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 $600,000 14 Corpus Christi Al Speight Yard Expansion: Construct two 2,500-foot rail $1,500,000 $1,125,000 $375,000 storage tracks with yard improvements 15 Victoria Southside Industrial Park Site: Construct three-lane heavy haul $21,250,000 $17,000,000 $4,250,000 road, extension of the general dock, and addition of five-acre container dock and warehouse with associated equipment 16 Corpus Christi Bulk Terminal Crude Oil Transfer Station: Crude-by-rail transfer $15,000,000 $9,250,000 $5,750,000 point consisting of 4,000-foot rail siding, supply pipelines, rail car loading station 17 Corpus Christi Truck Queuing Area: Construct truck queuing area and $4,000,000 $3,000,000 $1,000,000 administration building 18 Galveston Old Port Industrial Road repairs: Raise and resurface road, $2, 217,18 6 $1,662,889 $554,297 drainage improvements, rail repairs 19 Corpus Christi Permian Yard: New paving, drainage, security fencing, gates, $11,400,000 $6,625,000 $4,775,000 lighting, rail upgrades 20 Galveston Fill Slip 38: Design and construct bulkhead closure structure $15,481,475 $11,611,237 $3,870,238 21 Palacios Road and Drainage Improvements: Rehabilitate 4,600 feet of $805,000 $603,750 $201,250 asphalt road, replace four culverts and improve drainage 22 Port Arthur On-Dock Rail Berth 6 Expansion: Elevation and stabilization of $8,000,000 $6,000,000 $2,000,000 8.34 acres of backlands adjacent to Berth 6 23 Palacios Timber Dock Replacement: Replace 1,000 feet of timber dock $3,500,000 $2,625,000 $875,000 with steel bulkhead system 24 Palacios Port Commercial Center Backlands Development: Design $3,650,000 $2,737,500 $912,500 and construction of a road extension, utilities, lighting, 60,000-square-foot warehouse N/A Galveston* Port Strategic Plan: 5-year master plan, 10-year vision plan, $650,000 $ 4 87,50 0 $162,500 20-year vision plan Grand Totals $217,215,436 $132,875,785 $84,339,651 *Study only. Project Sheet not required. Page 4 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Texas Ports 2017-2018 Capital Program Projects

Selection Criteria The PAAC established the following guidance for the development of the 2017-2018 Port Capital Program: • The project must abide by the guidance in Texas Transportation Code, Title 4, Chapter 55, Funding of Port Security, Projects and Studies. • Each port may submit a maximum of four projects or studies which do not exceed a total grant amount of $20 million for all projects. • Cost share requirements are 75 percent (state) and 25 percent (local) • Projects will be evaluated and prioritized by the PAAC based on the following criteria: »»Economic impact »»Operational impact »»Enhances connectivity »»Improves safe operations »»Project readiness »TEXAS»Local match/other funds »»Other benefits Port of Beaumont Projects Page 7 Port of Houston Port of Port Arthur Projects Projects Page 9 Pages 9, 12, 13, and 23 Port of Galveston Projects Pages 18 and 20

Victoria County Navigation Port of Bay City Projects District Projects Page 10 Page 15  Port of Palacios Projects Pages 22, 23, and 24 Aransas County Navigation District Projects Port of Corpus Page 13 Christi Projects Pages 14, 16, 17, and 19

Port of Brownsville Projects Page 6

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 5 Port Authority Advisory Committee

Point-of-contact: PORT OF BROWNSVILLE Eduardo Campirano, Port Director 1000 Capt. Donald Foust Road Construct a Multimodal Dock and Extend Brownsville Brownsville, TX 78521 and Rio Grande Railway Track 956-831-5006 Project Cost: $32,431,180 Grant Funding: $16,215,590 Match: $16,215,590 The Proposed Project: Build a multimodal rail dock and road to allow access to over 500 acres of undeveloped waterfront property and provide a platform for future clients. Grant funding would allow the port to accelerate this project, build capacity for current and future clients, create new job opportunities, and capture their share of the trade between the U.S. and Mexico. Project Benefits The project is expected to generate the following benefits: • Creates an estimated 1,249 direct and indirect jobs • Creates $5.6 million in local purchases from project-related construction activities • Creates a total economic impact of $19.4 million and generates $1.5 million in state and local taxes • Achieves over 25,000 new railcar movements at the Port per year Project Description • Improves system efficiency, removes bottlenecks, This is phase 1 of a much larger greenfield project. The and opens over 500 acres of leasable land for future proposed project includes extending the Brownsville & Rio development Grande International Railway track two miles east of its current • Improves highway safety by increasing rail usage/decreasing termination, constructing an 112,500-square-foot multimodal truck usage to move cargo to and from the Port dock with parallel rail, constructing a new two-lane road, and adding a rail spur at the Palo Alto rail yard. The project Port Readiness will solve a major problem for existing port tenants that have The rail and road portions of the project are shovel ready. outgrown their current areas of operation and allows the port Preliminary engineering and environmental permitting are to accept incremental new cargo and to further diversify the underway for the dock facility and will be completed once port’s cargo mix. The existing general cargo facilities have grant funding is secured. The overall project is expected to a narrow backland, measuring only 650 to 750 feet from take 12–24 months once all contracts have been awarded. face of wharf to the back fence. The port’s tenants have been forced to re-handle cargo across public roadways to Project Support meet cargo storage needs. The project also resolves the rail The project is a critical element of the Port’s Master Plan and is congestion problem that delays cargo movements by creating a priority for the Port Commissioners, the Brownsville Economic new centralized facilities with a modern transload profile that Development Council, and private industry. OmniTRAX and is located on a rail line that has surplus capacity. The port’s Ports America have provided letters of support for the project. primary steel users are not restricted by a land lease and can The local public is very supportive of the project and excited relocate immediately to the newly built facilities. There will be about the new job opportunities. ample space at the new facilities for additional users and new tenants. There is also a backlog of demand that is suitable for Economic Impacts Generated by repurposing and fully utilizing the existing, narrow facility. Construction Activity TOTAL CONSTRUCTION VALUE $32,431,180 Need for Grant Funding Total Jobs 540 The Port of Brownsville has been investing heavily in capital improvement projects for the past five years to keep pace Direct Jobs 220 with the growing demands of the oil and gas industry and Total Personal Income $25,494,000 the U.S.–Mexico cross-border trade. The port is strategically Direct Personal Income $10,401,000 positioned to take advantage of the growth in the Mexican economy. The port has matching funds available, but it is not TOTAL ECONOMIC BENEFIT $77,792,000 in a position at this time to fund the entire project.

Page 6 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF BEAUMONT Clayton Henderson 1225 Main Street Expand Unit Train Capacity Beaumont, TX 77701 409-835-0512 Project Cost: $13,143,095 Grant Funding: $9,857,320 Match: $3,285,775 The Proposed Project: Construct more than 13,000 linear feet of new rail track, realign and upgrade more than 4,200 linear feet of existing rail tracks; improve roads, road access and crossing points, storm drainage, security fencing, and lighting.

