\

You can set the clockon City Hall by the

Maersk Linesailings.

Houston is more than one of Amer-ica’s great metropolises. It has a longtradition as a thriving port for thevast Southwest region.

We like to think Maersk’s reputationfor reliable sailings has become partof that tradition.

We’ll strive to keep the familiar blueships coming and going just likeclockwork.

For information, call our Houstonoffice (713) 599-5200.

This familiar landmarkhelps keep Houston on time.

Complete topsideship repair, cleaning,and pollution control!Tile facilities at our locations havethe capacity to resolve your ship repairand maintenance problems.

Our Houston Ship Channel berth onBrady Island accommodates ships to780’, tull utilities, 25T tower crane, andcomplete workshops.

The Orange, Texas ~;acilities have twoworking berths accommodating ships to700’, full utilities, 50T floating crane,and complete fabrication and machineshops.

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TEXASORANGE

HOUSTON

HOUSTON SHIP REPAIR, INC.16201 V~>od Drift, [~0. Bo~ 489Chanrlelview, Te~a.~ 775.~0 U.SA(713~ 452-5841. 7~,le~ : 792282

PO~TVolume 32 August 1989 Number 8

JAMES PUGHExecutive Director & CEO

TOM KORNEGAYManaging Director

JAMES BAKERDirector of Port Operations

F. WILLIAM COLBURNDirector of Economic Development

STEVE JAEGERDirector of Marketing

LINDA REESEDirector of" Administration

JOE SCROGGINS, JR.Director of Facilities

JOE FLACKCounty Auditor

Page 4

T A B L E 0 F

Houston’s foreign trade zoneA variety of facilities with room for more

C 0 N T E N T

Proposed Houston Ship Channel improvementsGuest Column: Richard Leach, former PHA president

History: Part VIIIHouston bankers back deep-water project

Changes in trade and commercePort chairman says United States must be prepared

New service for dry bulk shippersCrushing plant opens at Bulk Materials Handling Plant

S

4

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THE PORT OF HOUSTON MAGAZINE (ISSN 003Z-4825)is published monthly by the Port of HoustonAuthority, P.O. Box 2562, ttouston, Texas77252-2562, and is distributed free to maritime,industrial and transportation interests in theUnited States and foreign countries. SECONDCLASS POSTAGE PAID AT HOUSTON, TEXASAND AT ADDITIONAL MAILING OFFICES.POSTMASTER: Send address changes to PORTOF HOUSTON MAGAZINE, P.O. Box 2562,Houston, TX 77252-2562. The magazine staff in-cludes: Communications Manager, Janet Ander-son; Editor, Ann Bordelon; Writer, Susan Hum-phrey; Advertising Manager, Sheila Adams; andPhotographer, Ray Soto. This publication is notcopyrighted and permission is given for thereproduction or use of any original materials.provided credit is given to the Port of HoustonAuthority. Additional information, extra copiesor advertising rates may be obtained by x~Titingthe PORT OF HOUSTON MAGAZINE.

D E P A R T M

Port Tidings

Port Side

Liner Services

Executive Offices1519 Capitol AvenueP.O. Box 2562Houston, TX 77252-2562Tel: (713) 226-2100TWX: 910-881-5787Telecopier: (713) 226-2134

E N T S15

36

39

Field Offices60 East 42nd Street

New York, NY 10165Tel: (212) 867-2780Fax: (212) 983-2746

PORT COMMISSIONERS

ON THE COVER

After discharge, some of the cargo from

this vessel may go to one of several

foreign trade zone facilities that pro-

vide a variety of services for shippers

using the Port of Houston.

Torre KLM, Pent HouseAvda. Romulo Gallegos

Santa EduvigisCaracas 1071, VenezuelaCountry Number: 01-58-2

Tel: 283-2067, 283-1489Fax: 283-2067Telex: 25541,27244

NED HOLMES H MIDDLETON MIL’I’ON CARROLL ROBERT GILLETTE LEROY BRINER CC SMITHERMAN J MICHAEL SOLAR(]hairn~an ConlnaJssioncr C()mnfissioner Conlmissioner Comnlissioner Comnlissiot~cr Ct)nlmissioller

