PORT HOUSTON 2040 PLAN COMPREHENSIVE LONG-RANGE PLAN
READY FOR THE FUTURE CONTENTS
WE ARE READY FOUNDATION FOR THE FUTURE BUSINESS RESILIENCE DISCLAIMER INTRODUCTION TO THE 2040 PLAN THE PLANS OF PORT HOUSTON IMPLEMENTING THE 2040 PLAN This document has been prepared for Port 01 03 05 Houston’s planning purposes only.
1 LETTER FROM THE EXECUTIVE DIRECTOR 19 FOUNDATION FOR THE FUTURE 53 ANTICIPATING AND PREPARING FOR THE FUTURE No person or organization should rely upon 2 EXECUTIVE SUMMARY 20 A COLLECTIVE COMMITMENT the information contained in this document. 54 INFORMED, FLEXIBLE, ADAPTABLE IMPLEMENTATION Moreover, no person or organization should 3 ABOUT THE 2040 PLAN 21 STRATEGIC PLAN 55 CAPITAL INVESTMENT rely upon expectations of Port Houston to 22 KEEPING PEOPLE FIRST meet the strategic objectives or otherwise 23 PLANS TRANSLATE VISION INTO ACTION take any action outlined in this document. Any potential infrastructure development 24 THE FOUR Cs OF THE 2040 PLAN identified in this document will be subject to financial viability, technical feasibility, and environmental and planning considerations, which may vary over time. No commercial PAST AND PRESENT THE FOUR Cs DRIVING REGIONAL PROSPERITY reliance may be placed on any forecasts or 02 AN IRREPLACEABLE PORT 04 2040 PLAN STRATEGIES 06 PARTNERSHIPS FOR COMMON GOALS projects referred to in this document.
7 A PORT AS BIG AS TEXAS 27 CHANNEL 59 DELIVERING RESULTS DELIVERS VALUE ACKNOWLEDGMENTS 9 THE JOURNEY CONTINUES 33 CARGO 60 COOPERATION COORDINATION COLLABORATION Port Houston would like to recognize 11 THE INTERNATIONAL PORT OF TEXAS 39 COMMUNITY 61 2040 PLAN IN CONTEXT the contributions made by its staff, Port Commission, customers, stakeholders, and its 12 AN ESTABLISHED GATEWAY 45 CHANGE 63 A GROWING REGION consultants SWA Group and CAS Group in the 13 PORT HOUSTON ROLES development of this document. 14 A VERSATILE HUB 15 PORTFOLIO OF ASSETS COPYRIGHT This document is the intellectual property of Port Houston and is subject to Port Houston copyright under the copyright law of the United States. All rights are reserved. No part of this document may be published, reproduced, adapted, communicated, or transmitted in any form, in any retrieval system, or media, by any means, in any jurisdiction, without the prior written 2040 permission of Port Houston. WE ARE READY 01 INTRODUCTION TO THE 2040 PLAN 2040 EXECUTIVE SUMMARY
READY FOR THE FUTURE PORT COMMISSION Port Houston’s value as an economic catalyst and community partner is as critical as ever. Its location on the nation’s busiest waterway, links to global trade, and diverse cargo moving through its terminals make Port Houston a strategic resource for economic and community success. ROGER GUENTHER EXECUTIVE DIRECTOR The Port Houston 2040 Plan provides a decision-making framework for policies, strategies, initiatives, RIC CAMPO investments, and actions. Port Houston's long-range planning is centered around its dual role as the local CHAIRMAN LETTER FROM THE sponsor of the Houston Ship Channel and the operator of public terminals. Acting on these roles in partnership with the public and private sectors is essential to driving regional EXECUTIVE DIRECTOR prosperity and ensuring that Port Houston is READY for the Future.
Greetings and welcome to the Port Secondly, Port Houston operates public DEAN E. CORGEY Houston 2040 Plan! As Port Houston terminals for various cargoes that COMMISSIONER moves into its second century and support every sector of the economy. PORT HOUSTON 2040 PLAN AT A GLANCE builds on the successful legacy of its Operating these terminals provides the past commissioners and staff, we look financial resilience needed to support KNOW the roles — Opportunities, obligations, and assets forward to accelerating the momentum of Port Houston’s vision to be America’s ALIGN to strategic goals — People, Infrastructure, Partnerships, and Stewardship progress to ensure that our stakeholders Distribution Hub for the Next Generation. CLYDE FITZGERALD ACT on focused strategies — The “Four C’s” and 12 initiatives continue to enjoy the social and Prosperity also includes continuing to COMMISSIONER economic benefits it generates, well into promote healthy relationships with our INVEST capital — $1.4 billion over 5 years and potential $4+ billion over 20 years the future. stakeholders, including the communities DELIVER results — Benefits to the region, state, and nation The mission of Port Houston is to Move where our labor force lives, the industries ADAPT and adjust annually — A living document the World and Drive Regional Prosperity. that provide import and export related We have said many times that prosperity jobs, city, county, and state governments, STEPHEN H. DONCARLOS starts with quality of life. That means and, most importantly, our constituents COMMISSIONER jobs, access to goods, avenues for across the region. These relationships are THE FOUR Cs exports, and growing commerce that integral to Port Houston’s planning, which works integrally with and for our is geared towards long-term resiliency, communities. Events surrounding the sustainability, and preparing for the CHANNEL | SPONSOR HOUSTON SHIP CHANNEL global pandemic and social justice in future. ROY D. MEASE Support continuing regional growth through channel expansion 2020 have emphasized the need to think With these important roles as the COMMISSIONER innovatively and act collaboratively backdrop, Port Houston will continue to to strive towards economic equality, promote prosperity in the region. This diversity, and inclusion. requires defining what our priorities CARGO | PROMOTE CORE BUSINESS As Port Houston continues its journey into should be, what projects need to be Maximize operating performance to support growth the 21st century, it supports prosperity by developed, what investments are required, WENDY MONTOYA CLOONAN fulfilling two main roles. and what policies should be pursued. The COMMISSIONER Firstly, Port Houston is the local sponsor Port Houston 2040 Plan serves as the of the Houston Ship Channel, which is the blueprint to guide those decisions. Our COMMUNITY | ENHANCE COMMUNITY CONNECTIONS key artery for commerce in and out of the focus on Channel, Cargo, Community, and Optimally partner and steward resources to benefit stakeholders. Houston region and a gateway to national Change frames our journey, and we are excited to have you onboard. CHERYL D. CREUZOT and international trade. Without the COMMISSIONER channel operating safely and efficiently, our regional and national economies CHANGE | PREPARE PORT OF THE FUTURE cannot be robust and resilient. Adapt new trends and technologies to create value, sustainability, and resilience Roger Guenther
1 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 2 ABOUT THE 2040 PLAN A MARATHON, NOT A SPRINT
The 2040 Plan was prepared in 2020, a year when the future could not have been more uncertain. The Port Houston 2040 Plan (2040 Plan) is a blueprint for Port Houston's growth and PROCESS TIMELINE The years leading up to 2020 held record setting cargo growth across Port Houston. An energy development over the next 20 years. Its purpose is to support informed decision- renaissance for the Greater Port of Houston and the U.S. was in ascendance. The maritime industry making while being comprehensive, practical, and adaptable over time. The 2040 was undergoing an accelerating techno-evolution providing opportunities to improve efficiencies. Plan is driven by Port Houston’s mission and vision as well as by four distinct Port Houston was proactively preparing for the next generation of global trade with planning for the strategies which emerged through the planning process. These strategies are 1 PROJECT PLANNING HSC expansion. Then, in early 2020, an unprecedented event in the form of a global pandemic led to APRIL 2018-DECEMBER 2019 known as the Four C’s – Channel, Cargo, Community, and Change, and are intended decline in consumer demand causing global trade and economic activity to slow down. to guide the next generation of Port Houston’s plans, policies, and investments. Despite these historic events, the 2040 Plan looks out over the next 20 years. As part of its long- 2 PLAN DEVELOPMENT For over a century, Port Houston has worked proactively on its objectives and DECEMBER 2019-SEPTEMBER 2020 range planning, Port Houston continuously evaluates the impacts of such events and adjusts its obligations as a port authority, port operator, navigation sponsor, and responsive short, mid, and long-term implementation initiatives. Technology advancement is likely to keep and responsible partner to support economic growth. As it continues its journey infuencing the maritime industry as well as economic development and innovation, both in the region STAKEHOLDER into the 21st century, Port Houston is taking a holistic approach to its plans for 3 and globally. Energy demand will continue to be an important component of the regional, state, and the future to continue to drive regional prosperity. The expansion of the Houston ENGAGEMENT national economies with billions already invested in facilities along the HSC. Embracing the 2040 Plan Ship Channel (HSC), in particular, will have transformational effects on Houston's INTERNAL and its adaptable implementation will ensure Port Houston continues to be a catalyst for economic maritime sector. The 2040 Plan identifies initiatives that address a broad range MARCH 2020-JULY 2020 prosperity and job creation for the Houston region and beyond in the decades to come. EXTERNAL of topics which include infrastructure, operations, emerging technologies, AUGUST 2020-SEPTEMBER 2020 environmental stewardship, safety and security, community partnerships, and market dynamics. These initiatives aim to benefit port users, community stakeholders, port facilities and infrastructure, and support Port Houston's financial 4 PLAN PRODUCTION resilience for the next 20 years and beyond. OCTOBER 2020
The 2040 Plan was led by Port Houston’s Facility Planning Department through THE PORT HOUSTON 2040 PLAN IS DESIGNED TO BE... a multi-stage process and supported by numerous independent studies and 5 PORT COMMISSION ADOPTION consultations with Port Houston staff to leverage in-house expertise and NOVEMBER 2020 experience. The process also engaged external stakeholders to form a basis for A COMPREHENSIVE BLUEPRINT FINANCIALLY VIABLE decision-making and policy development. Port Houston embraces the importance A guide for decision-making on plans, Informs Port Houston’s ability to of coordinated efforts to achieve collective goals which has been an important 6 IMPLEMENTATION AND policies, and investments related to maintain financial resilience component of its planning process. The Port Commission adopted the 2040 Plan in ANNUAL REVIEW Port Houston’s assets and operations November 2020. MISSION DRIVEN A COMMUNICATION PLATFORM Serves as a framework for Sets the foundation for cooperation, 2040 PLAN OBJECTIVES implementation of goals and objectives coordination, and collaboration with through strategies, initiatives, and stakeholders to create greater value for action plans the region • Communicate development plans and infrastructure needs to stakeholders • Enable flexibility and adaptability to respond to change over time ECONOMICALLY VITAL A LIVING DOCUMENT • Guide long-term planning and decision-making Supports long-term benefits to the Recognizes the importance of being • Inform policies and prioritize investments regional, state, and national economies flexible and adaptable to respond to by facilitating job creation, sustainable emerging opportunities and challenges development, trade growth, and tax over time revenue
3 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 4 PAST AND PRESENT 02 AN IRREPLACEABLE PORT 2040 A PORT AS BIG AS TEXAS WORKING TOGETHER While they are distinct, both geographically and jurisdictionally, the “Greater Port of Houston” and “Port Houston” work in strategic partnership to drive regional growth. As the local sponsor of the HSC, Port Houston works in conjunction with GREATER PORT OF HOUSTON PORT HOUSTON the U.S. Army Corps of Engineers (USACE) as well as private industries to maintain and improve this federal waterway for the benefit of the Greater Port of Houston. The Greater Port of Houston is a 25-mile-long complex The Port of Houston Authority, known as Port Houston, Together, they work with other stakeholders to create a system of commerce of nearly 200 private and public facilities along was established in 1911 as a political subdivision of the that runs smoothly and efficiently, from providing security to handling logistics, the 52-mile-long Houston Ship Channel (HSC). It is State of Texas to help develop maritime commerce. directing trade, and protecting the environment. the largest port on the U.S. Gulf Coast and in the For over a century, Port Houston has played an integral State of Texas. Each year, nearly 285 million tons of role in the development of the Greater Port of Houston cargo moves through the Greater Port of Houston, as the local sponsor of the HSC and a catalyst for carried by approximately 9,000 vessels and 200,000 economic development in the Houston region, the State barges. It is currently ranked number one for total of Texas, and the nation. waterborne tonnage, and has been number one in Port Houston owns and operates eight public terminals foreign waterborne tonnage for the past 24 years. It along the HSC that provide wharfage, dock, warehouse, is the nation’s leading breakbulk port and is home to and other terminal facilities to serve domestic and the largest petrochemical complex in the U.S. (second international customers. Unlike other large ports largest in the world). HARRIS COUNTY in the U.S., Port Houston is not compact but rather Centrally located on the Gulf Coast, Houston is a a constellation of properties that include 6,500 strategic gateway for cargo originating in or destined acres of land which supports the maintenance and for the Houston region, the State of Texas, and the expansion of the HSC by providing areas for dredged U.S. West and Midwest. Houston lies within close reach material placement. In addition to operating the public of one of the nation’s largest concentrations of 152 terminals, Port Houston also manages contracts million consumers within 1,000 miles. A vast network and lease agreements that support the development HOUSTON of road, rail, and air connections allows shippers of port infrastructure and waterways and provides to economically transport their goods between the fire and emergency response services to facilities BAYTOWN Greater Port of Houston and inland nodes. operating in and around the HSC.
