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					            November/December 2007




  THE PORT
     OF HOUSTON
Delivers the Goods
                                                               November/December 2007


                            A bi-monthly publication.          Contents
COVER STORY               FEATURES

                                                              28 Community Outreach
                                                                 Bayport development continues
                                                                 with community’s blessing




18

Top 12 Ways the Port of                                       30 Bayport Cruise Terminal Designed
Houston Delivered the       8 Houston’s Hot Economy Keeps        to “Extend the Cruise Experience”
Goods in 2007                 PHA in Haute Company               Smooth sailing ahead




                           12 Infusion of Ideas Energizes
                               3rd Annual Houston Port        34 Who Works at the Port:
                               Region Coffee Symposium           The Fireboat Crews


                                                            IN EVERY ISSUE

                                                               4 A Message from the
                                                                                                     Port of Houston Authority | November/December 2007


                                                                 Executive Director
                                                                 H. Thomas Kornegay, P.E., P.P.M.
                           16 It’s Simple as One, Two,
                              Three and Four                   6 The Manifest
                               Efficient new gate system          PHA news highlights

                           24 The Voters Have Spoken          38 Business Connections
                               $250 million for Bayport          Deer Park Chamber of Commerce

                           26 One if by Land . . .            40 Spotlight on Small Business
                              $2 Trillion if by Sea . . .        Gilbreath Communications, Inc.

                                                                                                                   1
                                                                                                Executive Office
                                                                                                Port of Houston Authority
                                                                                                111 East Loop North
                                                                                                P.O. Box 2562
                                                                                                Houston, TX 77252-2562
                                                     THE PORT OF HOUSTON                        Phone: 713-670-2400
                                                                                                Fax: 713-670-2429

                                                     AUTHORIT Y                                 Executive Director
                                                                                                H. Thomas Kornegay
                                                                                                Managing Director
                                                                                                Wade M. Battles
                                                                                                Director of Trade Development
                                                                                                John P. Horan
                                                                        James T. Edmonds        General Counsel
                                                                        Chairman                Erik A. Eriksson
                                                                                                Director of Finance and Administration
                                                                                                James O. Eldridge
                                                                                                Director of Facilities
                                                                                                James B. Jackson
                                                                                                Director of Public Affairs
                                                                                                Argentina M. James
                                                        Steve Phelps                            Director of Operations
                                                       Commissioner                             Jimmy M. Jamison
                                                                                                Director of Planning and Environment
                                                                                                Charlie Jenkins
                                                                                                Director of Small Business Development
                                                                                                Gilda Ramirez
                                                                                                Harris County Auditor
                                                                                                Barbara J. Schott
                                                                        James W. Fonteno, Jr.
                                                                        Commissioner            Field Offices
                                                                                                New York
                                                                                                Jack Wojewnik
                                                                                                1650 Sycamore Avenue, Suite 23
                                                                                                Bohemia, NY 11716
                                                                                                Phone: 631-244-3677
                                                                                                Fax: 631-244-3757
                                                        Kase L. Lawal
                                                       Commissioner                             South America
                                                                                                Arturo Gamez                         John C. Cuttino (Brazil Representative)
                                                                                                Resd. Prado Royal P.H.               Av. Brigadeiro Faria Lima, 3729, 5 andar
                                                                                                Ave. Ppl. Lomas de Prados del Este   Sao Paulo, SP Brazil
                                                                                                Caracas 1080, Venezuela              CEP: 04538-905 Tel: 55 (11) 3323-5878
                                                                                                Tel: 58-212-976-8813                 Tel. +55 (11) 3323-5878
                                                                                                Fax: 1-281-754-4647                  Fax +55 (11) 3323-5916
                                                                                                E-mail: agamez@poha.com              Houston Access (832) 239-5076
                                                                                                                                     email: jcuttino@poha.com
                                                                        Jimmy A. Burke
                                                                        Commissioner
                                                                                                Port of Houston Magazine’s editorial staff: Argentina James,
                                                                                                director of public affairs • Lisa Ashley-Whitlock, communications
                                                                                                manager • Maggi Stewart, senior publications specialist • Edwin
                                                                                                Henry, publications specialist • David Bray, photographer • Chris
                                                                                                Kuhlman, photographer • Esther de Ipolyi, freelance writer •
Port of Houston Authority | November/December 2007




                                                                                                Gilbreath Communications, Inc., design and production.

                                                     Janiece Longoria                           This publication is not copyrighted and permission is given for the
                                                       Commissioner                             reproduction or use of any original materials, provided credit is given
                                                                                                to the Port of Houston Authority. Additional information, address
                                                                                                changes, extra copies, or advertising specifications may be obtained
                                                                                                by writing to the Port of Houston Magazine.
                                                                                                The Port of Houston Magazine is published by the Port of
                                                                                                Houston Authority, P.O. Box 2562, Houston, Texas 77252-2562,




                                                                                                                               @
                                                                                                and is distributed free to maritime, industrial and transportation
                                                                                                interests in the United States and foreign countries.
                                                                        Elyse Lanier
                                                                        Commissioner            Visit the Port of Houston online

                                                                                                www.portofhouston.com
              2
    Easy access to rail and highway transportation systems makes the Port of Houston
    the preferred port of call to more than 7,000 ships each year. Located in the 4th
    largest city in the United States,more than 50 million people live within a 500-mile
    radius of the port, reaching an enormous population base of consumers and
    producers. State-of-the-art public facilities situated along the Houston Ship
    Channel (45-ft deep and 530-ft wide) provide shippers with deepwater access to
    world markets. Learn more about how the Port of Houston delivers the goods at
    www.portofhouston.com or 1-800-688-DOCK(3625).




C




    1-800-688-DOCK\| • www.portofhouston.com
                        (3625)
                                                      A
                                                     celebrate
                                                     and rejoice
                                                        MESSAGE FROM THE EXECUTIVE DIRECTOR


                                                        H. Thomas Kornegay, P.E., P.P.M.
                                                        The Port of Houston Authority ends 2007
                                                        just as we began it, with reasons
                                                        to celebrate and rejoice.
                                                          The success of the Port Authority’s
                                                        $250 million general obligation
                                                        bond proposal was an exciting mile-
                                                        stone: almost 65 percent of Harris
                                                        County voters favored the measure.
                                                        The community’s solid support of the bond proposal
                                                        enables the Port of Houston Authority to continue
                                                        construction at the Bayport Container and Cruise
                                                        Terminal, increase security and underwrite environ-
                                                        mental projects.
Port of Houston Authority | November/December 2007




              4
   Jim Edmonds, Port of Houston Authority chairman,
reflected on the meaning of these election results for our
area. The chairman pointed out that “these bond funds will
go a long way to ensure we continue to provide a thriving,
competitive port that delivers jobs and economic growth to
our region.”
    We had many other reasons to celebrate this year
as well. We began it with the successful opening of
the first portion of the Bayport Container and Cruise
Terminal. Later, we celebrated the 30th anniversary
of the Barbours Cut Container Terminal. We were
proud to host the 25th anniversary IAPH Conference
in Houston, with more than 1,000 port executives rep-
resenting six continents in attendance. Finally, we rec-
ognized the 50th anniversary of the container industry,
which is particularly special for our area, since the
world’s first container ship arrived here, at the Port
of Houston.                                                   House Bill 3011, authorizing creation of the Houston Ship
    We have often said that as the port grows, so does        Channel Security District — the nation’s first of its kind.
our region. Houston has grown to become the nation’s          U.S. Secretary of Labor Elaine Chao met with leaders of
fourth-largest city and second-largest port, handling more    the Port Authority, and industry and labor, to learn more
foreign tonnage than any other U.S. port.                     about the Port of Houston’s successful labor relations and
   This year, we obtained conclusive findings from a           best practices. As you know, during the 79th session of
Martin and Associates study showing that in 2006 approx-      the Texas Legislature, House Bill 2958 passed allowing
imately 785,000 jobs in Texas were related to activity at     Harris County, the city of Houston and other surround-
the Port of Houston, and that these jobs generated more       ing counties to form a Freight Rail District. This year,
than $39 billion in personal income. Business related to      U.S. Surface Transportation Board Chairman Charles D.
the Port of Houston Authority alone accounted for more        “Chip” Nottingham visited to see how Houston is han-
than 390,000 jobs.                                            dling freight rail and other transportation issues.
                                                                  How fitting that we began 2007 with the “Berth of
                                                              Bayport,” and we end the year with a community-wide
                                                              vote to continue to provide the Port of Houston Authority
                                                              with the funding it needs to maintain its place as a thriv-
                                                              ing, competitive, world-class port.
                                                                  I began this piece by stating that we had many reasons
                                                              to celebrate. And I conclude by noting that the celebra-
                                                              tions, recognition and respect come as a direct result of
                                                              years of hard work, due diligence, planning and good
                                                              stewardship.
                                                                  I pledge that just as voters gave the Port of Houston
                                                              Authority the gift of support, the PHA will return this
   The Port of Houston has an annual economic value           gift packaged through continued good economic develop-
of nearly $118 billion. It is a major economic engine for     ment and growth, best practices and good stewardship.
the Houston/Harris County region, Texas and the nation.           The Port of Houston is a major economic engine for the
The importance of the Port of Houston Authority to            Houston/Harris County region, Texas and the nation ...
our nation was reflected in the attention we received from     the gift that continues to deliver the goods.
public officials this year. Texas Governor Rick Perry signed       Enjoy your holidays! ■
                                                     THE MANIFEST p h a n e w s                         highlights


                                                       HOMELAND SECURITY BEGINS TWIC ENROLLMENT AT PORT OF HOUSTON

                                                       The Department of Homeland Security (DHS)                unescorted access to secure areas of port facilities and
                                                       began enrolling Port of Houston workers and work-        vessels has received a thorough federal background
                                                       ers at 10 other ports in its Transportation Worker       check and is not a security threat. The TWIC pro-
                                                       Identification Credential (TWIC) program in               gram will include criminal background, immigrant
                                                                                    November, with the          status and terrorist watch list screening.
                                                                                    goal of enrolling all           The order of enrollment for ports is based on a
                                                                                    U.S. port workers by        variety of factors, including risk, geographic location,
                                                                                    Sept. 25, 2008.             size and contractor resources.
                                                                                       The TWIC pro-                More information on the TWIC program is avail-
                                                                                    gram, which includes        able on the Transportation Safety Association’s
                                                                                    longshoremen, truck-        Web site at www.tsa.gov, and more information on
                                                                                    ers and other workers,      port security is available at the U.S. Coast Guard’s
                                                                                    is meant to ensure that     Homeport site, homeport.uscg.mil, by clicking on the
                                                                                    any individual who has      Maritime Security link.




