JOB ONE! - portarchive.com Satisfaction is our number ... Maggi Stewart, ... time towards the end of...

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THE PORT February/March 2010 OF HOUSTON JOB ONE! To Keep the Houston Ship Channel Deep & Wide

Transcript of JOB ONE! - portarchive.com Satisfaction is our number ... Maggi Stewart, ... time towards the end of...

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THE PORTFebruary/March 2010

OF HOUSTON

JOB ONE! To Keep the Houston Ship Channel Deep & Wide

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RICHARDSON STEVEDORING & LOGISTICS, INC.

Customer Satisfaction

is our number one priority!

For more information please contact our Houston office at (713) 673-1110

The most complete Service Company at the Port of Houston

Privately owned push boats – barge service to Houston, Brownsville, Mobile

400,000 square feet of warehouse space – 100 + acres of outside storage areas

Forklift capacities 5,000 lbs to 110,000 lbs – Lift crane up to 300 tons capacity

Rail trans loading services for all facilities

Locations – Port of Houston, Greensport, Port of Laredo, Port of Mobile, Greenville and Axis Alabama. Strategic alliance with the Port of Brownsville.

Richardson 2010:Layout 1 1/27/10 10:42 AM Page 1

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February/March 2010

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CONTENTS

COVER STORY

A bi-monthly publication.

IN EVERY ISSUE

20

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28 6 AMessagefromtheChiefExecutiveOfficer

8 TheManifest PHA news highlights

33 BusinessConnections Bay Area Houston

Economic Partnership

34 SpotlightonSmallBusiness TLC Trucking and Contracting

ReadyforRecoveryLooking back at 2009

PHAUnveilsCapitalProjectsProcurementOpportunities

ThePortDeliversWarmWelcometoGovernmentalGuests

It’saWonderfulPortWhere would Houston be without its ship channel?

AbouttheCover:Pictured is the Great Lakes Dredge & Dock’s CSD (cutter suction dredge) Florida. CSDs are often used on the Houston Ship Channel for normal maintenance of the channel depth and new work at wharfs and in the channel. A CSD’s suction pipe will vacuum material from the channel floor with help from the rotation of the cutter head (pictured) and the internal centrifugal pumps. This material will be transported down a pipeline, sometimes miles long, to a placement area where the material will be stored permanently.

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ExecutiveOfficePortofHoustonAuthority111 East Loop North P.O. Box 2562 Houston, TX 77252-2562 Phone: 713-670-2400 Fax: 713-670-2429

Chief Executive Officer Alec G. Dreyer

Senior Vice President & General Counsel Erik A. Eriksson

Senior Vice President, Engineering & Real Estate James B. Jackson

Senior Vice President, Operations Jimmy M. Jamison

Vice President, Container Terminals Roger Guenther

Vice President, Finance & Administration Thomas J. Heidt

Vice President, Public Affairs Argentina M. James

Vice President, Strategic Planning Charlie Jenkins

Vice President, Origination Ricky W. Kunz

Vice President, Small Business Gilda Ramirez

Vice President, Human Resources Melanie Sherman

Harris County Auditor Barbara J. Schott

FieldOffices

Central&SouthAmerica(excludingBrazil)

Arturo GamezCentral & South America RepresentativeAvenida Aquilino De La Guardia y Calle 47Ocean Business Plaza Building, MezzaninePanama, Republic of PanamaTel.: +(507)340-0205Fax: +1-281-754-4647Email: [email protected]

Port of Houston Magazine’s editorial staff: Argentina James, vice president, 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 • Gilbreath Communications, Inc. •

This publication is not copyrighted and permission is given for the 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.

Visit the Port of Houston Authority online

www.portofhouston.com

THEPORTOFHOUSTON

AUTHORITY

JamesT.EdmondsChairman

JamesW.Fonteno,Jr.Commissioner

JimmyA.BurkeCommissioner

ElyseLanierCommissioner

JanieceLongoriaCommissioner

StevePhelpsCommissioner

KaseL.LawalCommissioner

BrazilJohn C. CuttinoBrazil RepresentativePort of Houston AuthorityAv. Brigadeiro Faria Lima, 37295th FloorSao Paulo, SP Brazil, CEP: 04538-905Tel. +55 (11) 3323-5878Fax +55 (11) 3323-5916Houston Access (832) 239-5076Email: [email protected]

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Houston New Orleans Baltimore St. Petersburg

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PHA CHIEF EXECUTIVE OFFICER

alec G. dreyer

A Message From

I’ve been in my position now for a matter of months and sometimes, I wonder whether my memory is both deep enough and wide enough to hold all the facts and figures I’m learning every day about our nearly 100-year-old port.

An enormous portion of the Texas economy relies on the port. More than 785,000 jobs statewide are in some way related to ship channel-related activity. The over-all economic impact of the port on the region is nearly $118 billion. Nationally, the port generates $285 billion in economic activity, $16.2 billion in tax revenue and 1.5 million direct and indirect jobs.

One of the biggest players in this industry, the Port of Houston is No. 1 in the U.S. for foreign tonnage (13 years), 1st in U.S. imports (18 years), 2nd in total U.S. tonnage (18 years) and 2nd in U.S. export tonnage and it has big growth potential.