WARNING

!~~~~~~i~~~~~!~!i!ii~~~ii!:ii!ii~3iif~~ii~!~~i~!!!i~~~i~~~~~~i~!ii~i!i~iii~iiiiii~!ii!~~~i~i~!~ii!!i~i!ii~!~!ii!i!iiiiii!i!iiiiif!~!!i!ii!if~~i!ii!!iifiiiii~!i~iiiii~!!!!!iiiii~!i~ii!iiiiiiiiiiii!iiiif~~!~!i!iii!i!ii!i!~iiiiii!i!i~iiii~!!i!fiii~iiiii!ii!iiiiii~!iiii~iii!iiii;!i~!i!ii!iiiiii!iiiiiiiJ~iiiiiii~~~~!!!!ii~ii!~!iiii~ii!iii~~iiif~iii!iiiii~~i~ii!!i!!iiiiiii!iii!iiiii;ii~~~i!iii;~!~!~!~~!i!~iiiii!!f~ii!iiiiii!ii~~~iii~~~~~~i~~~~~~ii~~!!~i!iii~ii!iiiiiii!ii~i~i!i!!ii:~iii~~~;i!~~~~~i~!~~;~~iiiii~!!~~~!~:~;

HOUSTON’S FOREIGN TRADE ZONE

n 1934 Congress passed the Foreign Trade Zones Actto stimulate international trade and create jobs forAmericans. Although the foreign trade zone systemwas conceived to solve problems created by the

Great Depression, the system still is an important toolfor businesses involved in international trade.

A foreign trade zone is a site, located near a U.S.Customs entry point, where foreign and domestic mer-chandise are considered to be in international com-merce. Merchandise may enter the zone without a for-mal customs entry or the payment of customs duties orgovernment excise taxes. Duties are not assessed untilthe merchandise enters U.S. commerce.ADDED SAVINGS Imported merchandise and certaindomestic goods stored in the zone are exempt from stateand local property taxes, an added benefit for importersand exporters who keep large inventories on hand. Inaddition, FTZ users may apply for duty drawback, ex-cise tax refunds and export incentives as soon as theirmerchandise enters the zone.

"For importers, using a foreign trade zone can meansavings through deferred duties. The exporter can realizesignificant savings in inventory taxes," says JackBeasley, manager of the Malcolm Baldrige Foreign TradeZone in Houston. "Of course if a company imports andexports, the savings are even greater."EXPANDED ROLE Originally, FTZs were established as cen-ters for the storage, manipulation and transshipment

of goods. Today’s zones are used for a variety of opera-tions, including manufacturing, exhibiting merchandiseand destruction of waste materials or valuelessmerchandise.

Products admitted to a foreign trade zone may bestored until needed, reassembled, repackaged, processed,consolidated, commingled with domestic products,tested, repaired or manufacutred. Duties are paid onlyon the finished products, resulting in duties that areoften lower than those assessed on importedcomponents.DIVERSE OFFERINGS Houston’s zone is managed by the Portof Houston Authority and includes several sites that pro-vide a broad selection of services and facilities such asmotor vehicle storage, warehouses and uncoveredstorage areas.

"Houston’s FTZ has plenty of available warehousespace. We have land with existing offices on site and rawland on which companies may develop their ownfacilities," says Beasley. "We also have existing facilitiesthat many FTZs don’t have, such as storage for liquidbulk chemical products."SUBZONE OPTIONS "Companies whose needs can’t be ac-commodated by existing sites may apply for subzonestatus through the Port Authority," Beasley says. "Acompany that already has invested in its own facilitiesmay not want to relocate to be in the zone. But that com-pany can apply for subzone status at its current location,

and it may be worth it to have the savings."Nationwide, an estimated 2,100 companies use FTZs.

Companies used Houston’s foreign trade zone last yearto inspect and repackage ball valves and electrical equip-ment, sort and repackage cotton shorts, mark drill pipeand marble tile, inspect and take inventory of medicalsupplies, remove markings from paint, and inspect andsort steel pipe and telephones.ADMISSIONS UP More than 26,200 tons of merchandisewere admitted to Houston’s FTZ in 1988, up 7.4 percent

from 1987. Merchandise entering the zone in 1988 wasvalued at a total of $21.3 million. During the same year,3,000 tons of merchandise were removed from the zoneand entered into U.S. commerce and almost 18,000 tonswere exported to other countries.

Commodities stored in the Houston zone last year in-cluded chemical products, steel pipe, automobiles, elec-trical equipment, polished marble tile, clothing, liferafts, empty cargo tanks, forklifts, fabric, carpet, dust col-lection equipment, yarn, steel casing and many otherproducts.MARKETING GOAL The foreign trade zone system is 55 yearsold, but many companies are still unaware of the poten-tial savings that can be gained by using an FTZ.

"Many companies- such as refineries and othermanufacturers -- don’t realize that they can reap signi-ficant savings by establishing a subzone or using an ex-isting FTZ site," Beasley said. "Our marketing goal isto make them aware of the possibilities, the ways inwhich an FTZ can work for them." []

A few of the services offered by sites in the Houstonforeign trade zone:LEFT, OPPOSITE PAGE: Storage for refrigerated containers.RIGHT, OPPOSITE PAGE: Storage tanks for liquid chemicals.ABOVE, THIS PAGE: A wide range of packaged products.When this photo was taken, this warehouse containedolive oil, lawn furniture, beverages, laminated wovenpolypropylene cloth, sulfated polyesters and bottles ofliquid arsonate.LEFT, THIS PAGE: Steel pipe stacked at PHA’s IndustrialPark West.