TRINITY BAY LA PORTE
1,000 MILES PORT GEOGRAPHY LEGEND 27 MILLION U.S. CONSUMERS 500 MILES HOUSTON SHIP CHANNEL LEAGUE CITY WITHIN 300 MILE RADIUS GALVESTON BAY GREATER PORT OF HOUSTON AREA 300 MILES 42 MILLION PORT HOUSTON PROPERTIES U.S. CONSUMERS HARRIS COUNTY TEXAS CITY WITHIN 500 MILE RADIUS CITY OF HOUSTON HOUSTON 152 MILLION RAILROAD NORTH U.S. CONSUMERS GULF OF MEXICO WITHIN 1,000 MILE RADIUS 0 2.5 5 10 MILES GULF OF MEXICO 7 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 8 THE JOURNEY CONTINUES
BENEFICIAL USES GROUP FORMED TO DEVELOP FIRST NAVIGATION IMPROVEMENT HOUSTON BECOMES THE SIXTH ENVIRONMENTALLY INNOVATIVE WAYS TO USE HSC PORT HOUSTON AND USACE COMMENCE FEASIBILITY TO BUFFALO BAYOU AND GALVESTON BAY LARGEST PORT IN THE U.S. DREDGED MATERIAL TO ENHANCE GALVESTON BAY STUDY FOR HSC EXPANSION-PROJECT 11
1857 1930 1990 2012
GREATER PORT OF HOUSTON GREATER HSC IS DEEPENED TO 45 FEET AND WIDENED TO 530 FEET THROUGH 1870 FIRST FEDERAL CHANNEL SURVEY 1984 1996 2005 GALVESTON BAY (PROJECT 10) TO BETTER HURRICANE HARVEY IMPACTS SHOWS HSC TO BE 4 FEET DEEP AND 1935 WITH GROWTH OF REFINING FIRST PORT WITH A MULTI-SITE SERVE HOUSTON'S MANUFACTURING 2017 THE GULF COAST AND DRAWS 70 FEET WIDE FACILITIES, HSC IS DEEPENED TO 34 FOREIGN TRADE ZONE 84 ESTABLISHED DISPOSAL AREA MANAGEMENT PLAN INDUSTRY FOCUS ON RESILIENCE FEET AND WIDENED TO 400 FEET
1911 1924 1952 1977 2002 2008 2020
PORT TERMINALASSOCIATION RAILROAD IS FORMED PORT HOUSTONLAND AT ACQUIRES BARBOURS CUT BARBOURS CUT TERMINAL
NAVIGATION DISTRICT IS FORMED, BEGINS CONTAINER OPERATIONS FIRST PORT AUTHORITY IN THE U.S. SECURITY MANAGEMENT SYSTEM GLOBAL PANDEMIC; PORT HOUSTON, KNOWN AS PORT HOUSTON TODAY PORT HOUSTON USACE, ANDTOGETHER PRIVATE TO INDUSTRY EXPEDITE WORK PROJECT 11 HARRIS COUNTY HOUSTON SHIP CHANNEL FIRST PORT AUTHORITY IN THE WORLD TO ENVIRONMENTAL MANAGEMENT SYSTEM RECEIVE ISO 28000 CERTIFICATION FOR ITS HSC SERVES AS A VITAL ARTERY DURING WORLD WAR II, TO RECEIVE ISO 14001 CERTIFICATION FOR ITS HSC ESTABLISHED AS A DEEP-WATER PORT AND IS GIVING BIRTH TO HOUSTON’S PETROCHEMICAL WORLD'S FIRST CONTAINER SHIP, IDEAL X, ON ITS DEEPENED TO 25 FEET AND WIDENED TO 150 FEET INDUSTRY AND THE NEXT DEEPENING TO 36 FEET MAIDEN JOURNEY ARRIVES WITH 58 CONTAINERS BAYPORT TERMINAL BEGINS OPERATIONS
1914 1948 1956 2007 9 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 10 THE INTERNATIONAL PORT OF TEXAS AN ESTABLISHED GATEWAY
AN IRREPLACEABLE PORT GREATER PORT OF HOUSTON RANKINGS Houston is a vibrant, growing international city, fueled by domestic and global trade. Long gone are the U.S. PORT BY TOTAL MONTHLY WATERBORNE RESIN EXPORTS days when barges carried cargo to and from the city via the shallow draft of Buffalo Bayou along a long and #1 WATERBORNE TONNAGE (SHORT TONS) winding distance to the Gulf of Mexico. Creation of the HSC, which commenced with dredging in 1912, created 1,000,000 a protected inland port, supported the oil and cotton businesses, and laid the foundation for the Greater Port of Houston’s continued growth and development. Today, the HSC continues to serve a vital role in the regional, U.S. PORT BY PETROLEUM, 750,000 state, and national economies. The successful development of Houston's valuable industries including aviation #1 STEEL & PROJECT CARGO ALL OTHER U.S. PORTS fuel refining, base chemicals, and petrochemicals have earned it the reputation as an “irreplaceable port.” 500,000 (Source: Colliers International, North American Port Analysis, 2012) TEXAS PORT WITH 45% OF #1 MARKET SHARE BY TONNAGE 250,000 GREATER PORT OF HOUSTON
0 CHANNEL IMPROVEMENTS AND GROWTH 2005 2010 2015 2019 5% DRY BULK Historically, there has been MILLION MILLION MILLION CHANNEL DEPTH a direct correlation between TONS TEUs TX POP. 4% PROJECT CARGO 5% MULTIPURPOSE CARGO channel improvements and 500 10 50 -20 FT regional growth. Port Houston 450 9 45 -25 FT 17% CONTAINERIZED MONTHLY WATERBORNE CRUDE OIL EXPORTS will continue to undertake 400 8 40 -30 FT (SHORT TONS) and support significant 350 7 35 -35 FT infrastructure improvements, 300 6 30 -40 FT 5,000,000 250 5 25 -45 FT including expansion of the HSC, 4,000,000 to ensure that the Greater Port 200 4 20 -50 FT of Houston can accommodate 150 3 15 -55 FT GREATER PORT 3,000,000 100 2 10 -60 FT safer navigation of larger 2,000,000 50 1 5 vessels, as well as the expected OF HOUSTON 1,000,000 0 0 0 future population growth in the 1920 1940 1960 1980 2000 2020 2040 CARGO SECTORS - 2019 0 region. 2005 2010 2015 2019
69% LIQUID BULK HOUSTON SHIP CHANNEL ECONOMIC IMPACT (2018) MONTHLY WATERBORNE PROPANE EXPORTS (SHORT TONS) U.S. TEXAS A total of 69% of cargo on the Houston Ship Channel is liquid 3,000,000 3.2 MILLION JOBS 1.35 MILLION JOBS bulk, making the Greater Port of Houston vital to the nation's petrochemical industry. In comparison to the East and West $802 BILLION IN ECONOMIC VALUE $339 BILLION IN ECONOMIC VALUE 2,000,000 Coast ports, there is no alternative to the Greater Port of $38.1 BILLION IN TAX REVENUE $5.6 BILLION IN TAX REVENUE Houston due to its strategic location and the industry it serves. Compared to other U.S. Gulf Coast ports, Houston’s 1,000,000 energy, security, and inland infrastructure makes it a desirable and attractive gateway. It is also ranked the 16th 0 busiest port in the world. 2005 2010 2015 2019
11 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 12 PORT HOUSTON ROLES A VERSATILE HUB
DUAL VALUE PROPOSITION PORT HOUSTON RANKINGS Port Houston has a dual value proposition as a facilitator of commerce and economic development—it is the IMPORTS & EXPORTS BY TRADE REGION local sponsor of the HSC and the operator of public terminals. Port Houston's success requires being competitive U.S.U.S. GULFCONTAINER COAST PORTCONTAINER BY TOTAL PORT (PERCENTAGE) #1#6 HANDLINGTEUs 69% OF CONTAINER TRAFFIC nationally and internationally with private and public entities to promote trade through its terminals. It also ASIA
depends upon generating revenue to both support operations as well as to reinvest in facilities and other projects NORTHERN EUROPE that provide benefits to customers, stakeholders, and the public-at-large. The effectiveness of Port Houston's TEXAS PORT WITH 96% MARKET roles in facilitating commerce, safe navigation, and generating economic development are reflected in both the #1 SHARE IN CONTAINERS AMERICAS continued success of its own terminals as well as the success of the Greater Port of Houston. MEDITERRANEAN U.S. CONTAINER PORT BY TOTAL INDIAN SUBCONTINENT #6 TEUs LOCAL SPONSOR OF THE HSC OPERATOR OF PUBLIC TERMINALS AFRICA/MIDDLE EAST ALL OTHER In its role as the local sponsor, Port Houston partners Port Houston promotes and facilitates commerce 0% 10% 20% 30% 40% 50% with USACE in developing and maintaining the HSC by providing efficient and cost-effective marine IMPORTS EXPORTS for the benefit of the Greater Port of Houston. This terminals for its customers and stakeholders. This 2% MULTIPURPOSE CARGO 8% LIQUID BULK includes working to secure funding and appropriations is accomplished primarily through Port Houston’s for channel expansion, maintenance dredging, eight public terminals which handle general cargo, CONTAINER EXPORTS & IMPORTS 9% STEEL (NUMBER OF UNITS) management of dredged material placement areas, containers, bulk materials, and other types of cargo 3,000,000 and other channel-related projects to ensure optimal that are traded in the domestic and international functioning of this vital national resource. As an markets. Port Houston further supports maritime 2,500,000 additional funding source, Port Houston also has the commerce through national and international trade 2,000,000 ability to collect tariffs from channel users to support development activities, including cooperative channel-related work. agreements with international organizations and local 1,500,000 infrastructure investments. PORT HOUSTON 1,000,000 In addition to these roles, Port Houston is a member of the Port Terminal Railroad Association (PTRA), which CARGO SECTORS - 2019 500,000 operates on property owned by Port Houston. PTRA was formed in 1924 and facilitates railroad access and services to its members and the industries along the Greater Port of Houston. 0 12% DRY BULK 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 IMPORTS EXPORTS TOTAL
PORT HOUSTON GOVERNANCE PORT HOUSTON TOTAL TONNAGE 69% CONTAINERIZED (SHORT TONS) Port Houston is governed by a seven-member Port 30,000,000 Commission. In addition to the powers and duties set forth in various statutes of the State of Texas, the Port Commission 25,000,000 is responsible for developing and implementing the general In addition to handling the largest volume of container 20,000,000
policies of Port Houston, including the adoption of annual traffic on the U.S. Gulf Coast, Port Houston handles a 15,000,000 capital and operating budgets, setting the goals for the number of other commodities from steel to heavy lift organization, and awarding contracts. project cargoes to wind turbines and blades. Houston has 10,000,000 earned its place as the national leader for breakbulk cargo 5,000,000 due to the large laydown areas located adjacent to its 0 general cargo and heavy lift docks, both of which provide 2015 2016 2017 2018 2019 flexibility for multipurpose vessels. BULK OTHER STEEL CONTAINERS
13 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 14 BANANA BEND PROPERTY
PORTFOLIO OF ASSETS
PELICAN ISLAND
LOST LAKE GREENS BAYOU TERMINAL GOAT FILTER BED HOUSE-STIMSON GREENS BAYOU JACINTOPORT ISLAND GALVESTON PROPERTY AND CARE GLENDALE TERMINALS DOWNTOWN CLINTON BULK MATERIALS HOUSTON HANDLING PLANT BELTWAY 8 HARBOR STREET PROPERTY INDUSTRIAL PARK PEGGY LAKE SOUTHSIDE WHARVES EAST WOODHOUSE TURNING BASIN TERMINAL TERMINAL ALEXANDER ISLAND MANCHESTER WHARVES SIMS BAYOU PROPERTY LIQUID CARGO BARGE DOCK
HOG ISLAND SPILMAN ISLAND ROSA ALLEN SIZING IT ALL UP Port Houston’s public terminals handle multipurpose, containerized, and other types of cargo, along with bulk BARBOURS CUT TERMINAL materials that are traded in domestic and international markets. These terminals are part of a diverse real ATKINSON estate portfolio that includes vast utility networks and access to critical transportation infrastructure. The ISLAND value created through these assets is supported by a multi-year asset management program and geographic information system to enable data-driven decision-making.
