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IMAY 1996 PORT OF HOUSTON AUTHORITY

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Housto s Stevedores’.City

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,~= M a~ oneophone calland get the"right"~ ~answers to all your s~vedoring andmarine terminal needs.

27 Years and St II Going Strong.

’Volume 38 May 1996

H, THOMAS KORNEGAYExecutive Director

GEORGE T. WlLLIAMSONManaging Director

MARTHA T. WILLIAMSGeneral Counsel

ROSIE BARRERADirector of Public Affairs

JAMES ELDRIDGEDirector of Administration

~OHN R HORANDirector of Port Operations

JAMES B. JACKSONDirector of Facilities

No.5

A New Level of Service 6

Experience Makes the Difference

DANIEL MARRERODirector of Trade Development

TED G. WALTERSDirector of Protection Services

TOMMY J. TOMPKINSCounty Auditor

The PORT OF HOUSTON MAGAZINE is publishedby the Port of Houston Authority, R0. Box 2562,Houston, Texas 77252-2562, and is distributedfree to maritime, industrial and transportationinterests in the United States and foreign coun-tries.

16 Employee Development Programs

MAGAZINE STAFF

Communications Manager ............ Ria GriffinEditor ....................... Ann BordelonArtist/Production Coordinator .... Marcella CabreraWriter .................... Susan HumphreyAdvertising Sales/Production ...... Sheila RobbinsPhotographer ..................... Ray SotoSecretary .................... Georgia Smith

ON THE COVER

A stevedore and a high-capacity crane are silhouettedagainst a worksheet used to plan the loading of a vessel.Houston’s stevedoring firms can handle almost any kind ofcargo cost-cffcctiveh’.

This publication is not copyrighted and permission isgiven for the reproduction or use of any original mate-rials, provided credit is given to the Port of HoustonAul;horil~y. Additional information, address changes,extra copies or advertising rates may be obtained by~ng the PORT OF HOUSTON MAGAZINE. PHA Webpage is htt40://ww~z, vannevan com/port of houston/.

COMMISSIONERS

~CUTIVE OFFICE111 East Loop NorthR0, Box 2562Houston, "IX 77252-2562Phone: (713) 670-2400Fax: (713) 670-2429

SOUTH AMERICATerra Centuria, Local #2PB, Suite 916Av. Venezuela, Urb. El RosalCaracas 1060 VenezuelaPhone; {58-2) 976-7063or (58-1) 421-5615Fax! (58-2) 976-7063

FIELD OFFICES1650 Sycamore Ave.,

Suite 23Bohemia, NY 11716

Phone: (516) 244-7428Fax: (516) 244-3757

MEXICO CITYAv. San Pedro #801 Nte.

Local #27Col. Fuentes del Valle

San Pedro G. Garcia, N.L.C.R 66220

Phone: (528) 335-7341Fax: (528) 335-3641

PHA: (95-800) 468-7678

NED HOLMESChairman

H.J. MIDDLETONCommissioner

ROBERT GILLE"FrECommissioner

MONTERREYBosques de Duraznos #69

Desp. 1105Col Bosques de las Lomas

Mexico, D.EC.R 11700

Phone: (525) 251-3622Fax: (525) 596-7909

LEROY BRUNERCommissioner

JOHN WEBB JR.Commissioner

BE’I-FI MALDONADOCommissioner

CHASE UNTERMEYERCommissioner

he job of loading cargo prop-erly on ships has challengedman for centuries. Today’s

Panamax vessels are worlds away fromCleopatra’s river barges, but the chal-lenges involved in loading and unload-ing cargo are much the same. Lifting thecargo properly, planning how it will bestowed on the vessel and mininfizingdamage all require expertise. It’s calledstevedoring, and it’s probably one of thecivilized world’s oldest jobs.

Houston is fortunate to benefit from

the expertise of more than two dozenstevedoring companies. Many of themhave been in business for decades, a cou-ple for more than a century. These "oldhands" have experience handling a hugevariety of cargoes, and they often own

specialized equipment for handling par-ticular products.