Our experience goesa long way.

A t Texas American Shipping, we’re experts

at transporting cargo of all types and sizes,all around the world. From disassembled fac-tories to oil rigs, from agriculture products toforest products, from construction equipmentto chemicals.

Next time you need something delivered in timeand in order, call on Texas American Shipping.We know the safest, most cost-effective routeto take. And nobody goes farther to please theirclients than we do.

~rTEXAS AMERICAN SHIPPING

1225 North Loop West Houston, Texas 77008 (713)863 9330

Telex: 4620358 Cable: TASC HOU Fax: (713) 8(33-1007

Call or write for a free brochure.

I

The Houston Ship Channel as it exists todayis the product of 150 years of evolutionarydevelopment. From waterways in their naturalstate to a channel with a depth equal to that of

the Panama Canal and most of the world’s major ports,the Port of Houston has been this community’s catalystfor economic growth and development throughout itsexistence.

The private industries that line the Houston ShipChannel (and through whose terminals approximate-ly 85 percent of the port’s commerce moves) providethe industrial base that has transformed Houston in-

THE HOUSTON SHIP CHANNEL

SHOULD IT BE IMPROVED?by

Richard Leach

Former President

Port of Houston

Authority

to a world-class, international city.During its 150-year history, the channel to Houston

has been modified frequently to meet changing needs.The dynamics of international trade have recently ledto the deepening of several Gulf Coast ports with whichHouston competes for trade and investment. This com-munity, then, is faced with a significant choice: Willthe Houston Ship Channel be improved to ensure thatHouston shippers and industries continue to have theadvantages of competitively priced water transporta-tion and a safer channel, or will the community besatisfied with the status quo?

PROPOSAL FOR IMPROVEMENTSAt the request of the Harris County Houston Ship

Channel Navigation District (Now the Port of HoustonAuthority), the House Public Works Committee in 1967authorized the U.S. Army Corps of Engineers to surveythe Houston Ship Channel to determine if im-provements were warranted. The corps held a publichearing in Houston on February 17, 1969 and receivedrecommendations from the Port Authority and othersthat the channel be widened and deepened.

In July 1987, the corps released the districtengineer’s "Final Feasibility Report and EnvironmentalImpact Statement - Galveston Bay Area NavigationStudy." This study assumed that the 50-foot-deep by600-foot-wide Texas City Channel would be in placebefore work started on the Houston Ship Channel.The study recommended improvements to both theHouston and Galveston ship channels. With regardto the Houston Ship Channel, the study recommended:¯ A 50-foot-deep by 600-foot-wide channel from Bolivar

Roads (confluence with the Texas City Channel) Boggy Bayou {Shell docks) in Houston.

¯ A 40-foot-deep by 400-foot-wide intermittent chan-nel {channel would be widened only where expen-

sive relocation of existing waterfront facilities couldbe avoided) from Boggy Bayou to Clinton Island.

¯ Easing the bend near Bolivar Peninsula where theGulf Intracoastal Waterway and Houston Ship Chan-nel intersect.

¯ Improvements to aids to navigation, including largerrange markers, an improved system of marking turnsand, possibly, the installation of an electronic posi-tion location system.

¯ The development of two confined dredged materialdisposal areas in the northern part of Galveston Bayand seven unconfined disposal areas in the lowerbay. All other channel reaches would employ ex-isting confined disposal areas.

¯ In addition, the plan includes federal assumptionof maintenance dredging on Carpenters Bayou, anancillary channel to the Houston Ship Channel.Estimated construction cost of the recommended

plan is almost $295.6 million in 1987 dollars. Opera-tion and maintenance costs are estimated to be $1.5million per year. Federal construction costs would be$123.4 million, and non-federal costs - largely inpipeline and facility relocations - would be $152.3million. Operation and maintenance totals are $730,000in federal costs and $822,000 in non-federal costs.The ratio of project benefits to costs is 1.94o-1.

IMPLEMENTATION STEPSThe steps necessary to implement a plan recom-

mended by the district engineer for navigational im-provements are summarized as follows:

The report and related environmental statement arereviewed by the Corps of Engineers’ SouthwesternDivision, the Board of Engineers for Rivers and Har-bors and the Office of the Chief of Engineers.

The Board of Engineers for Rivers and Harborstransmits the district engineer’s report, along with theboard’s report and a draft of the report of the chiefof engineers, to the governor of Texas and interestedfederal agencies for review and comment.