CONTAINER TERMINALS MULTIPURPOSE TERMINALS PORT HOUSTON ASSETS 6 terminals BAYPORT BARBOURS CUT BAYPORT TERMINAL 52 berths totaling 26,064 linear feet LEGEND 305 acres container yard 390 acres container yard 1.1 million square feet of shed space 4 berths totaling 4,000 linear feet 5 berths totaling 6,000 linear feet HOUSTON SHIP CHANNEL 1.8 million TEU throughput capacity 1.8 million TEU throughput capacity PORT HOUSTON PROPERTIES
REAL ESTATE DREDGED MATERIAL PLACEMENT AREAS BAYPORT COMPLEX 3,557 acres developed property PTRA RAILROAD SUBMERGED LANDS FOREIGN TRADE ZONE 84 4,271 acres undeveloped property MEMORIAL TRACT 14,500 acres 3,000 acres 5 million square feet of improvements OTHER MID BAY FREEWAY AND TOLLWAY
RAILROAD DREDGED MATERIAL NON-PTRA RAILROAD NORTH The Port Terminal Railroad Association (PTRA) services 226 local customers PLACEMENT AREAS from 7 yards and maintains 154 miles of track and 20 bridges. 6,418 acres upland placement area 0 1 2 3,300 acres intertidal salt marsh MILES
15 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 16 FOR FOUNDATION THE FUTURE 03 THE PLANS OF PORT HOUSTON 2040 FOUNDATION FOR THE FUTURE A COLLECTIVE COMMITMENT
PORT HOUSTON MISSION, VISION, VALUES PORT HOUSTON'S PLANS Port Houston’s mission, vision, and values form the foundation for each of its undertakings. A lot is changing at Port Houston, and with a number of opportunities and challenges as a backdrop, its aim is Its commitment to work collectively to fulfill expectations defines Port Houston's success. to be ready for change through advanced planning. Port Houston’s plans are developed on multiple fronts, which are grounded in its mission, vision, and values, and are informed by complex interactions with stakeholders. Collectively, its plans contribute to form a framework for day-to-day and long-term decision-making. From the goals and objectives of the Strategic Plan to the strategies and initiatives of the 2040 Plan to specific Action Plans, Port Houston’s plans are thoughtfully developed and implemented. These plans ensure resource MISSION “TO MOVE THE WORLD AND DRIVE REGIONAL PROSPERITY” availability to achieve short, mid, and long-range goals. Values seldom change, but plans adjust as needed— the 2040 Plan is a “living document" that will be evaluated annually.
By operating and leasing terminals and supporting channel users, Port Houston enables imports and exports to move between Houston and the rest of the world ACTION PLANS Port Houston creates economic prosperity and jobs for the region and beyond NS INI PLA TIAT NT IVE ME S A ST PL ND VE 2040 AN C IN AP L IT TA MMUNIT A I CO Y L P IN A V “AMERICA’S DISTRIBUTION HUB FOR THE NEXT GENERATION” C E VISION D S N T M A GIC S TE PL E E RA A N V T N T I S P T A L A global leader in facilitating imports and exports I IP A T H P I S E N D O S N R P I L A E W With increased market share due to superior efficiency, service, and innovation
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P IN “We are READY” captures the spirit of the organization: Port Houston is ready to I L TA CARGO A serve, and ready for what the future may bring — it has the right infrastructure, L IT IN AP the right plans, and the right people VE C ST ND ME S A NT IVE PLA TIAT RESPECT EXCELLENCE ACCOUNTABILITY DILIGENCE YOU NS INI
19 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 20 STRATEGIC PLAN KEEPING PEOPLE FIRST
GOALS AND OBJECTIVES A PROGRESSIVE WORKPLACE Port Houston reviews its strategic plan every five years and adopted the latest edition in January 2020. The Port Houston’s continued growth is grounded in its Through its collaborative strategic planning process, mission, vision, and values were retained from the previous edition, and four new or modified strategic goals, people who are also its most important asset. From Port Houston has established a clear path for People, Infrastructure, Partnerships, and Stewardship, were identified to meet the evolving needs of Port enabling record cargo growth to fostering global the future. Its mission, vision, and values serve Houston as an organization and its stakeholders. The goals and objectives of the Strategic Plan, listed below, partnerships and investing in community initiatives, as the foundation for its business strategy and guide Port Houston's planning and are supported by the 2040 Plan. people make it possible. With its commitment to organizational culture. Since the adoption of its strive towards economic equality, social justice, prior Strategic Plan in 2015, Port Houston has made diversity and inclusion, and innovation, Port Houston significant progress in developing a people-focused PEOPLE: recognizes the need to invest in people, both culture which is reflected in improved employee “BE THE BEST PLACE TO WORK” internally and more broadly. For its continued success retention and enhanced employee benefits. Through as an organization, Port Houston’s key focus includes its renewed Strategic Plan in 2020, Port Houston Retain, engage, develop, and attract talent • the development of a system for knowledge sharing, will continue to cultivate a culture that supports • Foster a culture of diversity and inclusion, innovation, and open communication open and transparent communication, fostering attracting and harnessing talent, building capability, • Deliver excellence and continuous improvement in all core functions positive relationships, working collaboratively to delivering excellence, stimulating teamwork, and achieve the desired outcomes, and recognizing encouraging continuous improvement to approach the accomplishments. existing and new challenges with a proactive mindset. INFRASTRUCTURE: “OPTIMIZE INFRASTRUCTURE AND CHANNEL CAPACITY TO SERVE THE REGION”
• Widen, deepen, and maintain the Houston Ship Channel • Drive development of landside infrastructure and inland distribution networks ALIGN STRATEGY & CULTURE CULTIVATE A SKILLED WORKFORCE • Enhance efficiency and resilience through innovative technology and other means Recognize interdependencies and Develop a highly skilled, agile, equip cross-functional teams with and competitive workforce that is the right tools and resources to empowered to lead productivity PARTNERSHIPS: effectively lead projects and innovation “DEVELOP AND STRENGTHEN EXTERNAL PARTNERSHIPS”
• Cultivate key relationships to accomplish common goals FOSTER DIVERSITY & INCLUSION COMMUNICATE & COLLABORATE • Demonstrate transparency and accountability Embrace cultural integration of Encourage teamwork, improve diversity and inclusion concepts knowledge sharing, and harness Engage in proactive two-way communication • and activities into what is adaptable skills and ideas to considered "normal business" achieve common goals STEWARDSHIP: “CREATE GREATER VALUE FOR THE REGION” DEVELOP FUTURE LEADERS LEAD CHANGE Focus on employee potential, Prepare, equip, and support • Implement an innovative environmental leadership strategy set support systems successful adoption of • Prepare for disruptive events and mitigate their impact in place, and provide evolving technology to drive mentoring and coaching organizational success • Support development of a robust regional maritime workforce • Support sustainable growth of Port Houston and the Greater Port of Houston
21 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 22 PLANS TRANSLATE THE FOUR Cs OF THE 2040 PLAN VISION INTO ACTION LONG-RANGE PLANNING STRATEGIES Port Houston’s contributions in driving regional prosperity are encompassed in its diverse roles: as the local 2040 PLAN FRAMEWORK sponsor of the Houston Ship Channel, an operator of public terminals, a partner in the community, and a The 2040 Plan serves to position Port Houston to respond to short, mid, and long-range opportunities by steward of sustainable growth. These roles are embodied in the 2040 Plan's key planning strategies known as providing a flexible, adaptable, and comprehensive blueprint for future growth and development. To drive the the Four Cs - Channel, Cargo, Community, and Change. goals and objectives of the Strategic Plan to execution, the strategies of the 2040 Plan provide a basis for informed decision-making. These strategies serve as a framework for the implementation of initiatives, capital investment plans, and action plans. Continual review and refinement of the 2040 Plan will enable Port Houston to respond to new opportunities and challenges over the life of the plan.