• Improve/upgrade storm water drainage capacity and conveyance within the terminal area • Provide beneficial long-term and permanent social impacts, alleviating intercity vehicular traffic congestion by performing unit train switching within the Port of Beaumont and maximizing current rail throughput that is currently constrained • Provide beneficial long-term and permanent economic impacts on the community by addressing the current rail capacity limitation of single direction unit train handling at the Port terminals, alleviating “spot-on-arrival” constraints for rail lines, diverting cargo from truck to rail and allowing the Port to attract new businesses that are rail-intensive • Create short-term construction-related jobs and increase Project Description local purchases in the local and regional economy The proposed project includes construction of two new unit Port Readiness train slots within the Port of Beaumont that will alleviate the The Port of Beaumont completed a Port Master Plan in current rail capacity shortfall. Improvements include adding 2014 which identified this project as their top priority. The more than 13,000 linear feet of new rail track and realigning/ port has completed preliminary design of the project and is upgrading over 4,200 linear feet of existing rail track. The finalizing the environmental permits required. Final design and project also includes upgrading existing road crossings, construction will occur once grant funding is secured. The improving security fencing and lighting, and increasing storm project is scheduled to be completed in 18–24 months. water drainage capacity and conveyance. Project Support Need for Grant Funding The project is a critical element of the port’s 2014 Master Plan The Port of Beaumont has been investing heavily in capital and is a priority for the Port Authority and the local community improvements for the past five years. The port has their that would benefit from it. The project is supported by the matching funds available but cannot afford the entire capital Jefferson County Judge and Commissioners, the City of cost of the project. Beaumont, the Port’s Commissioners, local industry, the public, and the county economic development agency. Grant funding would allow the Port of Beaumont to construct this much needed multimodal improvement project, maximize Economic Impacts Generated by rail throughput that is currently constrained, reduce train Construction Activity waiting time and alleviate intercity vehicular traffic congestion. TOTAL CONSTRUCTION VALUE $31,140,000 Project Benefits Total Jobs 219 The project is expected to generate the following benefits: • The overall project has an exceptional benefit-to-cost ratio Direct Jobs 89 of more than 3.0 to 1 Total Personal Income $10,332,000 • Improve all road access and crossing points connected to Direct Personal Income $4,215,000 the Port’s south entrances • Increase and update security by installing bollard/cable TOTAL ECONOMIC BENEFIT $31,526,000 breach resistant fencing and expanding security lighting coverage over the new rail network

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 7 Port Authority Advisory Committee

Point-of-contact: PORT OF PORT ARTHUR Larry Kelley, Deputy Port Director P.O Box 1428 Berth 6 General Cargo Dock Facility - Phase 1 Port Arthur, TX 77642 409-985-9312 Project Cost: $35,000,000 Grant Funding: $7,034,374 Match: $27,965,626 The Proposed Project: The construction of the Berth 6 general cargo dock facility is Phase 1 of a much larger project that involves the construction of the berth, a cargo dock extension to the berth, dock side rail improvements, and development of a project cargo laydown area. Project Description The Port of Port Arthur proposes construction of a 600‑foot by 61.5-foot pile-supported dock extension to support a future 50-foot-gauge gantry crane. The project will extend and improve three sets of on-dock rail by 2,100 feet. The project will also include cathodic protection, communications, on dock water supply system, electrical and drainage systems, and 240,000 cubic yards of dredging. The final dock design will meet all the structural requirements associated with the future channel deepening project. Need for Grant Funding The Port of Port Arthur has made significant capital improvements over the past five years. This project is the highest priority project in the capital improvement plan. Grant funding would allow the Port of Port Arthur to develop Berth 6 ahead of schedule, double throughput capacity, improve Port Readiness safety, enhance port operations, diversify their cargo business, The Berth 6 project is shovel ready. The final design is attract new industrial clients, create new job opportunities that complete. The required permits have been obtained, and benefit the local community, and increase the tax base within the project is ready for construction. The Port of Port Arthur Jefferson County. is fully committed to the project and has agreed to fund 80 percent of the effort. The overall project is expected to The Port of Port Arthur is willing to fund 80 percent of take 18–24 months to complete. the project. Project Support Project Benefits The project is supported by Senator John Cornyn, The project is expected to generate the following benefits: Congressman Randy Weber, State Representative Joe • Generates a benefit-to-cost ratio of 3.30 to 1 discounted Deshotel, Jefferson County Commissioners Court, the City at 7 percent of Port Arthur, East Texas Regional Planning Commission, • Generates $114 million over a 25 year period from a Port Arthur Economic Council, Kansas City Southern $7 million investment by the state (KCS) and Union Pacific Railroads, and numerous industrial • Improves the efficient shipment of bulk products resulting stakeholders. in transportation savings • Improves safety Economic Impacts Generated by • Improves port capacity and reduces vessel idling costs by Construction Activity allowing berth space allocation TOTAL CONSTRUCTION VALUE $35,000,000 • Provides new market opportunities and additional value Total Jobs 583 added benefits • Increases the tax base within Jefferson County by Direct Jobs 238 attracting new industrial clients Total Personal Income $27,514,000 • Enhances economic benefits to the region as a result of jobs created during the construction phase of the project Direct Personal Income $11,225,000 • Enhances economic benefits to the region as a result of TOTAL ECONOMIC BENEFIT $83,955,000 the local purchases of the individuals directly employed by the construction phase of the project Page 8 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF HOUSTON AUTHORITY Roger Guenther, Executive Director 111 East Loop North Port Road Expansion Houston, TX 77029 713-670-2429 Project Cost: $12,900,000 Grant Funding: $9,675,000 Match: $3,225,000 The Proposed Project: The Phase 3 Expansion of Port Road is the final phase of a much larger project that allowed the Port of Houston Authority (PHA) to fully develop Port Road as the Bayport Container Terminal continued to grow and additional capacity was required.

Project Description • Improves the efficient shipment of containers and The proposed project involves construction of over 9,000 feet other assorted freight, resulting in cargo mobility and of new roadway drainage improvements to expand the transportation savings existing divided boulevard from four to six lanes at critical • Enhances economic benefits to the region as a result of sections between SH-146 and Cruise Road. Drainage hundreds of jobs created during the construction phase of improvements included in the project’s scope of work will also the project facilitate the future development of 90 acres of PHA property. • Enhances economic benefits to the region as a result of the local purchases of the individuals directly employed by Need for Grant Funding the construction phase of the project The project is included in the Bayport Master Plan and complements the $2 billion commitment the port is investing Port Readiness into the Bayport Container Facility through 2020. Grant The preliminary design is completed. Final design and funding would allow the port to design and construct construction are scheduled to occur upon receipt of funding. the road ahead of schedule ensuring future capacity is The overall project is expected to take 18–24 months to meeting rising demands. The project alleviates current and complete. future bottlenecks, allowing the port to capture the project transportation efficiency benefits much sooner. The project Project Support The project is supported by the Port Commission, Harris increases the port’s cargo handling capabilities, multimodal County, the Bay Area Houston Economic Association, local capabilities, throughput, and overall operations at Bayport. cities, and the public. The project also improves safety and creates new job opportunities that will benefit Harris County and the region. Economic Impacts Generated by The port and Harris County have partnered to provide the Construction Activity required matching funds. TOTAL CONSTRUCTION VALUE $12,900,000 Project Benefits Total Jobs 215 The project is expected to generate the following benefits: • Facilitates the development of 90 acres of PHA property, Direct Jobs 88 which is expected to generate 500 direct jobs in the future Total Personal Income $10,141,000 • Enhances freight mobility inside and outside the Port by Direct Personal Income $4,137,000 alleviating traffic congestion • Improves safety for truck operations within the Port and TOTAL ECONOMIC BENEFIT $30,943,000 while accessing the state highway system TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 9 Port Authority Advisory Committee

