U.S. ARMY CORPS OF ENGINEERS’ MISSIONS RELATED TO MARITIME PORTS

237 217 200 80 252 SELECT237 COMMITTEE217 200 ON TEXAS119 174PORTS, INNOVATION 237 217 & 200INFRASTRUCTURE27 .59 255 0 163 131 239 110 112 62 102 130 255 0 163 132 65 135 92 102 56 120 255 TEXAS0 163 – HOUSE122 53 OF REPRESENTATIVES120 56 130 48 111

Christopher Frabotta Chief, Navigation Branch Nicholas Laskowski Project Manager Galveston District U.S. Army Corps of Engineers 30 April 2018

“The views, opinions and findings contained in this report are those of the authors(s) and should not be construed as an official Department of the Army position, policy or decision, unless so designated by other official documentation.” 2 NAVIGATION MISSION

Provide safe, reliable, efficient and environmentally sustainable waterborne transportation systems (channels, harbors, and waterways) for movement of commerce, national security needs, and recreation. 3 GALVESTON DISTRICT – NAVIGATION FACTS

. Monitor and maintain over 1,000 miles of navigation channels and waterways . Dredge ~25 million cubic yards per year . 10 Major Texas maritime Ports . Gulf Intracoastal Waterway connects Ports . 3 Strategic Ports . Texas Ports and Waterways moved >600M tons of Commercial Cargo during 2016 . 21.3% of Nation’s Tonnage through Texas Ports . 25.9% of Nation’s Foreign Cargo (Imports/Exports) - 23.7% Imports - 28.1% Exports . 12.5% of Nation’s Foreign through Port - 10.2% Import - 14.7% Exports RELATIVE DEEP DRAFT TONNAGE

Duluth/Superior 30MT Rest of Great Lakes (161MT)

Where do decisions on infrastructure have NY/NJ the greatest impact? (133MT)

Balt. 39MT Rest of Atlantic Coast LA Norfolk 54MT (235MT) (63MT)

Rest of Pacific Sav. Coast 36MT (256MT)

Long Beach (78MT)

South TOTAL Tonnage by Region Houston Louisiana Region Tonnage Percent of Rest of (248MT) (261MT) (millions) Nation Rest of Texas Louisiana Nation 2,523.2 100% (290MT) Gulf Coast 1,210.7 48.0% (290MT) Rest of Texas Ports 537.7 21.3% Gulf Galv-Houston-TX City 299.1 11.9% (120MT) SNWW 119.7 4.7% Corpus Christi 82.0 3.2%

Data Source: USACE, Waterborne Commerce Statistics Center – 2016 USACE Southwestern Division Regional Priority

Port of Beaumont

Port of Port Arthur

Port of Texas City

Port Freeport Matagorda

Sabine-Neches Waterway

Houston-Galveston-Texas City Navigation Complex

Freeport Harbor

Texas is the number two state in the nation for waterborne commerce. Texas ports generate over $5 billion in local and state tax revenue, and over $9 billion in federal import tax revenue each Corpus Christi year. Ship Channel

Port of Brownsville

Constructed Depth Constructed Depth Mexico Brazos Island Harbor Authorized; not Pending funded to date Authorization

U.S. Army Corps of Engineers Galveston District CONNECT WITH US! Web: www.swg.usace.army.mil Facebook: www.facebook.com/GalvestonDistrict Twitter: www.twitter.com/USACEgalveston USACE Project Delivery Process and Congressional Appropriations

STUDY DESIGN CONSTRUCT MAINTAIN

General Investigations Construction General Operations & Maintenance (GI) (CG) (OM) Cost-Shared Cost-Shared 100% Federal for channels less than 50-ft NAVIGATION CHANNEL IMPROVEMENTS 7 ‘Deepening & Widening’ Study Phase - Port Authority (Non-Federal Sponsor) initiates Feasibility Study - Congress provides “Investigation” funding for Feasibility Study - NFS & USACE Cost-share the Feasibility Study - Feasibility Report is submitted to Congress for consideration - Congress Authorizes project through Water Resource Development Act (WRDA)