The 2040 Plan is not meant to detail every initiative, program, or activity Port Houston plans to undertake through the planning horizon. Instead, it provides guidance for making long-term strategic decisions, informing policies, and helping to prioritize investments to ensure Port Houston continues to create greater value for the region. CHANNEL CARGO COMMUNITY CHANGE
FOUNDATION DIRECTION IMPLEMENTATION SPONSOR PROMOTE ENHANCE PREPARE HOUSTON SHIP CHANNEL CORE BUSINESS COMMUNITY CONNECTIONS PORT OF THE FUTURE STRATEGIC PLAN Support continuing regional Maximize operating performance Optimally partner and Adapt new trends and MISSION, VISION, COMPREHENSIVE growth through channel to support growth steward resources to benefit technologies to create VALUES LONG-RANGE PLAN expansion stakeholders value, sustainability, and resilience As a collective commitment, The goals and objectives of With its strategies and Port Houston’s mission, the Strategic Plan provide a initiatives, the 2040 Plan vision, and values provide roadmap for Port Houston’s provides the blueprint for the foundation for each of its continued growth and success. Port Houston's development INITIATIVES INITIATIVES INITIATIVES INITIATIVES undertakings to establish a over the next 20 years. path for the future. HSC EXPANSION CONTAINERS COMMUNITY MARKET DYNAMICS WIDER, DEEPER, SAFER BUILD CAPACITY AND PARTNERSHIPS ADAPT TO TRENDS OPTIMIZE OPERATIONS AND CHANGES PROJECT-FOCUSED ENGAGEMENT DREDGED MATERIAL MULTIPURPOSE ENVIRONMENTAL EMERGING MANAGEMENT OPTIMIZE OPERATIONS AND STEWARDSHIP TECHNOLOGY INCREASE FLEXIBILITY EXPAND BENEFICIAL USE SUSTAINABLE BUSINESS MAXIMIZE SUPPLY CHAIN PRACTICES VISIBILITY AND VELOCITY
SUBMERGED LANDS REAL ESTATE REGIONAL SAFETY AND MANAGE AND OPTIMIZE DEVELOP AND INTEGRATE COMPETITIVENESS SECURITY WITH SUPPLY CHAINS ASSET SUPPORT FREIGHT MOBILITY PREPARED AND INITIATIVES RESPONSIVE MUTUAL AID
23 PORT2040 HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 24 THE FOUR Cs 04 2040 PLAN STRATEGIES 2040 HSC EXPANSION CHANNEL EXPANSION IS CRITICAL WIDER, DEEPER, SAFER Improving the Houston Ship No channel, No port Channel means economic No port, No cargo growth and a safer, more efficient waterway with No cargo, No commerce two-way navigation. No commerce, No jobs
For more than a century, commerce has As the local sponsor of the HSC, Port
CHANNEL moved along the Houston Ship Channel Houston is partnering with the U.S. Army PROJECT 1 PROJECT 2 PROJECT 3 PROJECT 4 PROJECT 5 PROJECT 6 PROJECT 7 PROJECT 8 PROJECT 9 PROJECT 10 PROJECT 11 (ANTICIPATED)PROJECT 12 (HSC), connecting the region to the world Corps of Engineers (USACE) as well as
1914 SPONSOR of trade and establishing the Greater private industry to expand the channel 1857 1874 1882 1908 1925 1935 1948 1958 2005 2025 HOUSTON SHIP CHANNEL FUTURE Port of Houston as an economic engine at an accelerated pace. The Houston for the region, the State of Texas, and Ship Channel Expansion—Project 11, is the nation. The 52-mile long HSC serves comprised of eight segments and will nearly 200 diverse private and public widen the channel along its Galveston Bay BAYTOWN facilities, including the nation’s largest reach from 530 feet to 700 feet, deepen 6 petrochemical manufacturing complex. the upstream segments between 39 feet HOUSTON and 46.5 feet, make other safety and 4 The success of HSC is the result of efficiency improvements, and develop 5 ongoing federal and local commitment new environmental features. Under the LA PORTE TRINITY BAY in supporting and funding channel accelerated plan, construction may begin 1C improvements over time. Through in 2021 with a goal to ensure that this 3 collaboration and investment, the HSC has critical waterway continues to support become the nation’s most active waterway national energy security, growth of HSC EXPANSION - PROJECT 11 and has more deep-draft ship visits than domestic manufacturing and U.S. exports, PROPOSED NAVIGATION IMPROVEMENTS and expanding job opportunities. any other port in the country. As the LEGEND WIDEN TO DEEPEN TO 1B nation's busiest waterway, the HSC must EXISTING EXISTING 2 be expanded to accommodate increasing Port Houston recognizes that continuous BOLIVAR ROADS TO REDFISH 700 FT 46 FT 1A APPROX. 11.5 MILES IN LENGTH 530 FT 46 FT vessel sizes. This will ensure safe and improvements to the HSC are needed to REDFISH TO BAYPORT SHIP CHANNEL 700 FT 46 FT efficient two-way navigation and will support navigation safety and economic 1B APPROX. 8.3 MILES IN LENGTH 530 FT 46 FT facilitate economic growth now and for growth. As such, it has commenced BAYPORT SHIP CHANNEL TO BARBOURS CUT 700 FT 46 FT the future. planning for Project 12 and beyond. 1C APPROX. 5 MILES IN LENGTH 530 FT 46 FT 455 FT 46.5 FT BAYPORT SHIP CHANNEL GALVESTON BAY As the local sponsor of the HSC, Port 2 APPROX. 5 MILES IN LENGTH 350 FT 46.5 FT Houston is partnering with the U.S. BARBOURS CUT SHIP CHANNEL 455 FT 46.5 FT OPPORTUNITIES 3 300 FT 46.5 FT 1A BOGGY BAYOU TO GREENS BAYOU 530 FT 46.5 FT • Improve collaboration with local, state, and federal agencies 4 300 FT 41 FT and stakeholders for channel improvements GREENS BAYOU TO HUNTING BAYOU 300 FT 46.5 FT TEXAS CITY 300 FT 41 FT • Explore options for expediting traditional federal funding and SIMS BAYOU TO IH 610 300 FT 41.5 FT approval and use of non-traditional funding sources 5 300 FT 37 FT IH 610 TO TURNING BASIN 250 FT - 300 FT 39 FT • Enhance channel resilience through flood and sediment control 6 250 FT - 300 FT 37 FT
• Employ new technology to improve shoaling prediction NO WORK PLANNED IN THIS SEGMENT NORTH
0 1 2 5 MILES GULF OF MEXICO
27 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 28 DREDGED MATERIAL ENVIRONMENTAL BENEFITS As an integral part of its planning process, Five bird islands providing up to 20 MANAGEMENT Port Houston continuously works with its acres of new foraging and nesting partners to address potential environmental habitat EXPAND BENEFICIAL USE impacts associated with HSC improvements and the economic benefits it provides. Building Three new marshes adding up to 8,000 on the success of using dredged material for acres to the coastal ecosystem beneficial uses, Project 11 aims to deliver new Oyster reef pads establishing 376 environmental benefits by creating: CHANNEL As the local sponsor of the HSC, Port of dredged material is anticipated to be HOUSTON acres of growth-enabling habitat Houston and its federal partner USACE generated from Project 11. Through Section SPONSOR provide annual maintenance dredging and 217 of the Water Resources Development HOUSTON SHIP CHANNEL continual actions to expand and deepen Act 1996, Port Houston has extended its the channel, and minimize shoaling ability to dredge and place maintenance occurrences. This partnership supports material into its placement areas from nearly 200 private and public direct users private terminals. BAYTOWN and maintains the channel's readiness to support national and international Securing large upland Dredged Material HOUSTON commerce in the greater Houston region. Placement Areas (DMPAs) is increasingly difficult and expensive, especially in the M12 Along with the USACE and the Beneficial high-growth industrialized corridor of TRINITY BAY Uses Group, a coalition of eight federal the HSC. As such, sediment reuse from LA PORTE and state government agencies, Port upland sites needs to be fully evaluated Houston develops and implements a 50- and considered to maintain DMPA capacity. M11 year Dredged Material Management Plan Expansion of the existing offshore Ocean BIRD ISLAND MARSH to meet its dredged material placement Dredged Material Disposal Site and creation needs. As part of this ongoing effort, Port of Bay Aquatic Beneficial Use Sites (BABUS) BABUS Houston provides upland and submerged are also being assessed. Beneficial use, DREDGED MATERIAL land rights-of-way in Harris County for via the creation of environmental upland or MANAGEMENT MAP the maintenance of the federal navigation submerged habitat or beach placement of LEGEND project, inclusive of approximately 4 to 7 suitable sediment, may be required to be HOUSTON SHIP CHANNEL million cubic yards of annual maintenance fully expanded and considered to meet the PORT HOUSTON PROPERTY material. In addition, 31 million cubic yards dredged material placement demand. LEAGUE CITY EXISTING PLACEMENT AREAS GALVESTON BAY EXISTING BENEFICIAL USE AREAS
BABUS (POTENTIAL EXPANSION) OPPORTUNITIES BIRD ISLANDS • Create Bay Aquatic Beneficial Use Sites and expand PROJECT 11 DREDGED MATERIAL* offshore Ocean Dredged Material Disposal Site BENEFICIAL USE AREAS TEXAS CITY • Reuse sediment from existing upland Dredged UPLAND PLACEMENT AREAS Material Placement Areas (DMPAs) ONE-TIME UPLAND PLACEMENT AREA • Evaluate acquisition of new upland DMPAs OYSTER PAD MITIGATION * Proposed locations, sizes, and • Develop DMPAs for commercial use shapes are subject to change NORTH
0 1 2 5 MILES GULF OF MEXICO
29 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 30 SUBMERGED LANDS STEWARDSHIP OF ASSET MANAGE AND OPTIMIZE ASSET Bestowed by the State of Texas, Port Houston stewards the submerged lands to balance the needs of port users as well as to generate revenue for reinvesting in port infrastructure. Port Houston has the authority to authorize, establish, regulate, and lease structures for facilitating and accommodating commerce and navigation.
In 1927, the State of Texas granted Port fleeting leasing policy, standards, and CHANNEL Houston the authority to manage and procedures are intended to support regulate submerged lands in and around suitable leasing of submerged lands for SPONSOR the Greater Port of Houston. Submerged barge fleeting which facilitates safe HOUSTON SHIP CHANNEL lands are the lands within the jurisdiction and efficient commerce and navigation, of Port Houston that lie beneath the HSC considers the needs of interested parties, and the other waters of Buffalo Bayou, as and puts this important public resource to well as beneath the tributaries to the HSC safe, productive, and appropriate use. BAYTOWN and Buffalo Bayou. Today, Port Houston stewards 14,500 acres of submerged The barge fleeting leasing program is the HOUSTON land. The economic growth in the Houston foundation for a more comprehensive region, which includes barge fleeting submerged lands program which may activity, continues to drive active and encompass private vessel docks and TRINITY BAY innovative use of submerged lands while wharves and usable mooring spaces LA PORTE protecting navigation and public interests. along the HSC and Buffalo Bayou and their tributaries. In addition to this, Currently, over 200,000 barges transit Port Houston also has a robust license the HSC annually. Increasing barge traffic and permit program which supports and demand for barge fleeting areas the stewardship of submerged lands by has resulted in resource management regulating pipeline and utility crossings, concerns associated with congestion marine construction and dredging of the waterways and increased barge permits, and dredged material placement activity along banks which lack mooring areas. infrastructure. Port Houston’s barge LEAGUE CITY SUBMERGED LANDS MAP GALVESTON BAY LEGEND HOUSTON SHIP CHANNEL OPPORTUNITIES HARRIS COUNTY BOUNDARY
• Evaluate potential for the development of open water facilities PORT HOUSTON PROPERTY TEXAS CITY • Support environmental resilience efforts and initiatives SUBMERGED LANDS* *Submerged lands granted to Port Houston • Optimize and expand submerged lands program by the State of Texas are described in Texas Special District Local Laws Code Sec. 5007.004. • Facilitate safer navigation Certain other submerged lands are owned by Port Houston in fee. Port Houston also has the authority to regulate submerged lands that it does not own within its jurisdiction. NORTH
0 1 2 5 MILES GULF OF MEXICO
31 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 32 CONTAINER BARBOURS CUT TERMINAL BARBOURS CUT SHIP CHANNEL BUILD CAPACITY AND (WIDEN TO 455 FEET) OPTIMIZE OPERATIONS WHARF 6 WHARF 5 WHARF 4 WHARF 3 WHARF 2 WHARF 1 BERTHING FACILITY