Point-of-contact: PORT OF BAY CITY Mike Griffith, Port Chairman 189 County Road 231 Construct New Industrial Barge and Boat Terminal Matagorda, TX 77457 979-863-2103 Project Cost: $24,000,000 Grant Funding: $18,000,000 Match: $6,000,000 The Proposed Project: Construct a new industrial and heavy commercial barge and boat terminal adjacent to the Gulf Intracoastal Waterway at Bay City, Texas.

Project Description • Reduces truck traffic and wear and tear on county and The Port of Bay City is proposing the construction of a new state highways by diverting bulk and petrochemical industrial and heavy commercial barge and boat terminal cargos to barge on 252 acres of undeveloped port-owned land. The project includes designing a new wharf, dredging, and road Port Readiness This is a shovel ready project. The port has obtained all improvements. The facility will be used for liquid and dry cargo the necessary permits, completed design, and secured shipments, barge and commercial boat construction, haul- their matching funds for the project. The project could be out and repair facilities, processing seafood, storage, and as awarded within 90–120 days from receipt of the grant. The a tugboat service dock with fuel and potable water services. overall construction could be completed within 12–18 months The new facility is an economic development project which of contract award. will enhance business opportunities, create new jobs, and add value to the tax base in Matagorda County. Project Support Need for Grant Funding The project is fully supported by all the Matagorda County Commissioner’s Court, U.S. Representative Blake The revenues generated by the port each year are not Farenthold, and State Representative Dennis Bonnen. sufficient to fund a capital project of this size. This project would create 299 new jobs within Matagorda County and Economic Impacts Generated by establish the port as a critical industrial facility along the Construction Activity GIWW. The port has secured all their required matching funds. Grant funding would allow the port to execute the TOTAL CONSTRUCTION VALUE $24,000,000 project now and avoid construction cost escalation. Total Jobs 400 Project Benefits Direct Jobs 163 The project is expected to generate the following benefits: Total Personal Income $18,866,000 • Create a total annual value of more than $20 million Direct Personal Income $7,6 97,0 0 0 • Increase state and local tax benefits of $1,179,247 annually • Create 299 direct and indirect jobs for Matagorda County TOTAL ECONOMIC BENEFIT $57,569,000 • Establish the Port of Bay City as a critical industrial facility along the GIWW Page 10 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF PORT ARTHUR Larry Kelley, Deputy Port Director P.O Box 1428 Berth 6 General Cargo Dock Facility - Phase 2 Port Arthur, TX 77642 409-985-9312 Project Cost: $5,000,000 Grant Funding: $3,750,000 Match: $1,250,000 The Proposed Project: The construction of the Berth 6 cargo deck is Phase 2 of a much larger project that involves the construction of the berth, dock side rail improvements, and development of a project cargo laydown area. Project Benefits The project is expected to generate the following benefits: • Improves access to vessels and enhances multimodal transportation efficiency • Enhances safety of employees by providing a stabilized, level platform to load cargo to trucks, vessels, or rail • Improves the efficient shipment of bulk products resulting in transportation savings • Enhances economic benefits to the region as a result of jobs created during the construction phase of the project • Enhances economic benefits to the region as a result of the local purchases of the individuals directly employed by the construction phase of the project Port Readiness The preliminary design is completed. Local permitting and final design is expected to begin in the fourth quarter of 2016. Construction is scheduled to begin upon receipt of funding. The overall project is expected to take 12–18 months Project Description to complete. The Port of Port Arthur proposes construction of a cargo deck extension immediately behind the newly constructed Project Support Berth 6. This project includes a 600-foot by 100-foot cargo The project is supported by Senator John Cornyn, deck that will allow for the transfer of bulk, breakbulk, and Congressman Randy Weber, State Representative Joe project cargo for the Berth 6 cargo dock. The project will Deshotel, Jefferson County Commissioners Court, the City of provide access to on-dock rail and vessel berths which will Port Arthur, East Texas Regional Planning Commission, Port improve multimodal access between trucks, vessels, and Arthur Economic Council, Kansas City Southern (KCS) and rail for all types of cargo. The deck expansion is necessary Union Pacific Railroads, and numerous industrial stakeholders. to accommodate the existing ship-loading system and will increase bulk handling efficiency. Economic Impacts Generated by Construction Activity Need for Grant Funding The Port of Port Arthur has made significant capital TOTAL CONSTRUCTION VALUE $5,000,000 improvements in the past five years. This project is part of Total Jobs 83 the larger Berth 6 expansion project which is the highest Direct Jobs 34 priority project in the capital improvement plan for the Port of Port Arthur. Total Personal Income $3,931,000 Direct Personal Income $1,604,000 Grant funding would allow the Port of Port Arthur to complete the development of Berth 6 ahead of schedule, double TOTAL ECONOMIC BENEFIT $11,994,000 throughput capacity, improve safety, enhance port operations, create new job opportunities that benefit the local community, and increase the tax base within Jefferson County. The port has their required cost share on-hand.

