THE PORT of HOUSTON Delivers the Goods

November/December 2007 THE PORT OF HOUSTON Delivers the Goods

COVER STORY COVER Goods in2007 the Delivered Houston Top of 12 Ways Port the 18

FEATURES 16 12 8 26 4 24 A bi-monthlypublication. One ifby Land. InfusionofIdeasEnergizes Economy Hot Keeps Houston’s $2 Trillion if by Sea. $250 millionforBayport Have SpokenThe Voters Efﬁcient newgatesystem andFour Three It’s Simple asOne,Two, Region CoffeeSymposium 3rd AnnualHoustonPort CompanyPHA inHaute

IN EVERY ISSUE EVERY IN 28 40 PHAnewshighlights 6 H.ThomasKornegay, P.E., P.P.M. Executive Director 4 34 30 38 Contents November/December 2007 November/December CommunityOutreach Spotlight on SmallBusiness Spotlight BusinessConnections Port: atthe Who Works Terminal Cruise Designed Bayport with community’s blessing Bayportdevelopmentcontinues Gilbreath Communications, Inc. Deer ParkChamberofCommerce The Manifest the A Message from Crews The Fireboat Smooth sailingahead Experience” Cruise the “Extend to

1 Port of Houston Authority | November/December 2007 2 Port of Houston Authority | November/December 2007 THE PORT OF HOUSTON OF PORT THE Janiece Longoria Janiece AUTHORITY Commissioner Commissioner Commissioner Kase L. Lawal L. Kase Steve Phelps Steve Commissioner Lanier Elyse Commissioner Burke A. Jimmy Commissioner Jr. Fonteno, W. James Chairman Edmonds T. James

Director ofPlanningandEnvironment Jimmy M.Jamison Director ofOperations Argentina M.James Director ofPublicAffairs James B.Jackson Director ofFacilities James O.Eldridge Director ofFinanceandAdministration Erik A.Eriksson General Counsel John P. Horan Director ofTrade Development Wade M.Battles Managing Director H. ThomasKornegay Executive Director Fax: 713-670-2429 Phone: 713-670-2400 Houston, TX77252-2562 P.O. Box2562 111 EastLoopNorth Authority Houston of Port Office Executive www.portofhouston.com Visit thePortofHoustononline interests intheUnitedStatesandforeign countries. and isdistributedfreetomaritime,industrial andtransportation Houston Authority, P.O. Box2562,Houston,Texas 77252-2562, The PortofHoustonMagazineispublished bythePortof by writingtothePortofHoustonMagazine. changes, extracopies,oradvertisingspeciﬁcationsmaybeobtained to thePortofHoustonAuthority. Additionalinformation,address oruseofanyoriginalmaterials,providedcreditisgiven reproduction This publicationisnotcopyrightedandpermissiongivenforthe Gilbreath Communications,Inc.,designandproduction. Kuhlman, photographer•EstherdeIpolyi,freelancewriter Henry, publicationsspecialist•David Bray, photographer • Chris manager •MaggiStewart,seniorpublicationsspecialistEdwin director ofpublicaffairs•LisaAshley-Whitlock,communications Port ofHoustonMagazine’s editorialstaff:ArgentinaJames, E-mail: [email protected] Fax: 1-281-754-4647 Tel: 58-212-976-8813 Caracas 1080,Venezuela Ave. Ppl.LomasdePradosdelEste Resd. PradoRoyalP.H. Arturo Gamez America South Fax: 631-244-3757 Phone: 631-244-3677 Bohemia, NY11716 1650 SycamoreAvenue, Suite23 Jack Wojewnik York New Offices Field Barbara J.Schott Harris CountyAuditor Gilda Ramirez Director ofSmallBusinessDevelopment Charlie Jenkins

email: [email protected] Houston Access(832)239-5076 Fax +55(11)3323-5916 Tel. +55(11)3323-5878 CEP: 04538-905Tel: 55(11)3323-5878 Sao Paulo,SPBrazil Av. BrigadeiroFariaLima,3729,5andar John C.Cuttino(BrazilRepresentative)

Easy access to rail and highway transportation systems makes the Port of Houston the preferred port of call to more than 7,000 ships each year. Located in the 4th largest city in the United States,more than 50 million people live within a 500-mile radius of the port, reaching an enormous population base of consumers and producers. State-of-the-art public facilities situated along the Houston Ship Channel (45-ft deep and 530-ft wide) provide shippers with deepwater access to world markets. Learn more about how the Port of Houston delivers the goods at www.portofhouston.com or 1-800-688-DOCK(3625).

1-800-688-DOCK\|| • www.portofhouston.com (3625) 4 Port of Houston Authority | November/December 2007 and cel A ebrate H. Thomas Kornegay, P.E., P.P.M. P.E., Kornegay, Thomas H. mental projects. environ underwrite and security Terminal,increase Cruise and Container Bayport the at construction continue to Authority Houston of Port the enables proposal bond the of support community’ssolid The measure. the favored voters County Harris of percent 65 almost stone: obligation mile exciting an was proposal bond general million $250 to celebrateandrejoice. reasons with it, began we as just 2007 ends Authority Houston of Port The MESSAGE FROM THE EXECUTIVE DIRECTOR EXECUTIVE THE FROM MESSAGE The success of the Port Authority’s rejoice

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Jim Edmonds, Port of Houston Authority chairman, reflected on the meaning of these election results for our area. The chairman pointed out that “these bond funds will go a long way to ensure we continue to provide a thriving, competitive port that delivers jobs and economic growth to our region.” We had many other reasons to celebrate this year as well. We began it with the successful opening of the first portion of the Bayport Container and Cruise Terminal. Later, we celebrated the 30th anniversary of the Barbours Cut Container Terminal. We were proud to host the 25th anniversary IAPH Conference in Houston, with more than 1,000 port executives rep- resenting six continents in attendance. Finally, we recognized the 50th anniversary of the container industry, which is particularly special for our area, since the world’s first container ship arrived here, at the Port of Houston. House Bill 3011, authorizing creation of the Houston Ship We have often said that as the port grows, so does Channel Security District — the nation’s first of its kind. our region. Houston has grown to become the nation’s U.S. Secretary of Labor Elaine Chao met with leaders of fourth-largest city and second-largest port, handling more the Port Authority, and industry and labor, to learn more foreign tonnage than any other U.S. port. about the Port of Houston’s successful labor relations and This year, we obtained conclusive findings from a best practices. As you know, during the 79th session of Martin and Associates study showing that in 2006 approx- the Texas Legislature, House Bill 2958 passed allowing imately 785,000 jobs in Texas were related to activity at Harris County, the city of Houston and other surround- the Port of Houston, and that these jobs generated more ing counties to form a Freight Rail District. This year, than $39 billion in personal income. Business related to U.S. Surface Transportation Board Chairman Charles D. the Port of Houston Authority alone accounted for more “Chip” Nottingham visited to see how Houston is han- than 390,000 jobs. dling freight rail and other transportation issues. How fitting that we began 2007 with the “Berth of Bayport,” and we end the year with a community-wide vote to continue to provide the Port of Houston Authority with the funding it needs to maintain its place as a thriving, competitive, world-class port. I began this piece by stating that we had many reasons to celebrate. And I conclude by noting that the celebrations, recognition and respect come as a direct result of years of hard work, due diligence, planning and good stewardship. I pledge that just as voters gave the Port of Houston Authority the gift of support, the PHA will return this The Port of Houston has an annual economic value gift packaged through continued good economic develop- of nearly $118 billion. It is a major economic engine for ment and growth, best practices and good stewardship. the Houston/Harris County region, Texas and the nation. The Port of Houston is a major economic engine for the The importance of the Port of Houston Authority to Houston/Harris County region, Texas and the nation ... our nation was reflected in the attention we received from the gift that continues to deliver the goods. public officials this year. Texas Governor Rick Perry signed Enjoy your holidays! ■ 6 Port of Houston Authority | November/December 2007 THE MANIFEST