                                                       PUBLIC AFFAIRS DIRECTOR ARGENTINA JAMES RECOGNIZED WITH TWO HONORS
                                                       Argentina James, director of the Public                                 relations, media marketing and media
                                                       Affairs Division at the Port of Houston                                 relations. Under her leadership, the
                                                       Authority, recently received two honors,                                port authority launched its multi-
                                                       including national recognition for her                                  media campaign, “The Port Delivers
                                                       work in the transportation industry. James                              the Goods,” which communicated
                                                       was among an elite group of women in                                    several key messages with local,
                                                       the industry to receive the Journal of                                  regional, national and international
                                                       Commerce’s Outstanding Women in                                         media partners.
                                                       Transportation Award. The annual rec-                                      Her civic and community involve-
                                                       ognition is given to as many as 10 indus-                               ment reflects a rich and extensive
                                                       try leaders who are outstanding women                                   background, and includes a stint
Port of Houston Authority | November/December 2007




                                                       in international trade and transportation.               as chairwoman of the Board of Directors for the
                                                          James was also named among Rolling Out Magazine       historic Ensemble Theatre, where she served as
                                                       Houston’s Top 25 Most Influential Women. Her com-         president for eight years. She also serves as presi-
                                                       mitment and determination are some of the outstand-      dent of the Houston Arts Alliance, on the boards
                                                       ing attributes she brings as one of the distinguished    of the Memorial Hermann Healthcare System and
                                                       women who influence the Houston community.                the Texas Lyceum, Greater Houston Convention
                                                          As PHA director of public affairs, James is respon-   and Visitors Bureau Executive Committee, Boys
                                                       sible for strategically planning and implementing        and Girls Harbor, Houston Area Urban League and
                                                       PHA activities in community relations, government        Texas Executive Women.


              6
  DEER PARK CHAMBER NAMES PHA INDUSTRY OF THE YEAR
  The Deer Park Chamber of Commerce has named
  the Port of Houston Authority its 2007 Industry of
  the Year. PHA Chairman James T. Edmonds headed a
  contingent of PHA representatives at the November
  15 event held at the Jimmy Burke Activity Center.
     “My fellow port commissioner, Jimmy Burke,
  often reminds me that Deer Park is a unique commu-
  nity in that it is part small town and part industrial
  giant,” said Edmonds, in acceptance of the honor.
     “When it comes to the Port of Houston, Deer                The Deer Park Chamber of Commerce is com-
  Park is a strong partner in the port’s past, present and   prised of 600 members networking to promote busi-
  future,” Edmonds said.                                     ness commerce and industry in Deer Park.




   GULF GUARDIAN AWARD PRESENTED TO PHA’S BUG
  The PHA’s Beneficial Uses Group (BUG) tied for              states. PHA received the award at a Nov. 14 ceremony
  third place partnership in the 2007 Gulf Guardian          at the 2007 Clean Gulf Conference in Tampa, Fla.
  awards, sponsored by the Gulf of Mexico Program.               The BUG is one of several subcommittees formed
  Sharing the honor is the Charlotte Harbor Estuaries        by the U.S. Army Corps of Engineers’ Interagency
  Volunteer Water Quality Monitoring Project.                Coordination Team to address environmental issues
                                                             associated with the Houston-Galveston Navigation
                                                             Channel’s expansion project. Created in 1990, the
                                                             BUG is an unprecedented coalition of eight federal
                                                             and state government agencies. Its specific goal is
                                                             to identify environmentally and economically
                                                             responsible ways to utilize the material dredged from
                                                             the Houston Ship Channel expansion project with
                                                             open water disposal no longer permitted in the
                                                             Galveston Bay.
                                                                 The Gulf of Mexico Program was formed in 1988
                                                             through the Environmental Protection Agency as a
    Sponsored by the partnership of the Gulf of              non-regulatory, inclusive partnership to provide a
  Mexico Program, the Gulf Guardian awards recognize         broad geographic focus on the major environmental
  environmental stewardship in the five Gulf Coast            issues in the Gulf.




THE MANIFEST spotlights news briefs exclusively from PHA, its customers, trading partners, and community
stakeholders. Submit information in the form of a letter or press release via e-mail to ehenry@poha.com or via fax
713-670-2425. The Port of Houston Magazine does not guarantee publication and reserves the right to edit submissions
for content and style.
Houston’s Hot Economy
Keeps PHA in Haute Company

                                                     T
                                                                 he diversity of Houston’s turbo-charged economy is fueling the Port of
                                                                  Houston Authority’s performance as it prepares to put the wraps on
                                                                  another banner operating year.
Port of Houston Authority | November/December 2007




                                                                Containers, steel, petcoke, industrial chemicals and miscellaneous bulk
                                                              products are projected to be the top five big ticket items for 2007, reflecting
                                                              the variety of dynamics associated with Houston’s retail, construction and
                                                              energy sectors.
                                                       Not even a soft U.S. dollar in the global market has dampened local enthusiasm



                                                                                                          2007
                                                     for finished products as Houston population and income increases continue to drive
                                                     demand for imported retail goods and the dollar’s devaluation makes domestic exports
                                                     more attractive to foreign traders.
              8
containers
    “The Port of Houston Authority’s proactive approach
 to the marketplace continues to serve Houston well,” says
 PHA Executive Director Tom Kornegay. “The wide range
 of services we provide at our container and traditional
                                                                 On the export side, the top five regions for container
                                                             cargo are Western Europe (27%), South America (18%),
                                                             Africa-Middle East (16%), Northeast Asia (14%) and the
                                                             Mediterranean (9%).
 cargo terminals, coupled with the premium we place on           PHA’s import/export container ledger is both balanced
 customer service have enabled us to keep pace with this     and growing. Through the first nine months of 2007,
 region’s incredibly strong economic cycle.”                 exports were up 13% and imports up 9% over prior year,
    Here is a look at the top five indicators showing         with total goods up 11%.
 why PHA ranks among the world’s leaders in handling             “Containers are a big driver for us,” says PHA Marketing
 marine cargo:                                               Manager Brian Reeves.
                                                                 “The big thing about our container market is two-
                                                             fold,” Reeves continues. “On the one hand, we are a
                                                             very strong import market. Even though devaluation of
                                                             the dollar has caused some prices to increase somewhat,
                                                             the increase in population of the Houston area is served
                                                             by containers we bring in and the nature of those goods
                                                             — finished consumer goods and necessities. Given that
                                                             Houston’s economy is strong, our import container traffic
                                                             is increasing.
                                                                 “On the other side of the equation is the fact that
                                                             devaluation of the dollar makes our exports significantly
                                                             more attractive,” Reeves says. “Our exports are up dramati-
                                                             cally. We are shipping more of the raw components to China
                                                             which, in turn, turns them into finished goods for us.”




 Container   Cargo               Continues to Grow
 Despite recent slowdowns at other large container ports
 around the country, PHA is expected to reinforce its
 position as the U.S. Gulf Coast’s dominant container
 cargo facility.
    With Bayport Container Terminal — which began
 operation in February 2007 — averaging 20,000 twenty-
 foot equivalent units (TEUs) per month, PHA is
 trending toward its sixth consecutive year of record con-
 tainer throughput.


                                                             Steel
                                                                                                                             Port of Houston Authority | November/December 2007


    PHA moved a record 1.6 million TEUs last year and
 is projected to move about 1.7 million TEUs in 2007,                          Still Going Strong
 marking the sixth consecutive year of container volume      PHA is positioned to record the third-largest year of steel
 growth. PHA has averaged 11.53 percent growth in            volume in its 80-year history. Projections are that the port
 annual container volume over the past 37 years, despite     authority will handle 4.9 million tons this year, after post-
 showing volume declines in nine of those years.             ing its highest throughput in 25 years — 5.6 million tons
    Western Europe (27%), Northeast Asia (21%) and           — in 2006.




                                               steel
 South America (17%) are the top three regions for               The numbers reflect Houston’s aggressive expansion of
 import cargo, with Africa-Middle East (13%) and Central     its infrastructure and the energy industry’s enthusiasm for
 America (9%) rounding out the top five import regions.       more oil exploration, Reeves says.

                                                                                                                                           9
                                                         “Steel is still very strong for Houston,” Reeves says.
                                                     “Houston is growing; its infrastructure is still growing;
                                                     and we’re building new buildings and roads.
                                                         “We’re still one of the primary entry points for steel
                                                     for the entire state of Texas,” adds Reeves. “Houston is
                                                     still the energy capital of the world. Energy is very strong
                                                     right now. Prices are high and the energy companies are
                                                     interested in drilling new wells. As long as those two seg-
                                                     ments of our economy are growing at a robust rate, steel
                                                     will be strong.”




                                                                                                                    “We Service the
                                                                                                                     the Market”
                                                                                                                                         Market                   ; they Make

                                                                                                                    Two PHA tenants who specialize in the fields of product
                                                                                                                    they handle — Louis Dreyfus and Kinder Morgan — have
                                                                                                                    helped the port authority turn the corner in the respec-




                                                                                                                                        market
                                                                                                                    tive areas of miscellaneous bulk and petcoke. There are
                                                                                                                    increases expected in both for 2007.
                                                                                                                       Forecasts call for the PHA to handle 4.5 million tons
                                                                                                                    of petcoke — nearly 1.3 million tons more than was
                                                                                                                    moved in 2006.
                                                                                                                       After moving 3,427,565 tons of miscellaneous bulk

                                                     The Right   “Chemistry”
                                                     PHA projections call for a slight decrease in industrial
                                                                                                                    materials last year, projections are for the port authority
                                                                                                                    to push through 3.5 million in 2007.
                                                                                                                       “Petcoke is huge,” Reeves says. “It is a byproduct of
                                                     chemical throughput this year. A total of nine million         the refining process that is a potentially disposable product.
                                                     tons is forecast for 2007 — about a half-percent less than     At one time, it was disposable. It’s a slow-burning prod-
                                                     the 9,048,026 tons moved in 2006.                              uct that’s perfect for stoking. Rather than having it as a
                                                         Still, the region is ripe for a strong showing in indus-   waste byproduct, it is being sold as a beneficial byproduct.
                                                     trial chemicals, including organic chemicals — alcohol,        That creativity in the energy marketplace keeps that seg-
                                                     phenols, sulfur compounds, acrylic hydrocarbons, phos-         ment strong.
                                                     phoric salts and halogenic hydrocarbons.                          “When we leased our (Bulk Materials Handling Plant)
Port of Houston Authority | November/December 2007




                                                         “Just look at where we are,” says Reeves. “We’re home      out to Kinder Morgan, they were able to focus on it better
                                                     to one of the largest petrochemical complexes in the           than we could because they are in the energy business.
                                                     world. Industrial chemical is one of the products created      They’re actually making the market while we were simply
                                                     in our own back yard and we have a huge opportunity            serving it — although we were serving it very well.
                                                     to move that product. The vast majority of it — almost            “We have a dedicated grain facility and that facility is
                                                     three times the level of imports — is exports. We refine,       operated by Louis Dreyfus, who is very focused on maxi-
                                                     we extract components and we ship them to market.”             mizing opportunities in the marketplace,” Reeves says.