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Point-of-contact: PORT OF PORT ARTHUR Larry Kelley, Deputy Port Director P.O Box 1428 Rail Reliever Improvements Port Arthur, TX 77642 409-985-9312 Project Cost: $4,287,500 Grant Funding: $3,215,625 Match: $1,071,875 The Proposed Project: The proposed project is the second and last phase of a $10 million rail improvements project. • Reduces in-port and outside the port rail congestion by creating a second rail connection to the main track • Improves the Port’s capability to secure sensitive and high value cargo and to access new markets • Improves track safety by creating a stabilized, level work area for trucks and providing better access to railcars • Improves the efficient shipment of bulk products resulting in transportation savings • Enhances economic benefits to the region as a result of jobs created during the construction phase of the proposed project • Enhances economic benefits to the region as a result of the local purchases of the individuals directly employed by the construction phase of the proposed project Port Readiness The preliminary design is completed. Local permitting, environmental review, and final design is expected to begin in the fourth quarter of 2016. Construction is scheduled Project Description to occur upon receipt of funding. The overall project is The Port of Port Arthur proposed project includes 1,750 linear expected to take 12–18 months to complete. feet of new railroad track, new crossovers and switches, site drainage modifications, utility alignment, site preparation, Project Support and fill. The proposed project will enhance capacity and The proposed project is supported by Senator John Cornyn, connectivity to the serving rail carrier by providing a second Congressman Randy Weber, State Representative Joe access point to the main line rail service provider. Deshotel, Jefferson County Commissioners Court, the City of Port Arthur, East Texas Regional Planning Commission, Need for Grant Funding Port Arthur Economic Council, Kansas City Southern The port has made significant capital improvements in (KCS) and Union Pacific Railroads, and numerous industrial the past five years and has already invested $5.7 million stakeholders. in the proposed project’s first phase. This proposed project compliments the larger Berth 6 Expansion Project, Economic Impacts Generated by which is the highest priority project in the Port’s Capital Construction Activity Improvement Plan. TOTAL CONSTRUCTION VALUE $4,290,000 Grant funding would allow the port to finish the rail Total Jobs 71 improvements project. The proposed project increases the Direct Jobs 29 port’s multimodal capabilities and throughput capacity, improves safety, enhances port operations, and creates new Total Personal Income $3,370,000 job opportunities that benefit Jefferson County. The port has Direct Personal Income $1,375,000 their required matching funds on-hand. TOTAL ECONOMIC BENEFIT $10,283,000 Project Benefits The project is expected to generate the following benefits: • Generates a benefit-to-cost ratio of 2.98 to 1 discounted at 7 percent

Page 12 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: ARANSAS COUNTY NAVIGATION DISTRICT Keith Barrett, Harbormaster 250 South Cove Harbor Replace 1,888 Linear Feet of Bulkhead Rockport, TX 78382 361-729-8037 Project Cost: $3,000,000 Grant Funding: $2,400,000 Match: $600,000 The Proposed Project: Replace 1,888 linear feet of bulkhead at the Cove Harbor facility located adjacent to the Gulf Intracoastal Waterway (GIWW). Project Benefits The project is expected to generate the following benefits: • Improves workplace safety for over 600 people currently working at the facility • Increases the number of berthing spaces and associated backlands areas available for use • Enhances protection for over 2,500 linear feet of shoreline that is currently vulnerable to tropical storm surge and flooding • Eliminates the risk of a catastrophic failure that would block the GIWW and force barges to take an alternate route that would extend voyage times by 4–12 hours Port Readiness Project Description The project is shovel ready. The Navigation District has The current bulkhead, constructed in the late 1950s, already secured the required environmental permits, has surpassed its usable lifespan and is in dire need of completed design and is ready to bid and award the project replacement. The proposed project includes re-sheeting upon receipt of funds. This project could be completed within 1,888 feet of existing bulkhead, installing new tie backs, and 12–18 months once funding is secured. constructing a new concrete top cap. The project is phase one of a much larger project that involves the replacement of Project Support all 5,770 linear feet of bulkhead. The project is a critical element of the Cove Harbor Restoration project and is a priority for the Aransas County The unconstrained land behind the failing bulkhead is at risk Coastal Resiliency Initiative. The project is supported by of collapsing and potentially causing a blockage of the Gulf the Aransas County Judge and Commissioners, the cities Intracoastal Waterway (GIWW). This blockage would have a of Rockport and Fulton, the Aransas County Navigation major economic impact on all barge traffic along the GIWW District, local industry, the public and the county economic and Aransas County’s major industrial base. development agency. Additionally, the U.S. Coast Guard Need for Grant Funding and the Gulf Intracoastal Canal Association fully support the project, which will enhance the port’s resiliency to tropical The revenues generated by the Navigation District each year events and mitigate the risks associated with a potential are not sufficient to fund a capital project of this size. The blockage along the GIWW. Navigation District sought to fund the bulkhead replacement through bond referendums on three different occasions, and Economic Impacts Generated by each time they were voted down. Port tenants are mostly Construction Activity small businesses and are currently unwilling to accept an increase in fees or contribute funding for construction. The TOTAL CONSTRUCTION VALUE $3,000,000 port has their required matching funds on-hand. Total Jobs 50

Grant funding would allow the port to make the much-needed Direct Jobs 20 repairs to the bulkhead, reducing the risk of a catastrophic Total Personal Income $2,358,000 failure closing the GIWW and potentially attracting additional Direct Personal Income $962,000 business to the port by having modern, state-of-the-art facilities. TOTAL ECONOMIC BENEFIT $7,196,000

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 13 Port Authority Advisory Committee

Point-of-contact: PORT OF CORPUS CHRISTI AUTHORITY John LaRue 222 Power Street Al Speight Cargo Yard Project Corpus Christi, TX 78403 361-881-6189 Project Cost: $1,500,000 Grant Funding: $1,125,000 Match: $375,000 The Proposed Project: Construction of two 2,500-linear-foot railroad storage tracks to improve the infrastructure at Al Speight Cargo Yard.