PUBLIC AFFAIRS DIRECTOR ARGENTINA JAMES RECOGNIZED WITH TWO HONORS TWO WITH RECOGNIZED JAMES ARGENTINA DIRECTOR AFFAIRS PUBLIC HOMELAND SECURITY BEGINS TWIC ENROLLMENT AT PORT OF HOUSTON HOUSTON OF PORT AT ENROLLMENT TWIC BEGINS SECURITY HOMELAND PHA activities in community relations, government implementing and planning strategically for sible women whoinfluencetheHouston community. distinguished the of one as brings she attributes ing mitment and determination are some of the outstand Houston’s Top 25 Most Influential Women. Her com in internationaltradeandtransportation. women outstanding are who leaders try ognition is given to as many as 10 indus rec annual The in Award.Transportation Women Outstanding of Commerce’s Journal the receive to industry the in women of group elite an among was work in the transportation industry. for recognition national including Authority, recently received two honors, Houston of Port the at Division Affairs Public the of director James, Argentina dnicto Ceeta (WC porm in program (TWIC) Credential Identification Worker Transportation its in ports other 10 at ers (DHS) work and Security workers Houston of Port enrolling began Homeland of Department The As PHA director of public affairs, James is respon James was also named among Rolling Out Magazine news highlights t h g i l h g i h s w e n a h p any individual who has is meant to ensure that workers, other and ers truck longshoremen, includes which gram, Sept. 25,2008. by workers port U.S. all enrolling of goal the with November, h TI pro TWIC The James her ------be n h Tasotto Sft Association’s on information more www.tsa.gov, and Safety at site Web Transportation the on able size andcontractorresources. variety of factors, including risk, geographic location, status andterroristwatchlistscreening. immigrant background, criminal include will gram pro TWIC The threat. security a not is and check thorough a received has vessels unescorted access to secure areas of port facilities and Maritime Security Homeport site, homeport.uscg.mil, by clicking on the Guard’s Coast U.S. the at available is security port Texas ExecutiveWomen. and Boys League Urban Area Harbor,Houston Girls and Committee, Executive Bureau Visitors and Convention Houston Greater Lyceum, Texas the and System Healthcare Hermann Memorial the of boards the on Alliance, Arts Houston the of presi dent as serves also She as years. eight served for president she where Theatre, the Ensemble for Directors historic of Board the of chairwoman as More information on the TWIC program is avail is program TWIC the on information More a on based is ports for enrollment of order The akrud ad nlds stint a includes and background, ment media partners. local, international and with national regional, messages key several communicated which Goods,” the Delivers Port “The campaign, multi media its launched authority port the leadership, her Under relations. relations, media marketing and media Her civic and community involve community and civic Her link. eet a ih n extensive and rich a reflects

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DEER PARK CHAMBER NAMES PHA INDUSTRY OF THE YEAR

The Deer Park Chamber of Commerce has named the Port of Houston Authority its 2007 Industry of the Year. PHA Chairman James T. Edmonds headed a contingent of PHA representatives at the November 15 event held at the Jimmy Burke Activity Center. “My fellow port commissioner, Jimmy Burke, often reminds me that Deer Park is a unique community in that it is part small town and part industrial giant,” said Edmonds, in acceptance of the honor. “When it comes to the Port of Houston, Deer The Deer Park Chamber of Commerce is com- Park is a strong partner in the port’s past, present and prised of 600 members networking to promote busi- future,” Edmonds said. ness commerce and industry in Deer Park.

GULF GUARDIAN AWARD PRESENTED TO PHA’S BUG

The PHA’s Beneficial Uses Group (BUG) tied for states. PHA received the award at a Nov. 14 ceremony third place partnership in the 2007 Gulf Guardian at the 2007 Clean Gulf Conference in Tampa, Fla. awards, sponsored by the Gulf of Mexico Program. The BUG is one of several subcommittees formed Sharing the honor is the Charlotte Harbor Estuaries by the U.S. Army Corps of Engineers’ Interagency Volunteer Water Quality Monitoring Project. Coordination Team to address environmental issues associated with the Houston-Galveston Navigation Channel’s expansion project. Created in 1990, the BUG is an unprecedented coalition of eight federal and state government agencies. Its specific goal is to identify environmentally and economically responsible ways to utilize the material dredged from the Houston Ship Channel expansion project with open water disposal no longer permitted in the Galveston Bay. The Gulf of Mexico Program was formed in 1988 through the Environmental Protection Agency as a Sponsored by the partnership of the Gulf of non-regulatory, inclusive partnership to provide a Mexico Program, the Gulf Guardian awards recognize broad geographic focus on the major environmental environmental stewardship in the five Gulf Coast issues in the Gulf.

THE MANIFEST spotlights news briefs exclusively from PHA, its customers, trading partners, and community stakeholders. Submit information in the form of a letter or press release via e-mail to [email protected] or via fax 713-670-2425. The Port of Houston Magazine does not guarantee publication and reserves the right to edit submissions for content and style. Houston’s Keeps PHAinHauteCompany 8 Port of Houston Authority | November/December 2007 more attractive toforeigntraders. demand for imported retail goods and the dollar’s devaluation makes domestic exports drive to continue increases income and population Houston as products finished for T Not even a soft U.S. dollar in the global market has dampened local enthusiasm local dampened has market global the in dollar U.S. soft a even Not energy sectors. and construction retail, Houston’s with associated dynamics of variety the are products projected to be the top five big ticket items for 2007, reflecting Containers, steel, petcoke, industrial chemicals and miscellaneous bulk miscellaneous and chemicals industrial petcoke, steel, Containers, he diversity of Houston’s turbo-charged economy is fueling the Port of Port the fueling is economy turbo-charged Houston’s of diversity he oso Atoiys efrac a i peae t pt h was on wraps the another banneroperatingyear. put to prepares it as performance Authority’s Houston

Hot Hot 2007

Economy

“The Port of Houston Authority’s proactive approach On the export side, the top five regions for container to the marketplace continues to serve Houston well,” says cargo are Western Europe (27%), South America (18%), containersPHA Executive Director Tom Kornegay. “The wide range Africa-Middle East (16%), Northeast Asia (14%) and the of services we provide at our container and traditional Mediterranean (9%). cargo terminals, coupled with the premium we place on PHA’s import/export container ledger is both balanced customer service have enabled us to keep pace with this and growing. Through the first nine months of 2007, region’s incredibly strong economic cycle.” exports were up 13% and imports up 9% over prior year, Here is a look at the top five indicators showing with total goods up 11%. why PHA ranks among the world’s leaders in handling “Containers are a big driver for us,” says PHA Marketing marine cargo: Manager Brian Reeves. “The big thing about our container market is two- fold,” Reeves continues. “On the one hand, we are a very strong import market. Even though devaluation of the dollar has caused some prices to increase somewhat, the increase in population of the Houston area is served by containers we bring in and the nature of those goods — finished consumer goods and necessities. Given that Houston’s economy is strong, our import container traffic is increasing. “On the other side of the equation is the fact that devaluation of the dollar makes our exports significantly more attractive,” Reeves says. “Our exports are up dramati- cally. We are shipping more of the raw components to China which, in turn, turns them into finished goods for us.”

Container Cargo Continues to Grow Despite recent slowdowns at other large container ports around the country, PHA is expected to reinforce its position as the U.S. Gulf Coast’s dominant container cargo facility. With Bayport Container Terminal — which began operation in February 2007 — averaging 20,000 twenty- foot equivalent units (TEUs) per month, PHA is trending toward its sixth consecutive year of record container throughput. PHA moved a record 1.6 million TEUs last year and is projected to move about 1.7 million TEUs in 2007, Steel Still Going Strong marking the sixth consecutive year of container volume PHA is positioned to record the third-largest year of steel growth. PHA has averaged 11.53 percent growth in volume in its 80-year history. Projections are that the port annual container volume over the past 37 years, despite authority will handle 4.9 million tons this year, after post- November/December 2007 | showing volume declines in nine of those years. ing its highest throughput in 25 years — 5.6 million tons Western Europe (27%), Northeast Asia (21%) and — in 2006. South America (17%) are the top three regions for The numbers reflect Houston’s aggressive expansion of import cargo, with Africa-Middle East (13%) and Central its infrastructure and the energy industry’s enthusiasm for America (9%) rounding out the top five import regions. more oil exploration, Reeves says. Port of Houston Authority 2007 steel 9 10 Port of Houston Authority | November/December 2007 chemistry as r: eio Vnzea Sui rba Algeria Arabia, Saudi and Nigeria. Venuzuela, Mexico, are: cals we extractcomponentsand shipthemtomarket.” Werefine, exports. is — imports of level the times three almost — it of majority vast The product. that move to opportunity huge a have we and yard back own our in the created products the of in one is chemical Industrial world. complexes petrochemical largest the of one to phoric saltsandhalogenichydrocarbons. phos hydrocarbons, acrylic compounds, sulfur phenols, alcohol, — chemicals organic including chemicals, trial the 9,048,026tonsmovedin2006. than less half-percent a about — 2007 for forecast is tons million nine of total A year. this throughput chemical industrial in decrease slight a for call projections PHA The Right will bestrong.” steel rate, robust a at growing are economy our of ments interested in drilling new wells. As long as those two seg are companies energy the and high are now.Prices right strong very is Energy world. the of capital energy the still is “Houston Reeves. adds Texas,” of state entire the for and we’rebuildingnewbuildingsroads. growing; still is infrastructure its growing; is “Houston PHA’s top five trading partners for industrial chemi industrial for partners trading five PHA’stop “We’reReeves. says are,” we where at look “Just home indus in showing strong a for ripe is region the Still, steel for points entry primary the of one still “We’re says. Reeves Houston,” for strong very still is “Steel “Chemistry” - - - -