                                                     chemistry
                                                         PHA’s top five trading partners for industrial chemi-       Louis Dreyfus is one of the largest commodity traders in
                                                     cals are: Mexico, Venuzuela, Saudi Arabia, Algeria             the world. Just like Kinder Morgan can optimize petcoke,
                                                     and Nigeria.                                                   Dreyfus can concentrate on maximizing grain.” ■

   10
  Infusion of Ideas Energizes
                                                                         3rd Annual Houston Port Region
                                                                  Coffee Symposium
                                                     Amid the rich aroma of brewing java and presentations by international coffee indus-

                                                     try speakers about the latest trends, coffee was king at the 3rd Annual Houston Port

                                                     Region Coffee Symposium held in November at the Hilton-Americas Houston Hotel.
                                                         “Java & Jobs: Creating
                                                     Economic Stimulus in the
                                                     Houston Port Region”
                                                     featured presentations by
                                                     Luiz Marcos Suplicy
                                                     Hafers, owner, Fazenda              Burke      Hafers    Nelson       Stopka      Brauner     Heimsath    Singleton   Faubert       Bueno
                                                     Jamaica, Brazil; Robert
                                                     Nelson, president, National Coffee Association; Gary                  Luiz Hafers, a fifth generation coffee producer in Brazil,
                                                     Stopka, director of commodity procurement, Sara Lee               said the coffee business in Brazil is changing because the
                                                     Coffee & Tea; and Matt Brauner, president, Brauner                                            country as well as agriculture
                                                     International Corporation.                                                                    has changed.
                                                         PHA Commissioner Jimmy Burke has chaired the                                                 “Brazil continues to be the most
                                                     annual symposium since its inception in 2005.                                                 important country in coffee,” he
                                                         “The symposium encouraged individuals to take advan-                                      said. “But the coffee industry lost
                                                     tage of growth opportunities througout the coffee supply                                      hearts, minds and hands as mech-
                                                     chain,” said Burke. “And this year, we introduced a new                                       anization squeezed out many of
                                                     feature, Coffee Business: 101 workshops for emerging cof-                                     the small and medium-sized farm-
                                                     fee entrepreneurs as well as seasoned industry leaders.”          ers. Competition got people better jobs, which is bad for
                                                                              U.S. Representative Gene Green           those farmers, but wonderful for the country.”
                                                                           was present at the opening cere-                At the same time, he said the coffee business must move
                                                                           mony and gave a brief review of the         from making a product that is a habit to making one that is
                                                                           legislation, authored by State Sen.         satisfying. “Good coffee gives satisfaction,” he explained.
Port of Houston Authority | November/December 2007




                                                                           Mario Gallegos, that removed the                A new generation of coffee growers will change the
                                                                           ad valorem tax on coffee stored in          industry even more, he said. “They
                                                                           Harris County, clearing the way for         have strong ideas, are highly trained
                                                                           Houston’s designation by NYBOT              and highly successful. Power has
                                                                           as a green coffee port.                     moved from having to knowing.”
                                                     U.S. Rep. Gene Green
                                                                              Citing Houston as a business-                Illustrating coffee’s growing popu-
                                                     friendly place, speakers focused on such topics as the            larity, Robert Nelson, of the National
                                                     changing coffee business, the impact of security measures         Coffee Association (NCA), said
                                                     and a commitment to agricultural sustainability.                  180 million Americans — including


   12
                                                                  Nelson praised Houston as the leading U.S. port for
                                                               coffee with a great location and a pro-business attitude.
                                                               “We will continue to count Houston as a formidable force
                                                               in coffee,” he said.
                                                                  In his keynote luncheon address, Gary Stopka also
                                                               cited Houston for its business-friendly environment. He
                                                               talked about the positive ways Sara Lee has changed the
                                                               way it does business by being committed to doing the
                                                               right thing.
                                                                                                “We have a responsibility
                                                                                            to ourselves, our customers,
                                                                                            our consumers, our stock-
                                                                                            holders, our community and
                                                                                            each other,” Stopka said. “As
                                                                                            stewards of the earth, we have
                                                                                            a commitment to purchase
                                                                                            sustainable coffee and use sus-
                                                                                            tainable agriculture, which is
                                                                                            the productive, competitive
 13 million Texans — drink coffee, and the U.S. imports
                                                               and efficient way to produce agricultural raw materials.”
 2.8 billion pounds of coffee a year.
                                                                  As part of its commitment to sustainability, the com-
    “Fifty-seven percent of American adults drink cof-
                                                               pany is helping small farmers become certified in such
 fee daily,” Nelson said. “And this year was the first time
                                                               places as Peru, Uganda, Vietnam and Brazil. Certification,
 since 1989 that consumption of coffee surpassed that of
                                                               which teaches the farmers methods to ensure the pro-
 soft drinks.”
                                                               duction of higher quality coffee, can double produc-
                                                               tion inputs.
“The key to our success is for participants to                    “The key to our success is for participants to be will-
 be willing to change the way they do business.                ing to change the way they do business,” he said. “Along
 Along the coffee supply chain, that includes                  the coffee supply chain, that includes changes in quality,
                                                               administration, trading, accounting and logistics.”
 changes in quality, administration, trading,
                                                                  In his talk on supply chain security, Matt Brauner noted
 accounting and logistics.”                                    the voluntary Customs and Trade Partnership Against
                                                               Terrorism or C-TPAT program, in which all participating
    Noting Homeland Security regulations put in place
 after 9/11 to protect citizens, Nelson said there must be a
 balance between security and efficiency. The screening of
 containers, for example, causes delays at every point.
    “We cannot compromise safety but must operate cost
                                                                                                                              Port of Houston Authority | November/December 2007



 effectively and fairly,” he said.
    The NCA conducted a survey on coffee consumption
 that showed people have concerns about the perceived
 negative health implications and could benefit from
 education and promotion. The association is leading the
 way in promoting the health benefits that coffee delivers
 to counteract these microbarriers to consumption. The
 NCA touts research linking coffee to a reduced risk of
 Type II Diabetes, liver cancer and Parkinson’s.


                                                                                                                                  13
                                                                            entities in the import supply chain
                                                                            are cooperating with U.S. Customs
                                                                            and Border Protection to establish
                                                                            acceptable security practices in all
                                                                            phases of their operations.
                                                                               He emphasized the differences
                                                                            between screening (through use
                                                                            of information), scanning (with
                                                                            x-rays), and examination (open-
                                                     Matt Brauner
                                                                            ing containers and removing the           The symposium also featured workshops on “Coffee
                                                     contents for inspection). There are critical losses in both   Business 101,” with John Heimsath, president and CEO,
                                                     time and cost associated with examination versus the          ACM Logistics & Consulting, Inc., Scott Singleton,
                                                     other two methods.                                            president, Kadena Strategies, Inc.; and Ed Faubert, presi-
                                                                                                                   dent, L.E. Faubert & Co. A panel discussion focused on
                                                                                                                   “Positioning Houston in the Global Coffee Market,” with
                                                                                                                   Carlos de Aldecoa Bueno, president, Greater Houston
                                                                                                                   Coffee Association, and president, Cadeco Industries;
                                                                                                                   Hafers; and Brauner.




                                                        “It’s important to understand these terms for legisla-
                                                     tion since a bill that calls for 100 percent examination
                                                     would be quite different from one that asked for 100 per-
                                                     cent screening,” he said. “It’s all about risk management.”


                                                     “An infusion of ideas energized our third annual                 “An infusion of ideas energized our third annual sym-
                                                                                                                   posium, which highlighted the powerful overall role coffee
                                                      symposium, which highlighted the powerful                    has in this region’s economic development,” said Burke.
                                                      overall role coffee has in this region’s                        The symposium was sponsored by the Port of Houston
                                                      economic development.”                                       Authority, the Economic Alliance Houston Port Region
                                                                                                                   and the Greater Houston Coffee Association.
                                                                                                                      Silver-level sponsors included: Gulf Winds International,
                                                                                                                   Cadeco Industries, Inc., and Maximus Coffee Group.
                                                                                                                   Bronze-level sponsors were: Amegy Bank, CenterPoint
Port of Houston Authority | November/December 2007




                                                                                                                   Energy, Dupuy Storage Houston, Houston Pilots and the
                                                                                                                   West Gulf Maritime Association. ■




   14
                                                     It’s Simple as
                                                     One, Two, Three and Four
                                                     Efficient New Gate System                                                                     Davis describes the old
                                                                                                                                               system as “multiple entry/exit
                                                                                                                                               stations fragmented across
                                                     on the U.S. Gulf Coast’s hardest working container ter-
                                                                                                                                               the facility.” The new four-
                                                     minal, Barbours Cut, just got faster and more efficient. stage gate is adjacent to the
                                                         After exhaustive planning and 18 months of construc-    terminal and serves the entire terminal. The old gates are
                                                     tion, the Barbours Cut Container Terminal’s new gate        now being torn down and the land is being reclaimed for
                                                     system is up and running, and saving truckers time on       other uses.
                                                     each trip they make to the terminal. And in the transpor-       The new gate system process is identical to the gate in
                                                     tation business, time is money.                             place at the new Bayport Container Terminal. The only
Port of Houston Authority | November/December 2007




                                                         “We have built a four-stage gate system that is taking




                                                                                                                  1
                                                                                                                 exception is the distance between Stages One and Two.
                                                     an 18-minute process and shrinking it to just six minutes,”                A truck enters Barbours Cut Stage One, and
                                                     says Jeff Davis, Port of Houston Authority container                    through a system of cameras and intercoms,
                                                     operations manager. That is quite a change for a facility               much like the drive-through lane at a bank,
                                                     that was state-of-the-art in 1978.                                      the driver describes the moves he’s planning to
                                                         “The old system was very labor intensive and had very   make. He could be dropping a container, picking one up,
                                                     few bells and whistles or tools to expedite the trucker’s   dropping off a chassis, picking one up or any combination
                                                     trip through the gate process,” says Davis. “Now we’ve      of these actions.
                                                     put some technology into the gate that greatly expedites        The terminal’s staff validates what the driver has
                                                     a trucker’s trip.”                                          told them by checking whether the export container is

   16
      expected via the terminal’s booking system and if the
      characteristics of the container the truck is carrying
      matches the booking. If the trucker is picking up a unit,
      the staff validates that it is available and released to be
      picked up.