Project Description • Increases the efficiency of cargo movements through the The Port of Corpus Christi Authority (PCCA) proposes to Al Speight Rail Yard construct two 2,500-linear-foot rail storage tracks with associated improvements for the Al Speight Cargo Yard. The Port Readiness The proposed project was designed as part of the original proposed project will help offset the cargo storage space design of the Al Speight Rail Yard project. The original design that will be lost due to the realignment and construction of will be reviewed, and updated, if necessary, to meet current the new ship channel bridge and increase the PCCA’s ability design standards. Required construction documents will also to efficiently and safely move cargo through the rail yard. The be prepared. Upon receipt of grant funding, the PCCA will project is essential for future strategic military deployments, begin construction. The proposed project is expected to be a growing wind turbine and pipe business, and to support complete within 12–18 months following contract award. project cargo requirements associated with the petrochemical and LNG expansion within the port area. Project Support Need for Grant Funding This proposed project is considered one of the top priority projects by PCCA’s Board of Commissioners. PCCA projects Grant funding would allow the PCCA to implement needed are supported by local government entities within the cities improvements to the PCCA’s infrastructure, which is a high of Corpus Christi and portland, as well as government priority for the PCCA Board of Commissioners. PCCA has officials from Nueces and San Patricio Counties. PCCA their matching funds on-hand. The addition of the two new projects are also supported by the local state senators and railroad storage tracks will result in an economic improvement representatives. to the PCCA’s revenue stream and a positive economic impact to the immediate area. Economic Impacts Generated by Project Benefits Construction Activity The project is expected to generate the following benefits: TOTAL CONSTRUCTION VALUE $1,500,000 • Provides essential capacity for strategic military Total Jobs 25 deployments • Supports wind energy development and increases the Direct Jobs 10 potential for movement of aggregates and other general Total Personal Income $1,179,000 cargos through the port Direct Personal Income $481,000 • Enhances the PCCA’s overall rail capacity to local, regional, state, national, and international markets TOTAL ECONOMIC BENEFIT $3,598,000 • Supports ongoing industrial and commercial development in the area, contributing to local, regional, and state economic development and stability Page 14 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: VICTORIA COUNTY NAVIGATION DISTRICT Paul Kaup, Executive Director 1934 FM 1432 South Industrial Site Development Victoria, TX 77905 361-570-8854 Project Cost: $21,250,000 Grant Funding: $17,000,000 Match: $4,250,000 The Proposed Project: Development of the South Industrial Site. Project Benefits The project is expected to generate the following benefits: • Improves the Port’s access to US-77 and the I-69 corridor • Enhances the Port’s cargo handling facilities and capability, enabling the port to diversify their current business • Supports ongoing industrial and commercial development in the area, contributing to local, regional, and state economic development and stability • The $21 million construction impact creates direct and indirect economic benefits locally and regionally Port Readiness The McCoy Road project is shovel ready. The expansion of the general cargo dock is permitted, and preliminary engineering is complete. The five-acre cargo lay down Project Description area has completed preliminary engineering. The final The Port of Victoria proposes several projects to enhance design, contract award, and construction for all the projects the South Industrial Site. These projects will include will commence once funds are received. All projects construction of a three-lane heavy haul road along McCoy are expected to be complete within 18–24 months of Road to serve as the main entrance to the site, construction contract award. of a 500‑foot extension to the existing general cargo Project Support dock, and the development of a five-acre cargo staging The project is a critical element of the Port of Victoria’s area with a warehouse and associated material handling Master Plan and is a priority for the Port Commissioners, equipment. Development of the South Industrial Site is a the Victoria Metropolitan Planning Organization, the Victoria critical component of the Port’s Master Plan, which includes Economic Development Corporation, the Victoria Chamber improving access to the port area for new infrastructure and of Commerce, and private industry. Caterpillar Inc. has also developing and diversifying the port’s current business. provided a letter of support for the project. Need for Grant Funding Economic Impacts Generated by The revenues generated by the Navigation District each year Construction Activity are not sufficient to fund a capital improvement project of this size. Port tenants are mostly small businesses and are TOTAL CONSTRUCTION VALUE $21,250,000 currently unwilling to accept an increase in fees or contribute Total Jobs 354 funding for construction. Direct Jobs 144 Grant funding would allow the Navigation District to develop Total Personal Income $16,705,000 the South Industrial Site ahead of schedule, enabling the port to diversify their cargo business, attract new industrial clients, Direct Personal Income $6,815,000 create job opportunities that benefit the local community, TOTAL ECONOMIC BENEFIT $50,972,000 and increase the tax base within Victoria County and the Navigation District. The Navigation District has the required matching funds on-hand.

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 15 Port Authority Advisory Committee

Point-of-contact: PORT OF CORPUS CHRISTI AUTHORITY John LaRue 222 Power Street Bulk Terminal Crude Oil Transfer Station Project Corpus Christi, TX 78403 361-881-6189 Project Cost: $15,000,000 Grant Funding: $9,250,000 Match: $5,750,000 The Proposed Project: The design and construction of a Bulk Terminal Crude Oil Transfer Station.

Project Description • Reduces the temporary employment of transloading The Port of Corpus Christi Authority (PCCA) proposes to operations to move petroleum liquids between rail and design and construct a Bulk Terminal Crude Oil Transfer truck transportation modes Station that will consist of 4,000 linear feet of rail siding, supply • Facilitates safer, cleaner, and more efficient handling of pipelines, and a rail car loading station with spill containment. petroleum products This intermodal project will enable the port to leverage rail to • Creates short-term construction jobs and increases offset the critical gap associated with the lack of pipelines regional and local purchase revenues from the oil patch to the port. The additional capacity and flexibility to move liquid bulk material from ship to rail or vice Port Readiness The feasibility and scoping studies are ongoing. Upon receipt versa is expected to increase exports and imports of crude oil of grant funding, the PCCA will complete environmental and other petroleum products to and from PCCA. permitting, finalize the design, and initiate construction of the Need for Grant Funding proposed project. The proposed project is expected to be The region around the Port of Corpus Christi is experiencing complete within 18–24 months following contract award. unprecedented industrial development related to oil and gas expansion, including the recent approval by Congress Project Support This proposed project is considered one of the top priority allowing the export of crude oil. The PCCA has been making projects by PCCA’s Board of Commissioners. PCCA projects significant capital improvements for the past five years to are supported by local government entities within the cities meet these demands. Grant funding would allow the PCCA of Corpus Christi and Portland, as well as government to construct this facility ahead of schedule and meet clients’ officials from Nueces and San Patricio Counties. PCCA continued demands. projects are also supported by the local state senators and Project Benefits representatives. The project is expected to generate the following benefits: • Leverages new market opportunities to move crude oil for Economic Impacts Generated by export and move refined products from existing facilities to Construction Activity new markets in Mexico TOTAL CONSTRUCTION VALUE $15,000,000 • Improves intermodal capability to transfer crude oil and Total Jobs 250 petroleum products between marine, road, pipeline, and rail transportation modes Direct Jobs 102 • Reduces negative impacts on air quality related to large Total Personal Income $11,792,000 numbers of trucks transporting highly volatile products Direct Personal Income $4,811,000 (crude oil and diesel/gas fuel) on public thoroughfares, including city and state highways TOTAL ECONOMIC BENEFIT $35,981,000

Page 16 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF CORPUS CHRISTI AUTHORITY John LaRue 222 Power Street Truck Queuing Area Project Corpus Christi, TX 78403 361-881-6189 Project Cost: $4,000,000 Grant Funding: $3,000,000 Match: $1,000,000 The Proposed Project: Design and construction of a truck queuing area.

Project Description • Reduces congestion and improves the flow of traffic The Port of Corpus Christi Authority (PCCA) proposes to between JFITC and two major TxDOT highways, I-37 design and construct a truck queuing area that will consist and SH 181 of a truck parking area, a scheduling system and an administration building that will provide a climate controlled Port Readiness The preliminary design of the project is complete. Final waiting area and restroom for truck drivers. The project design and construction will be completed immediately will alleviate the safety problems associated with traffic upon the receipt of funding. The project is estimated to be congestion on the Joe Fulton International Trade Corridor complete in 12–18 months once funding is received. (JFITC) caused by the long backup of trucks waiting to enter the ADM grain facility. Project Support Need for Grant Funding PCCA projects are supported by local government entities within the cities of Corpus Christi and Portland, as well as The area around the grain facility is experiencing government officials from Nueces and San Patricio Counties. unprecedented industrial growth which has greatly increased PCCA projects are also supported by the local state senators the volume of traffic along the JFITC. The project enables and representatives. the port to protect the public and mitigate a significant traffic safety hazard. The port has their matching funds available Economic Impacts Generated by but cannot afford to fund the entire project at this time. Grant Construction Activity funding would enable the port to complete this project ahead of schedule, improve traffic safety and mitigate accident risk. TOTAL CONSTRUCTION VALUE $4,000,000 Project Benefits Total Jobs 67 The project is expected to generate the following benefits: Direct Jobs 27 • Improves public safety by providing an area for trucks to Total Personal Income $3,144,000 stage off the highway Direct Personal Income $1,283,000 • Reduces negative impacts on air quality related to large numbers of trucks idling for extended periods of time TOTAL ECONOMIC BENEFIT $9,595,000 • Provides an economic benefit to the State of Texas as a result of streamlining the grain facility’s operation, providing more efficient cargo movement, and reductions in wait times