Our port is of vital, strategic interest to this region and to this nation. That’s why I was surprised to learn that the funding the U.S. Army Corps of Engineers receives for maintenance activities for the Houston Ship Channel is well below what really is needed, and this has been an issue for a number of years. For 2010, while $19 mil-lion in federal funds was appropriated for operations and maintenance activities, the need was for nearly

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$36 million. In 2011, because of prior year shortfalls, the need is just over $40 million in order to play catch-up.

So, you can understand that having sufficient resources to keep the Houston Ship Channel deep and wide is a priority for us at PHA. Because of the funding short-falls, more than 80 percent of the channel is adversely impacted in some fashion, either not being at designed depths or designed widths.

We’ve done our homework on this issue to make sure that our position is balanced and supported. And after studying the funding we and other ports receive, using an apples-to-apples comparison, we were dismayed to learn that the Houston Ship Channel does not receive a fair share. As a

Deep and wide — those simple words often connote something bigger than life. In the case of the Houston Ship Channel, they are key to describing its significance to our region. In mere numbers, the channel measures 45 feet deep and 530 feet wide, but its impact reaches far and wide.

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matter of fact, when compared to other ports on the U.S. Gulf and East coasts, the U. S. Army Corps of Engineers in Houston only receives $.08 per ton of cargo for the Houston Ship Channel while other ports receive an average of $.42, or five times more than the Houston Ship Channel.

Importantly, we’re blessed with a talented and cohe-sive congressional delegation that serves as a great exam-ple of bipartisan support for the Port of Houston and the Houston Ship Channel. Our delegation is working very hard right now to get us an adequate level of funding. And all of us as Houston Ship Channel neighbors should do whatever we can to support them in their efforts.

During a challenging economic situation like the one we are facing, it becomes even more important for us to understand what lies ahead in order for the port authority to fulfill its mandate to lead on economic development for our region.

To that end, PHA will bring on a chief economist in the near future and we’ll be taking public positions on how our port economy is faring. As a veteran of three industries, I understand we’ll struggle at first in looking forward, and we’ll learn a lot—but importantly, in short order, we’ll have a clearer picture of what lies ahead and we’ll be better able to lead on key economic issues.

Undoubtedly, 2009 was a very difficult year. Many are calling it the Great Recession, and because of it, container TEUs (twenty-foot equivalent units) which had been growing significantly in prior years was essentially flat in 2009 while steel imports were off just under 58 percent.

Preliminary figures show operating revenue down $27 million (14 percent), with container revenue volume comprising about 40 percent of this fall-off. Preliminary net income stands only slightly positive at $71,000. With the spring audit yet to be completed, we can characterize 2009 as break even at best.

As tough as it has been, we have not suffered as deeply or as severely as most of the other ports around the coun-try. I think this reflects the broad-based diversity of prod-uct that moves through our port, the importance of the Port of Houston to this region and part of the country and to the simple fact that Texas continues to lead the country in population growth and will continue to do so for the foreseeable future.

We’re now seeing early stages of a national recovery. Closer to home, loaded containers were down 8.5 percent in 2009, but with improving performance each of the last three months of the year while empty containers were up a strong 32 percent year over the year. We view these trends as being reflective of a slowly improving economy.

Empty containers are being pre-positioned in Houston and I believe this bodes well for our export business activi-ties going forward. Steel imports should begin to rise some time towards the end of the second quarter. But, it might be as late as the end of 2011 before things begin to seem truly normal again. Nevertheless, I fervently believe we will get back to the fundamental growth curve this port was on before the recession—to me, the only question is: how long will it take us to get back? But without a doubt, the possibilities for the future are deep and wide. n

“I fervently believe we will get back to the

fundamental growth curve

this port was on before the recession.”

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THEMANIFEST pha news highlights

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FEDERALADMINISTRATORSBRIEFEDONPORTABOUTREGIONALRAILPRIORITIES

U.S. Congressman Gene Green convened a meet-ing at the Port of Houston Authority on Jan. 6 to discuss regional rail priorities with Karen Rae, deputy administrator of the Federal Railroad Administration (FRA), and David Matsuda, deputy administrator for the Maritime Administration (MARAD). A tour of rail sites followed.

The visit to Houston was in direct response to an earlier written request by the Houston region con-gressional delegation. Houston is the fourth most congested city in the nation, a problem that is caused in part by the 2,200 trains that cross Houston’s road-ways at 754 crossings.

“Encouraging com-petitive rail service for the Houston area industry helps to pro-tect local jobs,” Green said. “We must con-tinue to improve upon

the Houston rail network for local communities and area businesses.

Both Congressman Pete Olson and Congress-woman Sheila Jackson Lee echoed Green’s empha-sis on the importance of cooperation and taking a

regional approach to enhancing intermodal transpor-tation, both freight rail and long-term passenger rail.