The most critical part of a stevedore’swork is careful planning. Long before aship arrives in port, the stevedore beginscoordinating his efforts with the shipper,agent, vessel operator, logistics companyor other parties about the shipment. Hemust know the capacity of the ship’sholds; the size and weight of the cargo;whether the cargo is fragile, hazardous,must be temperature-controlled or pre-sents any other special requirements;what equipment will be needed; andother informatkm. Diagrams must bedrawn and specific plans made so allequipment is in place and the loading/unloading occurs without incident. Inthis high-tech age, some stevedores use

computer databases to review ships’manifests and develop stowage plans.

Detailed planning saves the shippertime and money by minimizing delaysand cargo damage. Last December, CeresGulf Inc. loaded two heat exchangers,each weighing 300,000 pounds, aboard aZim ship at the Port of Houston. Theunits measured 85 feet by i2.5 feet by12.25 feet and were manufactured inHouston. They arrived on the dockaboard a 16-axle trailer. Using BIGJOHN, a floating derrick crane ownedby Joe D. Hughes Inc., Ceres loaded thetwo units in less than two hours. Soonthey were en route to Israel.

Planning and coordination were thekey when two minesweepers were suc-cessfully loaded at the Port of Houston

Authority’s Barbours Cut Container Ter-minal last October. Ryan-Walsh Inc.

handled the units, which weighed 220tons apiece and measured 120 feet by 28

feet by 61 feet. The mincsweepers weremanufi~ctured in Morgan City, La. At

Houston, they were positioned in thewater alongside the M/V HOWELL

LYKES, operated by Lykes Lines. ThenBIG JOHN lifted the units into speciallydesigned cradles on the ship’s deck.

Ryan-Walsh and Lykes worked closelywith the shipyard that built theminesweepers and visited the yard beforethe operation took place.

Often the key to doing a job properly

is having the right tools. The equipment

fleets of Houston stevedores include avariety of powerful cranes that can han-dle heavy and oversized cargo. They also

can provide large, multi-axle trailers fi~rtransporting project cargo over land.

Chaparral Stevedoring Co. of Texas

recently diverted some cargo to Houstonbecause another Gulf port lacked the

necessary equipment. The stevedore dis-charged a 45-ton yacht and fimr cokedrums weighing approximately 200 met-ric tons each. The units were discharged

to trucks on barges and were towed to

the job site in Louisiana. There, they

were driven off the barge and to the

refinery. Chaparral staff worked closelywith the heavy crane operator to ensure

the cargo was unloaded properly.

Each of the aforementioned "oddjobs" posed unique challenges, but eventhe most commonplace cargoes must be

moved with care. Local stevedores main-rain fleets of lifting equipment with spe-

[<j_O.il,}iii~itit~ tC}O,

cial clamps to handle paper and cotton

without damaging them. Specialized gearalso is used to handle steel plates, coils,

pipe and beams. Bagged goods and syn-

thetic resins, too, must be handled socargo is neither damaged nor contami-

nated. All these commodities are staples

for Houston’s docks, and local stevedoresare equipped to handle them.

Three private companies that lease oroperate PHA facilities also provide their

own stevedoring services:Cargo Terminal Venture [eases and

Jacintoport Corp. operates an automatedcargo-handling facility at Jacintoport

Terminal. The operation features on-sitebagging equipment that packages a vari-ety of agricultural commodities, includ-

ing corn, oats, rice wheat and othergrains. The cargo travels through thefacility on automated conveyors. Jacin-

toport Corp. performs its own stevedor-ing and also holds the freight-handlingassignment fi}r the lower-level shed at

Jacintoport.Last year, the Port Authority pur-

chased Care Terminal and awarded afive-year lease and a freight handlingassignment fi~r the facility to Coastal

Cargo Texas. Coastal Cargo. a divisionof the Jackson-Kearney Group, handlesmostly general cargo at Car~: Terminal

Careful planning is the most important partof a stevedore’s work. He must coordinatehis efforts with the shipper, agent, vesseloperator and other parties.

