MILESTONES IN THE MAKING 20182018-19 Annual Report 2019 Table of Contents Pillars of Success
01 Pillars of Success For sustainable growth, we hold the Port of Corpus Christi and the companies that do business with the Port to these standards: 02 Port of Corpus Christi Commission
03 Message from the Chairman
04 Message from the CEO
06 Our History
08 By the Numbers
10 Commodity Totals Job Creation & Environmental Stewardship 11 Our Customers and Partners Economic Growth & Sustainability 12 New Business
14 Corpus Christi Ship Channel Map
16 Moving America’s Energy
17 Our Economic Impact
18 Infrastructure Projects
20 Ship Channel Improvement Project Educational & Safety & Corporate 22 Seaport Values Workforce Development Social Responsibility
23 Safety
24 Educational & Workforce Development
25 Emergency Management
26 Environmental Stewardship
28 Corporate & Social Responsibility
30 New Administration Building
32 Looking Ahead
1 Port Commission Message The Authority is governed by a Port Commission comprised of seven commissioners who serve without pay. Each commissioner serves from the a staggered term of three years with appointments made to the Commission each year. Three commissioners are appointed by the Corpus Christi City Council, three by the Nueces County Commissioners Chairman Court, and one by the San Patricio County Commissioners Court.
The Pilot Board The Port of Corpus and the Corps of Engineers began the Christi continues to process of deepening and widening Chapter 70 of the our ship channel from the Gulf of Texas Transportation play an important role Mexico to the Inner Harbor in Corpus Code provides that the in today’s economy, not Christi—an undertaking that will Port of Corpus Christi create the deepest ship channel in the Commissioners serve as the only in South Texas but Gulf of Mexico. This project will allow Board of Pilot Commissioners in the nation. the Port of Corpus Christi to remain for the Port, with exclusive competitive with ports throughout the jurisdiction over the Our success and progress is a catalyst world. We also entered into a lease Aransas-Corpus Christi Charles W. Zahn, Jr. Wayne Squires Richard R. Valls, Jr. for this great nation of ours. The Port of agreement with Lone Star Ports, LLC Pilots, as they undertake the Chairman Vice-Chair Secretary Corpus Christi is the third largest port (owned by an affiliate of the Carlyle piloting of vessels in Port Appointed 2012 Appointed 2015 Appointed 2014 in the nation by total revenue tonnage Group and Berry Lone Star Ports, LLC), of Corpus Christi facilities. Current Term Ends 2021 Current Term Ends 2021 Current Term Ends 2019 and the leading U.S. produced crude oil to build and operate an oil export City of Corpus Christi Appointee City of Corpus Christi Appointee Nueces County Appointee exporter in the nation. Our vision is to terminal on land owned by the Port of be THE Energy Port of the Americas. Corpus Christi on Harbor Island. When And it is our responsibility at the completed, this facility will allow the Port of Corpus Christi to provide the Port of Corpus Christi to continue as infrastructure that will ensure that our the number one U.S. produced crude industry partners are successful. If our oil exporter in the nation. In addition, it industry partners are successful, that will help the United States of America success will translate positively for the to become energy independent as well Port of Corpus Christi. To that end, we as balance trade throughout the world. have strengthened our infrastructure and multimodal capabilities by The Port of Corpus Christi has been building new large vessel docks very successful and, in my opinion, and expanding our rail system, and will continue to prosper because of David P. Engel Wes Hoskins Richard Bowers Catherine Hilliard we are in the process of deepening the willingness and vision of the Port Commission, the diligence of our Commissioner Commissioner Commissioner Commissioner and widening our ship channel and Appointed 2014 Appointed 2016 Appointed 2015 Appointed 2019 investing in the construction of a new Port staff, the commitment of our Current Term Ends 2020 Current Term Ends 2019 Current Term Ends 2021 Current Term Ends 2020 high-clearance bridge. Because of industry partners, and the continued City of Corpus