“The maritime industry in this region has a tre-mendous impact on the nation,” PHA Chairman Jim Edmonds said. “Clearly, the infrastructure that supports this economic activity is essential — it includes the Houston Ship Channel, roads and rail networks. For these reasons, the port authority has been a strong sup-porter of the Gulf Coast Rail District and was instrumen-tal in the creation of this public-private partnership.”

The Houston Region Freight Study by the Texas Department of Transportation recommended a total of nearly $198 million in capital improvements.

Above from left: David Matsuda, deputy administrator, Maritime Administration; PHA Chief Executive Officer Alec Dreyer; METRO President & CEO Frank Wilson; Waller County Judge Owen Rallston; Houston City Councilwoman Sue Lovell; PHA Chairman Jim Edmonds; PHA Commis-sioner Elyse Lanier; Congressman Pete Olson; Karen Rae, deputy administrator, Federal Rail Administration; and Congressman Gene Green.

Seated L. to R. are Judge Rallston, Congresswoman Sheila Jackson Lee, Karen Rae and David Matsuda.

The M/V Sam Houston is being repowered with new low-emission-fuel engines and a new generator in a pro-gressive move to make the 50-year-

old vessel more environmentally friendly. As a result, the tour vessel is dry docked and Houston Ship

SAMHOUSTONENGINESGETENvIRONMENTALUPGRADESWITHDERAFUNDING

Channel tours are on temporary suspension but will resume in March.

The environmental upgrades are being made possi-ble through grants from the Texas Emissions Reduction Plan and American Recovery and Reinvestment Act funding through EPA’s National Clean Diesel Funding Assistance Program.

For more than 50 years, the Sam Houston has been giving visitors a free, up close view of the port during 90-minute tours along the Houston Ship Channel.

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On January 12, Harris County Commissioners Court approved nominations for the first Board of Director members to the Houston Ship Channel Security District, a public-private partnership that funds enhancements to security technology, infra-structure and processes along the ship channel.

HOUSTONSHIPCHANNELSECURITyDISTRICTNAMESBOARD

The security district, approved in June 2009, includes PHA and more than 100 refinery, chemical and marine facilities which will pay operations and maintenance assessments to the district.

At the Commission’s executive session, the follow-ing Houston Ship Channel Security District Board members were named: Clayton Curtis and Richard Henderson for Security Zone 1, Mark Skobel and Greg DeLong for Security Zone 2, Harry Engelhardt and Lawrence Waldron for Security Zone 3, and Ray Yellig and Beth Bowles for Security Zone 4.

Also named to the board were PHA’s represen-tative, Tom Schroeter, associate general counsel, and Harris County representative Steve Stewart, Gulf Winds. Harris County Mayors and Councils Association appointed Robin Riley, former mayor of Seabrook.

Lawrence Waldron, Beth Bowles, Clayton Curtis, Ray Yellig; Mark Skobel; Steve Stewart, Tom Schroeter, Greg DeLong, Robin Riley. Not pictured: Harry Englehardt, Jr. and Richard Henderson.

PHA officials briefed Texas State Representative Ken Legler, who serves on the Environmental Regulation Committee, on environmental initia-tives at Barbours Cut Container Terminal. Legler and staff members Brad Tegeler, chief of staff, and Tammie Nielsen, district director, also got a firsthand look at PHA’s new diesel/electric hybrid yard trac-tor in action. The first such tractor owned by a port authority in the U.S., it was purchased with Diesel Emission Reduction Act (DERA) funds.

Legler was given an overview of the many initia-tives that make PHA a model for U.S. ports in envi-ronmental initiatives, such as the tenant auditing program, PHA’s Clean Air Strategy Plan, Bayport’s green operations, PHA’s waste management program and recycling efforts, and its water quality strategy plan. Discussion also focused on outreach with stakeholders and partnership projects with the U.S.

HyBRIDyARDTRACTORPARTOFENvIRONMENTALBRIEFINGTOREP.LEGLER

Environmental Protection Agency (EPA), Texas Commission on Environmental Quality (TCEQ) and private entities toward air quality benefits.

Ken Legler represents House District 144 in the Texas Legislature and is active in the local business community.

Shown are Rep. Legler (top) with Brad Tegeler, Monica Glover, Paulo Soares, Spencer Chambers, Dana Blume, Nicole Hausler, Roxana Herrera, Tammie Nielsen and Roger Guenther.

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Veteran international logistics execu-tive John A. Moseley has been named general manager for trade development for the Port of Houston Authority.

Moseley, who was with CMA CGM for more than six years, has a proven track record in international trade that will be beneficial to the Port of Houston Authority, said Ricky Kunz, the new vice president of origination for PHA. Moseley reports to Kunz.

“John brings just a wealth of knowl-edge from the industry, from the carrier’s side specifi-cally,” Kunz said. “We look forward to him helping us increase the volume of freight moving through Port of Houston Authority facilities.”

While at CMA CGM, Moseley handled the com-mercial effort for the inauguration of the company’s first port terminal investment in North America, which was at the port authority’s new Bayport Container Terminal.

NEWTRADEDEvELOPMENTGMNAMED;KUNZPROMOTEDTOvP,ORIGINATION

He will help oversee a new effort by PHA forging a direct and focused marketing approach, targeting both companies and cargo.