Port Houston handles approximately two- build strategy and accommodate growth. BARBOURS CARGO thirds of the containerized cargo on the Port Houston aims to build capacity ahead CUT BLVD/ SH 146 MOBILITY U.S. Gulf Coast and is the fastest growing of the demand curve through expansion IMPROVEMENTS BARBOURS CUT BLVD. PROMOTE amongst the top ten container ports and recapitalization within the existing CORE BUSINESS in the nation. As a major international footprint of its container terminals. The EXIT GATE TWIC GATE gateway, Port Houston's container terminal ultimate buildout could increase the annual ENTRY GATE 0 400 800 operations support the growth of the capacity of the container terminals to an FEET regional and state economies, with key estimated seven million TEUs. imports in hardware and construction BAYPORT SHIP CHANNEL BAYPORT TERMINAL (WIDEN TO 455 FEET) materials, machinery, appliances, Container terminal improvements are WHARF 7 WHARF 6 WHARF 5 WHARF 4 WHARF 3 WHARF 2 WHARF 1 electronics, and retail consumer goods. phased through the planning horizon They also handle key exports of plastic with consideration for continuous WHARF 8 resins, petrochemicals, and various evaluation and implementation of process agriculture and automotive commodities. optimization initiatives. These are aimed at improving terminal efficiency, WHARF 9 Port Houston’s Barbours Cut and Bayport providing quality service to customers, container terminals have experienced and driving growth. Staying ahead of the record growth in recent years. Demand demand curve will enable Port Houston EXIT GATE forecasts demonstrate the need to maintain high service levels, which its PORT RD. for expanded terminal capacity to customers and stakeholders expect. To 0 600 1200 accommodate increasing container volumes accommodate future growth, Port Houston ENTRY FEET through 2040. Port Houston has developed is also evaluating opportunities for the GATE simulation models to examine terminal development of a new coastal terminal and NORTH capacity under a range of operational an inland intermodal terminal. BAYPORT and technological scenarios to support a COMPLEX LEGEND
WHARF ADDITIONS OPPORTUNITIES CHANNEL IMPROVEMENTS (PROJECT 11) COMPLETED/CURRENT DEVELOPMENT (BPT) • Integrate emerging technologies and innovation COMPLETED/CURRENT REHABILITATION (BCT) with terminal operations PLANNED OPERATIONS PLANNED REHABILITATION • Increase cargo handling efficiency and capacity MULTIPURPOSE CONTAINER SUPPORT • Evaluate alternatives for future added capacity SIGHT AND SOUND BERM GATE EXPANSIONS AND ROAD IMPROVEMENTS RAIL/INTERMODAL/ITS CORRIDORS • Enhance customer service FUTURE LOGISTICS/BUSINESS PARK IN DEVELOPMENT/PLANNED RAIL AND INTERMODAL TRACK NOTE: ALL DEPICTIONS ARE CONCEPTUAL AND DO NOT IMPLY IMPACTS TO CURRENT OR FUTURE OPERATIONS OR TENANT CONTAINER OPERATIONS: ARRANGEMENTS. GROUNDED, WHEELED, REFRIDGERATED, EMPTY
33 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 34 TURNING BASIN: CURRENT LAND USE MULTIPURPOSE LEGEND BERTH & ADJACENT LAND GRADE BULK RAILROAD SERVICES VACANT OPTIMIZE OPERATIONS AND BUILDINGS OPERATING AREA ROAD UNPAVED INCREASE FLEXIBILITY
CLINTON DRIVE
CD 11 Port Houston is a national leader in Optimization at Port Houston is focused CD 8 & 9 CD 13 CARGO breakbulk, steel, and other project cargo. around making a process, terminal CD 3 CD 15 Port Houston’s six multipurpose facilities operation, design, or decision as CD1 PROMOTE CD 17 IH 610 are uniquely designed to handle a wide effective and as functional as possible. CD 19 CORE BUSINESS CD 41 to 48 range of cargo types and customer needs. In addition to improving productivity CD 21
These facilities include the Bulk Materials and reducing operational costs, it also CD 23 Handling Plant, Care, Houston Public Grain represents a new approach to managing Elevator #2, Jacintoport, Woodhouse facilities which focuses on efficiency CD 25 HOUSTON SHIP CHANNEL (Richardson Steel), and Turning Basin. and addresses the trade-off between CD 31 CD 27 The cargoes handled range from oilfield vessel service time, terminal capacity, CD 29 equipment, grain, steel, and heavy lift and cost per move. Alternative terminal project cargo to wind turbines and blades. configurations and operational scenarios, with consideration for transportation and BRADY ISLAND The Turning Basin terminal is the largest community connections, help provide Port of these multipurpose facilities, with Houston a holistic perspective of options approximately 1,000 acres along the for improving cargo operations within an HSC. With its public docks, it has been optimized terminal footprint. TURNING BASIN: POSSIBLE FUTURE LAND USE providing steadfast cargo handing opportunities for over a century and Port Houston's potential future use of its LEGEND long-range forecasts indicate sufficient multipurpose facilities is supported by FLEXIBLE TERMINAL OPERATING AREAS MULTIPURPOSE LOGISTICS AND BUSINESS PARK AREAS CHANNEL IMPROVEMENTS (PROJECT 11) capacity to handle cargo volumes through market forecasts, emerging economic WHARF ADDITIONS PORT SERVICES AND OUTREACH COMMUNITY CONNECTIONS 2040. As Port Houston moves into the opportunities, labor practices, and future, it is evaluating opportunities to logistics. It analyzes the anticipated optimize this terminal’s utilization and impact of cargo flows to inform planning operational flexibility. and decision-making. CLINTON DRIVE CD 11 CD 8 & 9 CD 13 CD 3 CD1 CD 15 OPPORTUNITIES CD 17 IH 610 CD 19 CD 41 to 48 CD 21 • Assess current terminal operations and utilization CD 33 & 34 • Evaluate optimization and operational flexibility CD 23
CD 25 HOUSTON SHIP CHANNEL Explore alternative configurations and repurposing POSSIBLE • IH 610 BRIDGE CD 31 of terminal areas CD 27 REPLACEMENT CD 29 • Identify implications of optimized terminal NORTH footprint 0 1000 2000 FEET BRADY ISLAND NOTE: ALL DEPICTIONS ARE CONCEPTUAL AND DO NOT IMPLY IMPACTS TO CURRENT OR FUTURE OPERATIONS OR TENANT ARRANGEMENTS.
35 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 36 REAL ESTATE DEVELOP AND INTEGRATE SUPPLY CHAIN PARTNERS WITH SUPPLY CHAINS By working with potential customers and facilitating connections with shipping lines, local real estate, and landside transportation providers, Port Houston is expanding its customer base to drive cargo growth, diversify business, and increase revenue potential.
Houston is a top national location for import by Port Houston’s commitment to provide CARGO and export-oriented manufacturing and is a high level of service to valued tenants experiencing a renewed wave of interest from and stakeholders by delivering process PROMOTE the national logistics community as a hub for improvements and providing operational cost CORE BUSINESS distribution centers. As interest continues to savings. grow, so does the competitive environment. Supply chains are evolving to adapt to these Through collaboration with economic new challenges and opportunities. Port development corporations, Port Houston is OCEAN CARRIERS STEVEDORES BENEFICIAL CARGO LOGISTICS, TRUCKING, VALUE ADDING Houston continues to drive and respond to building awareness about regional advantages OWNERS AND FORWARDERS TENANTS changing and evolving cargo logistics and to help attract and retain businesses that use their respective real estate demands, while its facilities. By leveraging foreign trade zone supporting sustainable growth of its facilities cost saving benefits and working with the and the region. industrial real estate community, Port Houston promotes port-related activity throughout the Maintaining a diverse and dynamic real Houston region. DEVELOPMENT OPPORTUNITIES estate portfolio, backed by deep and shallow-draft waterways and an extensive In addition, Port Houston is a key driver for BAYPORT COMPLEX BELTWAY 8 PROPERTY PELICAN ISLAND SOUTHSIDE WHARVES inland transportation network, provides an attracting global business opportunities. opportunity for Port Houston to promote It fosters global trade relationships to the growth of its businesses and of cargo realize the full potential of its real estate in the region. Through asset development, infrastructure. By securing cargo and the portfolio optimization, and building valuable vessels that carry it, Port Houston brings jobs relationships, Port Houston facilitates the and beneficial economic activity to the region, development and redevelopment of assets while creating trust and loyalty through high to support job creation. This is reinforced service levels for its customers.
Potential to expand transloading Planned to be used for one- The replacement of the Pelican Rehabilitating this property, OPPORTUNITIES and warehousing capabilities time placement of Project 11 Island bridge or new pipeline which is connected to rail and an intermodal rail yard dredged material, this property connectivity would enable this infrastructure, would make it • Evaluate real estate highest and best use adjacent to the Bayport container presents opportunities for property to be developed as a attractive for the development terminal, integrating import long-term commercial and potential deep-water liquid or of a liquid or dry bulk facility • Extend market reach and attract new cargo and export supply chains with industrial development or a bulk facility. and to handle heavy shipments. businesses essential logistics support new maritime facility. facilities. • Expand capacity and connectivity • Foster regional and global relationships
37 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 38 COMMUNITY OUTREACH FUNCTIONS PARTNERSHIPS PROJECT-FOCUSED ENGAGEMENT
Port Houston continuously engages Contributing to improving the quality of COMMUNITY with stakeholders who have a shared life in its surrounding areas and regularly interest in the roles it plays as the local assessing its engagement strategies helps AWARENESS FEEDBACK INVESTMENT ENHANCE sponsor of the Houston Ship Channel and Port Houston to manage its business efforts M/V Sam Houston Port Commission Community Event and Program COMMUNITY CONNECTIONS operator of public terminals. The quality and its role as a responsible neighbor. Boat Tour Advisory Council Sponsorship of Port Houston’s relationships with its These strategies include increasing Speakers Bureau Program Community Information Line In-kind Support stakeholders propels its mission and public awareness about the Greater Port Event/Festival Participation Online Feedback Tools Employee Volunteer Efforts vision. It is committed to strengthening of Houston, providing an open line of partnerships with its surrounding communication between Port Houston communities and stakeholders and and the community, and investing in regularly explores opportunities to work partnerships that bring a positive impact to closely with them and to involve them in the region. decision-making processes. COMMUNITY ENGAGEMENT PROGRAMS Throughout its history, Port Houston has Port Houston’s community and stakeholder enjoyed social, economic, and physical engagement policy lays the foundation for connections with its surrounding PORT COMMISSION COMMUNITY COMMUNITY GRANTS PROGRAM communication and consultation, which communities. These range from facilitating ADVISORY COUNCIL Port Houston’s Community Grants Program is an initiative is an ongoing, dynamic process. It also workforce development and educational The Port Commission Community Advisory Council focused on investing resources into programs and projects guides the planning, preparation, action, opportunities to direct investment in (PCCAC), formerly the Chairman’s Citizen Advisory Council that support and enhance local communities. These grants and evaluation of its engagement activities. the well-being of communities. These which began in 2013, was relaunched in 2020. The PCCAC is serve to develop and strengthen partnerships and create This allows Port Houston to purposefully connections remain part of Port Houston's comprised of a diverse group of individuals representing greater value for the region. engage with stakeholders most likely to future planning and awareness building different communities along the HSC and various special be impacted by its proposed actions and to support regional development interest groups. It aims to promote deeper engagement who could potentially help shape decision- initiatives that enhance resiliency, safety, SMALL BUSINESS DEVELOPMENT PROGRAM and understanding between local communities and making. sustainability, and prosperity. Port Houston by providing opportunities for open Through its Small Business Development Program communication. and Small Business Advisory Council, Port Houston continues its commitment to improve opportunities OPPORTUNITIES for small businesses. These outreach efforts are MARITIME EDUCATION PROGRAM aimed to increase local small business participation • Engage in community-focused programs and projects Port Houston brings together industry leaders, in contracting and procurement with Port Houston educational institutions, and business organizations to and to assist members to achieve goals via regular • Promote dialogue and open communication facilitate the development of future maritime workforce. interactions and educational programs. To further Through a Maritime Education Program, these groups aid local commerce and to promote economic • Support maritime workforce development provide opportunities to high school students to pursue development and job creation, Port Houston commissioned a disparity study to evaluate equal • Improve small business participation professional studies in maritime, transportation, or affiliated fields such as logistics, freight, security, and opportunity and fairness in its procurement and environmental affairs. contracting processes.
