PORT HOUSTON SPRING 2021

Project 11 Receives ‘New Start’ Designation

RTG Cranes Add to Infrastructure Strategic Environmental at Port Houston Moves Reduce Emissions NAVIGATOR | SPRING | 2021 | 3

PORT HOUSTON

SPRING CONTENTS 2021 10 Feature Story: 05 PROJECT 11 RECEIVES A Message ‘NEW START’ DESIGNATION from Executive Director The latest news and updates Roger Guenther 14 on Project 11 Creating Space for Empty 08 Containers 20 Campo Reappointed as Chairman New empties yard planned for Bayport The Manifest “Our best is yet to come” Port Houston news and highlights 16 09 Rail Marketing Deal OK’d by Port Expanding Infrastructure Commission New RTG cranes coming to Plans improve domestic and Port Houston international operations 17 Port Houston 2040 Plan New blueprint to drive strategic growth 23 Container Activity at Port 18 Houston Set to Climb Despite Freeze, Cargo Outlook Tonnage continues to rise 12 Looks Steady Reducing Environmental Impact How Port Houston handled wintry Switch to renewable energy already setbacks 24 paying off Did You Know? 19 Bonds, politics and hurricanes 13 Enhanced Community Grants Meet the New Yard Mule Program Now Underway 26 How the latest equipment addition Local programs receive competitive Small Business Feature pays dividends funding Lee Composites 4 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 5

EXECUTIVE

OFFICE From EXECUTIVE OFFICE FIELD OFFICES 111 East Loop North, P.O. Box 2562, LATIN AMERICA Houston, TX 77252-2562 MOACYR PEDRO Roger’s Desk Phone: Port of Houston Authority 713.670.2400 Email: [email protected] A message from Executive Director Roger Guenther Fax: Rue Barão do Triunfo 713.670.2429 267 Apt. 133 – Brooklin 04602-000 São Paulo, Brazil Phone: +55 11 99709 4545 Ric Campo Dean E. Corgey Roger D. Guenther Chairman Commissioner Executive Director We are optimistic about what this new year holds for Port Houston. ASIA Thomas J. Heidt Despite the ongoing pandemic, 2021 got off to a very solid start, Chief Operating Officer MATTHEW SOLOMAN Port of Houston Authority indicating a rebound of import cargoes and confidence in Houston’s Erik A. Eriksson c/o Ben Line Agencies growing demand. Chief Legal Officer Email: [email protected] Phone: +60 3 7932 7066 John Moseley Mobile: +60 12 716 3524 Chief Commercial Officer Head Office Jeff Davis 200 Cantonment Road, #13-05 Chief Port Operations Officer Southpoint, 089763 Singapore Then February hit us with another unusual circumstance: Clyde Fitzgerald Stephen H. DonCarlos Phone: +65 6420 9013 a winter freeze that impacted our state’s people, power Commissioner Commissioner Richard Byrnes Fax: +65 6224 0163 and production. The winter weather caused another brief Chief Port Infrastructure Officer business interruption at Port Houston, as our container terminals closed for nearly a week. We had 56 container Tim Finley EUROPE, MIDDLE EAST & AFRICA vessels call for February — we normally have about 80 — Chief Financial Officer ANDERS FLENSBORG and surprisingly, volume through our container terminals fell more than 20% that month. Marcus Woodring Port of Houston Authority Chief PSEO Officer Email: [email protected] Eisenbahnstrasse 34 D82110 The winter storm also impacted exports and hampered Charles Thompson Germering/Germany production of petrochemical-related products (like resins) Chief Information Officer Phone: +49 175 930 8811 due to many facility shutdowns. Port Houston is the resins port, with a market share of nearly 60% of all resins Jessica Shaver exported from the United States. As a result, export loads Roy D. Mease Wendy Montoya Chief People Officer PORT HOUSTON NAVIGATOR’S decreased 20% through February. Commissioner Cloonan EDITORIAL STAFF: Commissioner Maxine Buckles Christine Abbruscato, director marketing and branding; Chief Audit Officer However, March showed improvement and container activity Christopher Virk-Brown, digital content marketing specialist; Drew Donovan, photographer; Chris jumped 20%. In fact, our March figures are the highest Kerrick Henny Kuhlman, photographer; Adcetera, design and layout. monthly totals ever, surpassing the record set in October Chief Government and Public Relations Officer This publication is not copyrighted, and permission 2020. Loaded import TEUs are up 23%, and retailers expect is given for the reproduction or use of any original Dylan Osborne materials, provided credit is given to Port Houston. strong imports will continue through the first half of 2021. Harris County Treasurer Additional information, address changes, extra copies or advertising specifications may be obtained In addition to containerized cargo, steel saw a by writing to the Port Houston Navigator. The Port turnaround in March, increasing by 13%. That put Houston Navigator is published by Port Houston, For advertising opportunities, P.O. Box 2562, Houston, Texas 77252-2562, and steel moving across Port Houston’s docks up by 2% is distributed free to maritime, industrial and in the first quarter. Bulk cargo also showed strength. Cheryl D. Creuzot contact Christine Abbruscato at 713.670.2860. transportation interests in the United States Commissioner and foreign countries. 6 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 7