Moseley said he is excited about joining the authority, particularly since it has a strong commitment to maintaining its leading position as an established global gateway. In addition to being the fourth-largest metroplex in the U.S. and ranked among the fastest growing regions

in the country, Houston also has a business-friendly atmosphere, a can-do spirit and strong infrastruc-ture, he noted.

“The Port of Houston is strategically positioned and is really in the center of business in North America,” Moseley said. “We are equidistant between both the East Coast and West Coast and have strong intermodal links into the Midwest and other impor-tant consumer and industrial markets.”

HOUSTONTOHOST2010JOCBREAKBULKCONFERENCE

The Journal of Commerce (JOC) Breakbulk Transportation Conference & Exhibit comes to Houston, October 12–14, 2010. This 21st annual event will mark the first time in the history of the event that organizers have voluntarily opted for a venue other than the Crescent City (New Orleans).

The Port of Houston Authority is the host port and the city of Houston is the host city of the confer-ence, which is moving to Houston for the first time in its 21-year history.

Getting the conference to come to Houston was a result of the combined efforts of the Port of Houston Authority, city of Houston, Greater Houston

Partnership, George R. Brown Convention Center, Hilton Americas –Houston Hotel and Greater Houston Convention and Visitors Bureau.

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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 [email protected] 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.

THEMANIFEST pha news highlights

The Port of Houston Authority recognized a mile-stone for Chipolbrok shipping lines multi-purpose heavy lift carrier Adam Asnyk, with a January 25 ceremony commemorating its maiden voyage and its first cargo discharge. That project cargo discharge took place on Dock 23 of the Turning Basin Terminal.

The vessel arrived in Houston after leaving its Port Dalian, China, port of origination and calling at Onsan, Korea, before traversing the Panama Canal. For more than a year, Chipolbrok and PHA repre-sentatives had been discussing the proposed route for the vessel – which is scheduled to make four calls per year at PHA.

“Chipolbrok is a very large breakbulk customer for PHA,” said Ricky Kunz, vice president of origination, “The line typically brings heavy cargo, which is the ‘bread and butter’ of the PHA Turning Basin Terminals to Houston from various ports in Asia.”

Walt Kleczkowski, managing director of PHA’s Turning Basin Terminals, says “Chipolbrok provides an excellent service for our customers.”

PHARECOGNIZESAdAm AsnykMAIDENvOyAGE

The November 5, 2009 ceremony of naming and delivery of the ves-sel to Chipolbrok was held in The Port of Dalian. The vessel was built by Cosco Dalian Shipyard and she is the first of six new multi-purpose heavy lift units that have been ordered there by Chipolbrok.

She is 199.9 meters long, 27.8 meters wide, has a draft of 11 meters and weighs 30,332 tons. She is equipped with heavy cranes that bring a combined lifting capacity of 640 tons. She can steam with service speed of 19.2 knots, and is designed to burn low-sulfur diesel fuel. She is registered in Cyprus and is operated by a Polish crew of 23, led by Captain Leszek Szczolek.

“What this vessel does is circumnavigate the world on a giant cargo rotation,” says Ricky Raven, operations manager for Chipolbrok America. It starts in China, heads this way through the Panama Canal, calls at Houston, New Orleans, Camden, New Jersey and a couple of other ports before going on to Europe and the Far East again.”

Raven says the investment his company is making in the six new vessels is an indication of expectations that breakbulk business will continue to grow.

“That is our hope and that is our expectation,” Raven says.

Why Houston? Raven was asked.“A lot of project cargo moves into and out of

Houston and that’s why we consider Houston our No. 1 port for inbound and outbound cargo in the U.S.,” he responded.

Cliff Kuhfeldt – Chipolbrok, Ricky Raven – Chipolbrok, Malgorzata Pawlikowska – Chipolbrok, Captain Leszek Szczolek – Chipolbrok, and PHA’s Patrick Nwachokor, Ricardo Arias, Keith Miceli and Brian Reeves.

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The Port of Houston Authority has a presence on some popular social media networking sites. The public is invited to connect

with PHA on Facebook, Twitter, LinkedIn and the online video ser-vice YouTube. Just click on the respective icons on the PHA Web site, www.portofhouston.com.

These connections to global networking experi-ences will enhance the public’s awareness of Houston as a dynamic — and growing — port.

PORTOFHOUSTONAUTHORITyBEGINSNEWyEARWITHANINvITATION:FOLLOWUSONFACEBOOK,TWITTER,LINKEDINANDyOUTUBE

Facebook users can communicate with friends, update personal profiles and join networks. PHA’s Facebook page serves as an extension of its homepage. Primary functions include uploading text and video, maintaining a photo archive and posting events with reminders and alerts.

Twitter is a free social networking and micro-blogging service that allows its users to send and read other users’ updates (otherwise known as Tweets).

LinkedIn is a business-oriented social networking site mainly used for professional networking.

YouTube is a video-sharing Web site on which users can upload and share video content, including movie clips, TV clips and music videos, as well as video blog-ging and short original videos.

Now playing on PHA’s YouTube site is a three-minute video clip titled, “The State of the Port.”