39 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 40 ENVIRONMENTAL ENVIRONMENTAL LEADERSHIP STRATEGY Through its environmental leadership strategy, Port Houston aims to operate in a manner that:
STEWARDSHIP • Conserves energy, fuel, and water usage SUSTAINABLE BUSINESS PRACTICES • Reduces solid waste generation • Prevents air, water, and sound pollution • Promotes wetland mitigation and land management The integration of environmental and an emphasis on recycling, minimizing waste, COMMUNITY sustainable business practices is a vital and establishing objectives and targets. • Advances internal and external partnerships component of Port Houston’s decision-making These will be monitored by key performance ENHANCE process. Since becoming the first U.S. port indicators (KPIs), regular reporting, and COMMUNITY CONNECTIONS authority in 2002 to attain the international auditing. Port Houston is the first port in the GOALS AND TARGETS standard for environmental management U.S. to secure 100 percent renewable energy systems, ISO 14001, Port Houston has been to support its operations. AIR QUALITY conducting its operations using a systematic 2025 2040 approach to reducing environmental impacts Environmental stewardship at Port Houston is EXECUTE CLEAN AIR STRATEGIC PLAN AND TRACK PORT HOUSTON REDUCE GREENHOUSE GAS EMISSIONS TO SUPPORT and improving operational efficiency. This designed to go beyond statutory obligations, GENERATED GREENHOUSE GAS EMISSIONS PER METRIC TON OF CARGO ACHIEVING BASELINE LEVELS includes working with Port Houston teams standards, and codes of practice. Its and tenants through an assessment program aim is to preserve and protect natural that regularly evaluates compliance with resources while maintaining transparent COMMUNICATIONS AND TRAINING environmental regulations. communication with stakeholders. Port 2025 2040 Houston partners with local, state, and BUILD AWARENESS AND ESTABLISH COMPREHENSIVE PROGRAMS FOR IMPLEMENT NEW POLICIES, ADJUST PROCESSES TO MEET FUTURE As Port Houston continues to move to federal agencies to support environmental EMPLOYEE AND STAKEHOLDER DEVELOPMENT REQUIREMENTS, AND BUILD NECESSARY CAPACITY AND SKILLS clear, streamlined, and sustainable awareness, education, and conservation business practices, it has established efforts through projects and events across CLEAN ENERGY an environmental leadership strategy the region. These efforts support Port that identifies short, mid, and long-term Houston’s ongoing commitment as an 2025 2040 environmental goals and considers business environmental and sustainability leader. IMPLEMENT CLEAN POWER ALTERNATIVES FOR PORT HOUSTON’S PARTNER WITH PUBLIC AGENCIES AND PRIVATE INDUSTRIES needs, resources, and capabilities. As part Aided by the active participation of its OPERATIONS TO SUPPORT CARBON NEUTRAL SUPPLY CHAIN of this strategy, Port Houston is developing stakeholders, Port Houston’s management of energy and sustainability, storm and its environmental responsibilities has earned LAND MANAGEMENT wastewater, and clean air plans, along with it national recognition and awards. 2025 2040 ESTABLISH LAND MANAGEMENT PLAN TO BALANCE BUSINESS PRESERVE BALANCE BETWEEN COMMERCIAL AND INDUSTRIAL OPPORTUNITIES DEMANDS AND COMMUNITY EXPECTATIONS LAND THAT IS COMPATIBLE WITH SURROUNDING USES • Increase integration of environmental and WASTE MANAGEMENT sustainability principles in business decisions 2025 2040 • Strengthen community and stakeholder relationships IMPLEMENT AND EXPAND WASTE MANAGEMENT PLAN MANAGE RESOURCES TO SUPPORT ZERO WASTE GENERATION • Develop resources, skills, and capabilities for continued environmental leadership WATER QUALITY • Establish KPIs and monitor progress 2025 2040 ESTABLISH MARINE DEBRIS PREVENTION PROGRAM AND DEVELOP RESILIENT WATERWAYS THROUGH ROBUST FLOOD AND SEDIMENTATION MITIGATION PLAN SEDIMENT CONTROL
41 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 42 REGIONAL FREIGHT MOBILITY PRIORITIES Port Houston helps to identify, advocates for, and supports freight COMPETITIVENESS transportation projects to improve port access and mobility alternatives, aimed at reducing transportation costs while improving 1-H SUPPORT FREIGHT MOBILITY INITIATIVES safety. This comprises more than 30 prioritized freight mobility projects across the region and partnering with multiple agencies on numerous traffic and planning studies including I-45, I-10, SH-225, Southeast Harris County sub-regional study, and others. Connectivity is the key for freight mobility. are critical to support the sustainable growth COMMUNITY Houston's regional transportation network of the Houston Region. spans from the nation’s busiest waterway to ENHANCE the second largest railroad footprint in the COMMUNITY CONNECTIONS Port Houston works in partnership with country. Houston also has a network of 14 local, state, and federal agencies. It major freeways which connect it to the major is a member of the Municipal Planning 1-I U.S. markets. This transportation network Organization’s Transportation Policy facilitates continued economic growth and is Council, Transportation Advisory Council, 2 critical to regional industries and a growing and Transportation Safety Committee. It consumer market. works with the Greater Houston Partnership across multiple committees including Freight Mobility is a key driver of overall the transportation committee, and has regional competitiveness as freight moves partnered with Harris County, the Economic over routes with the lowest supply chain Alliance, East Harris County Manufacturing 3 costs. With increasing trade volumes being Association, Transportation Advocacy imported and exported through the Greater Group, and the Gulf Coast Rail District to Port of Houston, especially the significant identify and support priority freight mobility 4 increases in resin production in recent projects across the region. Port Houston also 6 years and the movement of retail goods, it collaborates with the Texas Department of 5 is vital to continue to invest in the region’s Transportation in many capacities including 7 transportation infrastructure. In addition to the Texas Freight Advisory Committee, the REGIONAL FREIGHT increasing regional competitiveness, this Port Authority Advisory Committee, and MOBILITY PRIORITIES MAP investment will enhance safety, minimize regular engagements to facilitate freight LEGEND congestion, and improve air quality, which transportation projects in the region. 1-H SH 99 SECTION H 8 1-I SH 99 SECTION I 2 CROSBY-LYNCHBURG IMPROVEMENTS 3 SH 330 CONNECTIVITY OPPORTUNITIES 4 BW-8 BRIDGE EXPANSION & CONNECTORS SH 225 EXPANSION & CONNECTORS • Improve freight mobility from terminals to 5 roadways 6 CONTAINER BARGES 7 BARBOURS CUT BLVD TO SH 146 CONNECTORS 9 • Promote safer and greener freight transportation 8 BAYPORT PORT ROAD & RAIL SPUR • Analyze freight transportation alternatives 9 I-69 / SH 99S BYPASS OTHER ROAD AND RAIL IMPROVEMENTS • Evaluate night-time operations to reduce congestion INLAND DISTRIBUTION (NOT SHOWN) NORTH
0 1 2 5 MILES
43 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 44 MARKET DYNAMICS SHIFTING PORT TRENDS: TRADITIONAL TO CUTTING-EDGE ADAPT TO TRENDS AND CHANGES BUSINESS ROLE INFRASTRUCTURE GROWTH
OPERATOR + INTEGRATED ENTERPRISE CAPITAL INVESTMENT + CAPACITY INNOVATION
CARGO MOVEMENT PARTNERSHIPS
The growth of Houston has been a continuous cargo transport, demands for lower WATERSIDE + INLAND FEDERAL & STATE + PRIVATE CHANGE trend for more than a century and market supply chain costs, improved connectivity demand has changed the port from a mere with hinterland markets, environmental PREPARE physical asset to an essential component of PORT OF THE FUTURE sustainability, and technology innovation COMMUNITY DEVELOPMENT PORT & CITY INTEGRATION the integrated supply chain. This trend will and integration. Port Houston maintains continue into the future with demographic its competitive advantage as a versatile COMMUNITY SUPPORT + CLUSTER JOBS & INCUBATION INFLUENCE + ALLIANCE changes and technological advancements hub as well as its business resilience by playing an increasing role in the development investing in opportunities that diversify its of future assets and infrastructure. As the cargo throughput, adopting standardized DIGITAL TRANSFORMATION SERVICE RELATIONS local sponsor of the Houston Ship Channel processes, and partnering with customers and operator of public terminals, Port to reach the next level of efficiency in the DATA PROCESSING + BIG DATA ANALYTICS CUSTOMER SERVICE + INTEGRATED OPERATIONS Houston continuously evaluates market industry. dynamics to predict their potential impacts ENERGY INNOVATION VALUE CREATION to proactively develop appropriate policies As Port Houston strives to become America’s and strategies. Distribution Hub for the Next Generation, DIESEL & FUEL OIL + CLEAN POWER ALTERNATIVES PHYSICAL GATEWAY + DIGITAL NETWORKS it is an increasingly integrated enterprise Port Houston also considers emerging with digitally enabled port synchronization, industry trends as it plans future innovative supply chain planning, and infrastructure investments. These trends resources and workflow optimization. NEW DISTRIBUTION PATTERNS include population growth, direction of Port Houston is also actively promoting global trade, evolution of new trade lanes, initiatives that have positive impacts on the As Houston is poised to become the third most populous city in the nation by 2030, the trade and commerce ship sizes, and greater velocity of cargo social environment and increasing its role flowing through Port Houston is expected to grow proportionately. Increased congestion at East and movement within and outside its terminals. in preserving and protecting the natural West Coast ports and anticipated strong growth in trade is prompting shippers to adjust supply chains to Additional factors include the growth of environment. accommodate longer transit times. This creates opportunities to develop alternative gateways to the U.S. logistics facilities connecting multimodal hinterland markets. With Houston's well-connected network of roadways and railroads providing direct access to the nation’s largest concentration of 152 million consumers within 1,000 miles, Port Houston is well-positioned to take advantage of changing market dynamics.