From Roger’s Desk (continued)

As demand surges, Port Houston continues to provide the expansion and corporate relocations have fueled a large, Community and Sustainability Finally, we recently hosted our first Navigating the Future world-class service many expect from us, and our terminals fast-growing consumer base and a strong housing market, event, a virtual viewing opportunity that went into detail about remain efficient and free of congestion. which has translated to new import distribution centers in In 2021, we continue our strong focus on being good neighbors Port Houston’s current and future outlook. Houston and throughout Texas. and good stewards of the environment we all share. You can New Service Starting read about some of those initiatives in this issue, including the If you missed it, you can view the full program on our Combined with the biggest manufacturing region expansion of our successful Community Grants Program and YouTube page: https://youtu.be/PitaoE_WiGY Looking forward, we are confident in continued growth in in North America for exports, Houston and the U.S. the pilot of an electric yard mule. We are the first port to use container activity through Houston. An indication of this Gulf is a prime area for carrier service growth. In its this type of equipment, and so far, the mule is working well. is another weekly service to Houston from Asia by THE service network announcement for 2021, member We are also highlighting a small business we work with, Alliance that will begin early summer. carriers of Evergreen and THE Alliance — which one of 1,326 enrolled in our long-running program. includes Ocean Network Express (ONE), Hapag-Lloyd, Port Houston will be the first port of call in the United Hyundai Merchant Marine (HMM) and Yang Ming This year, we will launch a new minority- and woman-owned States on that new direct Trans-Pacific service being Line — said they are launching the East Coast Loop business initiative to accompany our successful small business launched by THE Alliance called the “EC6,” an East Coast, 6 (EC6) to make a seamless connection between the program. We are eager to take this step and help grow a more all-water service via Panama calling the U.S. Gulf. Economic U.S. Gulf and important ports in Asia. diverse network of companies we work with. 8 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 9

Ric Campo Reappointed as Chairman of the Port of Houston Authority

In January, Harris County Commissioners Court and Houston City Council reappointed longtime Houston businessman Ric Campo to serve as the Chairman of the Port Commission of the Port of Houston Authority.

During the virtual joint session, the governing bodies also appointed Houston RTG Cranes Add lawyer Captain Reginald McKamie to serve as Chairman of the Board of Pilot Commissioners for Harris County Ports. to Infrastructure

Houston Mayor Sylvester Turner and County Judge Lina Hidalgo both praised at Port Houston the new appointees.

“As one of the world’s largest ports, ranked first in the nation for waterborne tonnage, Port Houston PORT HOUSTON CONTINUES TO as Project 11, including a “new start” is vital to the region and helps drive EXPAND ITS INFRASTRUCTURE designation for the undertaking. the economy,” Turner said. “We WITH THE ADDITION OF NINE NEW Later this year, a trio of new ship-to-shore must have strong and steady DIESEL ELECTRIC RUBBER-TIRED cranes are coming to Bayport. Those leadership to guide us in all types of cranes are the largest used at GANTRY CRANES FOR THE BAYPORT future projects. I congratulate head of Camden Properties, worked with “I look forward to working with the Pilot Port Houston to help load and unload CONTAINER TERMINAL, PUSHING THE both Chairman Campo and government and community leaders to Commissioners, The Houston Pilots containers from ships. Captain McKamie and will look to extend rent relief to those affected by Association, the U.S. Coast Guard and TOTAL NUMBER OF SUCH CRANES them to serve with integrity and job losses. We are fortunate to have other stakeholders to make the Ports TO 107 — 57 RTGS AT BAYPORT AND As the largest container port in the Gulf total of 4,000 feet of berths, compared transparency while continuing leaders like Chairman Campo and of Harris County safe, efficient and ANOTHER 50 AT BARBOURS CUT Coast and sixth-largest container port in to 6,000 feet of berths at Barbours Cut. to build community engagement Captain McKamie advocating for our a workplace reflective of our diverse CONTAINER TERMINAL. the nation, Port Houston saw its fastest At final buildout, Bayport will have 7,000 around the Port.” communities while steering our region community,” McKamie said. growth in 2019, according to data from feet of berths. toward continued growth.” RTGs of this kind are used in intermodal maritime sector data vendor IHS Markit Hidalgo noted Campo’s business acumen operations to ground or stack containers. PIERS. That year, Port Houston nearly and vision for the future. Campo, who just completed his first term as Inbound containers are stored in the hit the three million mark for twenty- BAYPORT CURRENTLY HAS chairman, said he appreciated the support of container yard for pickup by trucks, while foot equivalent units (TEUs), recording We are fortunate to have “Our region’s economic growth needs to Hidalgo, Turner, the County Commissioners outbound boxes are stored for loading 2,987,291 TEUs — and just 828 TEUs shy 4,000 feet be inclusive, and Ric Campo understands and City Council members. leaders like Chairman onto vessels. of that number in 2020. how to honor the needs of local Campo and Captain McKamie OF BERTHS communities while generating healthy “I am proud and honored to serve with advocating for our communities The new Konecranes equipment adds to Growth of TEUs is expected to continue commerce,” Hidalgo said. “He looks our amazing Port Houston team,” Campo while steering our region the excitement surrounding the continued to increase, at least in part because a beyond the balance sheet to prepare said. “Our best is yet to come.” toward continued growth. growth at Port Houston, recently rising population will cause an increased for future needs, investing smartly in supported by Congress’s passage of the demand for even more consumer goods. 7,000 feet jobs, our environment and renewable McKamie said he considered it a privilege — Lina Hidalgo 2020 Water Resources Development Act, OF BIRTHS AFTER energy. He not only led the port during to lead the Board of Pilot Commissioners. County Judge which formally authorized the expansion Bayport, which is about halfway through FINAL BUILDOUT our current public health crisis, but as the of the Houston Ship Channel, known its phased construction, currently has a 10 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 11