After the state and interagency reviews, the finalreport of the chief of engineers and accompanyingpapers are forwarded to the secretary of the army,who will seek comments from the Office of Manage-ment and Budget regarding the relationship of the proj-ect to the president’s program.

The report is then submitted to Congress via thePublic Works Committees for Congressional Authoriza-tion. This procedure includes appropriate review andhearing by the committees.

After the project is authorized, the Corps ofEngineers will ask that funds be included in the presi-dent’s budget for advanced engineering and designactivities.

After Congress appropriates these funds and formal(Continued on Page 14)

7

’ i~i~!~~-~!~I i~i!/i~

RIGHT: Jesse Jones, Houston banker, businessmanand civic leader.FAR RIGHT: Joseph Hutcheson, U.S. congressman andsupporter of the Houston deep-water project.BELOW: The PENSACOLA and TEXAS were two of thefive dredges used to excavate the Houston ShipChannel to a depth of 25 feet.

EDITOR’S NOTE: This is the eighth ina series of articles on the port’s rolein the development of the Houstoneconomy. The comic strips shownwere first published in the HoustonChronicle in 1959 as part of aneducational campaign sponsored bythe Port of Houston Authority. Thestrips were drawn for PHA by BobSchoenke. The commentaries havebeen updated for this series. Someof the information for this sertes isdrawn from articles and essayswritten for the 1959 educationalcampaign.

I~IOTE~5 OF HP.R~I5 COUNTY, .JUNE I,’~"~L]ST WHEN T,qPPEAEED THE YOLJIgG pOR’T" OF

I BYA I6TO I M,q~,GIN VOTED~ ~, [ FtOUSTO~ HfaDSLJFffE~’ED~q F/~T~IL BLOW, THEI’$1,~£0, 000 .q5 THE NPlVIG~TIOt’J DIST’IT’ICT~5 I[ ~~T!I~T!!B~NKEI~5 OF NOUSTON CRME 7D THE E’ES~,LfE

THE BOND5 WErE F~INTED, THE~E ~PfT~I~ ,qNO 5UR"PLUS.

EIGHTH IN A SERIES OF TWELVE ARTICLES

HOUSTON GETSITS SHIP CHANNEL

The Rivers and Harbors Com-mittee of the U.S. House ofRepresentatives assuredHouston leaders in late 1909that they would support theproposal to share the cost ofchannel improvements with thefederal government. NowHoustonians had to figure outhow to get their share of thefunding.

Before the U.S. Congress could appro-

priate any money for Houston’s pro-posed deep-water project, a navigation

district had to be created and local voters hadto approve a bond issue of $1.25 million to payfor the district’s share of the waterway.

Voters were not altogether enthusiasticabout the project at first, but the HoustonChamber of Commerce launched a campaignto convince voters that a deeper channelwould be well worth the cost.

A.S. Cleveland, president of the chamber,served as chairman of a campaign committeemade up of the city’s leading citizens. Col. J.F.Wolters was chairman of a speakers’ bureauthat did much to promote the project.

Col. Thomas Ball, in his history of the Port

of Houston, recalls one occasion whenF.A. Heitmann spoke:

"Striking the table and vigorously address-ing a non-receptive audience, Mr. Heitmannshouted:

" ’What are you men folks going to do aboutit? Are you not willing to help Houston, whichpays 85 percent of our county taxes to buildyour roads and improvements, become agreat city and a market for your products?

~ ~ | am going to appeal to theI women here, and say that

the average increased taxes paidby property owners in thisprecinct will not be more thanthe cost of a pair of pullets.

" ’If you men are unwilling topay that price, I am going to askall the ladies to stand up andagree, if necessary, to bring the

pullets to market" (A pullet is young hen, tender enough to bake or broil.)

"The women stood," Ball wrote, "and theprecinct voted for the bonds."

The intensive campaign paid off, and thebond issue passed by a majority of 16 to

one.

The battle, however, was not completelywon. Most investors had never heard ofnavigation bonds, and bankers and brokerswere reluctant to handle them because of thesmall commissions received and because theyhad to be sold for par and accrued interest.

At this point, Jesse Jones, a well-known

Houston civic leader, became active in theproject. Jones offered to ask Houston banksto share the purchase of the bonds in propor-tion to their capital and surplus. Most ofHouston’s bank presidents had been active inthe deep-water movement, and in less than 24hours every bank in town had agreed to buyits share.

Congress passed the Rivers and Harbors Acton June 25, 1910. This act authorized thespending of $2.5 million on the project, halfof which was to be furnished by the naviga-tion district. In this piece of legislation, the(Continued on Page 19)

9

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in Houston, your FTZ site is wherever you want it to beIn Houston’s unusual, multi-site

foreign trade zone, you can locate youroperation anywhere in the area- notjust near the port. That translates intomore savings, versatility and conveni-ence than you’ll find in most other for-eign trade zones.