Construction Phase - Once Authorization is provided, Congress is able to appropriate “Construction” funds for project. - NFS & USACE Cost-share Construction of the Project - Once channel Construction in complete, the project shifts to O&M Phase TEXAS PORTS AND NAVIGATION CHANNELS NAVIGATION CHANNEL 9 OPERATIONS & MAINTENANCE

Operations & Maintenance Phase

Federal Responsibilities - Channel maintenance costs (dredging costs) are typically 100% Federal - Federal funding is derived from the “Harbor Maintenance Trust Fund” - Tax on Imports - 1/8 of a percent of the Value of the Imported Cargo - WRRDA 2014 stated that Federal O&M Funding would be increased

NFS Responsibilities - Provide Lands, Easements, Rights-of-ways, Relocations, etc. - Responsible for Dredged Material Disposal Facilities; in some cases GALVESTON DISTRICT O&M NAVIGATION PROGRAM PERFORMANCE AND FUNDING TRENDS USACE Southwestern Division Regional Priority

Port of Beaumont

Port of Port Arthur Port of Houston

Port of Texas City Port of Galveston

Port Freeport Matagorda

Sabine-Neches Port of Victoria Waterway

Houston-Galveston-Texas City Navigation Complex

Freeport Harbor Port of Corpus Christi Gulf of Mexico Matagorda Ship Channel

Texas is the number two state in the nation for waterborne commerce. Texas ports generate over $5 billion in local and state tax revenue, and over $9 billion in federal import tax revenue each Corpus Christi year. Ship Channel

Port of Brownsville

Constructed Depth Constructed Depth Mexico Brazos Island Harbor Authorized; not Pending funded to date Authorization

U.S. Army Corps of Engineers Galveston District CONNECT WITH US! Web: www.swg.usace.army.mil Facebook: www.facebook.com/GalvestonDistrict Twitter: www.twitter.com/USACEgalveston CORPUS CHRISTI SHIP CHANNEL Improvement Project CORPUS CHRISTI SHIP CHANNEL Improvement Project

 Non-Federal Sponsor: Port of Corpus Christi Authority

 Estimated Quantity: 34 million cubic yards

 Estimated Cost: $350 million

 Federal Cost (~70%): $225 million

 Non-Federal Cost (~30%): $125 million

 Status  1st Contract July 2018  Completion of Construction 2022 USACE Southwestern Division Regional Priority

Port of Beaumont

Port of Port Arthur Port of Houston

Port of Texas City Port of Galveston

Port Freeport Matagorda

Sabine-Neches Port of Victoria Waterway

Houston-Galveston-Texas City Navigation Complex

Freeport Harbor Port of Corpus Christi Gulf of Mexico Matagorda Ship Channel

Texas is the number two state in the nation for waterborne commerce. Texas ports generate over $5 billion in local and state tax revenue, and over $9 billion in federal import tax revenue each Corpus Christi year. Ship Channel

Port of Brownsville

Constructed Depth Constructed Depth Mexico Brazos Island Harbor Authorized; not Pending funded to date Authorization

U.S. Army Corps of Engineers Galveston District CONNECT WITH US! Web: www.swg.usace.army.mil Facebook: www.facebook.com/GalvestonDistrict Twitter: www.twitter.com/USACEgalveston SABINE-NECHES WATERWAY Deepening Project SABINE-NECHES WATERWAY Deepening Project

 Non-Federal Sponsor: Sabine-Neches Navigation District

 Estimated Quantity: 98 million cubic yards

 Estimated Cost: $1.3 billion

 Federal Cost (75%): $975 million

 Non-Federal Cost: $325 million

 Status: Awaiting Appropriation TEXAS PORTS AND NAVIGATION CHANNELS Connect with Us! 18