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It’s a PortWonderfulWhere would Houston be without its ship channel?

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ne-and-a-half centuries ago, the idea of linking Houston to the sea and the world was only a dream. But in 1837, the steam-ship Laura made a historic trip, traveling from Galveston Bay up Buffalo Bayou in

water no deeper than six feet. That trip proved the bayou was navigable by the sizable vessels of the day.

To truly connect Houston with the world would require the creation of a manmade ship channel. Civic leaders and citizens alike worked hard to convince the U.S. Congress of the importance of this dream.

And nearly 100 years ago, the Houston Ship Channel became a reality. Longer than the Panama Canal, the 53-mile-long channel was an engineering marvel. Then 25 feet deep, the channel was christened on Nov. 10, 1914, amid a salutatory cannon firing initiated by President Woodrow Wilson in Washington, D.C.

In 1927, the Port of Houston Authority (PHA) was created by the state of Texas as a governmental entity providing public terminals and serving as a catalyst for economic development. PHA partners with the U.S. Army Corps of Engineers (Corps) as a non-federal sponsor in constructing and maintaining the ship channel.

Over the years, the growth of Houston and its port – which comprises 25 miles of the ship channel – has been facilitated by local contributions and federal funds to gradually deepen and widen the Houston Ship Channel. Since then, the channel has been expanded to a depth of 45 feet and width of 530 feet to accom-modate ever-larger ships. The channel’s effectiveness depends on its continual maintenance at this optimum depth and width.

“Since that first journey of a steamship up Buffalo Bayou, the Houston Ship Channel has been a cata-

lyst for growth in Harris County,” says PHA Chairman Jim Edmonds. “Hundreds of thousands of jobs and billions of dollars in economic activity are

generated in the region alone.”As the engine that keeps the

region going, creating jobs and economic development, the port annually handles 225 million tons of goods. Some 7,700 vessel calls are made at the port every year.

The port’s share of trade activity in the U.S. is significant, ranking first in foreign tonnage (13 con-secutive years), first in imports and

second in total tonnage (18 consecutive years for both) and second in U.S. export tonnage.

The largest importer and exporter of petroleum products in the U.S., the port is also home to the sec-ond-largest petrochemical complex in the world and is

“Since that first journey of a steamship up Buffalo Bayou, the Houston Ship Channel has been a catalyst for growth in Harris County,” says PHA Chairman Jim Edmonds.

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the largest petrochemical refining center in the nation. PHA is a pioneer in handling equipment imported for the burgeoning U.S. wind power industry.

Where would the region and the nation be without the Houston Ship Channel? Like George Bailey in the classic holiday movie, “It’s a Wonderful Life,” what if the ship channel had never existed?

Winding back time, suppose no one had the foresight to create a ship channel from the natural bayou. There would be no Port of Houston, now one of the largest ports in the world, nor a Port of Houston Authority for that matter. Former PHA Chairman Ned Holmes could not utter his famous quote: “Houston...the town that built the port which built the city...”

Without it, 150-plus private entities and PHA’s pub-lic terminals would not exist. Most importantly, the Texas economy could be at risk of losing an estimated $118 billion and 785,000 jobs impacted by the port and its ship channel. The annual national impact would be huge: more than 1.5 million jobs, $285 billion in eco-nomic activity and $16.2 billion in tax revenue.

Many ecosystem restoration features created because of the channel would also be lost, including more than 4,250 acres of marsh, 118 acres of oyster reef habitat and the Evia Island bird sanctuary.

Just as the fictional Bedford Falls became a desolate Pottersville with the absence of the story’s main char-acter, what kind of city would Houston be without the economic and jobs benefits that the ship channel has pro-vided for nearly a century?

But like the movie, the port also has its guardian angel(s), who understand its sig-nificant contributions. These benefactors include the local leaders in the early 20th century who envisioned a waterway through the city bringing commerce and jobs, to current industry leaders and elected officials who tirelessly work to support and maintain this economic engine for the state, region and nation. In particular, the elected leaders who represent the region and state in Washington, D.C. who regularly

join together without consideration for political affilia-tion to secure the critical federal funding to maintain the ship channel.

During a time of historic economic challenges and massive strains on the federal budget, the region’s Congressional delegation continues to advocate for the Port of Houston with the message that federal money spent on the ship channel is an investment in jobs, economic health, energy security and environmental stewardship.

“The port is of vital, strategic interest to this region and nation,” says Alec Dreyer, PHA’s chief executive officer.

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Most recently, this advocacy led to the allocation of $98.8 million to the Houston Ship Channel in the American Recovery and Reinvestment Act. These funds helped to address pressing needs and provide critical economic stimulus through creating and sustaining jobs associated with the ship channel. These funds were vital, but many needs remain.

In today’s climate in Washington, securing the necessary appropriations for the channel is daunting. PHA works closely with the Corps and Congress to adequately fund channel maintenance and ensure that it continues to oper-ate effectively and efficiently. In recent years, however, appropriations declined below what is needed to maintain the channel at its federally authorized width and depth.