......... .~ ............

PROFESSIONAL DISCOUNT PHARMACYMARINE MEDICAL UNIT

407 Oak StreetLa Marque, Texas 77568

Serving Ports of Houston, Galveston, Freeport,Texas City, Beaumont to Brownsville

Medical Certificate / Medicine Chest for Norwegian, Liberian,Panamanian, U.S. and British vessels

Medical Supplies / Prescription Drugs with Labels in English,Spanish or Norwegian

24 Hours, 7 Day a Week Service

Full Medical Services - Doctors, Dentists, Hospitals

"WE TAKE CARE OF YOUR PROBLEMS

(409) 938-7232 (713) 675-DRUG (3784)

Gregory A. Porter, R. Ph.

11

Fax: (409) 938-8837

We’ve Always Known Our Own Strength.

he strength of our business comes

from an alloy of two basic elements: experience and

service. Our full-service terminals, efficient break-

bulk capabilities, heaw-lift equipment and steel

handling expertise save time and money for

shippers and carriers. Link up with the best.

Call 713-455-6092.

Coastal Cargo Texas, Inc.13609 Industrial Road, Gate 5, Houston, TX 77015

713-455-6092 FAX 713-455-3599

A JACKSON-KEARNEY GROUP COMPANY

Houston StevedoresCan Handle AlmostAnything

and has ste\’cdorcd some rctri~cratcd andbulk cargoes.

Hmborsidc l~.efri~erated Services Inc.operates tl cold-storage facility at Jacin-toport Termin~d. Harborside operates the

w’.-lrch~usc told pcufl~rms stcvc.dorin~ fi~t

the dockside warehouse in addition toprovidilqg a variety ¢~f ~,the, services.

With more than 20 years in the cold

st,,rave bu>iness, I Iarborside understandsthe importance of transferring tcmpcra-tuic-scnsitive cargoes between ship and

dock as quickly and carefully as possible.For the haines of other experienced

stevedores in the Houst~n area, please

refer to the list accompanying thisarticle. ~1

Below, left: Chaparral Stevedoring dis-charged this yacht and four extremelyheavy coke drums from the same vessel,working closely with a Houston heavycrane operator.Bottom: The loading of these ~wominesweepers at Barbours Cut ContainerTerminal illustrates the kind of planningand coordination shippers have come toexpect from Houston freight handlers.Ryan-Walsh Inc. was the stew.=dore.

A $2 million capitalimprovement programhas sparked new life and anextremely useful future forthe Houston Public Elevator. :~

Constructed in 1979 as one ofthe newer and more modern grainexport elevators in the nation, the facilitywas not in use when the Port of Houston Authoritypurchased it in 1993. Lack of upgrading and maintenance byprevious owners meant that the fiacility was no longer at theforefront of the industry.

However, Port Authority officials recognized the potentialof the elevator and the contributions it could make to the

Houston economy. Theyreopened the elevator soon

after purchasing it to providegrain shippers with a more

modern public option than the" Port Authority’s older grain elevator

at the Turning Basin Terminal.At the same time, the Port Authority

began an extensive evaluation program to identifyimprovements that would be needed to make the facility aneven more attractive option for grain export shippers, explainsBill Mullins, manager of bulk facilities.

Now that those improvements are nearing completion,Mullins says, the Houston Public Elevator is better positioned

OPPOSITE PAGE, BOTTOM: Projects are in theworks that will enhance efficiency and lowercosts at the Houston Public Grain Elevator.RIGHT: The elevator unloads an average of 20railroad cars per hour. Improvements under waywill give Houston one of the fastest unloadingrates in the country.

to capitalize on the trend for railroads to oper-ate m~re unit trains -- large blocks of rail carsdedicated to specific routes and products.

A shortage of grain hopper cars makes itincreasingly important for rail lines to maximize

the usage of their existing stock. To reduce idletime, railroads offer discounts to shippers whoseproduct can be quickly unloaded at p~rts, thusproviding fast, timely turnaround of cars.