Christi Appointee San Patricio County Appointee Nueces County Appointee Nueces County Appointee these enhancements, our industry development of infrastructure, which partners are funding $50 billion in thereby attracts new industry and privately funded industrial projects in ensures the continuance of this success and around the Corpus Christi Ship into the future. Channel. To meet our commitment to those partners, we entered into a Project Partnership Agreement with the US Army Corps of Engineers to deepen and widen our ship channel. The Port of Corpus Christi secured Charles W. Zahn, Jr. $148 million in federal funding for the Chairman government’s share of this project, Port of Corpus Christi Authority
2 3 2018 Milestone
$92 Million Contract Awarded Message from the CEO for Ship Channel Improvement Milestones at the much-needed coastal infrastructure. continuing education and training Consequently, our 10-year, $1 billion for our growing population. And our Project Port of Corpus Christi capital investment program targets collaborations with academia in support Authority continue building more docks, more storage of our commitment to responsible, facilities, more pipelines, more rail, sustainable growth will only increase The Port is awarded making waves in the more roads and, certainly, an improved with such world-class research centers a $92M construction energy industry as Corpus Christi Ship Channel currently as the University of Texas Marine contract for the critical we chart a course being enhanced by our federal partners, Science Institute (UTMSI), the Texas the U.S. Army Corps of Engineers. A&M Corpus Christi Harte Research first dredging of the for growth. Institute (HRI) and Conrad Blucher Corpus Christi Ship Our accomplishments are a result of the Institute for Surveying & Science (CBI). Both 2018 and the first half of 2019 collaborative and trusting relationships Channel, the most were yet again transformative periods we have built over our 93-year history Lastly, our people continue to important development in our nearly 100-year history marked in the Coastal Bend communities we demonstrate an inspiring level of for the year ahead. by records in tonnage and revenues. serve. The Port of Corpus Christi’s stated lightly. No single agency in South dedication to serving the community However, driving our success is not just mission of “leveraging commerce to Texas has accomplished more to through our VolunteerSHIP™ program. our fortuitous proximity to Texas’ large drive prosperity” is simply a commitment improve our environment than the Port In 2018, our employees contributed over energy producing fields which have to run our economic development of Corpus Christi. From ecosystem 1100 volunteer hours with qualified now positioned the United States as activities in a thoughtful manner rather restoration, habitat creation, and air, charitable organizations throughout the largest energy producing nation in than burden our customers or the water and soil quality enhancements, our community. Working together with the world; nor our Corpus Christi Ship regional taxpayers with unnecessary the Port of Corpus Christi has a community leaders to leave a legacy Channel, soon to be the widest and bureaucracy and inefficiency. One demonstrable record of award-winning of serving others is one of the most deepest in the entire U.S. Gulf; nor our often overlooked factoid is the Port of environmental stewardship. We rewarding experiences of humanity. supportive and expanding customer Corpus Christi has taxing authority as received special recognition in 2018 This is our home, and while the Port base who have committed billions of an independent navigation district of from Governor Greg Abbott with of Corpus Christi plays a pivotal role dollars in investment in South Texas the State of Texas, though we’ve never the Texas Environmental Excellence in the global energy marketplace, our and for whom we strive to provide exercised it! That’s a badge of honor Award SM in Pollution Prevention. identity is also defined by our pledge to value and are dedicated to serve. No, which motivates our people to execute improve our community not only with our triumphs are a direct result of our our affairs using best-of-breed practices But our work does not stop