      2
                       If the information matches up, the ticket
                   is printed out and the truck is sent on to Stage
                   Two, which is about a mile away. At Stage
                   Two, the trucker puts the ticket into a ticket
                   reader while one of the PHA’s International




“We have built a four-stage gate system that is taking an 18-minute process and shrinking it to just six minutes.”


       Longshoremen’s Association clerks in the lanes brings up
       the transaction on a handheld computer using the num-
       ber of either the ticket, truck license or container.
          The clerk performs a physical inspection of the con-
       tainer and scales the container. A second ticket prints
       out, which gives the trucker specific instructions about        same characteristics, performs a survey if necessary, an
       what to do inside the yard. The yard cranes receive the        interchange receipt is produced as the official record of
       same information so that they are ready to remove the          transaction and the driver departs.




      3
       load or place a load onboard the truck.                            “The new gate system sits on top of the operating sys-
                       Once the trucker has completed his             tem platform that the port authority put into place about a
                                                                                                                                    Port of Houston Authority | November/December 2007


                    mission(s), he proceeds to Stage Three,           year ago,” explains Davis. “The operating system provides
                    where he inserts the ticket into the scan-        all of the users of both Bayport and Barbours Cut more
                    ner and the terminal’s interchange operators      tools via the Internet to have visibility into our system
       validate that he has the cargo he is supposed to have and      of bookings, releases and inventories at both terminals.
       that he’s leaving the way he is supposed to be. Otherwise,     The gate system is using that knowledge to expedite the




                                                      4
       he might be dispatched back into the yard.                     check-in/check-out process at both facilities.”
          If everything checks out, the trucker                           How is the new system working out at Barbours Cut?
       moves on to Stage Four by inserting that                       “So far, the customers are satisfied and so are we,” says
       same ticket into the scanner in the lane.                      Davis. “We continue to refine the process, but it’s a big
       A clerk brings up the transaction with the                     improvement over the old system.” ■

                                                                                                                                        17
                                                                            Top12
                                                                          ways the PHA
                                                                        delivered the goods in

                                                                             2007
                                                                          From the bond election to Bayport, from economic
                                                                          impact to environmental excellence, the Port of
                                                                          Houston Authority was a shining star as it delivered
                                                                          the goods in 2007.
                                                                                                                 2. Economic Impact — Houston’s port contributes to
                                                     1. Bond Election — Harris County voters supported a         more than 785,000 jobs throughout Texas, according
                                                     $250 million bond proposal in November, giving the Port     to an economic impact study presented to the PHA in
                                                     of Houston Authority the green light to continue con-       the spring. Those jobs generate $39.3 billion in personal
                                                     struction at the Bayport Container and Cruise Terminal,     income, resulting in the creation of $3.7 billion in state
                                                     increase security and underwrite environmental projects.    and local taxes for a total economic benefit of $117.6 bil-
                                                        The Port of Houston bond garnered a broad base of        lion. And $8.1 billion of the total economic activity is in
                                                     community support, including endorsements from the          direct business revenue.
                                                     Houston Chronicle, the Greater Houston Partnership,            The tremendous growth in economic activity gener-
                                                     Houston Hispanic Chamber of Commerce, and several           ated by the Port of Houston was driven by a nearly 50-
                                                     area civic groups. The bond will help ensure the PHA        million-ton increase in cargo during the last six years.
Port of Houston Authority | November/December 2007




                                                     continues to provide a thriving, competitive port that         The 785,000 statewide workers fit into four types of
                                                     delivers jobs and economic growth to the region.            jobs, measured according to their economic impact: direct,
                                                        More than $100 billion worth of goods pass through       such as dockworkers and terminal operators; induced, such
                                                     the port each year, making the Port of Houston a strong     as healthcare providers; indirect, such as equipment and
                                                     economic engine for Texas.                                  parts suppliers; and related jobs, such as manufacturing
                                                        A safe, thriving Port of Houston is vital to Houston’s   and distribution firms. And of those jobs, just about one
                                                     overall economy. With business at the Bayport Container     half, 393,000, are related to activity at facilities owned by
                                                     and Cruise Terminal increasing rapidly, the bond was        the Port of Houston Authority.
                                                     needed to ensure the PHA can keep up with the growing          The full report is available on the PHA Web site,
                                                     demands of container shipping.                              www.portofhouston.com.

   18
                                                                The PHA’s Beneficial Uses Group (BUG) also tied for
                                                             third place partnership in the 2007 Gulf Guardian awards.
                                                             Sharing the honor is the Charlotte Harbor Estuaries
                                                             Volunteer Water Quality Monitoring Project.
                                                                Sponsored by the partnership of the Gulf of Mexico
                                                             Program, the Gulf Guardian awards recognize envi-
                                                             ronmental stewardship in the five gulf coast states. The
                                                             program was formed in 1988 through the Environmental
                                                             Protection Agency as a non-regulatory, inclusive partner-
                                                             ship to provide a broad geographic focus on the major
                                                             environmental issues in the Gulf.

                                                             5. Bayport —The opening phase of the Bayport Container
                                                             Terminal began operation in February 2007 on a 132-acre
                                                             footprint, including 60 acres of container yard. Activity
                                                             has been brisk at the newest container terminal on the
                                                             U.S. Gulf with monthly production averaging 20,000
                                                             twenty-foot equivalent units (TEUs). CMA CGM America
                                                             remains the primary steamship line service calling at
                                                             Bayport. Other steamship line services include Australia
                                                             New Zealand, China Shipping and Evergreen lines.
                                                                 The first phase includes a 2,000-foot wharf sitting on
3. PHA Continues Emphasis on Security — To date,             6.3 acres; a fully automated access gate system sitting
the Port of Houston Authority has been awarded a total       on 24 acres, permanent storm water facilities covering 12.1
of $38.6 million in federal port security grants. PHA        acres and a 7,500 foot long berm covering 27.6 acres.
was awarded $5.3 million in 2007 Port Security Grant             The operations and environment infrastructure com-
Program funds — 100% of the requested amount. The            bine to help make Bayport one of the most technologically
three funding projects include fiber optic connectivity,      advanced container terminals in the U.S. The operation
Transportation Worker Identification Credential compli-       is expected to add 50 acres of container yard by the end
ance expenses and a pipeline identification and protec-       of February 2008.
tion program totaling $7 million when the PHA’s local
share is added. The PSGP had $201.2 million available        6. Small Business — Since its inception five years ago,
nationwide and $15.1 million was awarded to the              the PHA Small Business Development Program has contin-
Houston-Galveston-Texas City port areas. Harris County       ually strived to exceed its goal to annually award 35 percent
and the Port Strategic Security Council (soon to be the      of all eligible PHA contracts to certified small businesses.
Houston Ship Channel Security District) were awarded            By the end of 2007, more than 1,050 companies quali-
$5 million, private petrochemical plants were awarded        fied for registration in the program. Small firms received
                                                                                                                             Port of Houston Authority | November/December 2007


$2.7 million, and Texas City was awarded $2 million.         $22.7 million, or 49 percent, of the PHA’s contract awards
                                                             in 2007. Additionally, a total of $2.8 million, or 45 per-
4. Environmental Excellence — The Port of Houston            cent, of the PHA’s informal purchase orders went to small
Authority continued its commitment to the environment        businesses during the year.
in 2007 by successfully recycling 67 percent of the nearly      Since 2002, PHA has awarded $227.5 million or
30,000 tons of industrial waste material it handled.         40 percent in contracts to registered small businesses.
   The port authority has found innovative ways to keep                          A total of 58 monthly small business
industrial fluids, including lubricants, coolants and oils,                       forums have been held over the past
as well as discarded packaging components and building                           five years and the number of Port
materials out of local landfills.                                                 University graduates has reached 203.

                                                                                                                                 19
20
     Port of Houston Authority | November/December 2007




                                                                   1




                                                               5




                                                          9
                                                               6
                                                                   2




                                                          10
                                                                   3




                                                               7




                                                          11
                                                               8
                                                                   4




                                                          12



21
     Port of Houston Authority | November/December 2007
                                                     7. Community Efforts — This year, a first-of-its-kind         8. Customer Service — Serving a customer network
                                                     effort to promote the specialized jobs in the Port of        of more than 1,600, the port authority received two rec-
                                                     Houston region attracted more than 2,300 job seekers.        ognitions this year highlighting its excellent customer
                                                     More than 50 private and public companies along the          service. Voting the Port of Houston “best port overall,”
                                                     Houston Ship Channel participated in the first Port of        the Railway Industrial Clearance Association (RICA)
                                                     Houston-wide Job Fair in October to promote more than        cited it as the best port in customer service, quality of
                                                     1,000 open positions.                                        facilities and overall satisfaction. Founded in 1969, RICA
                                                        The Port of Houston Authority collaborated with The       represents over 500 people in the heavy and dimensional
                                                     WorkSource, the West Gulf Maritime Association, San          transportation industry.
                                                     Jacinto College and the Economic Alliance Houston Port          Also in 2007, the American Institute for International
                                                     Region to host the job fair at the Jimmy Burke Activity      Steel presented the PHA Trade Development and
                                                     Center in Deer Park.                                         Operations Departments with a plaque
                                                        PHA Commissioner Janiece Longoria and local offi-          in recognition for their support to
                                                     cials formally opened the event in a ceremonial ribbon       the AIIS and its steel accounts. AIIS
                                                     cutting. The job fair provided the public and private        President David Phelps and Vice
                                                     companies along the Houston Ship Channel with the            President Eric Hansen met with PHA
                                                     opportunity to identify qualified candidates for open posi-   Trade Development Manager Rainer
                                                     tions at their companies. The event benefited employers,      Lilienthal and Operations Manager
                                                     job seekers and the entire community, and ultimately will    Walt Kleczkowski to discuss cargo
                                                     help to prepare the region’s workforce for the future.       transfer and steel input at the Turning Basin, documen-
                                                                                                                  tation processes, infrastructure improvements, marine
                                                                                                                  terminal optimization study (MTOMS) and security cre-
                                                                                                                  dentialing requirements.