"We want the railroads, as well as the ship-

pers, to recognize the Houston Public elevatoras a good, viable delivery point," Mullins adds."Currently, we’re successfidly unloading an

average of 20 railroad cars per hour. The modi-fications under way will boost the unloading

rate to between 26 and 30 cars per hour, givingHoust~n one of the fastest rotes in the country."

Rail deliveries are facilitated even further by

the presence of the elevator’s logistics coordina-t~r. This person communicates daily with rail-road and shipper personnel, scheduling grainarrivals and tracking cars from their origin to

the port. "The coordinator relieves some of theshipper’s responsibilities," Mullins explains."Sometimes they even check with us regarding

the whereabouts of their rail cars."The wheat, corn and milo exp~rted through

the Houston Public Elevator als~ arrives viasemi-trailer truck. With an unloading capacity

of 30 trucks per hour, the elevator often unloads250 to 300 trucks a day during the busy harvest

season. The elevator maintains a flexible schedule that some-tilncs stretches around the clock in order to accommodatetrucks arriving from throughout Texas and as far away as south-

ern Oklahoma."Since the acquisition, we’ve been making mandatory

repairs to both the equipment and structure," Mullins says."Now we’re into the fine-tuning phase; we’re investing in proj-ects that will aid production and efficiency."

Chief among the projects designed to improve productivityand lower expenses at the fiacility are:¯ Relining all chutes (spouts) inside the elevator to prevent

leakage and speed grain flow.¯ Installing automated "walking augers" that more quickly

sweep gram out of the large steel storage tanks duringshiploading.

¯ Adding spouts on ends of large drag conveyors to facilitategrain movement to silos or bins.

,,,g

¯ Installing rail car pullers removed from the retired HoustonPublic Elevator No. 1. This will expedite unloading and

reduce the amount of switching necessary.¯ Modifying and improving the 250 slide gates ~n the facili-

ty’s 56 silos and six steel tanks to provide better accuracy ~f~rain monitoring from the control room.

¯ Preventing subsidence (settling) and under-structure prob-lems, as well as addressing aeration needs, at the six largesteel storage tanks that represent half of the elevator’s stor-

age capacity.The Houston Public Elevator was designed to be totally

automated, providing operators with fingertip control of allelevator equipment. Technological enhancements continue tobe added, such as the installation begun last year of bin-sensingequipment that will provide more specific infi)rmation to con-trol room personnel.

(C’oH/h~zlc’cl ott P~(~e 14)

Two Companies Form New FirmThe Hub Group Inc. and Norton

Lilly International have formed a jointcompany to offer international point-to-point transportation services. The newcompany, known as HLX, will work withNorth American exporters andimporters and will combine Hub’s pre-sent intermodal door services with theocean shipping and offshore capabilitiesof Norton Lilly International.

According to officials of both compa-nies, HLX has been designed to offerintegrated logistics services to interna-tional shippers in an outsource, one-stopenvironment.

"The formation of HLX will fill anobvious void in our product line," saidDavid "{eager, vice chairman of Hub."Our people are anxious to move intothe worldwide logistics game." Since itsfounding in 1971, Hub has become thelargest intermodal marketing companyin the United States. Both Hub andNorton Lilly have similar IBM mid-range computer hardware and expect tocooperate in software development forthe new company.

"HLX is a fresh enterprise with excep-tional capabilities brought together bythe talents of two industry leaders," com-mented Grove Conrad, Norton Lilly’spresident. "This new venture means areal chance to put more science intowhat before was principally an art." Nor-ton Lilly International is North Ameri-ca’s oldest shipping firm, having been incontinuous operation since 1841.

Both parent companies have beenworking to increase their visibility ineach other’s respective markets and have

been looking for partners fi~r some time.HLX will be equally held and will estab-lish its main offices in northern NewJersey.