Dreyfus canconcentrate onmaximizinggrain.” petcoke, optimize can Morgan Kinder like Just world. the in traders commodity largest the of one is Dreyfus Louis says. Reeves marketplace,” the in opportunities mizing maxi on focused very is who Dreyfus, Louis by operated serving it—althoughwewereverywell. They’re actually making the market while we were simply business. energy the in are they because could we than out to Kinder Morgan, they were able to focus on it better ment strong. seg that keeps marketplace energy the in creativity That waste byproduct, it is being sold as a beneficial byproduct. a as it having than Rather stoking. for perfect that’s uct prod slow-burning a It’s disposable. was it time, one At the refining process that is a potentially disposable product. to pushthrough3.5millionin2007. authority port the for are projections year, last materials was than more tons moved in2006. million 1.3 nearly — petcoke of increases expectedinbothfor2007. are There petcoke. and bulk miscellaneous of areas tive respec the in corner the turn authority port the helped they handle — Louis Dreyfus and Kinder Morgan — have product of fields the in specialize who Twotenants PHA “ “ the We Service ; the Market” the “We have a dedicated grain facility and that facility is facility that and facility grain dedicated a “Wehave “When we leased our (Bulk Materials Handling Plant) of byproduct a is “It says. Reeves huge,” is “Petcoke bulk miscellaneous of tons 3,427,565 moving After tons million 4.5 handle to PHA the for call Forecasts market Market they Makethey ■ - - - -

market Infusion ofIdeasEnergizes 12 Port of Houston Authority | November/December 2007 Region CoffeeSymposiumheldinNovemberattheHilton-AmericasHoustonHotel. Port Houston Annual 3rd the at king was coffee trends, latest the about speakers try indus- coffee international by presentations and java brewing of aroma rich the Amid and acommitment toagriculturalsustainability. the as measures security of impact the topics business, coffee changing such on focused speakers place, friendly U.S. Rep. GeneGreen fee entrepreneursaswellseasonedindustryleaders.” feature, Coffee Business: 101 workshops for emerg new a introduced we year, this “And Burke. said chain,” supply coffee the througout opportunities growth of tage annual symposiumsinceitsinceptionin2005. Brauner president, International Corporation. Brauner, Matt and Tea; & Coffee Lee Sara procurement, commodity of director Gary Stopka, Association; Coffee National president, Nelson, Robert Brazil; Jamaica, Suplicy Hafers, Marcos Luiz by presentations featured Region” Port Houston Economic Stimulus in “The symposium encouraged individuals to take to individuals encouraged symposium “The the chaired has Burke Jimmy Commissioner PHA Creating Jobs: & “Java we, Fazenda owner, Coffee Symposium Coffee 3rd Annual Houston Port Region Port Houston Annual 3rd as agreencoffeeport. NYBOT by designation Houston’s for way the County,clearing Harris in stored coffee on tax valorem ad the removed that Gallegos, Mario Sen. State by authored legislation, the cere-of review brief a gave and mony opening the at present was the iig oso a a business- a as Houston Citing U.S. Representative Gene Green Burke Hafers advan- ing cof- Nelson Coffee Association (NCA), said 180 million Americans said — including (NCA), Association Coffee larity, Robert Nelson, of the National has moved fromhavingtoknowing.” Power successful. highly and have strong ideas, are highly trained “They said. he more, even industry coffeegivessatisfaction,”heexplained. satisfying. “Good from making a product that is a habit to making one those farmers,butwonderfulforthecountry.” for bad is which jobs, better people got Competition ers. the because changing is Brazil in business coffee the said Illustrating coffee’sIllustrating growing the change will growers coffee of generation new A At the same time, he said the coffee business must Luiz Hafers, a ﬁ fth generation coffee producer in Brazil, Stopka

Brauner the small and medium-sized farm- of many out squeezed anization hearts, minds and hands as mech- lost industry coffee the “But said. he coffee,” in country important agriculture as has changed. well as country Heimsath “Brazil continues to be the most popu- Singleton

Faubert Faubert that is move

Bueno “ “ to The key oursuccessisfor participants to accounting andlogistics.” changes inquality, trading, administration, includes supply that chain, coffee Along the way changebe willingto the dobusiness. they Type IIDiabetes, livercancerandParkinson’s. of risk reduced a to coffee linking research touts NCA The consumption. to microbarriers these counteract to benefihealth the promoting in way delivers coffee that ts from benefithe leading is association The t promotion. and could education and implications health negative perceived the about concerns have people showed that effectively andfairly,” hesaid. containers, forexample,causesdelaysateverypoint. balance between security and effi ciency. The screening of a be must there said Nelson citizens, protect to 9/11 after soft drinks.” of that surpassed coffee of consumption that 1989 since fithe was time year rst this “And said. daily,”Nelson fee 2.8 billionpoundsofcoffeeayear. imports U.S. the and coffee, drink Texans— million 13 The NCA conducted a survey on coffee consumption coffee on survey a conducted NCA The cost operate must but safety compromise cannot “We place in put regulations Security Homeland Noting cof- drink adults American of percent “Fifty-seven a i de bsns b big omte t dig the doing right thing. to committed being by business does it way the changed has Lee Sara ways positive the about talked He environment. business-friendly its for Houston cited in coffee,”hesaid. “We will continue to count Houston as a formidable force attitude. pro-business a and location great a with coffee TerrorismC-TPATor Against participating all which in program, Partnership Trade and Customs voluntary the administration, trading,accountingandlogistics.” quality,in changes includes that chain, supply coffee the “Along said. he business,” do they way the change to ing produc- double can tion inputs. coffee, quality higher of production the ensure to methods farmers the teaches which places as Peru, Uganda, Vietnam such and Brazil. certifiCertifi in become ed cation, farmers small helping is pany and effi agriculturalrawmaterials.” cientwaytoproduce n i kyoe ucen drs, ay tpa also Stopka Gary address, luncheon keynote his In for port U.S. leading the as Houston praised Nelson In his talk on supply chain security, Matt Brauner noted will- be to participants for is success our to key “The com- sustainability,the to commitment its of part As sustainable coffee and use sus- purchase to commitment a stewards of the earth, we have “As said. other,”Stopka each and community our stock- holders, our consumers, our customers, our ourselves, to h poutv, competitive productive, the is which agriculture, tainable W hv a responsibility a have “We 13 Port of Houston Authority | November/December 2007 14 Port of Houston Authority | November/December 2007 “ annual ourthird An infusionofideasenergized cent screening,” per-100 for asked that one from different quite be would examination percent 100 for calls that bill a since tion the other twomethods. versus examination with associated cost and time both in losses critical are There inspection). for contents Matt Brauner economic development.” region’s hasinthis overall coffee role powerful symposium, the highlighted which “It’s important to understand these terms for legisla- for terms these understand to important “It’s he said.“It’s allaboutriskmanagement.” n cnanr ad eoig the removing and containers ing (open- examination and x-rays), (with scanning information), of use (through screening between phases oftheiroperations. acceptable security practices in all and Border Protection to establish are cooperating with U.S. Customs entities in the import supply chain He emphasized the differences the emphasized He ofe soito, n peiet Cdc Industries; Cadeco president, and Association, Coffee Houston Greater president, Bueno, Aldecoa de Carlos “Positioning Houston in the Global Coffee Market,” with on focused discussion panel A Co. & Faubert L.E. dent, Singleton, presi- Scott Faubert, Ed and Inc.; Strategies, Kadena president, Inc., Consulting, & Logistics ACM CEO, and president Heimsath, John with 101,” Business and theGreaterHoustonCoffeeAssociation. Region Port Houston Alliance Economic Authority,the has inthisregion’s economicdevelopment,”saidBurke. posium, which highlighted the powerful overall role coffee Hafers; andBrauner. West GulfMaritimeAssociation. the and Pilots Houston Houston, Storage Energy,Dupuy CenterPoint Bank, Amegy were: Group. sponsors Coffee Bronze-level Maximus and Inc., Industries, Cadeco h smoim lo etrd okhp o “Coffee on workshops featured also symposium The Silver-level sponsors included: Gulf Winds International, Houston of Port the by sponsored was symposium The sym- annual third our energized ideas of infusion “An ■

It’s Simple as One, Two, Three and Four

Davis describes the old Efﬁcient New Gate System system as “multiple entry/exit on the U.S. Gulf Coast’s hardest working container ter- stations fragmented across the facility.” The new four- minal, Barbours Cut, just got faster and more efﬁcient. stage gate is adjacent to the After exhaustive planning and 18 months of construc- terminal and serves the entire terminal. The old gates are tion, the Barbours Cut Container Terminal’s new gate now being torn down and the land is being reclaimed for system is up and running, and saving truckers time on other uses. each trip they make to the terminal. And in the transpor- The new gate system process is identical to the gate in tation business, time is money. place at the new Bayport Container Terminal. The only “We have built a four-stage gate system that is taking exception is the distance between Stages One and Two. an 18-minute process and shrinking it to just six minutes,” A truck enters Barbours Cut Stage One, and says Jeff Davis, Port of Houston Authority container through a system of cameras and intercoms, operations manager. That is quite a change for a facility much like the drive-through lane at a bank, that was state-of-the-art in 1978. the driver describes the moves he’s planning to November/December 2007 | 1 “The old system was very labor intensive and had very make. He could be dropping a container, picking one up, few bells and whistles or tools to expedite the trucker’s dropping off a chassis, picking one up or any combination trip through the gate process,” says Davis. “Now we’ve of these actions. put some technology into the gate that greatly expedites The terminal’s staff validates what the driver has a trucker’s trip.” told them by checking whether the export container is Port of Houston Authority 16 expected via the terminal’s booking system and if the characteristics of the container the truck is carrying matches the booking. If the trucker is picking up a unit, the staff validates that it is available and released to be picked up. If the information matches up, the ticket is printed out and the truck is sent on to Stage Two, which is about a mile away. At Stage Two, the trucker puts the ticket into a ticket 2 reader while one of the PHA’s International

“We have built a four-stage gate system that is taking an 18-minute process and shrinking it to just six minutes.”