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 17 Port Authority Advisory Committee

Point-of-contact: PORT OF GALVESTON Peter Simons, Deputy Port Director 123 25th Street Old Port Industrial Road Improvements Galveston, TX 77550 409-766-6171 Project Cost: $2,217,186 Grant Funding: $1,662,889 Match: $554,297 The Proposed Project: This is Phase 2 of a proposed project to improve Old Port Industrial Road, located south of the Galveston Ship Channel. Project Benefits The project is expected to generate the following benefits: • Improves access to the port from Harborside Drive, alleviating congestion and reducing oversized load truck traffic • Eliminates the current conditions that cause street flooding by improving drainage • Supports ongoing industrial and commercial development within the port, contributing to local, regional, and state economic development and stability • Enhances economic benefits to the region as a result of 37 jobs created during the construction phase of the proposed project • Enhances economic benefits to the region as a result of the local purchases of the individuals directly employed by the construction phase of the proposed project Project Description The Port of Galveston proposes improvements and repairs to Port Readiness 3,050 linear feet of roadway along Old Port Industrial Road. The preliminary engineering and initial permit coordination The proposed project includes reconstruction of two railroad for the project are complete. Coordination with Texas crossings, widening, raising the grade and resurfacing the Department of Transportation on roadway standards, final road, storm drainage improvements, and construction of a design, and construction will be completed once grant truck scale at the entrance to the port. These improvements funding is received. The proposed project is expected to will enhance traffic flow through the port and port operations, be completed within 12–18 months. alleviate congestion on public streets, and provide a safe Project Support route for vehicles carrying oversize cargo. The Old Port The proposed project is a critical element of the Port of Industrial Road project is included in the port’s Capital Galveston Master Plan and is supported by the Board of Improvements Plan. Trustees for Galveston Wharves, the City of Galveston, Need for Grant Funding stakeholders within the port complex, and the public, Grant funding would allow the port to execute the proposed particularly those cruising from one of the port’s two cruise project ahead of schedule and alleviate the current safety terminals. concerns associated with an inefficient system that causes Economic Impacts Generated by congestion on public streets. Construction Activity The port has made numerous capital improvements TOTAL CONSTRUCTION VALUE $2,200,000 over the past five years which have stimulated economic Total Jobs 37 development and tourism opportunities and revenues for the state. These improvements include the construction of a Direct Jobs 15 second cruise terminal and a vehicle processing facility. The Total Personal Income $1,743,000 port has their matching funds available but cannot afford to fund the entire project at this time. Direct Personal Income $711,000 TOTAL ECONOMIC BENEFIT $5,318,000

Page 18 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF CORPUS CHRISTI AUTHORITY John LaRue 222 Power Street Permian Yard Project Corpus Christi, TX 78403 361-881-6189 Project Cost: $11,400,000 Grant Funding: $6,625,000 Match: $4,775,000 The Proposed Project: Provide improvements to the Permian Yard including new paving, drainage, security fencing, gates, lighting, rail upgrades, and storm drainage. Grant funding would allow the PCCA to immediately develop additional cargo storage area at the Permian Yard to offset cargo storage area lost due to the new alignment of the harbor bridge. The project will result in a net expansion of capability and cargo improvement efficiencies. Project Benefits The project is expected to generate the following benefits: • Connects two existing cargo yards and provides a large, efficient cargo handling area • Provides the ability to support wind turbine components, military cargo movements, and other general or project cargo movements • Enhance economic benefits to the region as a result of jobs created during the construction phase of the project • Enhance economic benefits to the region as a result of the local purchases of the individuals directly generated by the Project Description construction phase of the project The Permian Yard is owned by the Port of Corpus Christi • Attract new customers in the wind energy, oil and gas Authority (PCCA) and consists of an 18-acre tract of land drilling, and containerized cargo industries located on the north side of the Corpus Christi Ship Channel Port Readiness within the inner harbor. The project will provide additional The design work associated with the Permian Yard project storage areas and rail connectivity to adjacent rail systems is pending completion. Final design and development of within the port. Upgrades to the Permian Yard include new the construction documentation would be accomplished paving and drainage features, security fencing and gates, area immediately upon receipt of grant funding. The project is lighting, and rail enhancements to improve connectivity with expected to be complete in 12–18 months. adjacent rail systems. Project Support Development of the proposed project as an open storage PCCA projects are supported by local government entities yard would connect the two existing cargo yards and provide within the cities of Corpus Christi and Portland, as well as a larger more efficient cargo handling area with the ability to government officials from Nueces and San Patricio Counties. support wind turbine components, military cargo movements, PCCA projects are also supported by the local state senators and large transport vehicles. Extending the current railroad and representatives. track through the Permian Yard also improves rail loading and cargo movement within the newly developed storage area. Economic Impacts Generated by Need for Grant Funding Construction Activity Texas Department of Transportation (TxDOT) has initiated TOTAL CONSTRUCTION VALUE $11,400,000 a project to replace the US Highway 181 Harbor Bridge Total Jobs 190 over the ship channel. Construction of the new bridge will impact existing cargo storage and handling capacity on Direct Jobs 78 both the north and south sides of the channel, resulting in a Total Personal Income $8,962,000 reduction of the port’s capacity to move and store general Direct Personal Income $3,656,000 cargo commodities. TOTAL ECONOMIC BENEFIT $27,345,000

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 19 Port Authority Advisory Committee

Point-of-contact: PORT OF GALVESTON Peter Simons, Deputy Port Director 123 25th Street Slips 38 and 39 Galveston, TX 77550 409-766-6171 Project Cost: $15,481,650 Grant Funding: $11,611,237 Match: $3,870,238 The Proposed Project: The proposed project entails closing the entrance to Slips 38 and 39 and backfilling the slips to create an area to construct a vehicle processing center.