Continued investment in critical improvements that let the get this project authorized and funded,” Guenther said. “Without ship channel handle commerce safely and efficiently helps their continued support, we wouldn’t be in this position today.” drive the port’s tremendous growth — and its contributions Harris County Precinct 2 County Commissioner Adrian Garcia, to the region, state and national economies. who represents much of the port region, noted how important the ship channel is to the entire area, the state and the nation. The project’s national economic boost is significant because the port drives $802 billion in annual national economic value Expanding the channel is critical to safely and efficiently sustaining and sustains more than three million U.S. jobs. national energy security, growing domestic manufacturing, increasing U.S. exports, and expanding job opportunities. The design aspect of the project, which is the eleventh major widening and deepening of the waterway in its history, is The channel is one of the most vital waterways in the country, virtually complete. The next steps include starting to dig dirt. connecting the nation’s largest petrochemical complex to the globe. The waterway has more deep-draft ship visits than any “To go from congressional authorization to securing other port in the country in addition to 200,000 barge transits a pathway for construction in less than a month is every year. As energy and manufacturing exports increase and phenomenal news,” said Port Houston Chairman Ric vessel sizes grow, improving the channel is of national importance. Campo. “Project 11 will provide the greater Houston metropolitan area continued job growth and economic The award is critical for port and channel stakeholders, as Project 11 Receives development opportunities while improving air quality this designation and funding allow the Corps of Engineers by reducing traffic congestion on the channel.” and the port to execute a Project Partnership Agreement, which lets construction begin for the critical elements of the The goal is for an initial three percent reduction of nitrogen project. Port Houston, a bipartisan congressional delegation ‘New Start’ Designation oxides (NOx) from vessel emissions. A wider, deeper and safer and channel stakeholders worked together for many years channel has fewer transits, shorter wait times and decreased to make this channel improvement project a reality, including PROJECT 11 OFFICIALLY IS A GO. turnaround distance. In the next 11 years, it is anticipated that writing letters and making calls to influential federal decision- air emissions will fall seven percent annually. makers in Washington, D.C.

Executive Director Roger Guenther called the “new start” In addition to the new start designation and construction designation a momentous occasion for the port. funds, the port also receives $55.5 million in annual operations and maintenance funding to ensure safe and “We’re grateful for our bipartisan congressional delegation and efficient vessel traffic on the current channel. Project 11 will widen and deepen the channel for safer and the many channel stakeholders who aggressively advocated to more efficient navigation of vessels calling Port Houston’s In January, the U.S. Army Corps of eight public terminals and more than 200 private facilities operating along the channel, collectively known as the Port of Engineers granted Port Houston Houston. Specifically, the project will widen the channel by 170 a “new start” designation and feet along its Galveston Bay reach, from 530 feet to 700 feet. It will also deepen some upstream segments up to 46.5 feet, authorized $19.5 million in federal make other safety and efficiency improvements, and craft new environmental features. funds to begin construction of the As the advocate and local sponsor of this crucial federal Houston Ship Channel Expansion — waterway, Port Houston is partnering with the Corps of Project 11. That project is authorized Engineers as well as private industry on a plan to expand the channel at an accelerated pace. With the help of those in the Water Resources and partners, Port Houston will begin the work this year, making the channel safer and more efficient and ensuring this Development Act of 2020 as part waterway will continue to remain the national economic treasure it is today. The Port of Houston is now the top port of a larger legislative package that in the United States in terms of total waterborne tonnage. Congress passed in December. It also ranks first in foreign waterborne tonnage and number of vessel transits. Nearly 285 million tons of cargo moved through the Port of Houston overall in 2019. 12 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 13

NEW YARD MULE IN OPERATION Strategic AT BAYPORT CONTAINER TERMINAL

Delivered by Briggs Equipment in late November, Port Houston’s “The electric yard tractor is just another example Environmental new Kalmar Ottawa T2E electric yard mule is indicative of our of Port Houston’s commitment to environmental continued commitment to the improvement of quality of life and leadership and preparing for a sustainable future by sustainability for our region. continuing to lean green,” said Trae Camble, Director of Environmental Affairs. Moves Reduce The terminal tractor is highly efficient — producing less noise as well as fewer fumes and emissions — and sports an intuitive While the overall cost is about $320,000, the new equipment diagnostics system that can be used both indoors and outdoors. is fully funded through a grant from the Texas Commission on Environmental Quality. The state grant also will cover the Emissions Specialty vehicles like these are used to move containers easily cost for a charging station and a one-year study to verify the within the yard. truck’s efficiency.

