Container and cruise terminal will accommodate customers, enhance
Texas cruise industry, set new environmental standards, promote
economic development, foster job creation
First phase targeted for completion and operation in mid-2006
PASADENA, Texas, June 22, 2004 (PRIMEZONE) -- The Port of Houston Authority (PHA) celebrated the groundbreaking for the Bayport Container and Cruise Terminal with a special ceremony at the industrial site on Monday, June 21. PHA Chairman Jim Edmonds was joined by Vice Chairman Kase Lawal, Commissioner Steve Phelps, Commissioner Jim Fonteno, Commissioner Jimmy A. Burke, Commissioner Cheryl Thompson-Draper and Commissioner Janiece Longoria as well as more than 300 invited guests, including: Texas Secretary of State Geoffrey Connor; Harris County Commissioner Sylvia Garcia; Houston Mayor Pro-Tem and City Council Member Carol Alvarado; Pasadena City Councilman Bill Welch; Walt Niemand, President and CEO of the West Gulf Maritime Association; Clyde Fitzgerald, President of the South Atlantic & Gulf Coast District of the International Longshoremen's Association; David Zachry, President, Civil Group of Zachry Construction Corporation and several PHA executives, staff members, and contractors.
A photo accompanying this release is available at: http://www.primezone.com/newsroom/prs/?pkgid=1095
"For 90 years, the port has made an indelible and positive impact on the Houston region," stated Chairman Edmonds. "Today's event is one of the most anticipated moments in the port's mighty history."
Built out in phases over 15 to 20 years to meet market demand, Bayport will have enough space for seven ships and a 378-acre container storage yard. It will have a maximum capacity of about 2.3 million TEUs (twenty-foot equivalent units, the standard of measurement in the maritime shipping industry) - a 200 percent increase over PHA's current container handling capacity.
As a proponent of the Central American Free Trade Agreement, Congressman Kevin Brady hailed Bayport as a factor in strengthening trade. "One of my top priorities in Congress is strengthening trade between the United States and Central America, and Bayport will be an integral part of that process," Brady said. "With Bayport operational, I expect that our ability to both export and import goods to and from Central American countries will increase our trading opportunities, bringing more business to Americans and the Port of Houston."
Texas Secretary of State Geoffrey Connor mused about the old days when signs posting "G.T.T." meaning "gone to Texas" were displayed in windows of closed up shops all across America advertising the flurry of migration to the vast land of opportunity in Texas. "Soon, shippers will leave G.T.B. - 'Gone to Bayport' - signs at other ports across the Gulf of Mexico," Connor said. "Indeed, Bayport will be the pinnacle of U.S. port terminals, and I expect that shippers will line up to dock at this facility."
Connor said that Texas is at the forefront of emerging markets and industries, noting that one of Governor Rick Perry's top priorities is job creation and economic development. "Texas is now taking the most aggressive approach in the nation to attract new jobs, industries and opportunities. The access to the Port of Houston is one of the major reasons why companies choose Texas," Connor said.
Harris County Commissioner Sylvia Garcia said that as the local economy grows and creates new jobs, infrastructural developments such as Bayport are needed to accommodate the rising consumerism. "As a society, we all want the creature comforts of nice cars, clothing, food, materials for our homes and electronics -- and the port delivers these goods in the millions of containers that cross our docks each year," Garcia said.
Container throughput at Houston's port has risen at an average growth rate of more than 10 percent per year for 12 years. Studies conducted by the Texas Transportation Institute predict a continued worldwide container growth rate of 7.2 percent through 2010. The study also estimates growth rates as high as 13 percent along the Gulf of Mexico.
Currently, PHA handles 64 percent of the containerized cargo market along the U.S. Gulf, and 94 percent of the waterborne containers moving through Texas. Much of that activity takes place at PHA's Barbours Cut Container Terminal, which was built in the 1970s and is operating at full capacity.