Longshoremen’s Association clerks in the lanes brings up the transaction on a handheld computer using the number of either the ticket, truck license or container. The clerk performs a physical inspection of the container and scales the container. A second ticket prints out, which gives the trucker specific instructions about same characteristics, performs a survey if necessary, an what to do inside the yard. The yard cranes receive the interchange receipt is produced as the official record of same information so that they are ready to remove the transaction and the driver departs. load or place a load onboard the truck. “The new gate system sits on top of the operating sys- Once the trucker has completed his tem platform that the port authority put into place about a mission(s), he proceeds to Stage Three, year ago,” explains Davis. “The operating system provides where he inserts the ticket into the scan- all of the users of both Bayport and Barbours Cut more 3 ner and the terminal’s interchange operators tools via the Internet to have visibility into our system validate that he has the cargo he is supposed to have and of bookings, releases and inventories at both terminals. that he’s leaving the way he is supposed to be. Otherwise, The gate system is using that knowledge to expedite the November/December 2007 | he might be dispatched back into the yard. check-in/check-out process at both facilities.” If everything checks out, the trucker How is the new system working out at Barbours Cut? moves on to Stage Four by inserting that “So far, the customers are satisfied and so are we,” says same ticket into the scanner in the lane. Davis. “We continue to refine the process, but it’s a big A clerk brings up the transaction with the 4 improvement over the old system.” ■ Port of Houston Authority 17 Top 12 ways the PHA delivered the goods in 2007 From the bond election to Bayport, from economic impact to environmental excellence, the Port of Houston Authority was a shining star as it delivered the goods in 2007. 2. Economic Impact — Houston’s port contributes to 1. Bond Election — Harris County voters supported a more than 785,000 jobs throughout Texas, according $250 million bond proposal in November, giving the Port to an economic impact study presented to the PHA in of Houston Authority the green light to continue con- the spring. Those jobs generate $39.3 billion in personal struction at the Bayport Container and Cruise Terminal, income, resulting in the creation of $3.7 billion in state increase security and underwrite environmental projects. and local taxes for a total economic benefi t of $117.6 bil- The Port of Houston bond garnered a broad base of lion. And $8.1 billion of the total economic activity is in community support, including endorsements from the direct business revenue. Houston Chronicle, the Greater Houston Partnership, The tremendous growth in economic activity gener- Houston Hispanic Chamber of Commerce, and several ated by the Port of Houston was driven by a nearly 50- area civic groups. The bond will help ensure the PHA million-ton increase in cargo during the last six years. continues to provide a thriving, competitive port that The 785,000 statewide workers fi t into four types of delivers jobs and economic growth to the region. jobs, measured according to their economic impact: direct, More than $100 billion worth of goods pass through such as dockworkers and terminal operators; induced, such the port each year, making the Port of Houston a strong as healthcare providers; indirect, such as equipment and economic engine for Texas. parts suppliers; and related jobs, such as manufacturing November/December 2007 | A safe, thriving Port of Houston is vital to Houston’s and distribution fi rms. And of those jobs, just about one overall economy. With business at the Bayport Container half, 393,000, are related to activity at facilities owned by and Cruise Terminal increasing rapidly, the bond was the Port of Houston Authority. needed to ensure the PHA can keep up with the growing The full report is available on the PHA Web site, demands of container shipping. www.portofhouston.com. Port of Houston Authority 18 The PHA’s Benefi cial Uses Group (BUG) also tied for third place partnership in the 2007 Gulf Guardian awards. Sharing the honor is the Charlotte Harbor Estuaries Volunteer Water Quality Monitoring Project. Sponsored by the partnership of the Gulf of Mexico Program, the Gulf Guardian awards recognize environmental stewardship in the fi ve gulf coast states. The program was formed in 1988 through the Environmental Protection Agency as a non-regulatory, inclusive partnership to provide a broad geographic focus on the major environmental issues in the Gulf.

5. Bayport —The opening phase of the Bayport Container Terminal began operation in February 2007 on a 132-acre footprint, including 60 acres of container yard. Activity has been brisk at the newest container terminal on the U.S. Gulf with monthly production averaging 20,000 twenty-foot equivalent units (TEUs). CMA CGM America remains the primary steamship line service calling at Bayport. Other steamship line services include Australia New Zealand, China Shipping and Evergreen lines. The fi rst phase includes a 2,000-foot wharf sitting on 3. PHA Continues Emphasis on Security — To date, 6.3 acres; a fully automated access gate system sitting the Port of Houston Authority has been awarded a total on 24 acres, permanent storm water facilities covering 12.1 of $38.6 million in federal port security grants. PHA acres and a 7,500 foot long berm covering 27.6 acres. was awarded $5.3 million in 2007 Port Security Grant The operations and environment infrastructure com- Program funds — 100% of the requested amount. The bine to help make Bayport one of the most technologically three funding projects include fi ber optic connectivity, advanced container terminals in the U.S. The operation Transportation Worker Identifi cation Credential compli- is expected to add 50 acres of container yard by the end ance expenses and a pipeline identifi cation and protec- of February 2008. tion program totaling $7 million when the PHA’s local share is added. The PSGP had $201.2 million available 6. Small Business — Since its inception fi ve years ago, nationwide and $15.1 million was awarded to the the PHA Small Business Development Program has contin- Houston-Galveston-Texas City port areas. Harris County ually strived to exceed its goal to annually award 35 percent and the Port Strategic Security Council (soon to be the of all eligible PHA contracts to certifi ed small businesses. Houston Ship Channel Security District) were awarded By the end of 2007, more than 1,050 companies quali- $5 million, private petrochemical plants were awarded fi ed for registration in the program. Small fi rms received $2.7 million, and Texas City was awarded $2 million. $22.7 million, or 49 percent, of the PHA’s contract awards in 2007. Additionally, a total of $2.8 million, or 45 per- 4. Environmental Excellence — The Port of Houston cent, of the PHA’s informal purchase orders went to small Authority continued its commitment to the environment businesses during the year. in 2007 by successfully recycling 67 percent of the nearly Since 2002, PHA has awarded $227.5 million or November/December 2007 | 30,000 tons of industrial waste material it handled. 40 percent in contracts to registered small businesses. The port authority has found innovative ways to keep A total of 58 monthly small business industrial fl uids, including lubricants, coolants and oils, forums have been held over the past as well as discarded packaging components and building fi ve years and the number of Port materials out of local landfi lls. University graduates has reached 203. Port of Houston Authority 19 20 Port of Houston Authority | November/December 2007 9 5 1 10 2 6 11 3 7 12 8 4 21 Port of Houston Authority | November/December 2007 7. Community Efforts — This year, a first-of-its-kind 8. Customer Service — Serving a customer network effort to promote the specialized jobs in the Port of of more than 1,600, the port authority received two rec- Houston region attracted more than 2,300 job seekers. ognitions this year highlighting its excellent customer More than 50 private and public companies along the service. Voting the Port of Houston “best port overall,” Houston Ship Channel participated in the first Port of the Railway Industrial Clearance Association (RICA) Houston-wide Job Fair in October to promote more than cited it as the best port in customer service, quality of 1,000 open positions. facilities and overall satisfaction. Founded in 1969, RICA The Port of Houston Authority collaborated with The represents over 500 people in the heavy and dimensional WorkSource, the West Gulf Maritime Association, San transportation industry. Jacinto College and the Economic Alliance Houston Port Also in 2007, the American Institute for International Region to host the job fair at the Jimmy Burke Activity Steel presented the PHA Trade Development and Center in Deer Park. Operations Departments with a plaque PHA Commissioner Janiece Longoria and local offi- in recognition for their support to cials formally opened the event in a ceremonial ribbon the AIIS and its steel accounts. AIIS cutting. The job fair provided the public and private President David Phelps and Vice companies along the Houston Ship Channel with the President Eric Hansen met with PHA opportunity to identify qualified candidates for open posi- Trade Development Manager Rainer tions at their companies. The event benefited employers, Lilienthal and Operations Manager job seekers and the entire community, and ultimately will Walt Kleczkowski to discuss cargo help to prepare the region’s workforce for the future. transfer and steel input at the Turning Basin, documen- tation processes, infrastructure improvements, marine terminal optimization study (MTOMS) and security cre- dentialing requirements.

The Port of Houston Authority collaborated with The WorkSource, the West Gulf Maritime Association, San Jacinto College and the Economic Alliance Houston Port Region to host the job fair at the Jimmy Burke Activity Center in Deer Park.