PORT HOUSTON HAS REDUCED ANNUAL EMISSIONS BY ABOUT 55% OVER THE LAST FOUR INTRODUCING THE NEW YEARS, AS ENVIRONMENTAL INITIATIVES TAKEN DURING THAT TIME ARE NOW SHOWING KALMAR OTTAWA T2E ELECTRIC YARD MULE RESULTS, PARTICULARLY THE SWITCH TO RENEWABLE ELECTRICITY. TO PORT HOUSTON

More than a year ago, Port Houston At the same time, Port Houston However, Port Houston’s complete began purchasing 100%, asset-backed developed the latest Clean Air Strategy environmental jurisdiction is somewhat renewable electricity port wide — Plan and solicited public comment limited. While Port Houston oversees the first port authority in the United on the document. The plan includes projects such as marine construction States to make this move. Now Port additional strategies and tactics for permits and pipeline licenses, it does Houston’s program is on track to make further reduction of Port Houston’s not regulate air impacts from users and a big difference. carbon footprint. manufacturers, which is the domain of the Environmental Protection “The port’s decision to move to 100% Executive Director Roger Guenther said Agency and the Texas Commission on renewable electricity is not only great that Port Houston is committed to being Environmental Quality. for the environment, but is also great a leader in environmental initiatives. for business,” said Trae Camble, Acting on community suggestions, Director of Environmental Affairs. “Sustainability is important to all of us Port Houston is mitigating emissions at Port Houston, and we’re continuing by working with willing participants With a 10-year contract with MP2 to launch programs and prioritize the and applying for $2.5 million in funds Energy, a wholly owned subsidiary environment in our decision-making,” through the Diesel Emissions Reduction of Shell Energy North America, at a Guenther said. Act to repower tugboats to the latest cost not to exceed $35 million, Port Tier 4 Standard. This move alone could Houston will save about $240,000 reduce nitrogen oxide emissions by annually by moving from a three- nearly 1,000 tons. year to a 10-year term, a savings of $2.5 million. Sourcing the electricity from 100% renewable generation The port is focused on environmental leadership by being will eliminate about 25,000 tons of practical and doing what we can — the public has asked, and we carbon dioxide from Port Houston’s carbon footprint annually and a are answering. quarter of a million tons during the — Roger Guenther next 10 years. Executive Director 14 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 15

Port Houston has maintained an even balance of imports The movement of containers worldwide made headlines “Almost from the first voyage, use of this method There’s More to and exports in recent years, which can help offset issues recently when the container vessel Ever Given became of transport for goods grew steadily,” noted the involving empty containers, but other strategic steps also wedged between the banks of the Suez Canal. That mishap World Shipping Council. “And in just five decades, have been taken. blocked access through the canal for other vessels and sent containerships would carry about 60% of the value Empty Containers a shockwave through the global supply chain. The vessel was of goods shipped via sea.” New Empties Facility at Bayport ultimately freed but did cause some disruptions and backlogs. Than Space Intermodalism is at the center of the shipping revolution, At Port Houston’s Bayport Container Terminal, the opening of a One major reason that one incident can trigger such an impact where the same container carrying the same cargo can be new Empty Container Yard Facility in January gave Port Houston is that about 90% of goods that are moved throughout the transported virtually seamlessly using different transport So, just how important is an empty shipping container? even more of a leg up for its customers. That facility is operated world are shipped by water. That includes the shipping of modes, including by truck, train or both. Those industry by Houston Terminal LLC, a joint venture with Ceres. consumer goods, which largely are moved by container. improvements, among others, allowed Port Houston to There is little argument about that subject, as the positioning expand facilities and handle increasing amounts of cargo. of empty containers is considered one of the most complex The Port Houston facility spans 26 acres total and handles Most goods imported or exported to Port Houston move problems in the distribution of freight globally. empty containers for 2M partners, MSC and Maersk, as well through the Panama Canal. The canal opened in 1914, the Despite the coronavirus pandemic in 2020, container as others. The facility offers a robust array of services to same year as the Houston Ship Channel. volume at Port Houston rebounded in the last quarter One of the major causes of this problem involves trade accommodate customer requirements that includes empty at unprecedented levels to reach a total of 2.99 million imbalances. A region that imports more than it exports will container storage, container maintenance and repair, container Houston Center Stage as Containerization Took Hold twenty-foot equivalent units (TEUs). Executive Director accumulate empty containers, while a region that exports examination, and container stuffing and stripping. Having Roger Guenther lauded the Port Houston team, stevedoring more than it imports will face a shortage of containers. empty containers readily available is critically important to Modern container shipping is celebrating its sixty-fifth partners and ILA for delivering goods with continued high And such imbalances have been growing in recent years. ocean carriers. anniversary this year, and Houston played a big role. The productivity and efficiency levels. whole concept of containerization in shipping took off after That can put added stress on moving cargo by container. The Bayport Container Terminal has an existing 25-acre empty a vessel carrying containers from New York and New Jersey Thus, the need to reposition empties is an ongoing issue container yard, operated by Terminal Link Texas, where similar called the Port of Houston in 1956. across the world. functions are carried out daily. 16 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 17

