HOUSTON: The Port of Houston Authority continues to deflect the softness in the upstream oil and gas sector “due to a sound execution of its business model,” Executive Director Roger Guenther shared in his report to the Port Commission during its regular monthly meeting today. Container operations showed strength, while steel imports, primarily tubular products, followed the downward trend seen by both Texas and the nation. The Port Authority saw only a moderate decline of 2 percent in total TEU in its container business versus a very robust period through April last year, Guenther reported.
The Port Authority reported strong financials, and despite a 12 percent decline in tonnage due to steel, still handled nearly 12 million tons of cargo year-to-date. The Executive Director acknowledged the contribution of Port Authority staff members from across “all areas of the organization” for their “tremendous effort and commitment” to produce “sound operational results and financial performance” for the Port Authority.
Guenther also indicated in his report the expectation of a significant increase in volume due to the arrival of the 2M Asian service: Maersk Line’s TP18 service and Mediterranean Shipping Company’s Lone Star Express service. This new 2M Asian service is expected to make its first call at the Bayport Container Terminal on June 5. “Houston is rapidly increasing its position as a major gateway for trans-Pacific trade to the U.S and we are proud of that,” Guenther said.
Focused on the Port Authority’s vision of becoming America’s distribution hub for the next generation, the Port Commission approved more than $88 million in infrastructure investments, all directly tied to the Port Authority’s strategic plan. These investments included $13 million towards channel improvement projects and more than $75 million of investment for new construction and redevelopment of Port Authority terminals. Bipartisan support of the Houston Ship Channel by the local Congressional delegation was applauded by the Port Commission and staff during the meeting.
One of the channel improvement projects approved today was an innovative partnership with the U.S. Army Corps of Engineers, which allows for the beneficial use of clay to be mined from an area known as the Bayport Flare. This cost-shared project should make it easier to navigate deep-draft vessels along the Houston Ship Channel, and supports the Port Authority’s effort to ensure its readiness for the expanded commerce it is experiencing both now and as the new Panama Canal expansion comes on line.
Clay mined from the Bayport Flare will be used for the creation of marshes along the channel, as a part of the Port Authority’s continuing commitment to improvement of environmental features in Galveston Bay. Work on the Bayport Flare and these environmental enhancements is expected to start soon after the completion of the deepening and widening of the Bayport Ship Channel by the Port Authority, scheduled for this fall.
