Port Houston Update Rich Byrnes | Chief Infrastructure Officer | Port Houston Discussion Topics
February 12, 2019
Port Houston Update Rich Byrnes | Chief Infrastructure Officer | Port Houston Discussion Topics
• Port Houston 2018 Highlights • Focus: Houston Ship Channel • Development Plans
PORT HOUSTON | 1 Breakfast!
PORT HOUSTON | 2 Lots of Work Behind the Scenes
PORT HOUSTON | 3 Economic Activity
PORT HOUSTON | 4 Port Houston… Behind the Scenes
PORT HOUSTON | 5 1899
PORT HOUSTON | 6 2019
PORT HOUSTON | 7 Port Houston’s Success: Growth supported by Innovation
25 -25 20 -30 15 -35 10 -40 5 -45 0
1920 1940 1960 1980 2000 2018 Texas Population, Millions Total POH Cargo x 10 Millions Container TEU's x 100,000’s Ship Channel Depth, feet (right axis)
PORT HOUSTON | 8 Containers
PORT HOUSTON | 9 Container Growth
3.3
3,000,000 2023 2.7 2.4 2,500,000 2.2 2018 2.1 1.9 2,000,000 IMPORTS EXPORTS TOTAL 1,500,000
1,000,000
500,000
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Note: Totals include empty containers Source: PHA Accounting, PHA Market Development PORT HOUSTON | 10 Steel
PORT HOUSTON | 11 Steel up 21%
6.7
$98 $93 4.8 4.7 4.4 3.7 $65 $48 $50 2.2 $43
2013 2014 2015 2016 2017 2018 Steel MM Tons WTI Annual Average $/BBL
PORT HOUSTON | 12 2018 Built: Container Yard 6 South @ Bayport
PORT HOUSTON | 13 2018 Built: Container Yard 1 and East End at Barbours Cut
PORT HOUSTON | 14 Rehabilitating Old City Docks
PORT HOUSTON | 15 Priority: Freight Mobility
Example Current & Potential Area Projects 99 Sections H & I Crosby-Lynchburg Improvements SH 330 Connectivity Peninsula Road Expansion RR Double-track at Broadway BW-8 Bridge Expansion SH 225 Expansion& Connectors Container Barges BCT Blvd to 146 connectors BCT Bayport Port Road and RR Spur
BPT I-69 / 99S bypass Other road and rail improvements Ship x Inland distribution (not shown) Channel
PORT HOUSTON | 16 Project Start: Peninsula Road improvement Working with TxDOT and Harris County
PORT HOUSTON | 17 PORT HOUSTON | 17 Project Start: Broadway Double Track
PORT HOUSTON | 18 PORT HOUSTON | 18 Future is Bright, Supported by Fundamentals
PORT HOUSTON | 19 Population Driving Imports
Map Source: Urban Institute Mapping America’s Futures
PORT HOUSTON | 20 Manufacturing Driving Exports
New Petrochemical Project Announcements – USGC 2012
Source: Lee Nichols, Hydrocarbon Processing Magazine, Energy Construction Form 3/16
PORT HOUSTON | 21 Manufacturing Driving Exports
New Project Announcements – Through Q1-2016
Source: Lee Nichols, Hydrocarbon Processing Magazine, Energy Construction Form 3/16
PORT HOUSTON | 22 Energy Sea Change
US Crude Oil Exports Since 1920
PORT HOUSTON | 23 PORTPORT HOUSTON HOUSTON | 24 | 24 TOPIC: RESIN PERFORMANCE PORT HOUSTON DOMINATES US POLYETHYLENE EXPORT
Graph: US Waterborne PE Exports by Port Units: Metric Tons; Time: 12 months to Oct 2018 (latest available data) Source: Customs Data from Census Bureau 80,000 teus 160,000 teus 240,000 teus 320,000 teus 0 1,000,000 2,000,000 3,000,000 4,000,000
Houston 72.1%
LA/Long Beach 11.0% US Market Share % New Orleans 8.8%
Charleston 3.8% Port Houston handles 7 out of 10 Freeport TX 1.8% containers of US waterborne PE export
All Other US 2.5% Ports The top six ports control 98% of waterborne exports