OPPORTUNITIES MISSION CRITICAL STRATEGIC GROWTH VISION
• Drive operational excellence with data-driven solutions "AMERICA'S DISTRIBUTION HUB “DRIVE REGIONAL PROSPERITY” “INTERNATIONAL PORT OF TEXAS” • Build ecosystems to drive synergies between port and cities FOR THE NEXT GENERATION" • Increase collaboration with public and private partners • Optimize supply chain with digital networks
45 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 46 EMERGING TECHNOLOGY CONNECTED PORT MAXIMIZE SUPPLY CHAIN VISIBILITY AND VELOCITY
OCEAN CARGO OWNER HINTERLAND LOADING UNLOADING HINTERLAND DELIVERY TRANSPORTATION TRANSPORTATION TRANSPORTATION The movement of goods continues to evolve also investing in digital mapping of its CHANGE as a growing landscape and technological landside and waterside infrastructure to advancement is changing trade and ensure availability of accurate data for PREPARE commerce expectations. This is driving the future planning of its assets and the future PORT OF THE FUTURE need for a linked network of systems and expansion of the Houston Ship Channel. SMART PORTS CONNECTED SHIPS assets to enable seamless information flow In addition, Port Houston is reviewing DIGITALLY ENABLED ECOSYSTEMS, INNOVATIVE PLANNING, REAL-TIME MONITORING, NAVIGATIONAL EFFICIENCY, and maximize efficiency, thereby reshaping and implementing the next-generation OPTIMIZED RESOURCES AND WORKFLOWS DATA-DRIVEN OPTIMIZATION the future of the maritime industry. Port Enterprise Resource Planning (ERP) platform Houston recognizes that adapting to which will be used to integrate financial emerging technologies and integrating them management, human capital management, with infrastructure development is vital enterprise asset management, project AGILE WORKFORCE DIGITIZED TRUCKING for future business success. As such, Port management, and other functions. DATA ANALYTICS, MOBILITY, DYNAMIC FREIGHT MATCHING SYSTEMS, Houston continuously collaborates with its SMART APPS, VIRTUAL ASSISTANCE MAXIMUM CAPACITY UTILIZATION, PLATOONING suppliers and industry partners, who play A port equipped with advanced technology different roles within the supply chain, to will maintain a significant competitive operate holistically and to support real-time advantage. It will be able to provide DIGITAL SUPPLY CHAIN data availability to stakeholders. enhanced levels of service to its customers E-COMMERCE PLATFORMS REAL-TIME BOOKINGS, PRICE TRANSPARENCY, END-TO-END MONITORING, through increased visibility, improved SUPPLY AND DEMAND SYNCHRONIZATION SEAMLESS INTEGRATION OF TECHNOLOGY AND LOGISTICS To stay abreast of technology and to transparency, and greater velocity of goods increase business efficiency, Port Houston movement, thereby reducing supply chain is integrating newer technologies into its costs while attracting new businesses. With day-to-day terminal operations for efficient advanced planning, Port Houston is well- TECHNOLOGY ADVANCEMENT and faster cargo movement. Along with poised to strengthen its market position. advanced simulations for training, it is
OPPORTUNITIES INTERNET OF THINGS ALTERNATIVE VEHICLE INTELLIGENT TRANSPORTATION FUELS AND CONTROLS • Utilize advanced computing for predictive analytics and intractable problem solving • Integrate next generation ERP into business operations • Harness extended reality (XR) for training and simulation • Enable amalgamation of emerging technologies DRONES BLOCK CHAIN NET ZERO VESSELS
DEPLOYED EMERGING CONCEPTUAL
47 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 48 SAFETY AND SECURITY SAFETY AND SECURITY OBJECTIVES PREPARED AND RESPONSIVE RESEARCH AND DEVELOPMENT OPERATIONAL GROWTH MUTUAL AID FOR INNOVATION AND TERMINAL EXPANSION VASCULAR ACCESS CONTROL READERS EARLY INVOLVEMENT IN INFRASTRUCTURE AND AUTOMATIC TWIC GATES PLANNING AND OPERATIONAL CHANGES
Port Houston maintains a steadfast Through its security management policy, CONTINUOUS IMPROVEMENT RISK MANAGEMENT MAXIMIZE USE OF CHANGE commitment to safety and security Port Houston is committed to protecting CONTINUOUSLY REVIEW PROCESSES AND AVAILABLE RESOURCES INCORPORATE LESSONS LEARNED ADEQUATE AND ADAPTABLE RESPONSE in compliance with the Maritime its facilities and providing a secure LEVERAGE PORT SECURITY GRANTS PREPARE Transportation Security Act of 2002. As environment for all employees, tenants, PORT OF THE FUTURE regulations change and Port Houston and stakeholders. Since becoming the continues to grow, safety and security first port authority in the world to be CAPTURE INDUSTRY ARTIFICIAL DATA ANALYSIS must in turn adjust and adapt. certified to the ISO 28000 standard INTELLIGENCE AND AND TECHNOLOGY for supply chain security in 2008, BEST PRACTICES MACHINE LEARNING ADVANCEMENT ACTIVE ENGAGEMENT IN WORKING Port Houston’s health and safety policy Port Houston continues to operate its GROUPS AND SECURITY COMMITTEES UNIFIED APPLICATIONS RESILIENT INFORMATION AND WITH INCREASED MOBILITY CYBERSECURITY PROGRAMS is based on the principle that all injuries facilities under stringent requirements for are preventable. Safety initiatives at Port security management systems. These are Houston are aimed at ensuring a healthy intended to: STAKEHOLDER ENHANCED INTEGRATION and safe work environment for employees, RESOURCE PLANNING PARTNERSHIPS BUILD CAPABILITIES TO FACILITATE GROWTH OF VARIOUS PROGRAMS tenants, and visitors alike and support a • Prevent loss or harm from threats to COLLABORATE FOR SWIFT perpetual drive to zero incidents as the health, welfare, and assets RESPONSE AND MITIGATION SECURED PHYSICAL AND DIGITAL ASSETS only acceptable outcome. Port Houston • Monitor, evaluate, and implement continues to make enhancements programs for continued security to its health and safety culture and improvement performance. This is achieved through PORT SECURITY AND PUBLIC SAFETY improved education and awareness, • Be proactive in emergency response facilitating and documenting safety audits planning to ensure operational SECURITY EMERGENCY MANAGEMENT and incident investigations, and updating recovery Port Houston is committed to having a preeminent The Office of Emergency Management is responsible operating standards to promote an maritime security program through collaboration and for the preparedness, response, recovery, and incident-free workplace. • Maximize port security while expediting the flow of commerce innovation. A layered security methodology enables it mitigation of emergencies and major disasters at to implement a series of mitigating security controls Port Houston. It is also responsible for managing the to protect critical infrastructure. resources used in emergency response and recovery. OPPORTUNITIES POLICE INFORMATION SECURITY Through its cybersecurity program, Port Houston • Lead implementation of maritime security best practices Port Houston police and security officials work manages the use, operation, and risk of its through collaboration and innovation together to provide around-the-clock emergency response on Port Houston facilities, and coordinate information systems through an established • Contribute to enhancing the security and integrity of activities with federal, state, and local law framework for analyzing computer and cyber-risks supply chains enforcement agencies. and providing guidance for addressing those risks in order to enhance and maintain business continuity. • Minimize risks to physical and digital safety FIRE • Strengthen organization's health and safety culture The Port Houston Fire Department is charged by the Texas Legislature as a centralized authority to promote and coordinate fire prevention and to fight fires, explosions, and hazardous material incidents on or adjacent to the waterways within the Greater Port of Houston jurisdiction, including the Houston Ship Channel.
49 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 50 BUSINESS RESILIENCE 05 IMPLEMENTING THE 2040 PLAN
2040 PORT HOUSTON 2040 PLAN 52 ANTICIPATING AND INFORMED, FLEXIBLE, PREPARING FOR THE FUTURE ADAPTABLE IMPLEMENTATION
SCENARIO PLANNING FORECAST GROWTH VS. TERMINAL CAPACITY (TEUs) INPUTS AND DECISION-MAKING Port Houston is considering three 12,000,000 Decision-making at Port Houston is driven by evaluating potential scenarios and possible outcomes for the scenarios to evaluate the many ways SMOOTH SAILING 10,000,000 future. The dynamic logistics, technology, and economic environment under which Port Houston operates the future may unfold and to prepare TAILWINDS makes long-range planning complex. Therefore, the 2040 Plan has been developed as an adaptable and for it by examining market trends, 8,000,000 HEADWINDS responsive tool to effectively manage opportunities or challenges over the life of the plan. It aims to inform forecasts, and other influential 6,000,000 Port Houston's policies and decision-making while allowing for flexibility and adaptability to make necessary factors. These scenarios are 4,000,000 adjustments. It serves as a mechanism for development, resource allocation, organizational initiatives, and intended to support the development project prioritization to support business resilience. of Port Houston’s policies, strategies, 2,000,000 initiatives, and action plans. 0 2020 2024 2028 2032 2036 2040 Port Houston has historically been responsive to meeting its obligations and the needs of its stakeholders to FORECAST GROWTH TERMINAL CAPACITY support regional growth. For the informed and effective implementation of the strategies and initiatives of the 2040 Plan, Port Houston's approach is to: SMOOTH SAILING SCENARIO TAILWINDS SCENARIO HEADWINDS SCENARIO • Anticipate market demand and needs STEADY CARGO GROWTH | CONSUMER MARKET GLOBAL ENERGY DEMAND | EXTENSIVE CAPITAL DECLINE IN TRADE VOLUMES | SUPPLY CHAIN • Align capital needs and availability EXPANSION | ENHANCED ROAD NETWORKS INVESTMENT | INNOVATION DISRUPTION | SHIFT IN GLOBAL TRADE POLICY • Expand stakeholder support and education • Reconcile short, mid, and long-range plans annually Anticipates stability in current Anticipates significant upturn Anticipates rare events having in market trends with estimated severe impacts with estimated market trends with estimated With its robust planning, Port Houston is prepared to counter emerging circumstances over time in a annual growth of 6.5%. annual growth of 2.4%. annual growth of 4.5%. responsive and responsible manner. This will be reinforced by the continuous review of the 2040 Plan. Potential outcomes: Potential outcomes: Potential outcomes: • Optimized operations and • Energy exports dominate • Focus on increasing terminal increased terminal efficiency decision-making and efficiency versus adding infrastructure development capacity ANNUAL REVIEW AND MONITORING • Integrated supply chain and ability to make real-time • Larger vessels drive the • Restructuring of supply chains The 2040 Plan is a living document and is both supported by and guides Port Houston's action plans, capital decisions need for accelerated channel involving manufacturing, investment plans, and annual operating budgets. Review of the 2040 Plan will be carried out annually. This improvements transportation, and review is intended to: • Improved freight mobility warehousing within and outside the • New businesses drive real terminals estate development (offshore, • Non-maritime use of • Measure success in achieving planned initiatives wind, plastic recycling, etc.) underutilized port properties • Greater connectivity to • Prioritize and execute short to long-term development plans hinterland markets • Added capacity with • Fiscal constraints limit development of new coastal infrastructure development • Identify emerging opportunities and challenges • Expanded market share of terminal containerized cargo segment • New tariffs or restrictions • Make adjustments based on updated forecasts and trends • Market penetration with imposed on trade • Reduce organizational and business risks development of inland port • Consider inputs from stakeholders