Rail Marketing Deal OK’d by Port Commission

NEW MARKETING SERVICES FOCUSED ON RENEWED Barbours Cut Terminal rail ramp and increase volume through INTERMODAL RAIL SERVICE TO AND FROM PORT the terminal by expanding into new discretionary markets. HOUSTON’S BARBOURS CUT CONTAINER TERMINAL ARE UNDER DEVELOPMENT AFTER BEING APPROVED A modernization program is underway at Barbours Cut to BY THE PORT COMMISSION IN MARCH. increase cargo handling efficiency and capacity. That program includes the replacement of older Panamax cranes with The move is aimed at restoring service between Houston larger Post Panamax ship-to-shore cranes, lights and dock and Dallas and beyond, while driving additional international improvements, and yard reconfiguration. PORT HOUSTON’S waterborne container cargo volumes through the terminal. The modernization program is expected to increase 2040 PLAN WILL Plans call for Kinne International to assist Port Houston in capacity from 1.2 million twenty-foot equivalent units developing service agreements with the Class I rail carriers (TEUs) to 2 million TEUs when completed. The terminal HELP GUIDE GROWTH and contract inland rail service routings through the port channel has been deepened to 45 feet to match the facilities, including developing service and pricing packages depth of the federal Houston Ship Channel. from pier pickup to the inland rail ramp and vice versa. Together, Port Houston’s two container terminals — the other As Port Houston continues to expand, The plan’s objectives include Executive Director Roger Guenther The arrangement will also support international ocean carrier is the Bayport Container Terminal — handle more than two- the focus remains on strategic growth. communicating development plans and said Port Houston embraces the public services calling Port Houston facilities, a service that would be thirds of the container traffic that moves through the Gulf of infrastructure needs to stakeholders; benefit it serves to the region, Texas offered to ocean carriers and beneficial cargo owners and users. Mexico, making Port Houston the biggest container port on At a recent meeting, the Port Commission enabling flexibility and adaptability to and the nation. the Gulf Coast. reviewed the Port Houston 2040 Plan, a respond to change over time; guiding Port Houston staff determined that the new relationship with blueprint that provides a direction for the long-term planning and decision-making; “We recognize that achieving the goals Kinne could leverage the significant potential of the existing growth and development of Port Houston and informing policies as well as established by the 2040 Plan will require over the next 20 years, including a decision- prioritizing investments. the concerted efforts of Port Houston with making framework for policies, strategies, numerous governmental agencies, port initiatives, investments and actions. Chief Infrastructure Officer Rich Byrnes, users, customers, non-governmental who presented the plan to the Port organizations, community leaders and The 2040 Plan addresses a broad Commission, noted that four core area residents,” Guenther said. “I’m range of topics, covering infrastructure, strategies for Port Houston’s future excited that the 2040 Plan clearly operations, emerging technology, growth and development emerged captures and communicates our goals environmental stewardship, safety and through the planning process. so we can actively and effectively work security, community partnerships, and together. Coordination, collaboration market dynamics. The plan provides a “We have labeled these strategies and cooperation will be critical to our vision of how Port Houston is creating the Four C’s of Channel, Cargo, collective success.” a stronger and more resilient port with Community and Change to reflect sustainable contributions to the economy, Port Houston’s role as an authority, Port Houston’s Facility Planning environment and local communities. port operator, navigation sponsor, Department developed the 2040 Plan a responsive and responsible with support from diverse stakeholders Port Houston Chairman Ric Campo noted partner, and economic catalyst,” during a multi-stage process, including that the plan is proactive and focused on Byrnes said. independent studies and consultations Port Houston’s ongoing and long-term with Port Houston staff and external efforts to being a world-class port. The Port Commission received an stakeholders to inform decision-making update about the Houston Ship and policy development. “The Port Houston 2040 Plan is perhaps Channel Expansion — Project 11, and more important than ever as we look to developments since the 2018 Port how Port Houston can be a catalyst for Commission Dredge Task Force meeting. both successful recovery in the wake of In December, Congress passed the 2020 COVID-19 and the long-term prosperity Water Resources Development Act, which of our communities, our region, the state included formal authorization for the of Texas and the nation,” Campo said. expansion of the Houston Ship Channel. 18 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 19