                                                                                                                  The Port of Houston Authority collaborated
                                                                                                                  with The WorkSource, the West Gulf Maritime
                                                                                                                  Association, San Jacinto College and the
                                                                                                                  Economic Alliance Houston Port Region to
                                                                                                                  host the job fair at the Jimmy Burke Activity
                                                                                                                  Center in Deer Park.

                                                                                                                  9. International Prestige — Ranked 10th largest port in
                                                                                                                  the world, Houston served as the host for the International
                                                                                                                  Association of Ports and Harbors (IAPH) this spring.
Port of Houston Authority | November/December 2007




                                                                                                                  More than 1,000 port executives from 50 countries gath-
                                                                                                                  ered at the IAPH 25th World Ports Conference hosted
                                                                                                                  by the Port of Houston Authority to discuss key issues
                                                                                                                  in the global maritime community. IAPH President and
                                                                                                                  PHA Executive Director H. Thomas Kornegay presided
                                                                                                                  over the week of events, highlighted by six work sessions
                                                                                                                  boasting a long list of distinguished speakers.
                                                                                                                     The six sessions addressed the growth in the cargo
                                                                                                                  container industry, port security and risk management,
                                                                                                                  challenges to port environment, ports adapting to future

   22
                                business development            and governmental relations, up-to-date facilities, sound
                                opportunities, logistics        fiscal management skills, and the opportunities afforded
                                infrastructure and port         to the port through the formation of Limited Government
                                strategies, and new tech-       Corporations.
                                nological innovations
                                for port operations.            11. Ship Channel Security — Those who successfully
                                    IAPH’s commitment           spearheaded the campaign leading to state authorization
                                to world port environ-          of the country’s first ship channel security district are busy
                                ments was underlined            with the second critical step toward making it a reality
                                at the end of the con-          — getting enough entities to sign on the dotted line.
                                ference when delegates              At least 50 percent of the property owners along the
                                unanimously adopted             Harris County portion of the Houston Ship Channel and
                                a resolution calling for        representatives of 50 percent of the appraised property
                                ports to promote clean          value must sign off on a petition that will go to Harris
                                air programs to help            County Commissioners Court for approval of the Houston
                                fight global warming.            Ship Channel Security District.
                                    Other highlights of             HSCSD is a public-private partnership designed to
                                the conference included         help improve security within the Houston Ship Channel
                                a celebration commem-           area, by assisting with the local share and operations and
                                orating the 30th anni-          maintenance of security infrastructure.
versary of PHA’s Barbours Cut Terminal and the reunion              The district will be governed by a board of directors
of the delegates who attended the last IAPH conference          with staggered two-year terms. At least eight directors
in Houston in 1977.                                             from the private petrochemical, chemical and refinery
                                                                industries will be selected to represent the district’s secu-
10. PHA Employees — In 2007, a team of 592 diverse,             rity zones.
skilled employees comprised the Port of Houston
Authority. They serve the public from about a dozen             12. Cargoes — Projections are for the Port of Houston
facilities and nine divisions.                                  Authority to move more than 34 million tons of cargo in
    Whether they’re an accountant or an administrative          2007. Containers, steel, petcoke, industrial chemicals and
assistant, an engineer or a logistics associate, part of the    miscellaneous bulk products are seen as big ticket items
maintenance, police or marine staff or in hundreds of           for 2007.
other jobs, each PHA employee shares                                With the opening phase of the Bayport Container Terminal
a common goal: to deliver excellent                             operating since February 2007, PHA is trending toward its
customer service.                                               sixth consecutive year of record container throughput.
    PHA’s team-oriented leadership                                  Steel cargo volumes continue to be strong for the port
and staff strive every day to fulfill the                        authority. PHA could record the third largest year of
mission “to provide, operate and main-                          steel volume in its 80-year history. The port authority is
                                                                                                                                Port of Houston Authority | November/December 2007


tain waterways and cargo passenger                              expected to handle 4.9 million tons this year, after post-
facilities, to promote trade and gener-                         ing its highest throughput in 25 years — 5.6 million tons
ate favorable economic effects upon and contribute to the       — in 2006.
economic development of the port authority, the city of             In addition, the port authority’s handling of petcoke is
Houston, the communities of Harris County and Texas             expected to increase to 4.5 million tons, while its miscel-
Coastal Region at rates that provide sufficient funds to         laneous bulk materials throughput is expected to increase
cover the port authority’s operational expenses and capi-       to 3.5 million tons.
tal investments.”                                                   PHA is expected to move nine million tons of indus-
    They follow a vision to provide safe and productive labor   trial chemicals in 2007 — slightly less than the 9.048 mil-
and customer service, effective community, stakeholder          lion tons moved last year. ■

                                                                                                                                    23
                                                     The Voters Have Spoken

                                                           $250 MILLION FOR
                                                                      BAYPORT
                                                     BY THE WIDEST MARGIN of any Port of Houston Authority bond proposal
                                                     in recent memory, Harris County voters resoundingly passed the $250 million
                                                     port bond package. The funds will primarily be used to support the continued
                                                     construction of the Bayport Container and Cruise Terminal, provide improvements
                                                     to port security facilities, and underwrite important environmental projects.
Port of Houston Authority | November/December 2007




                                                                                    Turnout was low on Election Day throughout the state of Texas and Harris
                                                                                    County was no different. A total of 114,525 votes or 64.8 percent were
                                                                                    cast in favor of the port bonds, with 62,257 votes or 35.2 percent against.
                                                                                       In 1999, voters approved $387 million in port bonds for Bayport by a
                                                                                    60–40 margin with 188,798 votes for the bonds and 125,350 against. The
                                                                                    port authority also went to the voters in 1989 for funding for the deepen-
                                                                                    ing and widening of the Houston Ship Channel. In all, 63 percent of the
                                                                                    votes were cast in favor of those port bonds.

   24
    “The wide margin of                                                                  The $250 million approved in
approval for the port bonds                                                           this current bond proposal, lever-
demonstrates how well our                                                             aged with the operational revenues,
outreach to the community is                                                          will continue the construction of
being received,” pointed out                                                          the Bayport Container and Cruise
PHA Chairman Jim Edmonds.                                                             Terminal. This $1.4 billion devel-
“I credit our strong community affairs program which sup-    opment will include seven container ship berths and have
ports the ship channel community through educational         a total 2.3 million 20-foot equivalent unit throughput at
and environmental efforts. Employee volunteers at water-     buildout in approximately 15 years. Up to three cruise ship
way cleanups and in the classroom with school students       terminals will be built, with the first one opening in 2008.
have brought the surrounding community into a closer
relationship with the port.”


“The wide margin of approval
 for the port bonds demonstrates
 how well our outreach to the
 community is being received.”
   Throughout the more than 90-year history of the Port
of Houston, the voters have only turned their thumbs            The next phase of the container terminal’s construc-
down once on a port bond proposal. The fight                       tion is Wharf 3, followed by Wharf 4 in 2012.
against that proposal was led by the most influen-                  The planned intermodal yard is expected to serve
tial man in Houston, Jesse Jones, and he had the                   approximately 20 percent of Bayport cargo, from an
full weight of his Houston Chronicle newspaper to                area totaling approximately 123 acres. It will also open
use in the fight.                                                in about 2012. An additional 48 acres of container yard
   In 1920, Jones opposed the port’s purchase of property    will be added in 2008, 50 acres in 2012, and 55 more acres
to supplement a gift of property at Manchester. Jones        in 2014.
believed that the port’s development should be upstream
from the Turning Basin towards Main Street in down-
town Houston. Those bonds were defeated by a margin
                                                             The bond funds will be used to
of three to one in one of the bitterest campaigns in the     improve port security infrastructure
port’s history.
   Jones tried to stop the port again in 1956 when a         and assist in environmental projects.
private terminal known as Long Reach Docks became
available for sale for $9 million from Anderson, Clayton        In addition, the bond funds will be used to improve
                                                                                                                            Port of Houston Authority | November/December 2007


                               and Company. By then, the     port security infrastructure and assist in environmental
                               voters had grown savvy        projects to further enhance the port’s leadership role of
                               about the fact that when-     environmental stewardship for Galveston Bay and else-
                               ever the port expanded its    where. The terminal’s environmental benefits include the
                               facilities, Houston grew in   preservation of 956 acres of diverse coastal habitat, the
                               size and prosperity. They     creation of 200 acres of new marshland areas, 173 acres
                               were not swayed by Jones’     of wetlands created or enhanced, and the preservation of
                               headlines and have remained   a 128-acre buffer zone. Bayport will generate more than
                               staunchly pro-port expan-     32,000 jobs, and add approximately $1.6 billion to the
                               sion ever since.              Texas economy through wages and tax revenues. ■

                                                                                                                                25
                                                     One if by Land ≥...
                                                       $2 Trillion if by Sea ...
                                                     If a Martin Associates economic impact
                                                     study released earlier this year is any
                                                     indicator, the pot of gold at the end of
                                                     the rainbow is likely located near one of
                                                     the USA’s bustling seaports.
                                                         The study, commissioned by the American Association
                                                     of Port Authorities and released in August, shows the
                                                     country’s seaports triggered a staggering $2 trillion dollars
                                                     of domestic economic activity in 2006.
                                                         That figure represents roughly 18 percent of this coun-
                                                     try’s gross national product.
                                                                                                                      Dr. John C. Martin
                                                         If U.S. seaports fueled the economy of an independent
                                                     nation, that nation’s economy would replace California as       just in port cities, making them a vital part of our nation’s
                                                     the world’s sixth largest and most vibrant.                     economic fabric.”
                                                         According to the study, of the nearly 8.4 million               Using 2006 U.S. port cargo statistics and thousands
Port of Houston Authority | November/December 2007