You can lease at a location whichhas been designated as an FTZ site-or we’ll help you obtain FTZ author-ization for your own land or facility.Either way, you’ll know your operationis in just the right location.

For information about Houston’s

exceptional Malcolm Baldrige ForeignTrade Zone, please call or write:Port of Houston Authority ~\~. ~<>%,p.o. Box 2562 ~--~H-J~ @_~Houston, Texas 77252 ~ ~, ¯ ~, ~ -,.,.,. ~ ~ :jTel: (713) 226-2100 ~ ~.~o~~" ,.~yFax: (713) 226-2134 % :Sf,y~, \ ~

10

U.S. MUST PREPARE FOR CHANGES,PORT CHAIRMAN SAYST he only constant in interna-

tional business is change,says Ned Holmes, chairmanof the Port of Houston

Commission.Since World War II, technological

innovations have greatly acceleratedthe rate of change in global trade,Holmes said. The port chairman waskeynote speaker during a recentGreater Houston Chamber of Com-merce seminar geared toward U.S.companies interested in exporting.

"Nations which are to retain futureeconomic global leadership mustadapt adroitly to change and must beintimately knowledgeable abouttheir partners, competitors and them-selves," Holmes said. "They must bereceptive to new modes of increasingoutput and wealth, and they must beflexible enough to boldly implementnew economic strategies."COMPETITIVE DECLINE The most dramaticevidence of change in global trade isthe recent decline of the UnitedStates’ competitive position, Holmessaid.

"Forty-four years ago, the UnitedStates emerged from World War II asthe undisputed leader of the relativeshare of the world’s wealth, produc-tion and trade," he said. "Thoughsome erosion was inevitable, it isdeeply disturbing to acknowledgethat we’ve become the world’s No. 1debtor."

Many industries in this country --such as textiles, steel, aerospace, au-tomobiles and computers -- are ex-periencing a relative decline whencompared to their foreign counter-parts, Holmes said.POSITIVE SIGNS However, Holmes said,the news is not all bad. The country’strade deficit is shrinking from theall-time high of $152 billion postedin 1987. Business leaders throughoutthe United States are debating possi-ble solutions to the country’s tradewoes. Also promising is the freetrade agreement reached by the Uni-ted States and Canada.

A depreciating U.S. dollar, wagerestraints and improvements in pro-

lt VVeTAr do not have the luxury of becoming com-

placent. The rest of the world does not remainstatic while the U.S. battles to restrain itsrelative decline." - Ned Holmes, chairman, Port 0f Houston Commission

ductivity and product quality arehelping U.S. manufacturers becomemore competitive. Many industries,Holmes said, are seeing increases inexports.

"Such strengths, combined with ef-fective national leadership, shouldsee the U.S. slowly return to a morebalanced position in the world eco-nomy," he said. "We do not have theluxury of becoming complacent.The rest of the world does not re-main static while the U.S. battles torestrain its relative decline."SIGNS OF CHANGE Every day, events --such as the Chinese student pro-tests -- that could portend shifts inglobal power occur throughout theworld, Holmes said.

"As we approach the 21st century,the global balance of economic pow-er is not entirely predictable," hesaid. "For example, Japan’s favor-able trade position will continue. Butit will not be as easy as in the past.Not only has Japan been emulatedby other newly industrialized

states- such as Korea, Singaporeand Taiwan -- but it must also faceincreasingly hostile reactions by theU.S. and Europe due to its penetra-tion of their home markets."MAKING PREPARATIONS The completionof the Single European Market in1992 could have one of the most dra-matic effects on the world market,Holmes said. Although experts arestill debating the effect of the SingleMarket on Europe’s trading partners,U.S. companies must prepare now torespond to the changes.

"I believe that the strengths of ournation, state and city far outweighthe negatives of recent internationaldecline," he said. "The key to oursuccess, both locally and nationally,will be whether we can harness ourentrepreneurial business acumenand underpin the educational prere-quisites necessary to successfullycompete. It will be a challenge, butit is also an opportunity, an oppor-tunity in which all of us togethermust play an important role." []

11

JOSE BOCATTO NAMEDPHA SALES MANAGER

Jose Bocatto has been appointedLatin America sales manager for thePort of HoustonAuthority.

In his newposition, Bocattowill service ex-isting accountsand develop newbusiness rela-tionships withshippers andshipping lines in BOCATTOMexico, Central America and theCaribbean.EXPERIEN(E He came to the Port Au-thority from Riise Shipping Inc. inHouston, where he was salesmanager for seven years. Prior tothat he worked for two other well-known shipping agents, Hansen &Tidemann and E.S. Binnings.