"Bayport is not only about handling new container growth, but also keeping our current customers," Garcia said. "Without room to grow, these shippers will take their cargo to ports outside of Texas, most likely New Orleans. We are a growing market with increasing consumer demands. Naturally, the Port of Houston must grow to meet those requirements, and Bayport is the answer."
The Bayport groundbreaking signals a journey of long-anticipated prosperity, according to Walt Niemand, President and CEO of the West Gulf Maritime Association, an organization that represents shippers and businesses interests in the ports of Texas and Port Charles, Louisiana. "Bayport will allow us to satisfy all of our customers' demands while meeting the needs of Houston and Texas consumers and businesses," Neimand said. "We are ready to begin filling this facility with business as soon as it is ready for us."
The Bayport facility is expected to create approximately 39,000 jobs. Approximately $1.6 billion will be contributed to the Texas economy through wages and tax revenues.
"Bayport means a lot to my constituents," stated Houston Mayor Pro Tem and City Councilwoman Carol Alvarado. "This new terminal will bring financial security to many hard-working men and women. Bayport will mean that jobs will be available for today's young people who are still in school."
Seaport jobs include positions with railroads and trucking companies moving cargo to and from the port authority's marine terminals and private terminals. These jobs also include the members of the International Longshoremen's Association and non-ILA dockworkers, steamship agents, freight forwarders, ship chandlers, warehouse operators, bankers, lawyers, terminal operators and stevedores. "Clearly Bayport will offer such a variety of jobs to meet almost any professional goals," Alvarado added.
Bayport is the single most important project for every member of the ILA, according to Clyde Fitzgerald, president of the ILA's South Atlantic & Gulf Coast District. "Most of our members live in this area, and they would not have supported this project so strongly if they believed it would be harmful to the communities in which they live," Fitzgerald said. "Their support speaks volumes."
Completion of the first phase of Bayport -- including 1,660 feet of the ultimate 7,000 ft. wharf and approximately 65 acres of the ultimate 1,043 acre facility -- is targeted for mid-2006.
Bayport ultimately will feature three berths to accommodate the growing fleets of sleek, modern and luxurious passenger vessels.
"The cruise business will be a highly appealing aspect of Bayport because of its close location to several popular Mexican and Caribbean vacation destinations," Pasadena City Councilman Bill Welch said. He noted that PHA's Barbours Cut Terminal currently serves Norwegian Cruise Line. NCL's Norwegian Sea sails weekly at full passenger capacity with port calls in Honduras, Belize and Mexico.
"With the addition of the Bayport cruise terminals, we can sail to more glamorous and colorful locales," Councilman Welch said. "Many people who cruise from Houston live in this area and drive into town on Friday night. They stay in a Pasadena hotel, eat at local restaurants, perhaps even take in attractions such as NASA or the Kemah boardwalk. My point is that people who cruise from the Port of Houston do business with our local merchants, adding much-needed dollars into our economy. The bottom line is that we all benefit from the ever-popular cruise business."
Contracts totaling more than $180 million will be awarded for the first part of the project with more than half packaged in contracts eligible for PHA's Small Business Development Program.
In May, the PHA commission awarded a $62 million contract to Zachry Construction Corporation for wharf construction and dredging at Bayport. In addition to competitive price, Zachry's bid for the contract also included a stated commitment to meet or exceed the PHA's requirements for promoting environmental quality, small business sub-contractor participation, and community outreach. The company committed to provide an electrical batch plant on-site at Bayport to reduce truck traffic, dust, and air emissions. To minimize impacts to local residents and roadways, the company will also limit the amount of construction work performed at night. Additionally, Zachry's plan calls for 49 percent small business sub-contractor participation by Aviles Engineering Corporation, A-1 Hydromulch of Texas, Inc., Advancetech Systems 2, Inc., A&N Consulting, BMT 2000, L.P., Busby Associates, Inc. CRA, Inc. Emerald Standard Services, Inc., D'Ambra Construction Corporation, Great Bear Construction, Highway Pavement Specialties, Inc., LA Utilities, Inc., Miller Paving & Construction, Inc., Silva Contracting Co., Inc. Ed Wilkinson, CPA, Jerry L. Driver Services, and Trinh Design.