                                                     Americans working for port and port-related businesses          of recent port-sector interviews, Martin Associates com-
                                                     last year, nearly seven million worked for firms involved        piled the study, which focuses on the economic impacts of
                                                     in handling imports and exports — retailers, wholesalers,       coastal and Great Lakes ports. The study examined port-
                                                     manufacturers, distributors and logistics companies.            related dynamics ranging from jobs and wages to business
                                                         “The tremendous growth in overseas trade volumes            and tax revenues.
                                                     moving through our ports in the past decade has been a              The study shows that businesses providing goods and
                                                     huge boon to the American economy,” says Kurt Nagle,            services to seaports in the U.S. directly and indirectly paid
                                                     president and chief executive officer for the American           $314.5 billion in wages and salaries. Businesses involved
                                                     Association of Port Authorities. “The jobs these imports        in international waterborne commerce paid $204.7 billion
                                                     and exports create are spread throughout the country, not       of that amount. In addition, the report shows port-sector

   26
                                                              databases were used to calibrate each of the impact models
                                                              to estimate the impacts of the U.S. deepwater port system.
                                                                  Using these port-specific models for more than 40 spe-
                                                              cific ports, Martin Associates was able to translate the
                                                              cargo activities into direct, induced and indirect port-
                                                              sector impacts as well as impacts from users of the nation’s
                                                              seaports. Not included in the analysis are the significant
                                                              financial benefits of cruise operations at U.S. ports.
                                                                  The study shows 507,448 Americans held direct
                                                              jobs like terminal operators, longshoremen, freight for-
businesses were responsible for a high rate of economic       warders, steamship agents, ship pilots, tugboat and tow-
output, including business revenues and value of goods        boat operators, chandlers, warehousemen and jobs in the
and services totaling $1.98 trillion. Moreover, port-sector   dredging, marine construction, ship repair, trucking and
businesses paid more than $102 billion in federal, state      railroad industries.
and local taxes in 2006.                                          Those direct seaport-related jobs supported an addi-
   The study was similar to one Martin Associates con-        tional 630,913 induced jobs related to purchases of food,
ducted for the Port of Houston Authority this year.           housing, transportation, clothing, medical and recre-
   That study shows 2006 activity at the Port of Houston      ation-entertainment services.
contributed to 785,000 statewide jobs, $117.6 billion of
statewide economic activity and $39.3 billion in per-
sonal income.
   Martin Associates has conducted more than 300 of
these individual economic impact studies over the past
30 years, including one in 2000, using 1999 data, on the
nationwide economic impact of seaports. The Lancaster,
Pa., firm is considered one of the industry’s foremost
economic analysts and experts on port markets and
related economics.
    “Compared to the last study we developed in 2000,            Induced jobs also included jobs with local, state and
these (2006) figures indicate a significant increase in         federal agencies that provide support functions like edu-
the financial benefits that the port industry provides the      cation and municipal services. The port-sector firms that
American economy,” said Dr. John C. Martin, president         provide direct services to the cargo and vessel activity at
of Martin Associates, “This new report shows that port-       U.S. seaports made $26.3 billion in purchases to support
related activities are contributing to the economy in         the direct activities as well as supporting another 306,289
record numbers.”                                              indirect jobs.
   For the 2006 study, Martin Associates used as a starting      Dr. Martin points out that “port-sector jobs tend to
point, 35 individual seaport impact models the company        pay above-average wages, which is important to ensur-
                                                                                                                             Port of Houston Authority | November/December 2007


had developed in the last two years. The models were          ing America remain a strong economic force in the
developed based on more than 10,000 detailed interviews       global community.”
with port service providers. Using the models, Martin            In his 2006 report, he found that the number of direct,
Associates developed composite prototype models for the       induced and indirect jobs from business activities at U.S.
U.S. deepwater port system.                                   ports totaled 1,444,650, and the earnings and consump-
   In addition, the firm used a combination of 2006            tion dollars from those jobs was $107.1 billion. Overall,
international port cargo statistics supplied by the U.S.      he said port-sector workers today earn, on average, about
Maritime Association as well as individual port statis-       $50,000 a year, which is $13,000 more per year than the
tics for 2006, as supplied by the seaports and terminals      National Average Wage Index computed by the Social
handling both international and domestic cargo. These         Security Administration. ■

                                                                                                                                 27
                                                     Seabrook and Houston Yacht Club

                                                      Community
                                                     Outreach
                                                     Bayport Development Continues with Community’s Blessing
                                                     As a part of its continuing dialogue
                                                     with communities surrounding its
                                                     marine terminals, the port authority
                                                     has reached new accords concern-
                                                     ing the construction of the Bayport
                                                     Container and Cruise Terminal
                                                     with the city of Seabrook and
                                                     the Houston Yacht Club.
                                                        The new agreement with Seabrook
                                                                                                 “
                                                                                          Without the cooperation of both parties, we would not be here
                                                                                                     today. This agreement is unique in that it offers the absolute
                                                                                                     assurances that the citizens of Seabrook have been looking for
                                                     expands the port authority’s use of berms
                                                                                                     all these years. Our plan is to work to educate the community
                                                     and other barriers to shield the adjacent
                                                     neighborhoods from Bayport’s opera-
                                                     tions. In addition, the port authority
                                                                                                     on how beneficial this agreement is for the city and its citizens.
                                                                                                                                                                         ”
Port of Houston Authority | November/December 2007




                                                     and Seabrook have each contracted
                                                     with the Galveston Bay Foundation to
                                                     investigate and mitigate sedimenta-
                                                     tion of Pine Gully in Seabrook.
                                                        Pine Gully is a tidal creek that
                                                     starts a half-mile north of Red
                                                     Bluff Road and flows east into
                                                     Galveston Bay. The port author-
                                                     ity and Seabrook will share the
                                                     responsibility and cost as well

   28
                                                                                                       port authority property will
                                                                                                       be dedicated through the
                                                                                                       northwest side of Seabrook.
                                                                                                           Rail service to the
                                                                                                       Bayport Terminal will be
                                                                                                       routed within the light
                                                                                                       industrial area of Seabrook.
                                                                                                       The port authority and
                                                                                                       Seabrook will cooperate
                                                                                                       to design a sound barrier
                                                                                                       to minimize rail noise in
PHA Commissioners Jim Fonteno, Jr., Steve Phelps and Elyse Lanier; Dee Wright, mayor pro tem,
                                                                                                       the area of State Highway
city of Seabrook; City Councilman Kim Morrell; City Councilman Paul Dunphey; City Councilman           146 and up to $1.6 mil-
Gary Renola; City Councilman Tom Diegelman; and PHA Commissioner Jimmy A. Burke. Seated:               lion will be committed for
H. Thomas Kornegay, PHA executive director; and Robin Riley, mayor, city of Seabrook.
                                                                                                       its construction.
                                                                                                           The port authority will
        as oversight of the engineering design and permitting for      also construct flood detention and retention ponds on
        the restoration project. The port authority will commit        the southeast border of the terminals. Additional restric-
        approximately $339,000 to the project for final design and      tions will be put into place with respect to lighting, sound
        construction service costs for the project.                    mitigation related to operations, container storage and
            “The agreement with Seabrook is an important step in       rail operations.
        resolving and addressing these critical issues,” says PHA          Seabrook’s Planning & Zoning Commission and
        Commissioner Jimmy A. Burke. “I’m pleased that we are          City Council will consider the proposal to rezone port
        working together as a community to find solutions that          authority property south of the berm and north of the
        enhance the quality of life while enabling the port author-    commercial road to the C-3 commercial zoning district.
        ity to continue its mission of economic development and        Under the terms of the agreement, PHA will petition the
        job creation for the region.”                                  Seabrook City Council for creation of an industrial dis-
            “It has been well worth the wait,” says Robin Riley,       trict to encompass the terminal property.
        Mayor, city of Seabrook. “Without the cooperation of               In return, the city of Seabrook will suspend any legal
        both parties, we would not be here today. This agreement       action against the port authority, and also not impose any
                                                                                                                                      Port of Houston Authority | November/December 2007

        is unique in that it offers the absolute assurances that the   rules or regulations over the development of the berm,
        citizens of Seabrook have been looking for all these years.    trail system, commercial road, the port’s commercial prop-
        Our plan is to work to educate the community on how            erty, exterior rail lines and detention ponds.
        beneficial this agreement is for the city and its citizens.”        In addition, the port authority signed an agreement with
            The port authority will construct a berm prior to con-     the Houston Yacht Club to mutually work together to pro-
        struction of the rail line for cargo operations. The par-      mote safety, recreation and security on Galveston Bay.
        ties will work together to create a trail system to become         “I’m happy this day has come,” says HYC Commodore
        a portion of Seabrook’s established network of hike and        John Nicholson. “We look forward to continue build-
        bike trails. About 41 acres of the port authority’s land       ing on our good relationship with the Port of Houston
        will be given as park space. A new commercial road over        Authority in the future.” ■

                                                                                                                                          29
                                                                       Bayport Cruise
                                                     Smooth Sailing Ahead
                                                                              Designed to “Extend the Cruise Experience”
                                                      Texas is rocking the boat in the cruise industry. With 670,000 people embarking
                                                      on cruises from Texas ports last year, it is one of the highest growth markets for
Port of Houston Authority | November/December 2007




                                                      embarkations in the U.S., according to the Cruise Lines International Association.
                                                      For the last five years, growth has been driven by an increase in embarkations at the
                                                      Port of Galveston and development at the Port of Houston Authority.                                  Jim Fonteno, Jr.

                                                         In 2006, Texas ranked no. 3 in the nation — behind           “This study suggests Texas is a prime venue for embar-
                                                      Florida and California — for cruise expenditures, accord-   kations,” says PHA Commissioner Jim Fonteno, Jr., chair-
                                                      ing to the CLIA study. It marked a 20 percent increase      man of the cruise task force. “Last year, cruise industry
                                                      over 2005 and the first time direct cruise expenditures      spending generated 19,350 jobs and $907 million in
                                                      exceeded $1 billion for the state.                          income for Texas workers.”