A graduate of the University ofLondrina in Parana, Brazil, Bocattoholds a bachelor of arts degree inlanguages. He also studied at theUniversity of Houston. He is a nativeof Cambe, Parana, Brazil.

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Chino Oceon Shipping .............. Chino/For Eost

Componhio Moritimo Nocionol .............. Brozil

D’Amico ............................. Itoly/Spoin

Notionol Shipping Corp.

of the Philippines ................. Philippines

Shipping Corp. of Indio ...................... Indio

Westwood Shipping Lines .......... Europe/For Eost

28 Offices To Serve You

12

CRUSHING PLANT BEGINSOPERATION AT HOUSTON’SBULK HANDLING PLANT

lobal United Industries Inc. hasopened a crushing plant adjacent tothe Port of Houston Authority’sBulk Materials Handling Plant.

Global United, a custom manufacturer ofliquid and solid chemicals, also owns agrinding, processing and blending facility inPearland, just west of Houston. The com-pany has been in business since 1974 andhas been heavily involved in processingmaterials used in drilling for oil.

"We wanted a second location that wouldbe convenient for customers who wanted touse water transportation in addition to truckand rail," explains Craig Hereford, vicepresident of Global United. "The site behindthe Bulk Materials Handling Plant is ideal."

The company is also building plants in In-dia and Dubai, United Arab Emirates.ACCESS TO SHIP CHANNEL Global United’s newcrushing plant includes a millhouse withtwo 60-inch Raymond mills, bulk storagetanks and truck scales located just north ofthe Port Authority’s Bulk Materials HandlingPlant. "This new operation allows us tooffer our customers transportation conve-nience as well as our usual competitive ratesfor import or export materials that need tobe ground to powder and shipped in bulk orin bags," Hereford says. Typical products arebarite, calcite and similar minerals.

In addition to grinding such substances in-to smaller particles at its ship channel plant,Global United can provide blending, screen-ing, grinding and packaging services at itsPearland facility.PHA’S BULK PLANT The PHA Bulk MaterialsHandling Plant is equipped to load andunload a wide variety of dry bulk com-

modifies economically and efficiently. High-speed equipment and an efficient trafficlayout for trucks and railcars contribute toquick turnaround times for vessels andbarges.

"We are very pleased to have GlobalUnited’s operation on line at the bulk plantsite," says Glenn Feilner, PHA bulk facilitiesmanager. "The availability of their servicesis another reason bulk shippers should belooking closely at the Port of Houston as thebest and most economical U.S. Gulf port fortheir bulk shipments." []

Global United Industries has opened a crushingfacility near PHA’s Bulk Materials Handling Plant.Shown is a crusher that is used to crush a varietyof materials, including barite and calcite.

13

assurances of local cooperation havebeen received, detailed planning ofthe project will take place, and a re-quest for construction funds will bemade.

Once Congress appropriates theinitial construction funds, thedistrict engineer prepares plans,specifications and a detailed engin-eering estimate of project costs. Apublic notice will be issued at thistime, and a public hearing, if re-

quired, will be held.Upon resolution of any problems

revealed at the public hearing, bidswill be invited and a constructioncontract will be awarded. Then,necessary local actions, includingpayments of any cash contributions,will be required of the local sponsor.

CURRENT STATUSThe July 1987 report and en-

vironmental impact statement havebeen approved by the SouthwesternDivision engineer and the Board ofEngineers for Rivers and Harbors.The draft report from the chief of

FINNCONTAINER CARGO SERVICES.-...._

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Grand Prairie, TX 75051Phone: (214) 869 2070Fax: (713) 526-0606

engineers is being prepared forreview by state and federal agencies.

The proposed widening anddeepening of the ship channel is be-ing opposed by various environmen-tal groups. Their concerns center onthe proposed disposal of dredgedmaterial into Galveston Bay and thepotential increase in bay salinity.They also dispute whether a 50-foot-deep channel is warranted on thebasis of economics and questionwhether a wider channel wouldactually be a safer channel.

DISPOSAL CONCERNSThe opponents contend that

disposal of 70 million cubic yards ofsuch material will pose direct andmaterial harm. Toxic pollutants andhabitat loss are the major concerns.The corps’ studies indicate that thematerials to be dredged do not con-tain toxic pollutants.

Widening and deepening involvesremoval of virgin materials whichhave been shown to be clean. Ifpolluted materials do exist, they arepart of the sediments that areroutinely placed in Galveston Baythrough maintenance dredging. Inany event, many studies demon-strate that moving contaminatedmaterial from one submerged site toanother submerged site has no en-vironmental impact because thecontaminants, being chemicallybonded to the silt, are not releasedinto the water column.

