JANUARY/FEBRUARY 1999 OF HOUSTON 6 8 9 H. ThomasKornegay L ~ t ~P, i i ii , ’ George T. Williamson John R Horan ,; :: [,~ ~, ! ~ ~’j r Rosie Barrera : James O. Eldridge i , ~ : James B. Jackson i John T. Scardasis Ted G. Waiters MarthaT. Williams TommyJ. Tompkins , ~’ i: Magazine Staff Editor - CaleenBurton-Allen Graphic Design - Limb & Associates Writer - Esther de Ipolyi & Associates Ad Sales/Production - Limb & Associates Photographer- Bruce Bennett Secretary- CynthiaSilva FIELD OFFICES Monterrey Av. San Pedro #801 Nte. Local #27 Col. Fuentesdel Valle New York San Pedro G. Garcia, N.L 650 SycamoreAvenue, Suite 23 C.R 66220 Bohemia, NY 11716 Phone: 528-335-7341 Phone: 516-244-3677 Fax: 528-335-3641 Fax: 516-244-3757 Mexico City South America Bosques de Duraznos #69 Torre Centuria, Local #2 Desp. 1105 PB, Suite 916 Col. Bosquesde las Lomas Av. Venezuela,Urb. El Rosal Mexico, D.R Caracas 1060 Venezuela C.R 11700 Phone: 58-2-976-7063or 58-1-421-5615 Phone: 525-251 3622 Fax: 58-2-976-7063 Fax: 525-596-7909 WE’RE BACK! Thank you to the manyreaders whoasked about the publication and whenit might return. It is good to knowthat you found it a valuable resource for infor- mation about our industry. With this issue, we return with a whole new approach. The magazinewill be published six times a year. Although it will be published less frequently than before, we intend to remain as informative and useful to you as possible. In order to be topical and interesting, we need your support. This is your maga- zine and we are always interested in your thoughts, ideas, and newsat your worksite. Youcan always reach us by fax at 713/670-2425 or by mail to RO. Box 2562, Houston, TX77252-2562. Wewill also be holding regular Readers RoundTable meetings where we can meet face-to-face to listen to your ideas and brainstorm about future magazine issues. Please let us knowif you would like to participate. Wewant to hold one early in 1999. This year promisesto be a critical one for the Port of Houstonand lhe maritime industry as a whole. The long-awaited wideningand deepeningproject is finally underway. While the results of this work will benefit all HoustonShip Channel users in the long run, it will add a newlevel of activity to an already very busy waterway. We’ll do our best to keep you informed and encourageyou to check the U.S. ArmyCorps of Engineers website (www.swg.usace.army.mil)for updates and progress reports. This year may also bring a replacement for the controversial Harbor MaintenanceTax. 1 encourageyou to learn about this vital maritimeissue and get involved in its resolution in Congress. Onceagain, let mestress that this magazineis only as goodas your input. H. ThomasKornegay ExecutiveDirector (’/ This publication is not copyrighted and permission is given for the Port of Houston web pa!je reproduction or use of any original materials, provided credit is www.portofhouston.com given to the Port of Houston Authority. Additional information, ExecutiveOffice addresschanges, extra copies, or advertising specifications maybe Port of HoustonAuthority obtained by writing to the Port of HoustonMagazine. 111 East LoopNorth P.O.Box 2562 The Port of HoustonMagazine is published by the Port of Houston Houston,TX 77252-2562 Authority, RO. Box 2562, Houston, Texas 77252-2562, and is Phone:713-670-2400 distributed free to maritime,industrial and transportationinterests in Fax: 713-670-2429 the United States and foreign countries. www.portofhouston.com PORT OF HOUSTON MAGAZINE 3 Changedaddress lately or would you like to be on our mailing list? 1. For faster service attach OLDmailing label in box. 2. Print your NEWmailing addresshere. Name Address City State Zip Mailto: If mailinglabel is not available,print yourformer . Circulation Department company’sname and addressin this box. Port of HoustonMagazine P. O. Box 2562 Houston, Texas 77252-2562 Pleaseallow six weeksfor changeto take effect. INTERNATIONAL,INC. THEINTERNATIONAL LOGISTICS SPECIALISTS ¯ Warehousing ¯ Transportation ¯ Distribution ¯ Consolidation ¯ U.S. Customs Bonded ¯ Food Grade Certified ¯ Rail Siding ¯ Local Drayage Services GULFWINDS provides integrated logistics services including warehousing,transportation, distribution and consolidationto the Sail onin shipping industry.Wealso specialize in the handling and storage of green coffee, tea and other specialty food gradeproducts. Phone: 713/747-4909 ¯ Fax: 713/747-5330 E-mail: gwii @worldnet.att.net J 4 PORT OF HOUSTON MAGAZINE ERY ¯ Warehousingand Local Delivery ¯ EDIComputerized Inventory Control ¯ FoodGrade and GeneralMerchandise ¯ Rackedand Floor StorageCross Dock Oistribution ¯ Pick Packand Shrink WrapOperations ¯ Fully Sprinklered,Monitored Fire andRurglar i i AI Adams¯ Fred Adams i 3701 Yale St., Houston, Texas 77018 ~_{& Anlerican 713.699.3515 / Fax 713.694.7510 Warehouse [email protected] Association Web Pa g e: www. a d a ms d i s t. c o m AnAssociation ofLogistics Professionals i The Port of Houston Authority Magazine ADVERTISING DEADLINES FOR THE MARCH/APRIL MAGAZINE: Space Reservations ° February 1, 1999 Film Due ° February 5, 1999 call Biddie Webb at 713-468.7191 or fax insertion order to 713-468-7050 MessagingConcepts /= AT&T Lettersto theeditor are ~,oroso~t~~Net ConceptsCorp. alwayswelcome. ShippingAgent Specialist Yourcomments onarti- clesin the magazineor Integrated Lan Solutions issuesin the maritime - Telex-Fax-EmaiI-EDI -TelexApplications industryare valuable - MessageAccounting - Billing Applications to all of us. - Hardware& Software - CustomApplications Pleasesend your letters to: Telephone Systems Port of Houston Magazine - 8 to 100Users - LargePBX Features P.O. Box 2562, Houston, - LowCost - ComputerIntegration TX 77252-2S62 Installation & Support or by fax to 9800 RichmondAve., Suite 795 ," Houston, TX 77042 713/670-2425 (713) 267-0300 Fax 783-3777 Webwww.msgcon.com PORT 0 E HOUSTON ",,,IAG,~,ZIIN E 5 THE 1990s HAVE BEEN A DECADE OF PROSPERITY AND RECORD-BREAKING 6ROWTH FOR THE PORT OF HOUSTON AUTHORITY. THE YEAR 1998 Y EAR EN DS 0 rl PROVED NO DIFFERENT. A comparison of tonnage statistics for H IGH NOTE January through October 1997 and 1998 showsastonishing increases especially in the breakbulk cargo and bulk cargo categories. Such robust numberscontribute to a 13.9 per- CHALLENGES cent overall growth rate for Port Authority operations. By year end, the number of TEUs(20- foot equivalent units) crept ever closer to the COME WITH one million mark, even though the annual increase is modest comparedto other aspects of the Port Authority’s performance.Clearly, capacity for handling additional containers is THE NEW YEAR being exhausted and the need to develop the newBayport Terminal strengthens daily. Imported steel reached new highs, although the threat of anti-dumpingsuits will certainly depress these numbersin the future. Auto units climbed a dramatic 46 percent PORTOF HOUSTON MAGAZINE while grain products at Houston Public Grain Elevator NumberTwo went through the roof due to record har- vests in the Midwest. "The global economyhas been good in 1998," stated Tom Kornegay, Executive Director of the Port Authority. "I amhoping that the current weaknessin the Latin American economy is just temporary and not developinginto a trend." Ted Thorjussen, President of the West Gulf Maritime Association, agrees stating, "It’s too early to tell what affect the ’Asian flu’ will have on Latin America." Other issues on the horizon involve how Congress funds water resource development. "Keeping Congressional passage of the Water Resources DevelopmentAct on track every other year is vital to keeping port development and dredging projects on schedule," emphasized Mr. Kornegay. This authoriza- tion bill has been delayed each of the last two times it has been up for consideration, thus jeopardizing impor- tant infrastructure projects. In his new role as Chairman of the Board of the Port of HoustonAuthority Tonnage AmericanAssociation of Port Authorities, Mr. Kornegay is making both the Water Resources Development Act January- December 1997 1998 Change and replacement of the Harbor MaintenanceTax top pri- Breakbulk orities for 1999. Cargo 4,550,819 6,008,380 + 32% As with industry everywhere, shipping lines are Container changing the way they do business and trying new ways Cargo 7,612i664 8,1~,794 + 7% to improve their financial bottomlines. To that end, alliances are being formed around the world among steamship lines, especially container lines, to work Total 22,6210149 25,839,755 +14% together to negotiate prices. More "All of the companiesare fighting for the samebusi- Specifically ness and same trade routes," explained Mr. Kornegay. ImportSteel 2,549,727 4,023,726 +58% "There are more ships than there is cargo. By working together, the shippinglines can adjust the supplyof ships and keep prices from falling." Grain Products Other highlights of 1998 include the long-awaited ( HP G E #2) 388,328 1,247,257 +221% start of the HoustonShip Channelwidening and deepen- ing project and the great success of the first cruise line Autos(units) 47,367 65,449 + 38% out of Houston. ,,~ PORT OF HOUSTON MAGAZINE 7 8 PORT OF HOUSTON MAGAZINE B P 0 B T MUCH NEEDED ROOM FOR PORT GROWTH he containerized cargo business at from Barbours Cut is $800 million. build a new container complex. rT- the Port of Houston Authority’s The facility has reached capacity The Port of Houston Authority has facilities is good -- ahnost too good. with no room left for expansion. In lhct, developed a conceptual master plan for a Since 1992. the amount of containerized