PORTPORT HOUSTON HOUSTON | 25 | 25 TOPIC: RESIN PERFORMANCE POLYETHYLENE EXPORT GROWTH
Graph: US Waterborne Export of Polyethylene (PE) Resin Monthly Metric Tons through Oct 2018 (latest availabledata) Source: Customs Data from CensusBureau Future PE 800,000 Export Growth 64,000 teus All US Houston Other Ports 600,000 48,000 teus All US Ports Total (+40.4%) US PE export has exploded in 2018, as 400,000 predicted. 32,000 teus Port Houston PE tonnage has 200,000 increased twice as 6,000 teus Port Houston (+37.8%) much as all other US ports combined in 12 Other US Ports (+47.7%) months to Oct 2018 0
Percentage change reflects 12 months
2014 2015 2016 2017 2018 2019 to Oct 2018 vs. 12 months to Oct 2017
PORTPORT HOUSTON HOUSTON | 26 | 26 TOPIC: RESIN PERFORMANCE POLYETHYLENE EXPORT TRADELANE GROWTH
Graph: Growth in US PE Exports by Tradelane Based on Metric Tons in 12 months to Oct 2018 minus 12 months to Oct 2017 Source: Customs Data from Census Bureau 32,000 teus 32,000 teus 64,000 teus 96,000 teus -400,000 0 400,000 800,000 1,200,000
Total
Europe Europe has been absorbing significant East Asia amounts of incremental Latin America PE exports. This was not anticipated by South Asia market experts. Australia East Asia has been North America underperforming Africa expectation. This may be due to tariffs in Middle East China.
PORTPORT HOUSTON HOUSTON | 27 | 27 PORTPORT HOUSTON HOUSTON | 28 | 28 PORTPORT HOUSTON HOUSTON | 29 | 29 TOPIC: EQUIPMENT BALANCE PORT HOUSTON CONTAINER BALANCE Graph: Port of Houston Container Volume by Type Source: PHA Accounting Units: Monthly TEUs 120,000
100,000 Loaded Exports
80,000
60,000 Today, loaded imports exceed Loaded Imports loaded exports 40,000
20,000 Empty Imports
0 Empty Exports 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PORT HOUSTON | 30 Priority: Houston Ship Channel
Houston—USA’s Busiest Channel
9,945
5,508
Houston: 3,860 22,000 ship moves 200,000 barge moves LA+LB NY/NJ Houston
Deep Draft ShipPORTPORT HOUSTON Calls HOUSTON | 31 | 31 Sept 10, 2018
PORT HOUSTON | 32 USACE “Megastudy” Current Plan
WIDER Deeper:+4 ft +5 ft +4 ft WIDER WIDER
WIDER
PORT HOUSTON | 33 Revised Plan features include a flaw that does not satisfy needs of industry or pilots
current Federal Recommended Plan
530’
No widening, 1-way channel (operationally unsound, unsafe)
2-way channel
700’
proposed
Widening is necessary for safety and efficiency
PORT HOUSTON | 34 Industry Inputs: Cannot constrain national economic growth
Oil & Gas Plays in the “Shale Revolution”
Manufacturing, Population and Jobs supported by Oil & Gas USGC Petrochem Drilling and Production Projects
PORT HOUSTON | 35 Update on Sediment Capture & Control
PORT HOUSTON | 36 Before Harvey
8/22/2017
PORT HOUSTON | 37 After Harvey
8/31/2017
PORT HOUSTON | 38 Cost of Draft Restrictions
1 foot Shoaling can cost shipping over $300 million per year 3 feet can cost Container ships $1 million in revenue for each ship call Extra costs translate into higher prices for goods
PORT HOUSTON | 39 1935 Flood-Turning Basin Terminal
“Shipping was tied up for days, and all of Texas suffered as a result ”
“tons of mud and wreckage were dumped into the channel”
“serious navigation hazards”
PORT HOUSTON | 40 Key Q: How to include Sediment Capture and Control in Flood Control Projects?