PROPOSED DISPOSAL PLANSThe disposal plan proposed by the

corps will affect 11,000 acres of baybottom, but this represents only 3percent of the bottom. To minimizeany interference with boating,dredged material will be placed sothat the minimum depth of water atthe disposal sites will be 4 feet.

The proposed disposal plan con-tinues a 100-year practice that hashad no apparent adverse impact; theseafood harvest from Galveston Bayhas increased substantially duringthis period. Habitat loss, if any, will

be minimal and of little conse-quence.

SALT-WATER INTRUSIONThe district engineer’s environ-

mental impact statement identifiessalt-water intrusion as the most ser-ious environment consequence of

the proposed improvements. Based(Continued on Page 16)

14

New pavilion and docking facilityplanned for PHA inspection vessel

Plans are under way to build anew pavilion and docking facility forthe M/V SAM HOUSTON, the Portof Houston Authority’s inspectionand touring vessel.

The vessel is docked at the Turn-ing Basin Terminal. Work on thedocking area wiI1 include construc-tion of a new bulkhead, timber pier,dolphins and related mooringfacilities, a fueling station andmiscellaneous utilities. The area alsowill be relandscaped, and a newpavilion will be built for passengers.

The Port of Houston Commissionhas awarded a professional servicescontract to Minzenmayer, Cate,Castillion and McGee Architects toprepare contract plans andspecifications for the pavilion and toinspect construction.

Klotz/Associates Inc., an engineer-ing consulting firm, received a pro-fessional services contract toprepare contract plans andspecifications for the docking facility.

The SAM HOUSTON is used forpublic tours of the port, as well as

COSCO and JugolinijaLTC freight goes to CDI8

Less-than-container freight forChina Ocean Shipping Corp.(COSCO) and Jugolinija Line is beingreceived at City Dock 18 at the Portof Houston Authority’s TurningBasin Terminal for handling by PortCooper/T. Smith Stevedoring.

Containers are subsequentlymoved to Fentress Bracewell Bar-bours Cut Container Terminal to beloaded aboard COSCO and Jugolini-ja vessels. Port Cooper/T. Smith canbe contacted by calling (713)675-OO17. The telecopier number is(713) 675-2370.

for special functions and tradedevelopment events.

Work will probably start aroundthe beginning of next year, saidJohn Kahl, PHA chief engineer.

Bids being soughtfor repairs to Wharf 8

Wharf 8 and its fender system inthe Port of Houston Authority’sTurning Basin Terminal will soon berepaired.

Port of Houston Commissionersrecently authorized the PortAuthority to seek bids for the work,which will cost an estimated$100,000 to complete.

A ship struck the dock lastDecember, damaging the wharf’sfender system as well as the steelcolumns supporting the wharf deck.

Fender repairs finishedat Manchester Wharf 3

Mid-Gulf Industrial Inc. recentlycompleted repairs to the fendersystem at Manchester Wharf No. 3.The wharf is located in the Port ofHouston Authority’s Turning BasinTerminal.

The fender system’s piling andtimbers were damaged when abarge broke loose. The repairs cost$38,000.

Italian Line offeringcalls at two new ports

Italian Line has added a connec-tion between Houston and twoMediterranean ports to its U.S. Gulfservice with the signing of a slotcharter agreement with SpanishLine, Costa Line and D’Amico Line.

In the Mediterranean, the servicewill call La Spezia, Italy, and Valen-cia, Spain.

New recreational pavilion dedicatedat Houston International Seamen’s CenterSupporters of the Houston International Seamen’s Center recently attended a ceremonydedicating a newly built pavilion. The 120-by-120-foot pavilion was built using donations fromthe Cameron Foundation, Houston Marine Insurance, the Fish Foundation, the Port of HoustonAuthority and many other individuals and companies. The pavilion was named in memory ofRosemund Johnson and Harold Cameron, members of the Cameron family. The structurefeatures a covered basketball court and recreational area and, for a small donation, may beused by transportation-related companies.

15

upon the computer model used tomeasure impacts, the enlarged chan-nel will allow salinity levels ade-quate for the oyster drill, a predator,to survive in areas of Galveston Baywhere oyster beds now exist.

The study estimates that this im-pact will be transitory and only ofmajor consequence in years oflimited fresh water inflow into Gal-veston Bay. Recognizing that in aworst-case scenario losses could ap-proach 80 percent in some years, thecorps estimates that over the life ofthe project the loss would average8 percent per year. To offset this loss,the corps’ plan includes spending

$40 million dollars to create newoyster beds in parts of the bay wherethe oyster drill could not survive.