9. International Prestige — Ranked 10th largest port in the world, Houston served as the host for the International Association of Ports and Harbors (IAPH) this spring. More than 1,000 port executives from 50 countries gath- ered at the IAPH 25th World Ports Conference hosted by the Port of Houston Authority to discuss key issues in the global maritime community. IAPH President and PHA Executive Director H. Thomas Kornegay presided November/December 2007 | over the week of events, highlighted by six work sessions boasting a long list of distinguished speakers. The six sessions addressed the growth in the cargo container industry, port security and risk management, challenges to port environment, ports adapting to future Port of Houston Authority 22 business development and governmental relations, up-to-date facilities, sound opportunities, logistics fiscal management skills, and the opportunities afforded infrastructure and port to the port through the formation of Limited Government strategies, and new tech- Corporations. nological innovations for port operations. 11. Ship Channel Security — Those who successfully IAPH’s commitment spearheaded the campaign leading to state authorization to world port environ- of the country’s first ship channel security district are busy ments was underlined with the second critical step toward making it a reality at the end of the con- — getting enough entities to sign on the dotted line. ference when delegates At least 50 percent of the property owners along the unanimously adopted Harris County portion of the Houston Ship Channel and a resolution calling for representatives of 50 percent of the appraised property ports to promote clean value must sign off on a petition that will go to Harris air programs to help County Commissioners Court for approval of the Houston fight global warming. Ship Channel Security District. Other highlights of HSCSD is a public-private partnership designed to the conference included help improve security within the Houston Ship Channel a celebration commem- area, by assisting with the local share and operations and orating the 30th anni- maintenance of security infrastructure. versary of PHA’s Barbours Cut Terminal and the reunion The district will be governed by a board of directors of the delegates who attended the last IAPH conference with staggered two-year terms. At least eight directors in Houston in 1977. from the private petrochemical, chemical and refinery industries will be selected to represent the district’s secu- 10. PHA Employees — In 2007, a team of 592 diverse, rity zones. skilled employees comprised the Port of Houston Authority. They serve the public from about a dozen 12. Cargoes — Projections are for the Port of Houston facilities and nine divisions. Authority to move more than 34 million tons of cargo in Whether they’re an accountant or an administrative 2007. Containers, steel, petcoke, industrial chemicals and assistant, an engineer or a logistics associate, part of the miscellaneous bulk products are seen as big ticket items maintenance, police or marine staff or in hundreds of for 2007. other jobs, each PHA employee shares With the opening phase of the Bayport Container Terminal a common goal: to deliver excellent operating since February 2007, PHA is trending toward its customer service. sixth consecutive year of record container throughput. PHA’s team-oriented leadership Steel cargo volumes continue to be strong for the port and staff strive every day to fulfill the authority. PHA could record the third largest year of mission “to provide, operate and main- steel volume in its 80-year history. The port authority is tain waterways and cargo passenger expected to handle 4.9 million tons this year, after post- facilities, to promote trade and gener- ing its highest throughput in 25 years — 5.6 million tons ate favorable economic effects upon and contribute to the — in 2006. economic development of the port authority, the city of In addition, the port authority’s handling of petcoke is Houston, the communities of Harris County and Texas expected to increase to 4.5 million tons, while its miscel- November/December 2007 | Coastal Region at rates that provide sufficient funds to laneous bulk materials throughput is expected to increase cover the port authority’s operational expenses and capi- to 3.5 million tons. tal investments.” PHA is expected to move nine million tons of indus- They follow a vision to provide safe and productive labor trial chemicals in 2007 — slightly less than the 9.048 mil- and customer service, effective community, stakeholder lion tons moved last year. ■ Port of Houston Authority 23 24 Port of Houston Authority | November/December 2007 The Voters Have Spoken to port security facilities, and underwrite important environmental environmental important andunderwrite facilities, security port to construction of the Bayport Container continued and Cruise Terminal,the provide improvements support to used be primarily will funds The package. bond port million $250 the passed resoundingly voters County Harris memory, recent in MARGIN WIDEST THE BY $250 MILLION FOR MILLION $250 BAYPORT

votes werecast infavorofthoseportbonds. the of percent 63 all, In Channel. Ship Houston the of widening and ing deepen the for funding for 1989 in voters the to went also authority port The against. 125,350 and bonds the for votes 188,798 with margin 60–40 cast infavoroftheportbonds, with62,257votesor35.2percentagainst. were percent 64.8 or votes 114,525 of total A different. no was County Turnout was low on Election Day throughout the state of Texas and Harris of any Port of Houston Authority bond proposal proposal bond Authority Houston of Port any of In 1999, voters approved $387 million in port bonds for Bayport by a by Bayport for bonds port in million $387 approved voters 1999, In projects.

available for sale for $9 million from Anderson, Clayton Anderson, from million $9 for sale for available became Docks Reach Long as known terminal private port’s history. bitterest the of one in one to three of were bonds Those Houston. town down in Street Main towards Basin Turning the from Jones upstream be Manchester.should port’sdevelopment the that believed at property of gift a supplement to fight. the in use to newspaper Chronicle Houston his of weight full the had he and Jones, Jesse Houston, in man tial fight The influen most the proposal. by led was bond proposal that against port a on once thumbs down their turned only have voters the Houston, of relationship withtheport.” closer a into community surrounding the brought have students school with classroom the in and cleanups way and environmental efforts. Employee volunteers at water educational through community channel ship the ports “I credit our strong community affairs program which sup PHA Chairman Jim Edmonds. out pointed received,” being is community the to outreach our well how demonstrates bonds port the for approval “ “ approval of margin wide The community isbeingreceived.” how wellouroutreachtothe port bondsdemonstrates the for Throughout the more than 90-year history of the Port the of history 90-year than more the Throughout of margin wide “The oe tid o tp h pr aan n 96 hn a when 1956 in again port the stop to tried Jones port’sthe property opposed of Jones purchase 1920, In sion eversince. pro-port staunchly headlines and have remained Jones’ by swayed not were They prosperity. and size grew Houston facilities, its expanded port the ever when that fact savvy the about grown had voters the then, By Company. and eetd y margin a by defeated apin i the in campaigns expan

in - - - - -

and assistinenvironmentalprojects. improve portsecurityinfrastructure to used be will funds bond The terminals will be built, with the first one opening in 2008. buildout in approximately 15 years. Up to three cruise ship throughputat equivalentunit20-foot million 2.3 total a opmentwillinclude sevencontainer shipberths andhave Texas economy the through wages toand tax revenues. billion $1.6 approximately add and jobs, 32,000 than more generate will Bayport zone. buffer 128-acre a preservationofthe enhanced,and orcreatedwetlands of acres 173 areas, marshland new of acres 200 of creation the habitat, coastal diverse of acres 956 of preservation where. The terminal’s environmental benefits include the else and Bay Galveston for stewardship environmental of role leadership port’s the enhance further to projects environmental in assist and infrastructure security port in 2014. will be added in 2008, 50 acres in 2012, and 55 more acres in about 2012. An additional 48 acres of container yard n diin te od ud wl b ue t improve to used be will funds bond the addition, In construc terminal’s container the of phase next The area totaling approximately 123 acres. It will also open in s hr 3 floe b Waf i 2012. in 4 Wharf by followed 3, Wharf is tion approximately 20 percent of Bayport cargo, from an from cargo, Bayport of percent 20 approximately The planned intermodal yard is expected to serve to expected is yard intermodal planned The Terminal. This $1.4 billion develbillionTerminal.$1.4 This CruiseBayportContainerandthe of construction the continue will aged with the operational revenues, lever proposal, bond current this h $5 mlin prvd in approved million $250 The ■ - - - - 25 Port of Houston Authority | November/December 2007 26 Port of Houston Authority | November/December 2007 mrcn wrig o pr ad otrltd businesses port-related and port for working Americans the world’s sixthlargestandmostvibrant. nation, that nation’s economy would replace California as try’s grossnationalproduct. of domesticeconomicactivityin2006. the country’s seaports triggered a staggering shows $2 trillion dollars August, in released and Authorities Port of the USA’s bustlingseaports. the rainbow is likely located near one of of end the at gold of pot the indicator, any is year this earlier released study If a Martin Associates economic impact and exports create are spread throughout the country, not imports these jobs “The Authorities. Port of Association American the offi for executive cer chief and president Nagle, Kurt economy,”says American the to boon huge a been has decade past the in ports our through moving manufacturers, distributorsandlogisticscompanies. wholesalers, retailers, — exports and imports handling in fifor worked involved million rms seven nearly year, last One ifbyLand≥≥≥... One ifbyLand≥≥≥... codn t te td, f h nal 84 million 8.4 nearly the of study, the to According If U.S. seaports fueled the economy of an independent That fi gure represents roughly 18 percent of this coun- The study, commissioned by the American Association Te rmnos rwh n vres rd volumes trade overseas in growth tremendous “The $2 TrillionifbySea... $2 TrillionifbySea... of that amount. In addition, the report shows port-sector shows report the addition, In amount. that of in international waterborne commerce paid $204.7 billion involved Businesses salaries. and wages in billion $314.5 services to seaports in the U.S. directly and indirectly paid and taxrevenues. business to wages and jobs from ranging dynamics related port- examined study The ports. Lakes Great and coastal piled the study, which focuses on the economic impacts of com- Associates Martin interviews, port-sector recent of economic fabric.” just in port cities, making them a vital part of our nation’s Dr. JohnC.Martin The study shows that businesses providing goods and goods providing businesses that shows study The thousands and statistics cargo port U.S. 2006 Using