“The port is of vital, strategic interest to this region and nation,” says Alec Dreyer, PHA’s chief executive offi-cer. “But I’ve been surprised to learn that the funding the Corps receives for maintenance activities for the Houston Ship Channel is well below what really is needed and has been for a number of years.”

Current federal investment on a per-ton-of-cargo basis is much lower for the Port of Houston than it is for other

ports, with Houston receiving about one-fifth ($.08) what the average U.S. port receives ($.42).

Further, the economic activity at the Port of Houston generates significant revenue for the federal government. Nearly $127 million in harbor maintenance tax (HMT) is collected annually from the port, far outweighing what is needed for adequate maintenance of the channel. In 2007, for instance, the HMT collected $1.4 billion from the activity of U.S. ports, but the federal government spent only $700 million on dredging projects.

For Fiscal Year 2011, the Houston Ship Channel needs $41 million to meet critical dredging and capacity

needs. On an ongoing basis, annual appropriation needs are anticipated to range from $40 to $50 million.

The consequences of not maintaining the channel are alarming. Depth restrictions significantly reduce the amount of cargo per trip, slowing its movement, and increasing the cost of imports and exports, affecting consumer costs. Based on recent surveys, the estimated impact of a recent draft restriction on just two companies at the port could result in the annual loss of $32 million and 256 jobs.

The Corps’ 2008 hydrographic report notes that 82 per-cent of the channel is not at the design depth for the full

width of the template. In fact, going back to 2005 data, the channel has been losing an average of 8 percent of usable depth every year.

At that rate, without the necessary mainte-nance, the channel will not be able to meet the needs of the businesses that rely on maritime commerce. The associ-

ated benefits of jobs, personal income, and tax revenue will be lost to the region. Where would Houston be with-out its ship channel? It’s fundamental to the port’s and the city’s future.

“Through the years, our port has made Houston a lead-ing international business center,” says Edmonds. “Ensuring that the channel is maintained properly is integral to the continued success of our region and nation.” n

“Through the years, our port has made Houston a leading international business center,” says Edmonds.

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SecurityDistrictBoardNamingReception

HarrisCountyTrade/

TransportationConference

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AlecDreyerWelcomeReception

RegionalRailPrioritiesBriefing

SecurityDistrictBoardNamingReception

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Economic recovery is now coming into sight for Houston and the nation. But looking back at 2009, PHA Chief Executive Officer Alec Dreyer could only characterize it as “break even at best” in his preliminary financial report at the January 26 Port Commission meeting.

While 2009 was a difficult year, the impact on PHA was softened by the diversity of products moving through the port, its importance to the region and the fact that Texas continues to lead the country in population growth.

RecoveRyLooking Back at 2009

Pending final figures from the annual audit, which will take place later in the spring, PHA operating revenue was down $27 million (14 percent) with container revenue volume comprising about 40 percent of this fall-off and the Turning Basin terminals comprising the balance.

As a result, preliminary operating income is down a little more than $21 million or 34 percent. General and administrative (G&A) cash expenses are down $5.4 mil-lion in 2009 compared to 2008 or 13.5 percent, which

R e a d y f o R

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Dreyer said reflects PHA’s cost management efforts this year in light of the Great Recession. Preliminary net income stands only slightly positive at $71,000.

“With the audit yet to be completed, it’s probably best to just characterize this year as break even at best,” he said. “All in all, this has been a very difficult year, but I am pleased by our success in managing operating and G&A costs in this difficult economic environment.”

Cash flow from operations is $59.6 million for 2009 vs. $72.4 million in 2008, a decrease of $12.8 million or 17.7 percent.

“Cash from operations demonstrates the strength of our operations and the magnitude of our non-cash expenses for depreciation, amortization and other post-employ-ment benefits, which in 2009 aggregated just under $60 million,” he said.

Container TEUs (twenty foot equivalent units) were down slightly all year until just at the very end of 2009 with year-to-date container TEUs actually finishing the year up at under 1 percent.

“You have to dissect the data a little further to get a clearer picture of our actual performance,” Dreyer explained. “We obviously earn more revenue from loaded containers and they were down for the year some 8.5 percent from 2008, while empty containers are up a strong 32 percent year over year. We view these trends

as being reflective of a slowly improving economy. The good news is that loaded containers improved perfor-mance each of the last three months of the year.”

Container tonnage was down only 5.7 percent in 2009 from 2008, an improve-ment from the 7 percent decrease PHA saw in the first 11 months of 2009.

Steel for the year came in at 2.7 million tons, down just under 58 percent from the record level of 2008, where steel tonnage totaled just under 6.3 million tons. Steel imports were down 60 percent while steel exports are down only 19 percent. However, imported steel is generally 10 times the level of export steel, Dreyer said, which accounts for the overall 58 percent decrease.

Ship arrivals for 2009 were down 10.5 percent from 2008 levels, a decrease of 375. That statistic is a bit misleading, Dreyer pointed out, in that arrivals at the Turning Basin were down by 293 arrivals—or 23.3 per-cent—while arrivals at PHA’s two container terminals, Barbours Cut and Bayport, were up by five ship arrivals compared to 2008 levels. The remaining decrease of 90 or so ship arrivals occurred at PHA’s other facilities. Barge traffic continued to improve in December with year-to-date traffic down just 6 percent from 2008 — an improvement from 8 percent in November.

