a trade secret that, if known to housewives and mothers, might have reduced the sale of this peanut product.”

THE KNOW-HOW YOU WANT At Empire, we’re proud of our people’s hands-on experience and capabilities in providing our

marine and industrial customers with cost effective solutions, best-in-class cargo handling practices and dependability. These, coupled with our extensive network of terminal facilities strategically situated on Canada’s East coast and US Gulf coast make Empire Stevedoring the smart choice when it comes to moving your precious cargo.

Let us channel our know-how to your advantage.

Empire Stevedoring (Houston) Inc. 7600 Avenue P Houston, TX 77012-1052, USA Tel: (713) 674-3768 Fax: (713) 674-3713 Fayyaz Khan, Vice-president empirehou@aol.com

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32 NAVIGATOR FALL 2017

www.empirestevedoring.com

HOUSTON TX NEW ORLEANS LA BATON ROUGE LA

MONTREAL QC ST-JOHN NB HALIFAX NS SHEET HARBOUR NS THUNDER BAY ON TORONTO ON QUEBEC QC

NAVIGATOR FALL 2017

| 33

SNAPPER JACK’S: THE CUSTOMER SERVICE CATERING COMPANY Local Houstonian Angelica Noyola has been in the

“Everything that there is related to food, we do,” remarked

restaurant business since she was 19. With experience in

Noyola, who noted that Snapper Jack’s Catering can

every staff position from waitress to director of operations,

additionally order and deliver products for vending machines.

she learned the business. She decided to open her own restaurant, Snapper Jack’s, in 2005.

In the beginning, the company had to learn how to submit and apply for procurement opportunities. “The port’s

It was time for her to take her years of experience to new

small business program helped us out tremendously. I’ve

heights. After two years of running her own restaurant, there

learned so much through the workshops and events.

SPOTLIGHT

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

ON SMALL BUSINESS

was demand from her customers to cater for outside events.

“We kept getting more and more requests for catering orders, and decided to close the restaurant to focus on that side of the industry; it became our specialty,” said Noyola. “Referrals are so valuable.”

Snapper Jack’s provides a variety of menu options – from deli style to Mexican to seafood and even custom orders.

“No matter the request – we want to provide the best satisfactory service with the meal. We are problem solvers.

Our job is to bring your dream into a reality. A meal or event

Other states outside of Texas do not provide these kinds of

is supposed to be about memories,” Noyola added.

opportunities. Education is key. There is always something that you need to learn,” Noyola said.

Located inside Loop 610, the business caters to various organizations such as nonprofits, corporate, government

Noyola is very involved in industry associations, and has

and education – in Houston, Kingwood, Katy and

participated in the Interagency Mentor Protégé Program, a

The Woodlands.

partnership with Port Houston, the City of Houston, Houston First Corporation, Houston METRO, Houston Community

Snapper Jack’s clients include the Houston Hispanic

College and Houston Independent School District.

Chamber of Commerce, Houston East End Chamber of Commerce, Chevron, the University of Houston and

You can check out their latest cuisines on their official

Houston Community College. They are even partnering to

social media accounts.

do more work soon at the George R. Brown Convention Center, one of the largest venues in the city.

But that’s not all – the company is unique in the fact that they are a triple threat when it comes to hospitality. They deliver the food, but also are equipped to support event setup and provide full catering services.

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34 NAVIGATOR FALL 2017

HOUSTON, TEXAS

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

MOBILE, ALABAMA

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

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

PO Box 2562 • Houston, Texas 77252-2562

Port Houston has been a part of the Houston community for over 100 years. We are responsible for over 1.2 million jobs and with our new super post-Panamax, ship-to-shore cranes we are poised and ready to accommodate the next generation of container vessels.

The new cranes are just a portion of the $700 million modernization project that further establishes Port Houston as the leading Gulf Coast port. Call or visit us online to learn more about Port Houston.

PortHouston.com • 713-670-2400

PRSRT STD US Postage PAID Houston, TX Permit #1395