   30
                                 The PHA is preparing for
                             this growing market of pas-
                             sengers with its new Bayport
                             Cruise Terminal, set to open         Economic Benefit of
                             in Spring 2008.                      the Cruise Industry
                                 At Bayport, cruising
                             will not just be about the
                                                                    in Texas (2006)
                             ship. The new terminal
                             will be a first-class facility
                             designed to be an extension
                             of the cruise experience. It’s
                             about keeping passengers
                             happy — before and after
                             the cruise.
                                 The multi-million-dollar
                             facility incorporates an arched   • Texas jumped to third from fifth in the nation
                             roof and paneled walls with         for cruise industry expenditures in 2006 with
                             windows in a translucent            $1.1 billion in direct spending, an increase of
                             emerald glass. In the sunny         nearly 20 percent over 2005 and the first time
                             Houston climate, the 96,000-        direct cruise expenditures exceeded $1 billion
                             square-foot terminal rises          in the state.
                             like a sparkling jewel from       • Cruise industry spending generated 19,350 jobs
                             Galveston Bay.                       and $907 million in income for Texas workers.
                                                               • Since 2002, Texas has been among the high-



Terminal
                                                                  est growth markets with cruise embarkations.
                                                                  In 2006, the Port of Galveston embarked
                                                                  617,000 passengers, an increase of 16 percent
                                                                  over 2005, while the Port of Houston embarked
                                                                  53,000 passengers.
    Among amenities are a 12,500-sq.-ft. lounge area in        • Texas residents who cruised in 2006 totaled
 the passenger embarkation area and climate-controlled           729,000, accounting for 8 percent of all U.S.
 gangways. Ultimately, three berths will accommodate             cruise passengers.
 cruise ships. A 40-acre site for commercial co-develop-       • Tourism-related businesses, such as travel agen-
 ment, which could include restaurants and other attrac-         cies, airlines and hotels, received approximately
 tions, should spur the local economy.                           40 percent of the industry’s direct expenditures
                                                                 in Texas.
                                                               Nationwide, the cruise industry generates $35.7
                                                                                                                      Port of Houston Authority | November/December 2007


                                                               billion in total economic benefits, $17.6 bil-
                                                               lion in direct spending by the cruise lines and
                                                               passengers on U.S. goods and services, with
                                                               cruise expenditures generating 348,000 total
                                                               U.S. jobs and $14.7 billion in total wages for
                                                               U.S. employees.
                                                                    (Source: Cruise Lines International Association
                                                               — figures compiled by Business Research and
                                                               Economic Advisors)


                                                                                                                          31
                                                                                                                        “We’re focused first on the cruise, but we also want to
                                                                                                                     make sure that passengers’ experiences are positive,” says
                                                                                                                     Battles. “Putting together pre- and post-planning can sell
                                                                                                                     more cruises while making the overall vacation experi-
                                                                                                                     ence positive. It’s about having happy passengers.”
                                                                                                                                             Kay Adams, PHA cruise operations
                                                                                                                                          manager, is emphasizing more per-
                                                                                                                                          sonalized packages, with the tagline,
                                                                                                                                          “Home Port Advantage.”
                                                         Bayport is one of a very few cruise terminals around the                            “We want to tap into people’s
                                                     world built from the ground up and custom-designed for                               dreams,” says Adams. “We’re teaming
                                                                                                                      Kay Adams
                                                     the cruise industry. Most others have been retrofitted to                             up with sports teams to do joint ven-
                                                     adapt to the larger, more specialized ships that can accom-     tures for themed cruises. One idea is a fantasy basketball
                                                     modate up to 5,000 guests.                                      pickup game with the Houston Rockets. We’re also con-
                                                                             “You have an advantage when             sidering a joint effort with the Houston Zoo to offer guests
                                                                          you start from scratch and have clear      an opportunity to be zookeeper for a day.”
                                                                          ideas,” says Wade Battles, PHA man-           Cruises attract people who are active, adventuresome
                                                                          aging director. “Now we’re working on      travelers, and Adams says one target demographic is peo-
                                                                          securing customers.                        ple who ride the MS150. With that in mind, a number of
                                                                             “As the next step in a 10-year          cruise lines have gotten together to support the MS150
                                                      Wade Battles
                                                                          involvement with the cruise industry,      team in April as the “Cruise Pedalers.”
                                                     the Port of Houston Authority is spending about $90 mil-
                                                     lion on this state-of-the-art cruise terminal,” he says. “But
                                                     we’re investing in much more — the continued economic             “We’re focused first on the cruise
                                                     growth and development of the Houston region and the
                                                     state of Texas.”
                                                                                                                        but we also want to make sure that
                                                         The focus is on three selling points: location, customer       passengers’ experiences are positive.”
                                                     amenities and operational efficiencies.
                                                         The new cruise terminal is close to the airports and            With intense competition, the cruise lines want to
                                                     the larger metropolitan area of Houston, Dallas/Fort            see unified efforts in the community with local hotels
                                                     Worth and Austin/San Antonio. It will offer passenger-          and restaurants.
                                                     friendly amenities, such as close, convenient parking for           “In Houston, we have support from the Greater
                                                     as many as 1,000 vehicles, and efficient service with up         Houston Convention and Visitors Bureau,” says Battles.
                                                     to 55 check-in stations. A VIP lounge can accommodate           “It’s important to have synergy — it benefits everyone.”
                                                     150 passengers for priority check-in and special occasions.         With the price per day, or per diem rate, higher in
                                                     The terminal design also has separate areas for the crew        Europe and the Far East, it’s a challenge getting cruise
                                                     and for baggage claim and features a truck bay where ship       lines to come to Houston.
Port of Houston Authority | November/December 2007




                                                     stores can be easily unloaded.                                      “Three years ago, the Caribbean was the strongest cruise
                                                         The gangway, with its horizontal and vertical flexibili-     market,” Battles says. “Markets are cyclical. Caribbean
                                                     ties, is “more than just ADA-required, it’s ADA-friendly,”      and Mexican markets are still strong but many vessels have
                                                     says Battles. “We are going beyond the standard to facili-      been deployed to the European and Asian markets where
                                                     tate disabled passengers.”                                      the cruise lines are achieving higher per diems.”
                                                         Bayport also has the advantage of being a departure             The goal is a cruise line that offers year-round weekly
                                                     and arrival port for cruises through the Panama Canal.          sailing, but utilization of the facilities is most important
                                                         Other selling points are pre- and post-cruise elements,     and PHA will also consider opportunities for ports of
                                                     such as golf packages for passengers before and after           call-type service. PHA is branding the new terminal for
                                                     the cruise.                                                     upscale cruise lines.

   32
   “We firmly believe by marketing aggressively and
branding differently to the upscale market, we can achieve
the goal of higher per diems,” says Battles.
   “Time is more valuable than money for these passengers,”
says Adams. “It’s important to have a harmonious check-
in/check-out. And what happens in the airport and the
cab coming here are all tied in with the cruise experience.
   “Our job at the port is to create a delivery system to
manage expectations,” she adds. “We will be operating at
a very high service level. Everyone will be a VIP.”
   A key strategy in selling the new facility to cruise line
executives is that “seeing it is believing it.”
   “It’s the ‘wow’ factor,” says Battles. “Our biggest chal-
lenge is to be able to get to the decision makers and show
them we really do have a different product than most
terminals. We’re providing amenities, services, effi-
ciencies. That will outweigh additional steaming time
between the Gulf of Mexico and Bayport versus Galveston
or Mobile.”
   Battles says a partnership with a cruise line could be
confirmed as early as Fall 2008 or Spring 2009. ■




                                                               Port of Houston Authority | November/December 2007




                                                                   33
                                                      Who Works at the Port




                                                     THE
                                                     FIREBOAT
                                                     CREWS
                                                     A few years ago, a ship called the Floridian, which was
                                                     carrying containers with hazardous cargo, capsized in
                                                     the Houston Ship Channel. The ship was blocking traffic
                                                     in the channel, but, more urgently, the capsizing caused
                                                     some of the containers to drop in the water.
Port of Houston Authority | November/December 2007




   34
CREW AND FIREBOATS
Crewmembers on the PHA fireboats must be certified as               Then the Port of Houston Authority fireboats came to
firefighters and marine firefighters by the state of Texas.        the rescue, patrolling the area and guiding traffic around
Candidates also must be either state-certified as emergency     the capsized ship. The crews were able to push the dropped
medical technicians or emergency care attendants. Fire-        containers closer to the shore, resolving a potentially dan-
fighters must have certification at the technician level         gerous situation.
for hazardous materials. PHA sends firefighters to the              A variety of emergencies can occur on the Houston
National Fire Academy in Washington, D.C., for formal and      Ship Channel and require the assistance of the PHA fire-
advanced training.
                                                               boats. Fires or explosions are always possibilities with as
   Each fireboat carries a hoseman, mechanic, pilot
                                                               many as 150 facilities handling liquid bulk or hazardous
and cap-tain. Fireboat crews belong to local emergency
planning committees and participate extensively in             materials and the large number of ship and barge traffic in
hurricane drills as well as manning boats during actual        the 53-mile-long channel.
hurricanes. They provide Hazmat training and conduct
fire drills. In cooperation with the U.S. Coast Guard, they
also participate in man overboard drills. Crewmembers are
involved in internal environmental and security audits.
Homeland Security has enlisted the fireboats’ help for
patrols, harbor watch and inspections.
   Each captain and relief captain must have a U.S.C.G.
master of 100 gross tons license. The captains periodically
rotate to different boats.