Despite the economic downturn, PHA can take pride in many accomplishments in 2009.

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Despite the economic downturn, PHA can take pride in many accomplishments in 2009, including:

• Recertification of its Environmental Management System (EMS) to meet the standards of International Organization for Standardization (ISO) 14001 as well as the ISO 14001 certification of PHA’s state-of-the-art Bayport Container terminal, as a scope extension of that recertification. Adding to its envi-ronmental achievements, PHA was recognized by EPA, USDOT, HGAC and Commute Solutions as one of the region’s first “Clean Air Champions,” among companies recognized for outstanding lead-ership in implementing measures that reduce air pollutants within the eight-county region by adopt-ing clean fleet policies and encouraging employees to use commute alternatives.

• Receiving (with eight other Houston Ship Channel industries) more than $3.47 million in an Environmental Protection Agency National Clean Diesel Campaign that provides funding through the Diesel Emission Reduction Act, as part of the nation-wide economic stimulus package, the American Recovery and Reinvestment Act (ARRA). PHA was awarded $611,466.

• Partnering with Texas Southern University on a new degree program in Maritime Transportation Management and Security, the first such program at any Historically Black College and University in the nation and addressing three highly prioritized national transportation needs: logistics, security and environment.

• Official establishment of the Houston Ship Channel Security District, a public-private partnership that funds enhancements to security technology, infra-structure and processes along the ship channel, after receiving final approval from Harris County Commissioners Court.

• The efforts of the Texas Congressional Delegation, led by U.S. Rep. Gene Green, which resulted in the designation of $98.3 million in ARRA funds for infrastructure projects at the Houston Ship Channel. The stimulus funding was one of the largest-ever single allocations of federal funding for the U.S. Army Corps of Engineers to construct, operate and maintain the channel.

• Signing of a Memorandum of Friendship and Trade Cooperation with the National Port Authority Systems of Liberia. The nonbinding agreement further solidifies the relationship between the two sister ports.

• Celebrating the Small Business Program’s sev-enth year of operation and awarding of $263 million or 36 percent of eligible contracts to reg-istered small businesses since its inception. Small businesses were awarded $28.8 million—or 33 percent—of eligible PHA

contract awards in 2009. A total of 1,216 small businesses were registered in the program by year’s end. n

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Palletized Trucking Inc. — “Rolling with Houston since 1969”

PALLETIZED TRUCKING INCOne of Houston’s premier multi-service transportation companies

Dedicated to Safety and the Success of our Customers

• Breakbulk, Rig Moving & Oilfield Hauling A fleet of more than 190 trailers including flatbeds, stretch flatbeds, single drops, double drops, removable

gooseneck trailers, and winch trucks with rolling tailboard trailers for self loading and unloading.

• Intermodal & General Commodities A fleet of more than 130 trailers and intermodal chassis including 48’ & 53’ vans, 20’ chassis, 20’ slider

chassis, 20’ tri-axle chassis, 20’ tank chassis, 40’ chassis, 40’ tri-axle low-boy chassis.

• Super Heavy Haul A Fleet of more than 80 axles of hydraulic platform trailers with multiple deck and axle configurations

including a dual lane trailer, dual lane wing dolly system, and self propelled modular transport system.

• Specialized / Oversize / Overweight A fleet of more than 25 trailers with axle configurations from 4 to 13 axles and our own in house

permits officers.

• Warehouse & Terminal Storage Approximately 100,000 sq ft warehouse storage with 100 ton capacity overhead cranes and over 60 acres

of company property with some availability for outside storage.

• Project Cargo / Barge & Rail Services Experienced barge and rail project managers, heavy-lift direct discharge and truck to ship services,

drive away service.

2001 Collingsworth Street, Houston, TX 77009 / 13805 Industrial Road, Houston, TX 77015 / 435 South Sheldon Road, Channelview, TX 77530

Mail to: PO BOX 8744, Houston, TX 77249 www.palletizedtrucking.com direct : 713-225-3303 / fax: 713-225-0110

Please visit us at www.palletizedtrucking.com to see our full range of services and locations.

Over 40 Years in the Trucking Industry - Member of the SC&RA

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The presentation was designed to educate small business owners about possible subcontracting opportunities with the port author-ity, and interest was so high, PHA’s Small Business Development staff stopped accepting reservations for the event a week earlier.

William Wachel, PHA Project Management and GIS manager, has been conducting orientations of this type for 10 years. While the sessions are enormously popular, Wachel cites this year’s turnout as the largest he can remember.

The goal of the session is to get pri-mary contractors and subcontractors in touch with the avenues they need in order to qualify for PHA projects; equally important is the goal of getting the contractors and subcontractors in touch with each other.

For years, the port authority has been actively seeking to expand its resource pool to include more vendors.

“I think things went quite well,” Wachel says. “I saw some familiar faces and lots of new ones. There were some of the bigger companies talking to subcon-tractors and that’s what we want. It offers good networking possibilities.”