For further information, contact Yea-gcr at the Hub Group, phone (708) 964-5800, fax (708) 964-6475; or Conrad Norton Lilly International, phone (201)392-2789, fax (201) 392-2894. I..i

PHA Hires Mexico Marketing FirmThe Port of Houston Authority re-

cently hired Transportadora Proa S.A. deC.V. to develop business in Mexico fi~rHouston’s port.

The Port Authority recently negotiat-ed a one-year contract with the Mexicantransportation marketing company topromote commerce with one of Hous-ton’s largest trading partners.

The contract with TransportadoraProa allows Houston to have constantrepresentation in Mexico City and Mon-terrey, said Daniel Marrero, the PortAuthority’s director of tradc develop-ment. In the past, the Port Authorityhas maintained a Latin America sales

manager on staff in Houston; that man-ager traveled to Mexico to perform salesand marketing activities.

Mexico is the Port of Houston’s sec-ond-largest trading partner by tonnageand fourth-largest trading partner by dol-lar value, according to U.S. Departmentof Commerce figures. In 1994, Houstonand Mexico exchanged more than 8.7million tons of goods valued at $1.6 bil-lion. g_l

Shown at the Port Authority’s executiveoffices are (from left) Humberto FalconCervantes of Transportadora Proa; RainerUlienthal, Port of Houston; and Jose LuisGartland Leon of Transportadora Proa.

PHA Delegation Visits Central AmericaA delegation from the Port of Hous-

ton Authority recently traveled to fourCentral American countries to strength-en contacts with shippers, ship agenciesand port officials in those nations. Thegroup held trade meetings and called onkey executives in Costa Rica, Honduras,Guatemala and Panama.

"Our goal was to strengthen our tradeties with this important part of our LatinAmerican market," noted Rainer Lilien-thai, PHA general sales manager. "In allcases, we found strong interest in Hous-ton as an alternative to the traditionalports shippers in Central America havebeen using in the U.S. Gulf."

The Houston port representativestalked to fixed and apparel exporters inCosta Rica, chemical manufacturers inHonduras, coffee and sugar producers inGuatemala and automobile transhippersin Panama. They also met with a num-ber of ship agencies and port authorityexecutives in all fi~ur countries.

"Central America has achieved a rel-atively stable economic situation, andthe opportunities for trade with thesecountries is moving at an acceleratedpace," Lilienthal noted. "One commentwe heard frequently is that they want toincrease their contacts with Houstonforwarders. They expressed an eagernessto establish new business ties with Hous-ton, and asked us to bring this messageback to the Houston business cormnuni-ty."

In 1994, Central American countriesexchanged more than 1.3 million tons ofgoods valued at $180 million with Hous-ton, according to U.S. Department ofCommerce statistics. Houston’s tradewith the four nations visited stacked upthis way:

Costa Rica: 101,500 tons, $59 millionGuatemala: 713,000 tons, $180 millionHonduras: 188,000 tons, $53 million

Panama: 132,000 tons, $71 millionSINCE 1896

Concorde Line, Nordana Line andZim Line connect PHA facilities withCosta Rica, Guatemala and Honduras.Liner services calling at PHA terminals

and in Panama are operated by ChileanLine, Lykes, Maersk, Transnave, Zim,Grancolombiana, Naviera Venlines,Nordana and Nedlloyd. Frequencies varyfrom seven to 21 days.

All Forms OfSpecialized

TransportationServices

Joe D. HughesO A HaliburtonCompany

$4035 Industrial RoadHouston, Texas 77015Phone: (713) 450-88881-800-231-0527

"Like us, business leaders in CentralAmerica are seeking alternatives to theirtraditional import and export markets,"Lilienthal said. "They would welcomecontacts, especially trade missions, fromHouston and other parts of Texas." Ij

¯ 500 Ton Derrick Barge

¯ 34 Lines GoldhoferTransporters with a1,140 Ton Capacity

¯ 36 Lines Nicholas Trans-porters with a 972 TonCapacity

¯ Ship Channel Facilitywith Rail Access

HAULING JOBOFTHEYEAR

-1990-

P.O. Box 96469Houston, TX77213-6469

Fax: (713) 450-8828

Houston Hosts

AAPA Seminar

The changing role of port author-

ities and their search fi~r newsources of revenue were two ofthe most talked-about Lssues

during a recent selninar for port commis-sioners.

