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Texas Ports 2017-2018 Capital Program: Project Summaries

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Port Authority Advisory Committee TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM PROJECT SUMMARIES Port of s Orange Port of Beaumont a Port of Cedar Bayou Port Arthur Port of Navigation District x Houston Te Port of Texas City Port of Galveston Port of Freeport Port of Bay City Calhoun Port Authority Victoria County Port of Navigation District Palacios Port of West Calhoun Aransas County Navigation District ico Port of x Corpus Christi e M f o Port Mansfield f l Port of Harlingen Port of Port Isabel u Port of Brownsville G Port Authority Advisory Committee LETTER FROM THE CHAIRMAN s chairman of the Port Authority Advisory Committee (PAAC), I am pleased to Apresent the Texas Ports 2017–2018 Capital Program. Texas has the most robust maritime system in the United States. In 2015, Texas was ranked first in the nation in total foreign imports and exports and second in the nation for total tonnage. The state’s maritime system continues to be a critical gateway to international trade and provides the residents of the state with a multitude of economic opportunities through the movement of waterborne commerce and trade. In 2015, the Texas Ports Association conducted an economic study focused on defining the value of Texas ports to the state and the nation. Maritime activity at Texas ports: • Moved over 563 million tons of cargo including 350 million tons of international tonnage and nearly 200 million tons of domestic cargo • Handled over 1.8 million containers • Served over 1.6 million cruise passengers • Supported over 1.5 million jobs in the state • Provided over $368 billion in total economic value to the state, 23% of the overall state GDP • Generated over $92 billion in personal income and local consumption of goods • Generated $6.9 billion of state and local taxes Texas ports are critical economic engines for their communities and the state. Globally, the maritime industry continues to experience dynamic changes. The recent completion of the Panama Canal expansion project, the shipping industry’s decision to move to larger vessels, and the changes in U.S. law allowing the export John LaRue of crude oil are just a few changes that are creating new opportunities for Texas Chairman, ports. Since 2010, Texas ports have invested over $1.1 billion in capital projects Port Authority Advisory Committee to improve maritime channels, wharfs and terminals and to enhance intermodal 361-882-5633 transportation via railroads and interstate highways in order to leverage these [email protected] opportunities and keep pace with global change. This year’s Capital Program was synchronized with the PAAC’s updated Strategic Goals and Objectives. Each project presented in this report is a high-value project that will enhance port efficiency, improve the movement of freight through our intermodal system, create new jobs and stimulate future economic growth with the state and the nation. We ask for your support of our Texas ports to help fund these projects to keep our ports competitive in the global market. TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 1 Port Authority Advisory Committee THE PORT AUTHORITY ADVISORY COMMITTEE (PAAC) The PAAC develops the Port Capital Program biennial report that details various port projects and funding needs submitted by Texas public ports. Under Chapter 55 of the Transportation Code, the Texas Transportation Commission appoints the seven members of the PAAC. The Port Authority Advisory Committee Members John LaRue Eduardo A. Mike Mierzwa Chris Fisher Roger Guenther Jennifer Stastny Larry Kelley Chairman Campirano Port Director Port Director Executive Director of Deputy Port Executive Port Director Port of Galveston & CEO Director Operations Director Director Port of Upper Coast Port of Beaumont Port of Houston Port of Victoria Port of Port Port of Corpus Brownsville Representative Upper Coast Permanent Lower Coast Arthur Christi Lower Coast Representative Member Representative Upper Coast Lower Coast Representative Representative Representative Page 2 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee THE PORT AUTHORITY ADVISORY COMMITTEE Mission “Elevate port issues as a vital component of the Texas transportation system and advise the Texas Transportation Commission and Department on matters relating to maritime transportation.” Goals • Identify high-priority and strategic port projects and make recommendations to the department for investment • Incorporate maritime interests in TxDOT planning activities and documents • Promote Texas ports for economic development opportunities • Identify federal, state, or other funding opportunities for maritime investment Strategies Objectives • Secure general revenue from the legislature to