PORT HOUSTON | 41 30’ Authorized 36’ Authorized
+7’ sump Mitigation on +2’ adv maint the Channel Side
PORT HOUSTON | 42 Land side: Driving Toward Success
Storm Water Protect City of Houston Prevent Silt in Management the Ship Channel
Flood Control “Options” for SCC: • Detention basins • Enlargement and rectification of channels • Construction of control works • Diversions and soft solutions Mitigation on • Source control management the Land Side
PORT HOUSTON | 43 SCC Working Group Established
• Initial members: – HCFCD – CoH Resilience Office – PHA – USACE (invited)
• Focus areas – Technology – Policy – Funding
HCFCD = Harris County Flood Control District CoH = City of Houston PHA = Port of Houston Authority USACE = US Army Corps of Engineers
PORT HOUSTON | 44 Illustrative Work Program
Container Truck Gates Wharf Rehab New Yards
E F Energy Sustainability D A Utilities Improvements B C Security Systems Crane Demo Dock Demo A Turning Basin Terminals G Concrete Structures B Public Grain Elevators 1 and 2 C Woodhouse Drainage Systems D Bulk Terminal E Jacintoport Rail Extensions F Care Terminal G Barbours Cut Container H Road Expansions Terminal H Bayport Container Terminal Cargo Handling
PORT HOUSTON | 45 Design Program Highlights
All - Rail Switch Replacements BCT CY2 Mid-South Yard Reconstruction All - Fender Replacements BCT Maintenance Complex BCT Intersection @ 146 BCT CY 3 Reconstruction TB Wharf Rehabilitations BCT West Yards TB Transit Shed Utilities and Facilities BCT Channel Widening TB Lower Level Road and Utilities Redesign
TB Transit Shed Re-Roof / Re-Skin BPT Truck Gate Lanes TB Wharf 33 and Dredging BPT Wharf 6 CPS & Power BPT Wharf 4-5 Strengthening Care Roof Replacement BPT SS Building Jacintoport Transit Shed Refurb BPT / BCT Move Cranes WH Concrete Road BPT East Empty Yard Utilities and Boundaries WH Wharves Rehab BPT Wharf 7 BW-8 Yard, Land Access and Wharves BPT East End
PORT HOUSTON | 46 PORTPORT HOUSTON HOUSTON | 47 | 47 BCT CAPEX Phasing Plan
WHARF 5/6 WHARF 4 WHARF 3
CY 4 N&S CY 5 N&S CY 1&2 N.
CY 3 ADM
TBD CY 2 M&R S.
ENTRY GATE
ENTRY GATE
PORTPORT HOUSTON HOUSTON | 48 | 48 PORT HOUSTON | 49 Bayport CAPEX Phasing Plan
WHARF 7 WHARF 6 WHARF 1
CY 1 N.
CY 7
CY6 S – CY 2 Complete S.
CY 1 S.
East Empty Yard West Empty Yard - Complete
PORTPORT HOUSTON HOUSTON | 50 | 50 Turning Basin Rehabs
PORT HOUSTON | 51 Turning Basin Rehabs
PORT HOUSTON | 52 Evaluating New Tech Deployed
Emerging e Conceptual
PORT HOUSTON | 53 Intelligent Transportation Systems
PORT HOUSTON | 54 Priority: Awareness and Connection to Community
PORT HOUSTON | 55 PORT HOUSTON | 56 Houston, Buffalo Bayou and East End…
PORT HOUSTON | 57 “Lighthouse” Observation Deck Turning Yolanda Navarro Nature Center Black Nature Center Footbridge Basin
Water Taxi Dock, Bayou Sam Houston Viewing Decks South & North Pavilion Access And Pumpstation Innovation Center with Walking Path Sediments Buffalo Sump Park Bayou Footbridge
Hidalgo Park
What If… Turning Basin Innovation Complex
PORT HOUSTON | 58 Source: SWA Group
PORT HOUSTON | 59 Oct 20, 2018 Berm Planting & Dedication
PORT HOUSTON | 60 Within sight of the Terminals
PORT HOUSTON | 61 Communities, Port and Industry Working Together
PORTPORT HOUSTON HOUSTON | 62 | 62 THANK YOU
Rich Byrnes Chief Infrastructure Officer Port Houston
Questions? 713.670.2400 [email protected] www.PortHouston.com
PORTPORT HOUSTON HOUSTON | 63 | 63