Enhanced Community Grants Program Now Underway

Port Houston launched an enhanced Community Grants Economic and Workforce Development Program and Program for 2021, building on the many successes achieved American Bird Conservancy’s Plastics and Trash Pollution after the launch of the program last year. This year’s Reduction and Prevention Program. approved budget set aside $300,000 for first-year awards, a $50,000 increase from 2020. During its first year, the program received 64 full grant funding applications for consideration. The 2021 Community Grants program opened February 16, when organizations submitted letters of interest for review Other awards given in the inaugural year included and consideration. Eligible organizations are invited to programs such as the University of Houston Supply complete full applications. Chain and Logistics Technology Degree Plan Program and El Centro de Corazon’s Improving East End The Community Grants program focuses on investing Community Health Through Healthy Food Access. resources into meaningful projects and programs to enhance local communities. Port Houston is particularly interested Through a competitive application process, the Grants in supporting programs or services that prioritize workforce Committee carefully evaluated submitted applications development, environmental stewardship, community based on criteria that would help Port Houston develop and outreach and maritime education. strengthen community partnerships and create greater value for the region. Despite Freeze, Cargo Outlook The 2020 Community Grants program drew scores of worthwhile projects and plans to enhance our region. For And with the additional funding approved for this year, example, San Jacinto College’s Incipient Fire Protection and Port Houston anticipates that value will broaden ever further. Looks Steady Control Course received an award, as did Juma Ventures’

While the big freeze of 2021 caused more than a few problems From a business standpoint, Port Houston suspended at Port Houston, including impeding the flow of some cargo, operations temporarily at its public facilities due to the storm. volumes have increased and are headed in the right direction. Container terminals closed for nearly a week, followed by several days of fog that caused additional disruption. While volume through the container terminals fell more than 20% in February — the ice storm hit in mid-February — the Campo noted that extending customer service hours at the change was not unexpected since only 56 container vessels container facilities helped alleviate the backlog and maximize called during the month, when the number normally is about 80. cargo flow.

And although twenty-foot equivalent units (TEUs) decreased “Much of what comes across our docks supplies about 12% overall, loaded container volume dropped just about millions of people in our region with food and other 7%, Executive Director Roger Guenther noted. essential goods, making our role especially critical in times of crisis,” Campo said. “We reopened our Chairman Ric Campo expressed his gratitude for the hard terminals to begin moving cargo and support our work of employees and partners impacted by this historic community as recovery moves forward.” weather event and its aftermath. Despite the ice storm, container activity at Port Houston roared Many Texans, including Port Houston employees and partners, back 20% in March, handling 297,397 TEUs — the highest suffered from the loss of electricity, heat and water, incurring monthly totals ever, surpassing the record set in October 2020. damage to their homes during the record-breaking freezing temperatures. 20 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 21 THE

Port Houston Expands #1 Resin MANIFEST Packaging Capacity

Port Houston News and Highlights Port Houston and Portwall Partners Ltd. have entered into a 50-year lease agreement to develop a state-of-the- art resin packaging facility on approximately 56 acres of We have a proven track record and are excited to be property at Port Houston’s Bayport Industrial Complex. integrally involved with Port Houston for this major new facility. As a family business, we have been able to grow Under terms of the agreement, Portwall Partners will steadily in the resin market thanks to our dedicated construct an 800,000-square-foot rail-served facility to serve the region’s large and growing resin market. team members, good business practices and our The modern facility will be subleased and operated by many loyal customers. We look forward to this great Packwell and feature three high-speed packaging lines, opportunity and are excited to be able to grow with the 350 truck spots and 500 rail spot capacity. plastics industry.

“Port Houston is America’s preeminent resin port,” Executive — Al Duran Director Roger Guenther said. “This development is a Packwell President continuation of the strategic expansion Port Houston has been pursuing for some time. We look forward to seeing this new industrial park develop and flourish in order to better serve our customers and keep jobs here in Houston.” The agreement became effective April 1, 2021.