The American Association of PortAuthorities held its annual seminar fi~rmembers of port authority governmgboards and commissions in Houston.Ninety commissioners from around theUnited States, Guam, the CaymanIslands and Canada attended the confer-ence.

The selnmar offered new commission-ers an opportunity to better understandtheir roles and veteran commissioners achance to discuss port managementissues with peers from other ports. Par-ticipants attended panel discussions and

A recurringtopic was

whether portauthorities

should operatefor profit.

workshops ~n portlnanafieltlell[ [SStleS, trends in worldtrade, m’aritime policy, leg~/1 liability,logistics concepts and other topics.

A recurring topic of disctlsSi~)lq_ ;vas

x~hetber port authorities, as public enti-ties, sh~uld ~peratc fi~r profit. [)uring welcoming address, Ned Hohncs, chair-ii.lai-i Ot the Port of Houst¢~n Commis-sion, pointed ¢~ut that Ul’,/ny ports areseeking altern’,~tive sources of re\enues.P~rts h’ave traditit~nall,/depended onpublic capital fi, substantial fimding.Howe\ er, loc~fl governments m~d taxp~y-ers are tightening their belts, le~a\’ingD~rts to lo~,k fi~r ne~ s~)klrccs of income.The Port of Houston, tor example, isconsidering nontmdirion~fl uses fi~r its

10

Speakers at the AAPA conference in Houston included (from left)Port of Houston Commissioners Chase Untermeyer and Robert

Gillette and Chairman Ned Holmes. Ninety commissioners fromaround the United States attended the seminar.

facilities, includin~ a cruisc ship opera-tion.

"The public funding, while it willcontinue to bc part of our capital struc-ture, will play a decreasing role," Hohnessaid. "And so we’re going to have tocontinue to review our operations to[~CCOIlll * IHOle cost-effective."

h~termodalism, the demise of theInterstate COlIll’I’~ClTCC COmll’dssiov~, thecreation of the Surface TransportationBoard and anticipated ch~mges in theDepartment of Commerce and FederalMaritime Commission arc somc of thc"tidal waxes" sweeping through the U.S.maritime industry and aff~:cting portauthorities, Hohncs said. Dealing withthese changes is difficult, but ports mustprepare fi~r them and accommodatethem carefidly.

Tom Korncgay, Port of HoustonAuthority executive director, and RonBrinson, president and chief executiveofficer of the Port of New Orleans, con-ducted a discussion of current port man-agement issues. Topics raised includedwhether port authorities should competewith private industries, capital forma-tion and whether port commissionersshould set policy or tnanage the port’sday-to-day activities.

Port Commissioners Bob Gillette ofHouston and Arch Miller of Vancouvertalked about principles and practices ofboard management. Houston Port Com-missioner Chase Untermeyer and Mal-colm McLouth, chairman of theCanaveral Port Authority, discusscdways to be a better board member in

today’s challenging political environ-ment.

The Port of Houston Authority host-ed a reception for those attending thethree-day seminar and offered tours ofthe port aboard the inspection vesse[M/V SAM HOUSTON. The Port Au-thority also organized a variety of activi-ties, such as museum tours, during theevent.

Opposite page: Attending a reception host-ed by the Port of Houston Authority were(from left) Kurt Nagle, AAPA; Errol Bush,Port Authority of Cayman Islands; TomKornegay, PHA; and Tobey Davenport, Portof Freeport Commission.Below: PHA Public Affairs Director RosieBarrera (far left) and Community AffairsManager Cheryl Germain (far right) orga-nized activities for the spouses of seminarparticipants.

11

Below: Commissioners’ spouses tour agem exhibit at the Houston Museum ofNatural Science.

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