there. As we financial support, but through our active remarkable people and their devotion and technologies, all while being see more large industrial investments participation and precious time as well. to making the Port of Corpus Christi customer-focused and user friendly. in the Coastal Bend, we will continue to the best it can be for our customers, Consequently, our commercial success invest in our workforce and our youth As we continue these milestones in the our stakeholders and our community. story is being recognized nationally and by creating more educational programs, making, I am personally thankful for internationally with such accolades as more training programs, and more our employees, our customers, and the Our people are working hard to the 2018 “Deal of the Year” award from on-the-job opportunities essential for surrounding supportive communities, position the Port of Corpus Christi as Lloyd’s List for the ExxonMobil Chemical both attracting and retaining a skilled and I am honored and grateful for the ™ the Energy Port of the Americas , the and Saudi Arabia Basic Industries workforce here in the Sparkling City by opportunity to serve them all as we premiere global gateway for exporting Corporation (SABIC) Gulf Coast Growth the Sea. Our Adopt-a-School program stay the course on this journey called American energy, petrochemicals, Ventures joint venture transaction is designed to inspire kids (K-12) to the Port of Corpus Christi. Onward! polymers, agriculture, and a bevy of with the Port. But we are most proud learn while creating opportunities related commodities to our allies and of our achievements in improving the for educational development for trading partners around the world. We quality of our local communities. all our children regardless of their are forecasting crude oil and liquified socioeconomic situation. Our natural gas exports to triple or perhaps Our pledge to create jobs and partnerships with the regional higher even quadruple over the next five economic prosperity for the region education institutions such as Texas Sean C. Strawbridge years. To achieve these large-scale while safeguarding the environment A&M Corpus Christi, Texas A&M Chief Executive Officer projections, we continue to develop the from harm is one we do not take Kingsville, and Del Mar College ensure Port of Corpus Christi Authority
4 Message from the CEO 5 The goal to dredge the channel to a depth that keeps the Port of Corpus Christi on the competitive edge for global trade began as early as 1839 when Corpus Christi Port was a trading post. In 1923, the first Commissioners—Robert Driscoll, John W. Kellam, and W.W. Jones—set out on a quest to open a deep draft port and, in 1926, History the Port officially opened. Throughout the Port’s 92-year history, the deepening of the Corpus Christi Ship Channel has been the ultimate leadership task.
1923 1990 2018 2021 U.S. Congress Congress Port received Port actively working 1874 1931 authorized $23 million in toward a 54ft-deep Main sea channel authorized Channel Ship Channel federal funding channel from the Gulf 1839 dredged to 8 ft channel 1985 Corpus Christi deepened Project and an additional of Mexico to the Inner to allow for large construction of Channel is founded as deepening $35 million Harbor and widening steamers 25 ft in depth to 30 ft deepened Kinney’s to 52 ft to 530 ft by 2021 and 200 ft wide to 45 ft Trading Post
2019 2020 Port received $72 Port included in 2007 million in federal President’s Budget Congress funding for $53 million 1919 1926 1952 authorized 1852 City hit by Seven years to Channel federal powerful the day after the deepened funding for City of Corpus hurricane, hurricane hit, the to 36 ft the Ship Christi officially North Beach Port of Corpus Channel 2017 incorporated destroyed, Christi opened Project 350-400 killed with statewide Port signed a Project celebration— Partnership Agreement called the Nueces with U.S. Army Corps of County Navigation “The immediate need is for a deeper channel and to Engineers and accelerated District No. 1 enlarge the entrance to the main harbor. But now $44 million of its cost- a depth of 36 feet does not appear adequate in the share to begin project light of new developments in maritime construction, which makes greater depth imperative.”