The report shows that the projectwill have a positive benefit-to-costratio of 1.9-to-1 based on the TexasCity Channel being in place. ThePort of Houston Authority hascalculated that the Houston ShipChannel project will cost $354.5million if the Texas City project isnot undertaken and will still have abenefit-to-cost ratio of 1.7-to-1.

CHANGING NEEDSThe Port Authority has also

reviewed data on ships callingHouston in 1988 and has deter-mined that 40 percent of the bulkcarriers had design drafts greaterthan can now be accommodated in

the channel. These ships could havecarried more cargo if the channelwere deeper, thus reducing the unitcost of transportation.

Historically, improvements to theHouston Ship Channel have beenmade to meet the immediate needsof the transportation industry. Inmost cases, the volume of traffic hasquickly outgrown the improve-ments, imposing constraints oncommerce. These constraints, if notaddressed, would have led to diver-sion of commerce and investment toareas with lower-cost water transpor-tation. Houston is facing another ofthese turning points today.

It should be of concern to channelindustries, as well as those in leader-(Continued on Page 33)

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The Port of Houston Magazine publishes the Meeting Calendar as a serv-ice for local transportation-related organizations. Listings are provided bythe individual organizations and may be submitted or updated by calling226~2184 or writing to P.O. Box 2562, Houston, Texas 77252-2562.

COUNCIL OF AMERICAN MASTER MARINERS INC., PORT OF HOUSTON CHAPTER:Meets third Tuesday of each month at 11:30 a.m at Brady’s Landing. Forinformation, call John Gibson, 458-9652.

DELTA NU ALPHA-CHAPTER 36: Meets the last Tuesday of each month, 11:30a.m at Brady’s Landing. For information, call Steve Jaeger, 226-2120.

DELTA NU ALPHA-CHAPTER 282: Next meeting to be announced. For infor-mation, call Altha Williamson, 476-8269.

HOUSTON CUSTOMHOUSE BROKERS & FREIGHT FORWARDERS ASSOCIATION: Nextmeeting will be Sept. 20. For information, call 228-7447.

HOUSTON TRANSPORTATION PROFESSIONALS ASSOCIATION: Meets the secondFriday of each month, 11:30 a.m. at Sonny Look’s Restaurant. For infor-mation, call Jeanne Hooke, 24]-4768.

INTERNATIONAL MAINTENANCE INSTITUTE-SAM HOUSTON CHAPTER: Meets thethird Tuesday of each month, 6 p.m. at the Concord Hotel (formerly RamadaInn-Hobby Airport). For reservations, call Joyce Rhoden, 481-O869.

INTERNATIONAL TRANSPORTATION MANAGEMENT ASSOCIATION: Meets the thirdThursday of every month. For information, call Karen Moon, 880-9798.

MARINE SERVICES ASSOCIATION OF TEXAS: Meets the second Tuesday of eachmonth, 11:30 a.m. at Brady’s Landing. For information, call SusannnePagano, 781-2713.

MARINE SQUARE CLUB OF HOUSTON: Meets the second Wednesday of eachmonth, 11:30 a.m. at Brady’s Landing,

NATIONAL DEFENSE TRANSPORTATION ASSOCIATION: Meets the last Thursdayof each month, ] 1:30 a.m at Kaphan’s. For information, call Glenn Meadows,468-4724.

PORT SAFETY AND ADVISORY COUNCIL: Meets the first Thursday of alternatingmonths starting with January, 11:30 a.m. at the International Seamen’s Centerat the Port of Houston Authority’s Turning Basin Terminal For informationor reservations, call Lt. David Atkinson, 672-6630.

TEXAS A&M UNIVERSITY MARITIME ASSOCIATION: Meets the fourth Wednes-day of the month, I 1:30 a.m. at Brady’s Landing. For information, call JimMoore, 928-5010.

TEXAS INTERMODAL TRUCKERS ASSOCIATION: Meets the first and third Tuesdaysof each month, 6:30 pro, For information, contact Bernice Vann, 674-7345.

TEXAS PASSENGER TRAFFIC ASSOCIATION: Meets the second Wednesday of eachmonth. For information, call Tina Ruffeno, 236-4079.

TRANSPORTATION CLUB OF HOUSTON: Meets the first Tuesday of each month11:30 a.m at Brady’s Landing. For information, call Jim Wilett, 228-2825.

U.S. MERCHANT MARINE ACADEMY ALUMNI ASSOCIATION, HOUSTON CHAPTER:Meets the first Thursday of each month, 11:30 a.m. at Brady’s Landing.For information, call BilI Bowes, 451-2711.

WOMEN’S TRANSPORTATION CLUB OF HOUSTON: Meets the second Mondayof each month, 5:30 p.m. at Kaphan’s. For information, call Zelma Keenright,896-7711.

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