fund seaport capital improvements as outlined in Chapter 55 of the Texas Transportation Code on a recurring basis Secure a recurring state • Fully integrate maritime ports into the statewide transportation mobility funding plan general revenue funding source that supports the • Explore innovative financing solutions for funding the federal cost share of channel deepening projects growth and development (public-public and public-private partnerships) of the Texas Maritime • Use the Port Authority Advisory Committee to screen, evaluate, and identify high priority projects for Transportation System state funding • Establish criteria for project matching funds • Enhance road and rail connectivity to and from the ports • Partner with the regional metropolitan planning organizations, local governments, and state agencies Optimize the statewide to prioritize and fund port-related intermodal transportation improvements intermodal transportation system to streamline the • Work with state agencies to identify and remove impediments to freight movement movement of freight and • Identify opportunities for increasing freight movement by alternative modes passengers • Seek funding for projects that move freight from ports to distribution points without using highways (e.g., rail and barge) • Renovate, build, and expand cargo and cruise terminals to meet future demand Develop and maintain state • Improve and maintain channels, including the Gulf Intracoastal Waterway, to support larger vessels of the art port systems that and safe barge operations will strengthen Texas ports’ global competitiveness • Acquire land for future growth and the expansion of port and freight facilities • Improve critical infrastructure to support the increasing size of the worldwide vessel fleet • Grow the existing base cargo: liquid, bulk, and container • Leverage the growing energy sector and the foreign demand for refined products • Support future free trade agreements Identify and capitalize on key • Explore new trade lanes not presently served by Texas ports markets to increase exports to the Americas, Asia, and • Maximize use of Texas ports to handle cargo consumed or manufactured in Texas but using non- Europe Texas ports • Develop a distribution center strategy to identify new opportunities for ports and leverage the existing inland distribution capacity • Develop coastwise short sea shipping opportunities Advocate to secure resources • Provide funding for small ports to use for planning and executing essential projects for smaller regional ports to continue to exist and grow • Advocate for incentives that assist regional ports with securing new business opportunities • Work jointly with the Governor’s Office of Economic Development and Tourism to promote and market the maritime system Develop a communications • Advocate for economic development funding and private investment in the Texas Maritime System strategy to engage state • Educate state and federal leaders and the public on the benefits of infrastructure investment agencies and the federal government • Advocate for a federal investment in authorized channel deepening and widening projects • Advocate to increase federal funding for channel operations and maintenance • Advocate for TxDOT support of federally funded port transportation projects TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 3 Port Authority Advisory Committee PRIORITIZED PORT CAPITAL PROGRAM SUMMARY Page Port Project Descriptions Total Cost Grant Amount Match 6 Brownsville Construct two miles of new rail on property to link to a $32,431,180 $16,215,590 $16,215,590 new 112,500-square-foot multimodal dock, includes road construction, addition of a rail spur at the Palo Alto yard 7 Beaumont Unit Train Expansion: Add 13,000 feet of new track, realign $13,143,095 $ 9,8 57,320 $3,285,775 4,200 feet of existing track; includes road, drainage, security, and lighting upgrades 8 Port Arthur On-Dock Rail Berth 6 Expansion: 600-foot dock extension, on $35,000,000 $7,0 3 4,374 $27,9 6 5,626 dock rail expansion, and design for future channel deepening 9 Houston Port Road Phase 3 Road Expansion and Drainage $12,900,000 $9,675,000 $3,225,000 Improvements: Add additional lane in each direction to Port Road into Bayport Terminal with associated drainage infrastructure 10 Bay City New barge terminal, including dredge placement area, new $24,000,000 $18,000,000 $6,000,000 wharf, road 11 Port Arthur Phase 2 On-Dock Rail Berth 6 Expansion: Construction of a $5,000,000 $3,750,000 $1,250,000 600 -foot by 100-foot cargo deck extension adjacent to Berth 6 12 Port Arthur On-Dock Rail Berth 6 Expansion: Improvements to rail reliever $ 4, 287,50 0 $3,215,625 $1,071,875 area, including 1,750 feet of track, crossovers, and switches 13 Aransas County Replace 1,886 feet of failing bulkhead $3,000,000 $2,400,000
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