"We are proud to be a part of not only such a monumental project that will so greatly affect Houston's future, but also proud to be a partner with the port and its way of doing business," stated David Zachry, president of the civil group at Zachry Construction Corporation.
Separately, Zachry is also involved in negotiations with PHA involving an estimated $37 million contract for container yard construction at Bayport, which is expected to include approximately 67 percent small business participation. Pending the successful outcome of negotiations, the latter contract award is expected to be considered by the PHA commission at a future meeting.
Background
PHA Executive Director H. Thomas Kornegay signed the federal permit for the Bayport project on January 5, 2004. The permit was then issued by Col. Leonard Waterworth of the U.S. Army Corps of Engineers.
Previously in December, the Corps had released its final record of decision (ROD), a concise document that recommended approval of the Bayport project. The ROD also included the district engineer's views on the probable effect of the proposed project on the public interest. In part, the document stated that
"...even if the Corps were to conclude that all of the
aquatic areas on the site, including all of the wetlands
on the site, were subject to CWA (Clean Water Act)
jurisdiction, (PHA) has provided ample mitigation to
compensate for the loss of all aquatic areas on site that
will be filled or otherwise degraded by the project."
Also in December, the Texas Commission on Environmental Quality approved water quality certification for the Bayport project under Section 401 of the Clean Water Act. The commission had reviewed the project for consistency with the goals and policies of the Texas Coastal Management Program in accordance with the regulations of the Coastal Coordination Council and determined that the project is consistent with the applicable goals and policies.
PHA's design for the Bayport facility includes several other mitigation measures to compensate for environmental impacts. For example, the use of clean fuel and clean engine technology will help reduce air emissions. PHA's existing container facility at Barbours Cut recently completed an initiative to convert 28 rubber-tired gantry cranes and 25 yard tractors to Purinox, a diesel emulsion fuel that produces significantly lower levels of air emissions. The initiative was funded by $212,000 in grants awarded to PHA by the Texas Emissions Reduction Plan (TERP). Previous tests of Purinox on Barbours Cut equipment engines have resulted in a 25 percent reduction in nitrogen oxide (NOx) levels and a 30 percent reduction in particulate matter.
Air emissions reduction, solid waste recycling, and storm water quality improvement are the key objectives of PHA's environmental management system (EMS). In 2002, Barbours Cut and PHA's central maintenance facility became the first of any U.S. port facilities to implement an EMS that complies with ISO 14001, the global standard for environmental excellence. PHA is committed to meeting ISO 14001 standards upon the completion and opening of the Bayport facility.
Another mitigation measure planned for the Bayport facility is a three-mile long buffer zone around the facility that will include a landscaped sight and sound berm that will be 20 feet tall. The buffer zone also includes part of an extensive storm water collection system that will protect Galveston Bay. Lighting systems designed to use black light poles and specially designed fixtures will limit night-time impacts at the facility. PHA's Bayport plan also involves jurisdictional wetland replacement at a ratio of more than three to one to increase the habitats available for fish, waterfowl and other coastal wildlife. Furthermore, the beneficial use of dredged material will create up to an additional 200 acres of inter-tidal marsh.
PHOTO CAPTION (for accompanying photo. See link above.)
PHA Breaks Ground for Bayport Container and Cruise Terminal. Monday, June 21, 2004. Pictured from left to right: Wade M. Battles, PHA Managing Director; Commissioner Steve Phelps; Commissioner Janiece Longoria; Commissioner Jim Fonteno; Chairman Jim Edmonds; Commissioner Cheryl Thompson-Draper; Commissioner Jimmy Burke; Vice Chairman Kase Lawal; Charlie Jenkins, Bayport Project Manager.
The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com
The Port of Houston Authority logo can be found at: http://media.primezone.com/prs/single/?pkgid=720