Port Houston’s Bayport Industrial Park is adjacent to the Port Houston has a wide offering of direct all-water Bayport Container Terminal complex. Packwell is a leader services connecting Houston, Dallas-Ft. Worth and Middle in the plastics bagging and logistics industry and is based America with markets in Asia, Europe, Latin America in Houston. The new Bayport facility will be the newest and ports around the world. Among the nation’s top-10 addition to Packwell’s facility network across the city, container ports, Port Houston is the fastest-growing, where it has been packing polymers of all categories for a according to 2019 data from maritime sector data vendor wide range of clients. IHS Markit PIERS. Port Houston handles more than two- thirds of the containers that move through the Gulf and MANIFEST spotlights news briefs exclusively from Port Houston, its customers, trading partners and community stakeholders. Established in 1986, Packwell has a long track record in has a 59% market share of all resins exported from the Submit information in the form of a letter or press release via e-mail to [email protected]. Publication is not the industry. United States. guaranteed, and the magazine staff reserves the right to edit submissions for content and style. 22 | PORT HOUSTON NAVIGATOR | SPRING | 2021 | 23 New Cold Storage Facility Opening at Port Container Activity at Blackline Cold Storage LLC and affiliates will develop, construct and operate a new 298,000-square-foot, state-of-the-art cold storage facility at the Port of Houston, on a 36-acre site in the Strong growth in demand for cold storage across North Port Houston Set to Climb TGS Cedar Port Industrial Park. America coupled with insufficient existing capacity is what excites Blackline about cold storage business The rail-connected site is strategically located within the heavy- opportunities and regionally what drove Blackline to While container activity at Port Houston haul corridor near Port Houston’s Barbours Cut and Bayport in 2020 didn’t set a record, it came close, select the Port of Houston for investment. We expect Container Terminal, with convenient access to the regional falling just 828 twenty-foot equivalent interstate highway system. our customers who are seeing increased volumes of units (TEUs) shy of last year’s record year. perishable and frozen goods movements through the As Executive Director Roger Guenther The site provides Blackline Cold Storage the land for phased Port of Houston as well as strong Houston grocery noted, that is about a half day of work on expansion up to 600,000 square feet at full buildout. supply chain demand to benefit from this project. The one ship with three crews working. need for this new cold storage facility serving the Blackline Cold Storage selected the Tippmann Group, an And 2021 seems to be setting up nicely Port of Houston has been validated by the customer industry leader in temperature-controlled facilities, for the for Port Houston, notwithstanding the facility design and construction. That work will incorporate response we have already witnessed. treacherous winter storm that hit Texas flexibility for multiple segregated temperature zones, 45-foot in February. That storm shut several clear ceiling heights, 25 truck doors and rail connectivity to — Mike Day Port Houston facilities for about a week, serve a broad range of customer requirements. CEO, Blackline Cold Storage but Port Houston rebounded quickly, thanks to employees, ILA labor, truckers The Blackline facility will represent the newest large-scale cold and others. storage facility at the Port of Houston, and is on schedule to Blackline Cold Storage is a subsidiary of Blackline Partners LLC, break ground and be operational within 12 months. Blackline an experienced private growth-oriented firm focused on the Experts anticipate container traffic Cold Storage has secured initial-term commitments for the development and operation of large-scale logistics facilities across the United States will continue facility and is engaged in discussions with prospective clients that delivers innovative and efficient storage and handling to climb in 2021. Although volume who are interested in securing capacity in the facility. solutions to its customers across North America. at Port Houston decreased about 5% in January and 13% in February “Despite the continuing health Early results from the federation show compared to 2020. and economic challenges that retail sales grew 6.7% in 2020 Jetco Named 2021 Best Fleets to Drive For COVID-19 presents, we are very compared to $4.06 trillion in 2019, nearly The volumes recorded in that period optimistic that healthy consumer doubling NRF’s forecast of at least 3.5% last year were up about 25% over 2019, fundamentals, pent-up demand growth — which did not account for the just before the coronavirus pandemic and widespread distribution of the impact of a global pandemic. Jetco Delivery is excited to announce that it is one of 20 for-hire surveys were very clear that this company values driver safety! hit in March. vaccine will generate increased trucking companies in North America to be recognized as a 2021 Congratulations to everyone!” economic growth, retail sales This figure compares with 3.9% growth Best Fleets to Drive For, presented by the Truckload Carriers The 255,039 TEUs handled in January and consumer spending,” NRF in 2019. Online and other non-store Association (TCA) and CarriersEdge. Kicking off 2021 with this award adds extra significance as Jetco 2021 is the second-highest January on President and CEO Matthew Shay sales, which are included in the total celebrates 45 years in business. record, behind only the 268,773 TEUs in said. “From the outset of the figure, skyrocketed 21.9% ($969.4 “As a first-time recipient of this award, we are thrilled to be January 2020. pandemic, retailers have gone billion) as consumers relied more on recognized for our employees’, and especially our professional “2020 certainly posed unique challenges, so the timing could above and beyond even the most e-commerce. The numbers exclude drivers’, dedication to making Jetco a Best Fleet to Drive For,” not be more serendipitous for the Best Fleets recognition in conservative safety guidelines to automobile dealers, gasoline stations said Jetco President Kyle Kristynik. “This award is truly a conjunction with the celebration of our forty-fifth anniversary,” Retail Federation protect and serve their associates and restaurants. testament to our team living and breathing our core values Kristynik said. “Both of these achievements speak to the Issues Positive Outlook and consumers alike.” each and every day, with safety being number one.” strength of our company culture.” In and around Port Houston, the rise of The National Retail Federation (NRF) Retailers are increasingly engaged e-commerce is expected to trigger even CarriersEdge CEO Jane Jazrawy said it is not easy to break into Jetco’s company culture stresses the importance of diversity as anticipates that retail sales nationwide in working with federal, state and more distribution centers to handle the the top 20 as a first-year program participant, but Jetco came a contributing factor to its success. will grow between 6.5% and 8.2% in local health officials to distribute and expected increase in consumer goods. out of the gate running. 2021 — more than $4.33 trillion — as administer the vaccine, Shay added, More than 200 companies were nominated for the Best Fleets more individuals get vaccinated and the noting the partnership has been vital “Their driver-centric approach can be seen in all areas of the program by one of their professional drivers. To be considered, economy reopens. to our economic health throughout the company, including career development, safety programs companies must operate 10 or more trucks. pandemic and will continue this year. and the response to the pandemic,” Jazrawy said. “Driver 24 | PORT HOUSTON The Whole Story