handling both international and domestic cargo. These cargo. domestic and international both handling terminals and seaports the by supplied as 2006, for tics statis- port individual as well as Association Maritime U.S. the by supplied statistics cargo port international U.S. deepwaterportsystem. Associates developed Martin composite prototype models for the models, the Using providers. service port with were developed based on more models than 10,000 detailed interviews The years. two last the in developed had company the models impact seaport individual 35 point, in economy record numbers.” the to contributing are activities related port- that shows report new “This Associates, Martin of president Martin, C. John Dr.economy,” said American fithe in the benefiprovides nancial industry port the increase that signifi ts cant a indicate fi gures (2006) these and markets port related economics. on experts and foremost analysts industry’s economic the of one considered is fi rm Pa., Lancaster,The seaports. of impact economic nationwide the on data, 1999 using 2000, in one including years, 30 past the over studies impact economic individual these per- income. in sonal billion $39.3 and activity economic statewide of billion $117.6 jobs, statewide 785,000 to contributed ducted forthePortofHoustonAuthoritythisyear. and localtaxesin2006. state federal, in billion $102 than more paid businesses and services totaling $1.98 trillion. Moreover, port-sector goods of value and revenues business including output, economic of rate high a for responsible were businesses n diin te m sd cmiain f 2006 of combination a used fi rm the addition, In For the 2006 study, Martin Associates used as a starting 2000, in developed we study last the to “Compared of 300 than more conducted has Associates Martin That study shows 2006 at activity the Port of Houston con- Associates Martin one to similar was study The osn, rnprain cohn, eia ad recre- and medical clothing, transportation, housing, food, of purchases to related jobs induced 630,913 tional railroad industries. and trucking repair, ship construction, marine dredging, the in jobs and warehousemen chandlers, operators, boat tow- and tugboat pilots, ship agents, steamship warders, for- freight longshoremen, operators, terminal like jobs fi nancialbenefi tsofcruiseoperationsatU.S.ports. signifithe are analysis the in cant included Not seaports. sector impacts as well port- as impacts from users indirect of the nation’s and induced direct, into activities cargo the translate to able was Associates Martin cifi ports, c to estimatetheimpactsofU.S.deepwaterportsystem. databases wereusedtocalibrateeachoftheimpactmodels Security Administration. Social the by computed Index WageAverage National the than year per more $13,000 is year,which a $50,000 earn, on average, he about said port-sector workers today Overall, billion. $107.1 was jobs those from dollars tion consump- and earnings the and 1,444,650, totaled ports induced and indirect jobs from business activities at U.S. the in force economic global community.” strong a remain America ing ensur- to important is which wages, above-average pay indirect jobs. the direct activities as well as supporting another 306,289 support to purchases in billion $26.3 made seaports U.S. at activity vessel and cargo the to services direct provide fiport-sector The services. municipal and cation that rms edu- like functions support provide that agencies federal ation-entertainment services. hs drc saotrltd os upre a addi- an supported jobs seaport-related direct Those direct held Americans 507,448 shows study The Using these port-specifi c models for more than 40 spe- In his 2006 report, he found that the number of direct, to tend jobs “port-sector that out points Martin Dr. and state local, with jobs included also jobs Induced ■

27 Port of Houston Authority | November/December 2007 28 Port of Houston Authority | November/December 2007 Seabrook and epniiiy n cs a well as cost and responsibility the share will Seabrook and ity into author port Bay.The east Galveston ﬂows and Red Road of Bluff north half-mile a starts tion ofPineGullyinSeabrook. sedimenta mitigate and investigate with the contracted Galveston Bay Foundation to each have Seabrook and authority port the addition, In opera tions. Bayport’s from neighborhoods adjacent the shield to barriers other and berms of use authority’s port the expands the HoustonYacht Club. and Seabrook of city the with Cr and Container ing the construction of the Bayport ne reached has marine terminals, the port authority its surrounding communities with dialogue continuing its of part a As Blessing Community’s with Continues Development Bayport O ie ul i a ia cek that creek tidal a is Gully Pine Seabrook with agreement new The utreach C w accords concern accords w ie Terminal uise ommunity - - Houston Yacht Club - - “ on howbeneﬁcialthisagreementisforthecityanditscitizens. all theseyears.Ourplanistoworkeducatethecommunity assurances thatthecitizensofSeabrookhavebeenlooking for today. Thisagreementisuniqueinthatitofferstheabsolute Without thecooperationofbothparties,wewouldnotbehere

”

Bayport Development Continues with Community’s Blessing Community’s with Continues Development Bayport H. Thomas Kornegay, PHA executivedirector;andRobin Riley, mayor, cityofSeabrook. Gary Renola; City Councilman Tom Diegelman;andPHA CommissionerJimmy A. Burke.Seated: city ofSeabrook;CityCouncilmanKim Morrell;CityCouncilmanPaul Dunphey;CityCouncilman PHA Commissioners Jim Fonteno, Jr., StevePhelps andElyseDeeWright,Lanier; mayor pro tem, will be given as park space. A new commercial road over road commercial new A space. land park as given authority’sbe will port the of acres 41 About trails. bike and hike of network established Seabrook’s of portion a become to system trail a create to together work will ties par The operations. cargo for line rail the of struction beneficial thisagreementisforthecityanditscitizens.” how on community the educate to work to is plan Our years. these all for looking been have Seabrook of citizens the that assurances absolute the offers it that in unique is of today.here be not would we parties, both agreement This cooperation the “Without Seabrook. of city Mayor, job creationfortheregion.” and development economic of mission its continue to ity enhance the quality of life while enabling the port author that solutions find to community a as together working are we that pleased “I’m Burke. A. Jimmy Commissioner PHA says issues,” critical these addressing and resolving construction servicecostsfortheproject. approximately $339,000 to the project for commit will authority port The project. restoration the for permitting and design engineering the of oversight as The port authority will construct a berm prior to con to prior berm a construct will authority port The Riley, Robin says wait,” the worth well been has “It in step important an is Seabrook with agreement “The final design and - - - Authority inthe future.” Houston of Port the with relationship good our on build ing continue to forward look “We Nicholson. John mote safety, recreationandsecurityonGalvestonBay. the Houston Yacht Club to mutually work together to pro erty, exteriorraillinesanddetentionponds. trail system, commercial road, the berm, port’s commercial the prop of development the over regulations or rules action against the port authority, and also not impose any trict toencompasstheterminalproperty. dis industrial an of creation for Council City Seabrook Under the terms of the agreement, PHA will petition the district. zoning commercial C-3 the to road the commercial of north and berm the of south property authority port rezone to proposal the consider will Council City rail operations. and storage container operations, to related mitigation tions will be put into place with respect to lighting, sound restric Additional terminals. the of border southeast the on ponds retention and detention flood construct also “I’m happy this day has come,” says HYC Commodore Commodore HYC says come,” has day this happy “I’m In addition, the port authority signed an agreement with legal any suspend will Seabrook of city the return, In and Commission Zoning & Planning Seabrook’s ■

o ein sud barrier sound a design cooperate to will and Seabrook authority port The Seabrook. of area industrial within routed Bayport northwest sideofSeabrook. the through dedicated be will property authority port its construction. for committed be mil- will lion $1.6 to up and 146 Highway State of area the in noise rail minimize to al evc t the to service Rail h pr atoiy will authority port The emnl il be will Terminal h light the - - - - -

29 Port of Houston Authority | November/December 2007 30 Port of Houston Authority | November/December 2007 Smooth Sailing Ahead exceeded $1billion forthestate. expenditures cruise direct time ﬁrst the and 2005 over increase percent 20 a marked It study. CLIA the to ing accord expenditures, cruise for — California and Florida Port ofGalvestonanddevelopment atthePortofHoustonAuthority For the last ﬁve years, growth has been driven by an increase in embarkations at the embarkations in the U.S., according to the Cruise Lines International Association. for markets growth highest the of one is it year, last Texasports from cruises on embarking people 670,000 Withindustry. cruise the in boat the rocking Texasis In 2006, Texas ranked no. 3 in the nation — behind — nation the in 3 no. Texasranked 2006, In Bayport Cruise Terminal Designed to “Extend the Cruise Experience” Cruise the “Extend to Designed - pnig eeae 1,5 jb ad 97 ilo in million $907 income forTexas workers.” and jobs 19,350 generated spending industry cruise year, “Last force. task cruise the of man kations,” says PHA Commissioner Jim Fonteno, Jr., chair “This study suggests Texas is a prime venue for embar . Jim Fonteno, Jr. - -

Bayport Cruise Terminal tions, shouldspurthelocaleconomy. attrac other and restaurants include could which ment, co-develop commercial for site 40-acre A ships. accommodate cruise will berths three Ultimately, gangways. climate-controlled and area embarkation passenger the mn aeiis r a 250s.f. one ra in area lounge 12,500-sq.-ft. a are amenities Among Galveston Bay. from jewel sparkling a like rises terminal square-foot Houston climate, the 96,000 sunny the In glass. emerald translucent a in windows with walls paneled and roof facility incorporates an arched the cruise. after and before — happy passengers keeping about It’sexperience. cruise the of extension an be to designed facility ﬁrst-class a terminal be will new The ship. the about be just not will in Spring2008. Terminal,Cruise open to set sengers pas of market growing this The PHA is preparing for The multi-million-dollar The cruising Bayport, At with its new Bayport - - - -