F/B Farnsworth
G. W. Larrimer, Senior Captain. A month before the
Houston Ship Channel officially opened for deep draft
vessels in 1914, Capt. Walter L. Farnsworth navigated the
first ocean-going vessel on the waterway. Christened in
1974 in his honor, the F/B Farnsworth has been in service
the longest of the PHA’s three fireboats. Located in
Channelview along the Lost River, the Farnsworth provides
fire protection to ships and facilities from the Lynchberg          Incidents vary from fires on the ship channel and docks
Ferry to Magellen.                                             to Hazmat releases or gas leaks and damaged containers.
F/B Bracewell                                                  Crews also take part in rescue operations on ships, such
J. G. Minchew, Senior Captain. In 1983, the F/B Bracewell      as a recent incident involving a heart attack victim who
was named for former port commissioner J.S. Bracewell.         was carried onto a stretcher and hoisted off the vessel
The Bracewell is located at Woodhouse Terminal, operating      with a crane. Serious injuries are always a possibility on
from Magellen to the Turning Basin. Her crew also is           the docks, where workers
responsible for maintaining all fire extinguishers in port      use heavy equipment, such
authority transit sheds at the Turning Basin.                  as cranes and forklifts. And
F/B Tellepsen                                                  when someone jumped off
                                                                                                                              Port of Houston Authority | November/December 2007


William Buck, Senior Captain. In 1983, the F/B Tellepsen       the Beltway 8 bridge last
was named for former port commissioner Howard T.               year, fireboat crews worked
Tellepsen. The Tellepsen is located at Barbours Cut Terminal   with the Houston Fire
and provides fire protection for ships and facilities from      Department’s dive team to
the Bayport Channel to Vopak Deer Park. She is responsible     recover the body.
for mitigating oil and hazardous material spills and
                                                                   The fireboats are also
supporting land-based fires within Barbours Cut.
                                                               used for non-emergency
   The Bracewell and Tellepsen are sister ships, both hav-     situations, such as environ-
ing been built by Swiftships in Morgan City, La. Each boat     mental activities. Any time
draws 3.5 feet of water, allowing them to work the islands                                   Bracewell crewmembers
                                                               an oil spill occurs, whether Kirk Beverung and James Smith
along the ship channel. The Farnsworth is deeper and thus
restricted to the ship channel for its response.
                                                                                                                                  35
                                                     on land or water, the fireboat
                                                     crews mitigate the spill and cor-
                                                     ral it so it does not spread.
                                                         “There are a myriad of things
                                                     that can happen,” says Ruben
                                                     Arredondo, manager, PHA
                                                     Marine Department.
                                                         Possibly the worst incident
                                                     in the last 20-some years was a
                                                     barge explosion in 1986 at the
                                                     Intercontinental Terminal near                                    The three PHA fireboats, the Farnsworth, Bracewell
                                                     the San Jacinto Monument,                                     and Tellepsen, are quick to respond, maneuverable and
                                                     according to Captain Mike                                     have water pumps large enough to produce enough
                                                     Usher of the F/B Farnsworth. Bracewell captain                water to fight fires on the channel or at a facility. They
                                                     The barge was on fire for several Steve Elder                  are unique in that they can carry an unlimited amount
                                                     days, requiring the assistance of all three fireboats, local   of water, compared to ordinary fire trucks, which have a
                                                     and national agencies. $1 million worth of foam was used      maximum capacity of 500 to 800 gallons of water. The
                                                     to try to put out the fire.                                    five-inch hoses alone on the PHA fireboats are capable of
                                                         “On the sixth day, the base of the barge finally buckled   providing from 4,000 to 6,000 gallons a minute.
                                                     and collapsed,” recalls Usher.                                    “With water drafted out of the ship channel, we don’t
                                                         Earlier this year, a fire broke out on land outside one    ever run out,” Arredondo says. “If we have a fire or explo-
                                                     of the chemical industries along the ship channel. Fireboat   sion along the channel — a half-mile inland or up to State
                                                     crews extinguished the fire within 10 minutes, lobbing         Highway 225, we can fight fires by hooking up water moni-
                                                     water over the embankment and using 1,000 gallons             tors to their pipes and providing water for weeks at a time.
                                                     of foam.                                                          “Our fireboats are self-sustaining,” he continues.
                                                         “With all the flammable products in the air, it could      “There are four people to a crew who change out every
                                                     have caused a chain reaction,” says Captain Steve Elder       24 hours during an emergency. The boats are equipped
                                                     of the F/B Bracewell. “Thankfully, we got on the scene        with Hazmat suits and Self-Contained Breathing
                                                     in time.”                                                     Apparatus (SCBA) respirators.”
                                                                                                                       During an emergency, standard procedure is to send one
                                                                                                                   fireboat, with the others on standby. Fighting severe fires
                                                                                                                   requires cooperation with several local fire departments.
                                                                                                                       The boats are maintained so well, changing pumps and
                                                                                                                   engines regularly, that Arredondo says they are “like new.”
                                                                                                                   The longest-serving boat, the F/B Farnsworth, nearly 34
                                                                                                                   years old, is good for at least another 20 years, he says.
                                                                                                                       The fireboats are equipped for celebrations, too, such
Port of Houston Authority | November/December 2007




                                                                                                                   as the Bayport groundbreaking in February. The unlimited
                                                                                                                   supply of water allowed the boats to create a festive mood
                                                                                                                   at the ceremony with continuous sprays of water — colored
                                                        As companies in the area become more safety con-           with environmentally safe dye — in vibrant red, white and
                                                     scious, major fires and explosions on ships and in terminals   blue. The fireboats were also at the launch of the Clean &
                                                     are decreasing.                                               Green program in September, spraying the water green.
                                                        “Like the port authority, each facility along the ship         Despite a 24 hours on-48 hours off schedule that
                                                     channel has a safety program,” says Arredondo. “The           requires working on holidays, the job inspires pride among
                                                     fireboats are a safety necessity. We want to have enough       the crew. As Elder says, “We’re doing something good for
                                                     protection for the entire port.”                              the public.” ■


   36
37
     Port of Houston Authority | November/December 2007
                                                     BUSINESS CONNECTIONS
                                                                         Deer Park Chamber of Commerce


                                                     Deer Park is known by its residents as “our gracious little city on the golden
                                                     plains of the great Gulf Coast,” according to Jimmy Burke, port commissioner
                                                     and former Deer Park mayor. Named for the private park for deer that formerly
                                                     occupied the site, Deer Park is the site of the San Jacinto Battleground where
                                                     the decisive 1836 battle for Texas’ independence was fought.
                                                        Since 1961, the Deer Park Chamber of Commerce has
                                                     been the hub of business activity for this ship channel
                                                     community. Today, 600 members make the organization the
                                                     place to be if you want to do business in this community.
                                                        “Our mission is to promote a climate for
                                                     business that enhances the economic vital-
                                                     ity and quality of life in Deer Park,” says
                                                     Dave McKinney, chairman of the chamber’s
                                                     board and community relations manager for
                                                     Shell-Deer Park.
                                                        The chamber offers its members numerous opportuni-
                                                     ties to network and secure business opportunities through
                                                     monthly luncheons and a monthly newsletter that high-
                                                     lights new members and what products or services they
                                                     provide. Annually, a Salute to Industry is held, and this   “Our mission is to promote a climate for
                                                     year’s honoree is the Port of Houston Authority.
                                                        “Each year, the chamber honors an industry of the year
                                                                                                                  business that enhances the economic
                                                     that has made an economic impact in our community,”          vitality and quality of life in Deer Park.”
                                                     explained Sharon McLean, chamber president/CEO. “The
                                                     Port of Houston Authority is the 2007–2008 recipient of
                                                     this award. The opening of the new Bayport Container &
                                                     Cruise Terminal will be positive for economic growth and
Port of Houston Authority | November/December 2007




                                                     tourism in the Deer Park area.”
                                                        Close to 500 chamber members were in attendance to
                                                     see the port authority receive this award. PHA Chairman
                                                     Jim Edmonds accepted on behalf of the port authority.
                                                        “My fellow port commissioner, Jimmy Burke, often
                                                     reminds me that Deer Park is a unique community
                                                     in that it is part small town and part industrial giant,”
                                                     said Edmonds. “When it comes to the Port of Houston,
                                                     Deer Park is a strong partner in the port’s past, present
                                                     and future.” ■


   38
SPOTLIGHT ON SMALL BUSINESS
                                                  Gilbreath Communications, Inc.
Over the past five years, Gilbreath Communications,          Houston magazine, graphics
Inc. has helped the Port of Houston Authority Public        and creation for advertising
Affairs Division produce, publish and distribute millions   material, Web site design and
of printed pages reflecting news about the PHA.              development, art direction
   The most significant page, however, won’t be measured     on all projects and specialized
in column inches or quality of paper stock — it’s the one   media distribution, as well as
defining quality and performance and its margins of toler-   all PHA broadcast work.
ance have been narrowing ever since the collaboration of        The Gilbreath team works
the partnership began.                                      closely with PHA Public Affairs Creative Director Damon Yerian, President
                                                                                              Audrey Gilbreath and Senior Graphic
   Fortunately, as Gilbreath founder Audrey Gilbreath       Division staff and Director Designer Tracy Price
affirms, “everybody was on the same page from the           Argentina James — so closely
very beginning.”                                            they’ve come to complete each other’s sentences. James
   “The biggest challenge at first was getting to know       provides the vision, Gilbreath the artistic expertise. The
each other so quickly,” Gilbreath says. “Fortunately, our   two entities have proven to be a formidable force over the
relationship clicked from the very beginning and we had     past half-decade.
a good understanding of where the port was trying to go.        Since 2002, they’ve garnered nearly 50 local and
We are so proud to be a part of it.”                        national industry awards for everything from advertising
   Gilbreath Communications does PHA’s Annual Report,       to excellence in periodicals, annual reports and electronic
Environmental Report, video commercials, internal           productions. They have also worked jointly on the devel-
communications, newsletters, special projects, external     opment and redesign of the portofhouston.com Web site,
communications, design production of the Port of            which boasts 27,230 unique visits a month. ■
    A Heavyweight Stats on Tonnage                                                 A
    The world’s 10th largest port is also
    U.S.-ranked first in foreign tonnage
    and second in total tonnage.

    B Expanding Global Reach
    More than 7,000 ships call at the Port
    of Houston each year, and more than
    100 steamship lines offer services linking
    Houston with more than 1,000 ports
    around the world.

    C Facts on Impact
    Generates $117.6 billion of total
    economic activity in Texas, and
    supports more than 785,000 jobs.

    D The Regional Ripple Effect
    Port-related businesses pay more
    than $3.7 billion of state and local
    taxes each year.
                                                 B




                                         C



C




                                                     D




                                                         For nearly a century, the Port of Houston Authority
                                                         has been at the hub of global trade and commerce.
                                                         Greater levels of trade, business growth and job
                                                         creation are well within reach as the port continues
    1-800-688-3625\| • www.portofhouston.com             to capture new opportunities.
The Port of Houston          PRSRT STD
PO Box 2562                  US Postage
Houston, Texas 77252-2562       PAID
                             Houston, TX
                            Permit #1395

				
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