53 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 54 CAPITAL INVESTMENT SELECT CAPITAL PROJECTS Port Houston will continue to modernize and expand its facilities by strategically investing in capital projects. These projects will enhance its waterway, terminal, industrial property, road, and rail infrastructure to create an efficient, productive, and cost-effective system to move freight through the supply chain and to support FINANCIAL GOVERNANCE growth. In 2020, Port Houston was awarded more than $100 million in federal grants for the redevelopment and advancement of its facilities. The Port Commission provides leadership for the financial governance of Port Houston and is responsible for the approval of policies, annual capital and operating budgets, setting organizational goals, and awarding contracts. The Port Commission’s role includes ensuring that Port Houston continues to move the world and drive regional PLANNED (SHORT-TERM, 2021-2025) 31% prosperity via prioritizing, allocating, and authorizing necessary resources. CHANNEL • HSC Expansion-Project 11 CAPITAL INVESTMENT PROGRAM • Dredged material placement area improvements Port Houston is committed to developing, expanding, and revitalizing port infrastructure and making investments • Barbours Cut Terminal Wharf 4 rehabilitation that enhance the regional economy and creating jobs. Port Houston continuously evaluates its capital investment program, major initiatives, and action plans to align with its long-range planning. This ensures a competitive • Barbours Cut Terminal Container Yards 3 and 4 position in the market with an emphasis to provide world class service to stakeholders and customers through rehabilitation optimization, expansion, and redevelopment activities. $1.4 • Bayport Terminal Wharves 6 and 7 construction BILLION Capital investment is the cornerstone to implementing the strategies and initiatives of the 2040 Plan and • Bayport Port Road expansion and drainage supporting Port Houston’s role as an economic catalyst. It is estimated that programs and projects included in • Bayport Complex development the 2040 Plan will require significant investment over the next 20 years. Port Houston forecasts the cost of its 3% 54% programs and projects over the short, mid, and long-term and evaluates them annually to ensure investments • Next-Generation Enterprise Resource Planning continue to meet goals. CHANGE CARGO (ERP) platform 12% • Multipurpose facilities maintenance and select COMMUNITY FUNDING OPERATIONS AND CAPITAL IMPROVEMENTS upgrades Port Houston generates a significant portion of its revenue from its terminal operations, which are generally sufficient to cover its operating and capital expenditures. However, with the fast-tracking of the HSC Expansion project and because Port Houston is not a state-funded agency, this revenue alone may not be able to sustain PROBABLE (MID-TERM, 2026-2030) POSSIBLE (LONG-TERM, 2031-2040) the capital needs to maintain and expand port infrastructure. As such, for incremental funding, Port Houston has established itself in a solid financial position with the ability to leverage a number of different credit sources. • Beltway 8 property development • HSC Expansion-Project 12 In addition, Port Houston also pursues federal and state grant programs on a regular basis to support its capital • Barbours Cut Terminal Wharf 5 rehabilitation • New coastal terminal projects. • Barbours Cut Terminal Wharf 6 rehabilitation • Inland intermodal terminal • Barbours Cut Terminal Container Yards 5, 6, and 7 • Pelican Island development rehabilitation TRANSPARENCY AND ACCOUNTABILITY • Alternative freight transportation • Bayport Terminal Wharf 1 and east-end Port Houston is committed to achieving excellence in construction • Barbours Cut Terminal west-end redevelopment financial reporting and it has earned Financial Transparency • Bayport Terminal Wharves 8 and 9 construction Stars from the State of Texas Comptroller of Public Accounts. • Bayport Auto Terminal conversion For the last 45 years, it has also received the Certificate • Turning Basin Terminal revitalization of Achievement for Excellence in Financial Reporting • East Industrial Park Wharves 33-34 rehabilitation from the Government Finance Officers Association for its • Jacintoport Terminal Wharf 1 rehabilitation • New layberth facilities Comprehensive Annual Financial Report (CAFR). • Bayport Intermodal Yard improvements $1.1 BILLION $2+ BILLION
55 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 56 DRIVING REGIONAL PROSPERITY 06 PARTNERSHIPS FOR COMMON GOALS
57 PORT2040 HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 58 COOPERATION DELIVERING RESULTS COORDINATION DELIVERS VALUE COLLABORATION
EXPECTED OUTCOMES FROM IMPLEMENTATION PLANNING CONTEXT The effective implementation of the 2040 Plan will ensure that Port Houston continues to be a catalyst for Port Houston embraces the role it serves as a public entity and recognizes that implementing the strategies economic growth and job creation for the Houston region and beyond. Over the next 20 years, billions of of the 2040 Plan will require the support of numerous government agencies, port users, customers, non- dollars are expected to be invested in priority programs and projects by Port Houston, private industry, and governmental organizations, community leaders, and area residents. Interagency cooperation, coordination, other state and federal agencies. Port Houston’s investments in the Four C’s of the 2040 Plan – Channel, and collaboration will be critical to driving the region’s success. Cargo, Community, and Change – along with its partnerships with public and private sectors, are essential to achieving common goals and driving regional prosperity. Port Houston will spearhead initiatives within the bounds of its properties; however, a number of external planning and development initiatives may also interact with its planning which may require active engagement with other agencies and stakeholders. As part of its 2040 Plan process, Port Houston reviewed more than 50 interagency plans and identified 70 relevant themes that highlight potential synergies and common goals and CHANNEL | SPONSOR HOUSTON SHIP CHANNEL form the basis for continued dialogue. Expanding the HSC facilitates safer navigation, serves industry partners on the channel, and strengthens the economic competitiveness of the region. ECONOMIC PROSPERITY
Regional, national, and global economic competitiveness, innovation, energy sector, manufacturing, diversification, workforce development, and job opportunities CARGO | PROMOTE CORE BUSINESS Optimizing cargo facilities benefits domestic and international customers and reinforces Port ENVIRONMENTAL QUALITY AND RESILIENCE Houston's position as a versatile hub. Stormwater management, flood control, coastal protection, air quality, water quality, and habitat preservation and restoration
COMMUNITY | ENHANCE COMMUNITY CONNECTIONS PARTNERSHIPS Investing in communities and strengthening relationships with stakeholders facilitates desired community enhancements, sustainable business practices, and important regional Collaboration of public, private, and not-for-profit sectors in planning and project implementation transportation improvements. QUALITY OF LIFE
Social equity, complete communities, neighborhood identity, aesthetics, amenities, parks and trails, CHANGE | PREPARE PORT OF THE FUTURE waterfront access, and proximity to jobs, goods, and services Monitoring and adapting to market dynamics and investing in new tools enables Port Houston to effectively respond to trends and changes in the maritime sector, safety and security, port TRANSPORTATION MOBILITY, CONNECTIVITY, AND SAFETY operations, freight mobility, and resilience. Traffic congestion, freight mobility, commercial trucking, rail network, public transit, and pedestrian safety TOP THEMES FROM INTERAGENCY PLANS REVIEW FROM INTERAGENCY THEMES TOP
59 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 60 2040 PLAN IN CONTEXT 2020 2010 2035 2040 2015 2050 2025 2045 TIMELINE OF SELECT PLANS 2030 BAYOUS
BEYOND THE BAYOUS | HOUSTON PARKS BOARD BUFFALO BAYOU AND TRIBUTARIES RESILIENCY STUDY | USACE BUFFALO BAYOU EAST MASTER PLAN | BUFFALO BAYOU PARTNERSHIP HARRIS COUNTY FLOOD CONTROL | HARRIS COUNTY COMMUNITY
CITY OF HOUSTON COMPLETE COMMUNITIES | COH CITY PLANS | BAYTOWN, GALVESTON, LA PORTE, MORGAN'S POINT, PASADENA, SEABROOK HARRIS COUNTY PRECINCT 2 INITIATIVES | HARRIS COUNTY HOUSTON PORT-ADJACENT NEIGHBORHOOD PLANS | H-GAC, COH OUR GREAT REGION 2040 | H-GAC PLAN HOUSTON | COH RESILIENT HOUSTON | COH ENVIRONMENTAL
COASTAL TEXAS PROTECTION AND RESTORATION FEASIBILITY STUDY | USACE GULF-HOUSTON REGIONAL CONSERVATION PLAN | HOUSTON WILDERNESS HARRIS COUNTY AIR QUALITY | HARRIS COUNTY HARRIS-GALVESTON SUBSIDENCE DISTRICT REGULATORY PLAN | HCSD THE GALVESTON BAY PLAN | THE GALVESTON BAY COUNCIL REGIONAL ECONOMIC DEVELOPMENT
HOUSTON INNOVATION ECOSYSTEM PLANS | GREATER HOUSTON PARTNERSHIP KINDER INSTITUTE RESEARCH: THE MAKER ECONOMY | THE KINDER INSTITUTE TRANSPORTATION
2040 REGIONAL TRANSPORTATION PLAN | H-GAC I-45 FREIGHT CORRIDOR PLAN | TxDOT INTERNATIONAL TRADE CORRIDOR PLAN | TxDOT METRO NEXT | HOUSTON METRO NORTH HOUSTON HIGHWAY IMPROVEMENT PROJECT | COH PORTS AREA MOBILITY STUDY | H-GAC TEXAS FREIGHT MOBILITY PLAN | TxDOT TxDOT MARITIME DIVISION REPORTS | TxDOT
USACE | U.S. ARMY CORPS OF ENGINEERS COH | CITY OF HOUSTON HGAC | HOUSTON-GALVESTON AREA COUNCIL HCSD | HARRIS COUNTY SUBSIDENCE DISTRICT TxDOT | TEXAS DEPARTMENT OF TRANSPORTATION
61 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 62 A GROWING REGION
PARTNERSHIP OPPORTUNITIES With Houston projected to become the nation’s third most populous city by 2030, Port Houston recognizes the role it plays as a catalyst for the economic development needed to support the region's growth. Sustainable growth will rely on the collective vision and action of agencies, stakeholders, CHANNEL CARGO COMMUNITY CHANGE and communities. Port Houston is committed to contributing to a strong and resilient future via the effective implementation of the four strategies of its 2040 Plan.
IMPROVED BELTWAY 8 AIR QUALITY PROPERTY REMOTE INNOVATION DEVELOPMENT IH 610 BRIDGE TRUCKING HUB REPLACEMENT INFRASTRUCTURE PEDESTRIAN SAFETY ENERGY EXPORTS
INLAND INTERMODAL BELTWAY 8 NEW IMPROVED TERMINAL BRIDGE LAYBERTH SHOALING CONSTRUCTION FACILITIES PREDICTION SH 99 COASTAL STORM CONSTRUCTION PARKS AND SURGE AND PROTECTION TRAILS FLOOD FLOOD AND TUNNELS SEDIMENT PLASTIC ALTERNATIVE RECYCLING CONTROL COMPLETE FREIGHT SUSTAINABILITY COMMUNITIES TRANSPORTATION HSC PROJECTS LOGISTICS FACILITIES AND PELICAN ISLAND WAREHOUSES DEVELOPMENT
ROADWAY SH 255 CAPACITY DEMOGRAPHIC EXPANSION MOBILITY EXPANSION DATA-DRIVEN SHIFT TERMINAL PROJECTS SUPPLY CHAIN CAPACITY EXPANSION
63 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 64 PEOPLE MAKE IT POSSIBLE
Port Houston recognizes the collective commitment and concerted efforts of its leadership and staff and the continued support of its stakeholders in the development of the Port Houston 2040 Plan. PORT COMMISSION KEY STAKEHOLDERS Ric Campo, Chairman Bay Area Community Advisory Panel Houston Ship Channel Security District Dean E. Corgey, Commissioner Bayou Land Conservancy Houston Terminals (Bayport) Clyde Fitzgerald, Commissioner Bayou Preservation Association Houston Yacht Club Stephen H. DonCarlos, Commissioner Baytown Area Community Advisory Panel International Longshoreman's Association Roy D. Mease, Commissioner Baytran Intercontinental Terminals Company Wendy Montoya Cloonan, Commissioner Buffalo Bayou Partnership Jetco Delivery Cheryl D. Creuzot, Commissioner Buffalo Marine Service KinderMorgan Channel Industry Mutual Aid Kirby Corporation EXECUTIVE LEADERSHIP CMA CGM La Porte - Bayshore Chamber of Commerce Roger Guenther, Executive Director Community Advisory Panel to Lyondell and Equistar La Porte Citizen Advisory Council Tom Heidt, Chief Operating Officer (North Channel Area) LBC Tank Terminals Charles Thompson, Chief Information Officer Cooper/Ports America Maersk Erik Eriksson, Chief Legal Officer Customs and Border Protection Magellan Midstream Partners Jeff Davis, Chief Port Operations Officer Deer Park Community Advisory Council Mediterranean Shipping Company Jessica Shaver, Chief People Officer East Harris County Manufacturers Association Odfjell Terminals John Moseley, Chief Commercial Officer Economic Alliance - Houston Port Region Pasadena Chamber of Commerce Kerrick Henny, Chief Government & Public Relations Officer Enterprise Products Partners Pasadena Citizens' Advisory Council Marcus Woodring, Chief PSEO Officer Environmental Defense Fund Port Terminal Railroad Association Rich Byrnes, Chief Port Infrastructure Officer Excargo Services Public Citizen Tim Finley, Chief Financial Officer ExxonMobil Richardson Steel Galveston Bay Foundation San Jacinto College FACILITY PLANNING DEPARTMENT Greater Houston Black Chamber of Commerce Seashore Community Advisory Panel Greater Houston Partnership SemGroup Corporation Rohit Saxena, Director, Facility Planning Greater Houston Port Bureau Shell Deer Park Jacqueline Muñoz, Manager, Long-Range Planning Gulf Winds International Targa Resources Hapag-Lloyd Terminal Links Texas PARTICIPATING DIVISIONS Houston Area Urban League Texas Department of Transportation Commercial Houston Community Advisory Panel Texas Southern University Finance Houston East End Chamber of Commerce Transportation Advocacy Group Government & Public Relations Houston Hispanic Chamber of Commerce University of Houston Information Technology Houston Independent School District US Coast Guard Sector Houston-Galveston Legal Houston International Seafarers' Center US Small Business Administration People Houston Minority Supplier Development Council West Gulf Maritime Association Port Infrastructure Houston Mooring Women's Business Enterprise Alliance Port Operations Houston Pilots Zeamarine Port Security & Emergency Operations 65 PORT HOUSTON 2040 PLAN PORT HOUSTON 2040 PLAN 66 CONTACT
111 East Loop North Houston, Texas 77029 USA www.porthouston.com/2040Plan
Email: [email protected]