• Texas jumped to third from fifth in the nation the in • fifth from third to Texasjumped fiue cmie b Bsns Rsac and Research Business Economic Advisors) by compiled figures — for wages total U.S. employees. in billion $14.7 and total jobs U.S. 348,000 generating with expenditures services, cruise and goods U.S. on and passengers lines cruise the bil by spending $17.6 direct in benefits, lion economic total in billion $35.7 generates industry cruise Nationwide,the • Tourism-relatedbusinesses, travelas agen such totaled 2006 in cruised • who residents Texas high the among been has • Texas 2002, Since • Cruise industry spending generated 19,350 jobs o cus idsr epniue i 20 with 2006 in expenditures industry cruise for in Texas. percent40 cies, U.S. cruise passengers. all of percent 8 for accounting 729,000, in thestate. billion $1 exceeded expenditures cruise direct time first the and 2005 over percent 20 nearly of increase an spending, direct in billion $1.1 53,000 passengers. over 2005, while embarkedthe Port of Houston embarked Galveston percent 16 of of increase an passengers, 617,000 Port the 2006, In embarkations. cruise with markets growth est and $907millioninincomefor Texas workers. Suc: rie ie Itrainl Association International Lines Cruise (Source: Economic Benefitof the Cruise Industry the CruiseIndustry ilns n htl, eevd approximately received hotels, and airlines in Texas (2006) of the industry’sthe of directexpenditures

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31 Port of Houston Authority | November/December 2007 32 Port of Houston Authority | November/December 2007 uh s of akgs o psegr bfr ad after and before passengers the cruise. for packages golf as such and arrivalportforcruisesthrough thePanamaCanal. tate disabledpassengers.” facili to standard the beyond “Wegoing Battles. are says ties, is “more than just ADA-required, it’s ADA-friendly,” stores canbeeasilyunloaded. and for baggage claim and features a truck bay where ship crew the for areas separate has also design terminal The 150 passengers for priority check-in and special occasions. accommodate can lounge VIP A stations. check-in 55 to up with service efficient and vehicles, 1,000 as many as for parking convenient close, as such amenities, friendly Dallas/Fort passenger- offer will It Houston, Antonio. Austin/San and of Worth area metropolitan larger the amenities andoperationalefficiencies. state ofTexas.” the and region Houston the of development and growth we’re investing in much more — the continued economic lion on this state-of-the-art cruise terminal,” he says. “But the Port of Houston Authority is spending about $90 mil upto5,000guests. modate adapt to the larger, more specialized ships that can accom to retrofitted been have others Most industry. cruise the for custom-designed and up ground the from built world Wade Battles Other selling points are pre- and post-cruise elements, post-cruise and pre- are points selling Other departure a being of advantage the has also Bayport gangway,The flexibili vertical and horizontal its with and airports the to close is terminal cruise new The The focus is on three selling points: location, customer Bayport is one of a very few cruise terminals around the involvement with the cruise industry, cruise the with involvement securing customers. aging director. “Now we’re working on man PHA Battles, Wade says ideas,” clear have and scratch from start you A te et tp n 10-year a in step next the “As when advantage an have “You - - - - -

an opportunitytobezookeeperforaday.” sidering a joint effort with the Houston Zoo to offer guests con We’realso Rockets. Houston the with game pickup basketball fantasy a is idea One cruises. themed for tures ence positive.It’s abouthavinghappypassengers.” experi vacation overall the making while cruises more sell can post-planning and pre- together “Putting Battles. says positive,” are experiences passengers’ that sure make upscale cruiselines. for terminal new the of branding is PHA ports service. call-type for opportunities consider also will PHA and important most is facilities the of utilization but sailing, the cruiselinesareachieving higherperdiems.” where markets Asian and European the to deployed been and Mexican markets are still strong but many vessels cyclical. are “Markets says. Battles market,” lines tocomeHouston. cruise getting challenge a it’s East, Far the and Europe “It’s importanttohavesynergy—itbenefitseveryone.” Battles. says Bureau,” Visitors and Convention Houston hotels localandrestaurants. with community the in efforts unified see team inAprilasthe“CruisePedalers.” MS150 the support to together gotten have lines cruise ple whoridetheMS150.With thatinmind,anumberof peo is demographic target one says Adams and travelers, Kay Adams “ We’re focused firstonthecruise Cruises attract people who are active, adventuresome active, are who people attract Cruises to want also we but cruise, the on first “We’refocused The goal is a cruise line that offers year-round weekly year-round offers that line cruise a is goal The “Three years ago, the Caribbean was the strongest cruise in higher rate, diem per or day, per price the With Greater the from support have we Houston, “In to want lines cruise the competition, intense With passengers’ experiencesare positive.” but we alsowanttomake sure that up with sports teams to do joint ven joint do to teams sports with up teaming “We’re Adams. says dreams,” “Home PortAdvantage.” tagline, the with per packages, sonalized more emphasizing is manager, W wn t tp no people’s into tap to want “We operations cruise PHA Adams, Kay Caribbean have

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“ We’re focused ﬁrstonthecruise passengers’ experiencesare positive.” but we alsowanttomake sure that

inis Ta wl oteg adtoa semn time steaming effi additional outweigh services, will That amenities, ciencies. providing We’re most than terminals. product different a have do really we them lenge is to be able to get to the decision makers and show executives isthat“seeingitbelievingit.” a veryhighservicelevel.EveryonewillbeVIP.” “Weadds. she expectations,” manage at operating be will cab comingherearealltiedinwiththecruiseexperience. and airport the in happens what And in/check-out. check- harmonious a “It’shave Adams. to says important the goalofhigherperdiems,”saysBattles. branding differently to the upscale market, we can achieve confirmed asearlyFall2008orSpring2009. or Mobile.” between the Gulf of Mexico and Bayport versus Galveston “It’s the ‘wow’ factor,” says Battles. “Our biggest chal biggest “Our Battles. factor,”says ‘wow’ “It’sthe line cruise to facility new the selling in strategy key A to system delivery a create to is port the at job “Our “Time is more valuable than money for these passengers,” and aggressively marketing by believe firmly “We Battles says a partnership with a cruise line could be could line cruise a with partnership a says Battles ■ the - -