Capt. Byrd Harris, Executive Director, 1952
6 Our History 7 2018 Port Customers 2018 by the Numbers Top 3 Commodities (in short tons) Petroleum 93,160,274 (Crude Oil = 45.7M short tons) Crude Oil Exports 268 6,954,203 Dry Bulk (13% increase from 2017) Total Crude Oil 2,601,336 Grain Movements #1 314M Noteworthy U.S. Crude Oil Exporter Barrels U.S. Census Bureau, Economic Indicators Division 6,467 28,441 Vessel Traffic 2018 Acres of Land Managed Total Tonnage (10,379 upland, 18,062 submerged) 106.2M+ 60 3rd Largest Tonnage/Short Tons in 2018 Miles of Railway U.S. Port by Total Revenue Tonnage TON TON TON TON TON
Total Assets 2018 Operating Revenues Net Income
2014 $82,159,445 2014 $31,152,200 2015 $93,421,855 2015 $28,405,418 2016 $83,021,962 2016 $21,140,861 2017 $95,541,093 2017 $30,380,941 $993.7M 2018 $105,780,128 2018 $45,594,485
8 By the Numbers 9 Total cargo in 2018 was 106,237,407 short Commodity tons. Net income was $45.5M (million). Our Customers Our customer list continues to The Port is operating on a healthy ratio grow. Here’s a snapshot of some Totals of cargo to net income, with petroleum and Partners of our largest users in 2018. leading the commodity charts.
120M $48M
100M $40M
80M $32M
60M $24M
40M $16M
20M $8M
0 $0M 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Total Short Tons Net Income
Totals (Short Tons) 2014 2015 2016 2017 2018
Break Bulk 270,678 408,389 345,811 555,721 621,286
Grain 4,070,316 3,396,829 4,169,145 5,162,711 2,601,336 Chemical 2,205,423 1,957,973 2,200,842 2,358,665 2,385,421 Dry Bulk 9,163,338 8,286,375 6,905,901 7,114,556 6,954,203 Liquid Bulk (Non Petroleum) 493,850 580,055 432,750 528,901 514,887 Petroleum Products 42,873,718 43,330,917 45,636,031 45,027,866 47,495,264
Crude 41,510,684 45,517,549 34,601,855 41,643,428 45,665,010
2018 Milestone
Setting New The Port set a new tonnage Records In record of 106,237,407 million tons, surpassing the previous record Tonnage of 103,478,088 million tons.
10 Commodity Totals Our Customers and Users 11 2018 Milestone A Strong Start Cheniere for Port Customers Energy Kicks Off Production Cheniere begins production and sends Two of the Port’s largest Moda Midstream their first shipment of customers had a successful start In 2018, Moda Midstream LLC acquired the Oxy Ingleside LNG in December 2018. Energy Center. Moda has successfully commissioned upgrades with major firsts in production, to Berth 2A at the Moda Ingleside Energy Center to enable exports and acquisitions. safe and cost-effective loading of Very Large Crude Carriers (VLCCs) at rates of up to 80,000 barrels per hour of crude oil. Cheniere Moda has commenced construction of an additional 10 million barrels of crude oil storage (for a total of 12 million barrels) In December 2018, Corpus Christi Liquefaction LLC, and a new manifold and interterminal piping system to allow a subsidiary of Cheniere Energy, became the first the facility to receive direct “basin-to-berth” crude oil deliveries LNG project in Texas to produce and export LNG. from the Cactus II Pipeline, Gray Oak Pipeline and Epic Crude Liquefaction Train 1 is substantially complete and Oil Pipeline. Moda’s VLCC terminal already receives direct is the first liquefaction train placed into operation deliveries of “neat” crude oil from the Permian Basin via the at a greenfield site in the lower 48 states. Train 2 Cactus Crude Oil Pipeline. is in the commissioning phase and Train 3 is under construction. The expected aggregate production capacity of the first three liquefaction trains is up to 13.5 million tonnes per annum (mtpa) of LNG. Up to seven midscale liquefaction trains adjacent to the current three liquefaction trains are also being developed.
The total expected nominal production capacity of the seven midscale liquefaction trains is approximately 9.5 mtpa of LNG, for a potential aggregate production capacity of 23 mtpa of LNG. Above: Moda’s services include deepwater vessel loading and unloading.
2018 Project (combined) $4.7B 680 $1.25B Numbers From Direct Foreign Permanent Full-time Jobs In New Projects Investments 12 New Business 13 77 KosmosUnion Industrial Pacific LeadRr The Corpus Christi Ship Channel Corpus Christi Ship Channel Map Covers 31.6 Nautical Miles 181