Project Description • Generates 73 direct construction related jobs with a payroll The proposed project is part of a larger project on the of $2.5 million port’s master plan to construct a vehicle processing center • Generates 69 indirect construction related jobs with a for an existing client. The Port of Galveston proposes payroll of $2.1 million to design and construct a circular cell bulkhead closure structure between Piers 38 and 39 and back fill the slip area Port Readiness The preliminary engineering design for the proposed project with clean concrete and sand, and surcharge the area to is complete. Permits have been obtained. Final design and achieve the desired compaction standards. The 5.7 acres of construction will be completed upon receipt of the funding. reclaimed land will facilitate staging of new vehicles for the The proposed project is expected to be complete within processing center. 18–24 months. Need for Grant Funding Grant funding would allow the port to execute the proposed Project Support The proposed project is a critical element of the Port of project ahead of schedule, begin the construction of the Galveston Master Plan and is supported by the Board of new vehicle processing center ahead of schedule and meet Trustees for the Galveston Wharves, the City of Galveston, current client demands. The port has made numerous stakeholders within the port complex, and the public, capital improvements over the past five years and cannot particularly those cruising from one of the port’s two cruise afford the full cost of this project. The port will have their terminals. matching funds available in 2018. Project Benefits Economic Impacts Generated by The project is expected to generate the following benefits: Construction Activity • Creates an additional 5.7 acres of usable cargo space by TOTAL CONSTRUCTION VALUE $15,480,000 repurposing the underutilized slip area Total Jobs 258 • Enables the Port to expand existing cargo operations and support an existing client with land for a future vehicle Direct Jobs 105 processing center Total Personal Income $12,170,000 • Generates over $21 million in revenue and creates 66 new Direct Personal Income $4,965,000 jobs over a 20-year period TOTAL ECONOMIC BENEFIT $37,135,000

Page 20 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF PALACIOS Debbie Morris 1602 Main Street Port Roads and Storm Drainage Improvements Project Palacios, TX 77465 361-972-5556 Project Cost: $805,000 Grant Funding: $603,750 Match: $210,250 The Proposed Project: The project includes comprehensive flood drainage improvements as well as design and construction of port roads accessing the harbor. Project Benefits The project is expected to generate the following benefits: • Provides a long-term solution to severe flooding • Creates reliable access for goods and/or services along these port roads • Creates jobs during the construction phase of the project • Generates additional tax and economic benefits to the region as a result of the local purchases of the individuals employed by the construction phase of the project Port Readiness This project has been on the Master Plan of the Port of Palacios for a number of years and is a viable candidate for grant funding. The Port of Palacios has completed preliminary engineering and has an engineer’s probable opinion of cost for the project. Final permitting, design, and construction will be complete when grant funds are received. Project Description The project could be completed in 12–18 months from The project includes road base excavation, grading, sizing, receipt of funding. and reclamation of approximately 15,000 square yards of Project Support roadway along 11th Street, 12th Street, Friery Road, East The Navigation District’s Board of Commissioners Holsworth, West Holsworth, and Tracey Road. The project considers this project one of their highest priorities. The will also rehabilitate the existing the storm drainage system County Commissioners Court supports this project. by improving the roadside drainage ditches, and adding over State Representative Dennis Bonnen is a regular visitor 3,100 linear feet of 18-inch storm drainage pipeline, inlets, to the Port of Palacios and fully supports the Navigation and outfalls as required. District’s proposed project to expand and improve port Need for Grant Funding infrastructure. His letter dated May 26, 2016, expresses Grant funding would allow the Navigation District to his continued support for this and other Port of Palacios implement much-needed and high-priority improvements improvement projects. to the roadway infrastructure at the Port of Palacios. The Economic Impacts Generated by roads on the port are used extensively by heavy truck traffic, including fuel transports, loaded tractor-trailers, and Construction Activity steel haulers. Prior repairs, made by the Navigation District, TOTAL CONSTRUCTION VALUE $810,000 are often compromised by storm drainage issues. This Total Jobs 13 comprehensive road and drainage project is required to eliminate the flooding concerns. Direct Jobs 5 Total Personal Income $633,000 The annual revenue generated by the Navigation District is not sufficient to fund a capital improvement project of this Direct Personal Income $258,000 magnitude. Most of the tenants at the Port of Palacios are TOTAL ECONOMIC BENEFIT $1,931,000 small businesses that are currently unwilling or unable to accept an increase in fees to fund construction. The Port of Palacios has the matching funds on-hand to support the development of this project.

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 21 Port Authority Advisory Committee

Point-of-contact: PORT OF PORT ARTHUR Larry Kelley, Deputy Port Director P.O Box 1428 Project Cargo and Laydown Area Port Arthur, TX 77642 409-985-9312 Project Cost: $8,000,000 Grant Funding: $6,000,000 Match: $2,000,000 The Proposed Project: The proposed project includes the development of 8.34 acres of new cargo laydown area that supports the Berth 6 Expansion Project. Project Benefits The project is expected to generate the following benefits: • Generates a benefit-to-cost ratio of 2.98 to 1 discounted at 7 percent • Increases the laydown area within the Port to accommodate current and future customers • Enhances freight mobility inside and outside the Port • Improves safety for rail to truck and rail to marine cargo transfers • Improves the efficient shipment of bulk products resulting in cargo mobility and transportation savings • Enhances economic benefits to the region as a result of jobs created during the construction phase of the project • Enhances economic benefits to the region as a result of the local purchases of the individuals directly employed by the construction phase of the project Port Readiness The preliminary design is completed. Local permitting, Project Description environmental review, and final design is expected to begin The proposed project provides access to bulk, breakbulk and in the fourth quarter of 2016. Construction is scheduled to project cargo that will be handled once the new Berth 6 is in occur upon receipt of funding. The overall proposed project operation. Improvements include elevation and stabilization is expected to take 18–24 months to complete. of 8.34 acres of backlands located adjacent to Berth 6, modification to the existing rail, site drainage modifications, Project Support utility alignment, site preparation, and expanded security The proposed project is supported by Senator John Cornyn, fencing and lighting. Congressman Randy Weber, State Representative Joe Deshotel, Jefferson County Commissioners Court, the City of Need for Grant Funding Port Arthur, East Texas Regional Planning Commission, Port The Port of Port Arthur has made significant capital Arthur Economic Council, Kansas City Southern (KCS) and improvements in the past five years. The proposed project Union Pacific Railroads, and numerous industrial stakeholders. is included in the Port Capital Improvements Plan. This project compliments the larger Berth 6 Expansion Project, Economic Impacts Generated by which is the highest priority project in the Port’s Capital Construction Activity Improvement Plan. TOTAL CONSTRUCTION VALUE $8,000,000 Grant funding would allow the port to construct the cargo Total Jobs 133 laydown area ahead of schedule and capture the proposed project benefits sooner. The proposed project increases Direct Jobs 54 the port’s cargo handling capabilities, enhances multimodal Total Personal Income $6,289,000 capabilities and throughput capacity, improves safety, Direct Personal Income $2,566,000 enhances port operations, and creates new job opportunities that benefit Jefferson County. The port has their required TOTAL ECONOMIC BENEFIT $19,190,000 matching funds on-hand.