33 Port of Houston Authority | November/December 2007 34 Port of Houston Authority | November/December 2007 CREWS FIREBOAT some of the containers to drop in the water. in the channel, but, more urgently, the capsizing caused the Houston Ship Channel. The ship was blocking traffic carrying containers with hazardous cargo, capsized in A few years ago, a ship called the Floridian, which was THE Who Works atthe Port FIREBOAT o mtgtn ol n hzros aeil pls and spills material hazardous Cut. Barbours land-basedfires within supporting and oil mitigating for the Bayport Channel to Vopak Deer Park. She is from responsible facilities and ships for protection fire provides T.and Howard commissioner port Tellepsen. The former Tellepsen is located for at Barbours Cut named Terminal was TellepsenF/B the 1983, In Captain. Senior Buck, William F/B Tellepsen Turning shedsatthe transit Basin. authority is also port in extinguishers crew fire all maintaining Her for responsible Basin. Turning the to Magellen from The Bracewell is located at Woodhouse Terminal, operating Bracewell. J.S. commissioner port former for named was J. G. Minchew, Senior Captain. In 1983, the F/B Bracewell F/B Bracewell Magellen. to Ferry Lynchberg the from facilities and ships to protection fire in Located fireboats. three PHA’sChannelview along the Lost River, the the Farnsworth provides of longest the 1974 in his honor, has the F/B been Farnsworth in service in Christened waterway. the on vessel ocean-going first draft the deep navigatedthe 1914, in vessels Farnsworth L. Walter Capt. for before opened month officially Channel A Ship Captain. Houston Senior Larrimer, W. G. F/B Farnsworth boats. different to rotate master of 100 gross tons license. The captains periodically for help patrols, harbor fireboats’ watch and inspections. the enlisted has Security Homeland audits. security and environmental internal in involved overboardmanparticipatealsoin drills. Crewmembers are conductGuard,theyU.S. Coast cooperationthe drills.withInfire and training Hazmat provide They inhurricanes. actual during boats extensively manning as well participate as drills hurricane and committees planning emergency local to belong crews Fireboat cap-tain. and training. advanced the to National Fire Academy firefighters in Washington, D.C., for sends formal and PHA materials. hazardous for level technician the at certification have must fighters Fire- attendants. care emergency or technicians medical Candidates also must be either state-certified as Texas. emergencyof state the by firefighters marine and firefighters as certified be must fireboats PHA the on Crewmembers FIREBOATS AND CREW restricted to the ship channel for itsresponse. for ship channel the to restricted along the ship channel. The Farnsworth is deeper and thus draws 3.5 feet of water, allowing them to work the islands ing been built in by MorganSwiftships City, La. Each boat The Bracewell The and Bracewell Tellepsen are ships, sister both hav U.S.C.G. a have must captain relief and captain Each pilot mechanic, hoseman, a carries fireboat Each - situations, such as environ non-emergency for used recover thebody. Fire to team Department’sdive Houston the with year,worked crews fireboat last bridge 8 Beltway the off jumped someone when as cranes and forklifts. And such equipment, heavy use workers where docks, the on possibility a always are injuries Serious vessel crane. a the with off hoisted and stretcher a onto carried was who victim attack heart a involving incident recent a as such ships, on operations rescue in part take also Crews containers. damaged and leaks gas or releases Hazmat to the 53-mile-longchannel. fire PHA the of assistance the require and Channel Ship gerous situation. containers closer to the shore, resolving a potentially dan the capsized ship. The crews were able to push the dropped around traffic guiding and area the patrolling rescue, the an oil spill occurs, whether mental activities. Any time materials and the large number of ship and barge traffic in hazardous or bulk liquid handling facilities 150 as many as with possibilities always are explosions or Fires boats. h fieot ae also are fireboats The Incidents vary from fires on the ship channel and docks Houston the on occur can emergencies of variety A to came fireboats Authority Houston of Port the Then - Kirk Beverung andJamesSmith Kirk Beverung crewmembers Bracewell - - 35 Port of Houston Authority | November/December 2007 36 Port of Houston Authority | November/December 2007 scious, major fires and explosions on ships and in terminals protection for the entireport.” enough have “The to want necessity.We safety a Arredondo. are fireboats says program,” safety a has channel are decreasing. in time.” Elder Steve Captain says reaction,” chain a caused have of foam. and collapsed,”recallsUsher. to tryputoutthefire. used was foam of worth million $1 agencies. national and local fireboats, three all of assistance the requiring days, The barge was on fire for several Farnsworth. F/B Mike the of Usher Captain to Monument, according Jacinto San the near Terminal Intercontinental the at 1986 in explosion barge a was years 20-some last the in PHA Marine Department. manager, Arredondo, Ruben says happen,” can that ral itsodoesnotspread. cor and spill the mitigate crews fireboat the water, or land on of the F/B Bracewell. “Thankfully, we got on the scene the on got we “Thankfully, Bracewell. F/B the of gallons 1,000 using and embankment the over water lobbing minutes, 10 within fire the extinguished crews of the chemical industries along the ship channel. Fireboat “Like the port authority, each facility along the ship the along facility each authority, port the “Like con safety more become area the in companies As could it air, the in products flammable the all “With one outside land on out broke fire a year, this Earlier “On the sixth day, the base of the barge finally buckled incident worst the Possibly “There are a myriad of things - Steve Elder Bracewell captain captain Bracewell

with environmentally safe dye — in vibrant red at the ceremony with continuous sprays of water — colored ih amt ut ad efCnand Breathing Self-Contained and suits Hazmat with equipped are boats The emergency. an during hours 24 the crew.the “We’resays, for Elder As good something doing requires working on holidays, the job inspires pride among Green programinSeptember, sprayingthewatergreen. blue. The fireboats were also at the launch of the Clean & Highway 225, we can fight fires by hooking up water moni sion along the channel — a half-mile inland or up to State “There are four people to a crew who change out every out change who crew a to people four are “There tors to their pipes and providing water for weeks at a time. five-inch hoses alone on the PHA fireboats are capable of The water. of gallons 800 to 500 of capacity maximum a have which trucks, fire ordinary to compared water, of amount unlimited an carry can they that in unique are enough They facility. a produce at or channel the to on fires fight to enough water large pumps water have and maneuverable respond, to quick are Tellepsen, and the public.” supply of water allowed the boats to create a festive as the Bayport groundbreaking in February. The unlimited foratleastanother20years,hesays. years old,isgood 34 nearly Farnsworth, F/B the boat, longest-serving The engines regularly, that Arredondo says they are “like new.” requires cooperation with several local fire departments. standby.firessevere Fightingon others the withfireboat, Apparatus (SCBA)respirators.” everrunout,”Arredondo explosays.fireorhave“Ifwea providing from4,000to6,000gallonsaminute. ept a 4 or o-8 or of ceue that schedule off hours on-48 hours 24 a Despite Or rbas r sl-utiig” e continues. he self-sustaining,” are fireboats “Our h tre H fieot, h Frsot, Bracewell Farnsworth, the fireboats, PHA three The The fireboats are equipped for celebrations, too, such too, celebrations, for equipped are fireboats The The boats are maintained so well, changing pumps and During an emergency, standard procedure is to send one don’tchannel,we ship the of outdrafted“Withwater ■ , white and mood mood - -

37 Port of Houston Authority | November/December 2007 38 Port of Houston Authority | November/December 2007 BUSINESS CONNECTIONS and future.” present past, port’s the in partner strong a is Park Deer Houston, of Port the to comes it “When Edmonds. giant,” said community industrial part unique and town small a part is is it that Parkin Deer that me reminds Jim Edmondsacceptedonbehalfoftheportauthority. see the port authority receive this award. PHA Chairman tourism intheDeerParkarea.” Cruise Terminal will be positive for economic growth and this award. The opening of the new Bayport Container & of recipient 2007–2008 the is Authority Houston of Port explained Sharon McLean, chamber president/CEO. “The community,” our in impact economic an made has that year’s honoreeisthePortofHoustonAuthority. this and held, is Industry to Salute a Annually, provide. they services or products what and members new lights high that newsletter monthly a and luncheons monthly ties to network and secure business opportunities through Shell-Deer Park. board and community relations manager for Dave McKinney, says chairman of Park,” the chamber’s Deer in life of quality and ity vital economic the enhances that business place tobeifyouwantdobusinessinthiscommunity. community. channel Today, ship 600 this members make the organization for the activity business of hub the been the decisive1836battleforTexas’ independencewasfought where Battleground Jacinto San the of site the is Park Deer site, the occupied formerly that deer for park private mayor.the Park for Deer Named former and commissioner port Burke, Jimmy to according Coast,” Gulf great the of plains golden the on city little gracious “our as residents its by known is Park Deer M flo pr cmisoe, im Bre often Burke, Jimmy commissioner, port fellow “My to attendance in were members chamber 500 to Close “Each year, the chamber honors an industry of the year opportuni numerous members its offers chamber The for climate a promote to is mission “Our Since 1961, the Deer Park Chamber of Commerce has ■ Deer Park Chamber of Commerce of Chamber Park Deer - - -

“ for aclimate promote Our missionisto vitality andquality of life inDeerPark.” vitality economic enhancesthe business that .

SPOTLIGHT ON SMALL BUSINESS Gilbreath Communications, Inc.

Over the past five years, Gilbreath Communications, Houston magazine, graphics Inc. has helped the Port of Houston Authority Public and creation for advertising Affairs Division produce, publish and distribute millions material, Web site design and of printed pages reflecting news about the PHA. development, art direction The most significant page, however, won’t be measured on all projects and specialized in column inches or quality of paper stock — it’s the one media distribution, as well as defining quality and performance and its margins of toler- all PHA broadcast work. ance have been narrowing ever since the collaboration of The Gilbreath team works the partnership began. closely with PHA Public Affairs Creative Director Damon Yerian, President Fortunately, as Gilbreath founder Audrey Gilbreath Division staff and Director Audrey Gilbreath and Senior Graphic Designer Tracy Price affirms, “everybody was on the same page from the Argentina James — so closely very beginning.” they’ve come to complete each other’s sentences. James “The biggest challenge at first was getting to know provides the vision, Gilbreath the artistic expertise. The each other so quickly,” Gilbreath says. “Fortunately, our two entities have proven to be a formidable force over the relationship clicked from the very beginning and we had past half-decade. a good understanding of where the port was trying to go. Since 2002, they’ve garnered nearly 50 local and We are so proud to be a part of it.” national industry awards for everything from advertising Gilbreath Communications does PHA’s Annual Report, to excellence in periodicals, annual reports and electronic Environmental Report, video commercials, internal productions. They have also worked jointly on the devel- communications, newsletters, special projects, external opment and redesign of the portofhouston.com Web site, communications, design production of the Port of which boasts 27,230 unique visits a month. ■ A Heavyweight Stats on Tonnage A The world’s 10th largest port is also U.S.-ranked first in foreign tonnage and second in total tonnage.

B Expanding Global Reach More than 7,000 ships call at the Port of Houston each year, and more than 100 steamship lines offer services linking Houston with more than 1,000 ports around the world.

C Facts on Impact Generates $117.6 billion of total economic activity in Texas, and supports more than 785,000 jobs.

D The Regional Ripple Effect Port-related businesses pay more than $3.7 billion of state and local taxes each year. B

For nearly a century, the Port of Houston Authority has been at the hub of global trade and commerce. Greater levels of trade, business growth and job creation are well within reach as the port continues 1-800-688-3625\|| • www.portofhouston.com to capture new opportunities. The Port of Houston PRSRT STD PO Box 2562 US Postage Houston, Texas 77252-2562 PAID Houston, TX Permit #1395