Barges used to carry cargo to and from the city using the Did You Know? shallow draft of Buffalo Bayou. Once at the Port of Galveston — the preeminent port in Texas at the time — those barges met up with the seagoing vessels that transported cargo through the Gulf. However, as cargo volumes continued to grow, along with Houston itself, Houston’s lack of a deepwater port became increasingly problematic.

110 Years Ago, In the late 1890s, Houston business leaders brought this urgent need to Congress, pointing to the many international Bond Issue Set the customers who depended on Texas cotton in particular — and, increasingly, on other goods. U.S. Representative Tom Ball worked hard to convince his colleagues, but his efforts gained Stage for Success traction only after a series of events triggered change.

In 1911, a campaign in Houston and Harris County persuaded On September 8, 1900, a devastating hurricane slammed into voters to approve a $1.25 million bond issue to raise money Galveston, one of the worst natural disasters in U.S. history. for dredging the Houston Ship Channel. A host of visionary More than 8,000 people in the Galveston area lost their lives. Houstonians added considerable energy to a campaign that Arguments for a protected port 52 miles upstream from became a resounding success. Voters approved the bond Galveston’s exposed position took on greater urgency. issuance and the creation of the Harris County Houston Ship Channel Navigation District, which today is called Port of And then in 1901, Texas commerce accelerated with Houston Authority (POHA), better known as Port Houston. the discovery of oil at Spindletop and crops like rice outrivaling cotton exports. But even with the enthusiasm the campaign created, the bonds still had to be sold. Prospective buyers hesitated, knowing little Representative Ball proposed a revolutionary concept for about such financial instruments. That is when businessman and the time: that Houston and the federal government share civic leader Jesse Jones met with the presidents of the largest the cost of dredging a deepwater channel to Houston. banks and asked them to take the bonds in proportion to their The Congressional Rivers and Harbors Committee voted capital and surplus. In less than 24 hours, Jones convinced the unanimously to accept the idea, which became known as bankers to accept the bonds. The Houston Plan. That plan is still used today.

Work on the deep channel commenced in 1912, and the deepened Houston Ship Channel opened in 1914. Today, the channel is the busiest waterway in the nation and handles more waterborne tonnage than any other port in the country.

1912 Work on the deep channel begins

1914 The deepened Houston Ship Channel opens

The nation’s busiest waterway and handles more TODAY waterborne tonnage than any other port in the country 26 | PORT HOUSTON

Lee Composites: Your One-Stop Marine Infrastructure Shop

Port infrastructure maintenance can seem like a daunting task, but for Lee Composites, it’s a revolutionary stepping-stone.

Lee Composites is a multi-faceted interlocking sheet pile in the world “They’ve provided complete fender leader in marine and commercial and the first patented SuperHanger™ systems and bollards for the composite products, providing solutions PVC pipe hanger system — both being Turning Basin, CARE, Barbours to protect marine- and freshwater-facing critical needs in marine infrastructure. Cut and Bayport Container infrastructure. The company designs and They also helped pave the way for the Terminals,” Ramirez said. “Bob Lee manufactures products such as seawalls, ShibataFenderTeam™ Fender System, is a subject-matter expert in the pilings, plastic lumber, rubber fenders SuperPile™ Fiberglass Marine Pilings Shibata Fender System, fiberglass and dock bumpers that are used at ports and more. marine pilings and composite around the world. lumber, and he shares that Today, Lee Composites is the number one knowledge with the Port to achieve Lee Composites President Bob Lee supplier of fenders and is a one-stop shop the best ship docking system.” established the company in 1989 after for most maritime businesses around the working for Dow Chemical and a startup world, including Port Houston. Lee Composites has been in business composite company, beginning his new for over 31 years, and they don’t plan on venture as a consultancy before growing Gilda Ramirez, Senior Director of slowing down anytime soon. into a manufacturer that could develop Port Houston’s Small Business and and market maritime products. Education Outreach Department, said Lee Composites has delivered value and Early on, Lee Composites helped develop quality to Port Houston and its prime the first fiberglass pultruded corrugated contractors for the past decade. PRSRT STD U.S. Postage PAID Houston, TX Permit #1395 111 East Loop North Houston, Texas USA 77029-4326