Page 22 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee

Point-of-contact: PORT OF PALACIOS Debbie Morris 1602 Main Street Wood Pier Improvement Project Palacios, TX 77465 361-972-5556 Project Cost: $3,500,000 Grant Funding: $2,625,000 Match: $875,000 The Proposed Project: The project replaces 1,000 linear feet of an antiquated wood dock with a modern steel bulkhead system Project Benefits The project is expected to generate the following benefits: • Improves and upgrades the Port of Palacios docking facility • Increases the Port’s commercial bulkhead capacity by 10 percent and addresses the shortage of docking facilities for businesses currently on a waiting list • Creates an additional 20 jobs associated with the new ship yard and expansion of the working dock • Provides a long-term positive impact to the Port of Palacios’s revenue stream, and increases the annual revenue of the Port of Palacios by an estimated $50,000 per year • Creates jobs during the construction phase of the project Project Description • Generates benefits to the local community through The project includes replacing approximately 1,000 linear purchases made by construction employees. feet of an existing timber pier dock with a steel bulkhead system. The new bulkhead would create a work area, Port Readiness improve access to the docking facilities, and increase Preliminary engineering and a project opinion of costs have the overall bulkhead dock inventory by approximately ten been completed for the project. Environmental permitting, percent. The new dock system would immediately be leased final design, and construction will occur once the grant is to a new customer who proposes to open a new ship yard received. The project is expected to be complete within on this 4.5 acre site. Additionally, the project also allows 18–24 months. a current tenant to expand their working dock to handle Project Support larger fleeting vessels that arrive for repair. These additional The Navigation District’s Board of Commissioners shipyard services will enhance a region along the Texas considers this project one of their highest priorities. The coast which has a sparse number of marine repair facilities. County Commissioners Court supports this project. State The availability of timely shipyard services is anticipated to Representative Dennis Bonnen is a regular visitor to the Port of draw vessels to the port from all along the Texas Gulf Coast Palacios and fully supports the Navigation District’s proposed and beyond. project to expand and improve port infrastructure. His letter Need for Grant Funding dated May 26, 2016, expresses his continued support for this The annual revenue generated by the Navigation District and other Port of Palacios improvement projects. is not sufficient to fund a capital improvement project Economic Impacts Generated by of this magnitude. Most of the tenants at the Port of Construction Activity Palacios are small businesses that are currently unwilling or unable to accept an increase in fees or contribute TOTAL CONSTRUCTION VALUE $3,500,000 funding for construction. Grant funding would allow the Total Jobs 58 Navigation District to implement much-needed, high-priority Direct Jobs 24 improvements to the infrastructure of the Port of Palacios. The new dock facility will result in economic improvements Total Personal Income $2,751,000 to the revenue stream of the Port of Palacios and have a Direct Personal Income $1,122,000 positive economic impact to Matagorda County. The Port of Palacios has the required matching funds on hand. TOTAL ECONOMIC BENEFIT $8,395,000

TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 23 Port Authority Advisory Committee

Point-of-contact: PORT OF PALACIOS Debbie Morris 1602 Main Street Commercial Center Backlands Development Palacios, TX 77465 361-972-5556 Project Cost: $3,650,000 Grant Funding: $2,737,000 Match: $912,500 The Proposed Project: The project includes design and construction of the extension of Richman Road, adding utilities and lighting, and development of a 60,000-square-foot warehouse. Project Description The Port of Palacios Commercial Center is approximately 90 acres of developable land owned by the Matagorda County Navigation District located a half mile from the Port of Palacios Harbor. The District plans to develop infrastructure in this commercial center including utilities, street lighting, the extension of Richman Road and the construction of a 60,000‑square‑foot office and warehouse facility. The new warehouse and office facility are required to meet the demands of current tenants. These infrastructure improvements will also create several build-to-suit sites for the Port of Palacios to market to future tenants. Need for Grant Funding The annual revenue generated by the Navigation District is not sufficient to fund a capital improvement project of this size. The majority of Port of Palacios tenants are small businesses that are currently unwilling or unable to accept an increase in Port Readiness fees or contribute funding for construction. The preliminary engineering and project opinion of cost are complete. Final design and award of a construction contract Grant funding would allow the Navigation District to develop will be completed once grant funding is achieved. The project this 90-acre parcel of commercial property to meet current is expected to be complete in 12–18 months. demands and attract additional commercial development. This would create jobs and benefit the tax base in Matagorda Project Support County. The port has matching funds on-hand. The Navigation District’s Board of Commissioners considers this project one of their highest priorities. The Project Benefits County Commissioners Court supports this project. State The project is expected to generate the following benefits: Representative Dennis Bonnen is a regular visitor to the Port of • Creates future job opportunities for the community with the Palacios and fully supports the Navigation District’s proposed addition of essential infrastructure and the extension of an project to expand and improve port infrastructure. His letter existing road to the Port Commercial Center dated May 26, 2016, expresses his continued support for this • Provides revenue to the Navigation District by building and other Port of Palacios improvement projects. office/warehouse facilities. The District has entertained several recent prospects who need a 60,000-square‑foot Economic Impacts Generated by office/warehouse facility. There is an absence of any Construction Activity existing building of this type in the area. Rental for a 60,000-square-foot office/warehouse facility would TOTAL CONSTRUCTION VALUE $3,650,000 average approximately $200,000 per year. This estimate Total Jobs 61 is based on comparable buildings being leased in Direct Jobs 25 Matagorda County • Creates additional opportunities for new commercial Total Personal Income $2,869,000 industry to establish their operations in the Port of Palacios Direct Personal Income $1,171,000 area by extending Richman Road, and adding essential TOTAL ECONOMIC BENEFIT $8,755,000 utilities and street lighting

Page 24 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Port Authority Advisory Committee Port Capital Program: Project Evaluation Scoresheet With Proposed Weighting Criteria Weighted Scoring Criteria Weight Scoring Values Score Value

Economic Impact 3.0 1 2 3 4 5 The proposed project results Project provides Project provides Project demonstrates 0 in an economic benefit to the little or no some economic, significant economic, State in terms of job creation, economic, business business or job business or job benefits new business development or or job benefits benefits retention of existing business

Operational Impact 2.0 1 2 3 4 5 The proposed project Project does not Project may Project significantly improves 0 demonstrates a significant have a significant improve port port operations and the operational benefit in terms of operational impact operations but the impacts are clearly defined cargo movement, reduction in precise impact is vehicle wait times, improved not clear access, or other efficiency factors

Enhances Connectivity 2.0 1 2 3 4 5 The proposed project enhances Project does Project Project demonstrates 0 connectivity to the State’s not demonstrate demonstrates significant connectivity multimodal transportation any connectivity some connectivity benefits to the intermodal system benefits to the benefits to the system intermodal system intermodal system

Improves Safe Operations 1.0 1 2 3 4 5 The proposed project is Project Project meets Project meets mandatory 0 specifically required to improve demonstrates mandatory safety safety requirements and safe port operations non-mandatory requirements provides additional safety safety benefits benefits

Project Readiness 2.0 1 2 3 4 5 The proposed project is ready for Applicant provided Applicant provided Applicant provided all 0 construction little or no some but not all documentation demonstrating documentation documentation project readiness

Local Match/Other Funding 1.0 1 2 3 4 5 The project sponsor has the No local match Local match Local match documented and 0 ability to provide matching documented exceeds desired matching funding requirements amount

Other Benefits 1.0 1 2 3 4 5 The proposed project provides Project does Project Project provides significant 0 additional secondary benefits not provide any demonstrates secondary benefits in terms of in terms of environmental secondary benefits limited secondary environmental sustainability, sustainability, air quality, quality benefits air quality, quality of life, or of life or other significant factors other factors TOTAL SCORE 0 TEXAS PORTS 2017 – 2018 CAPITAL PROGRAM Page 25