Wachel outlined about two dozen big-ticket, design / construction / installation projects earmarked for four of PHA’s eight primary cargo-handling terminals, as well as for information technology and security.

Roughly 47 percent ($40.3 million) will be invested in construction of a marine terminal entry gate at Bayport Container Terminal. Bayport is also targeted for a $1.5 mil-lion security system for its buildings and $345,000 has been set aside for landscaping of a sight and sound berm on the west end of the terminal.

The purchase of two wharf cranes, at a cost of $22.5 million, represents the bulk of the $26.4 million set aside for Barbours Cut Container Terminal projects. In addition, $1.5 million will be spent on annual “on-call” concrete pavement replacement; $1.2 million on replacement of 15 yard tractors; and $642,000 and $533,000, respectively, on access road relocation and improved lighting for the container yard.

The demolition of transit sheds and modifications to Wharf Nos. 24 and 25 to ensure more cargo-handling ver-satility at the Turning Basin has been tagged as a $2.4 mil-lion project. Another $770,000 has been set aside for roof replacement on a transit shed for Wharf Nos. 30 and 31 and $750,000 will be used for fender and concrete rehabili-tation at Wharf Nos. 47 and 48.

On the security front, $4.4 million will be used to install fiber optic cable at the Turning Basin and another $337,000 for fence replacement in the restricted area of the southside wharves.

Placing a greater emphasis on technology, the port authority will spend $2.4 mil-lion on hardware, soft-ware and services, including $800,000 on replacement and expansion of a net-work server.

Wachel explained to the crowd that PHA employs several

PHA Unveils Capital Projects Procurement Opportunities

A standing-room-only crowd of more than 200 small business principals

turned out at the Port of Houston Authority’s (PHA’s) Executive Building

in mid-January to witness the first public unveiling of the port authority’s

$84.4 million capital improvements projects available for procurement in 2010.

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methods for procurement of contracts. Professional, engi-neering-related services involve a request for qualifications (RFQ), while non-engineering and non-architectural ser-vices call for a request for proposals (RFP). Those involv-ing costs in excess of $50,000 are submitted to the Port Commission of the Port of Houston Authority for approval.

Competitive sealed proposals (CSPs) are required for most construction projects and are subject to an executive committee review.

PHA requires competitive sealed bids for projects involv-ing damage claims and those in which the port authority expects reimbursement through government funding.

High-tech proposals, ordinarily used for purchases of cranes, involves a service, equipment or goods of a highly technical nature, including data-processing equipment and software used in conjunction with data-processing equipment, telecommunications, radio and microwave systems, for example. An RFP is also required for these procurements, but bids are not opened in a public forum and a request for proposal allows negotiation with vendors submitting proposals that have a reasonable possibility of satisfactorily performing the work required by the contract. The final negotiated contract may be quite different from the original proposal.

Wachel encourages all interested vendors to register with the port authority through its Vendor Information System (VIS). VIS is a Web-based vendor management system

with e-procurement capability. Through VIS, vendors and contractors are able to update their profiles, receive e-mail and or fax notifications of procurement opportunities, be part of a Web-based directory, have access to provide company information, such as brochures, small business certifications and company logo and view, download and respond to notices of procurement opportunities. In order to register in VIS, go to http://vis.poha.com/vis/external/.

The $84.4 million in opportunities represents about 44 percent of the $191 in capital improvements PHA has committed itself to this year. Wachel says procurement opportunities on projects of $114 million, $269 million, $160 million and $55 million will be available in years 2011–2014. n

In order to register

in VIS, go to http://vis.

poha.com/vis/external/

Corps extends permit for Bayport Terminal Construction The U.S. Army Corps of Engineers (Corps) has amended and extended — for 10 years — a permit allowing the Port of Houston Authority to continue construction, dredging, dredge material placement, and mitigation associated with the Bayport Container and Cruise Terminal Complex.

The extension was approved in December 2009, after a year of detailed analysis by the Corps of PHA’s request for amend-ments to the original permit.

The extension runs through December 2020 and will allow for continuation of the phased expansion of Bayport, as market conditions dictate.

Corps permitting for construction of this sort is a requirement of both the federal Clean Water Act and Rivers and Harbors Act.

Modifications to the permit include the use of turbidity cur-tains during mechanical dredging, continued use of controls to minimize fugitive dust and removal of monitoring stations, consolidation of the container terminal pre-entry and main entry gate, and additional Dredged Material Placement Areas and Beneficial Use Sites where new work and maintenance-dredged material from the Bayport Ship Channel can be placed by hydraulic pipeline and mechanical means.

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September 9, 2009: Minister Binyamin Ben-Eliezer and Israeli Delegation — Harris County Sheriff ’s Office hosted Minister Binyamin Ben-Eliezer along with an Israeli Delegation to PHA to learn more about the port and obtain perspectives on trade development.

September 19, 2009: Texas State Senator John Whitmire — concerning PHA’s policy priorities.

September 30, 2009: Councilmember Beth Van Duyne, City of Irving, Texas — to learn about PHA’s operations, gain insight regarding transportation issues in Texas, safety and security on cargo ships and focus on cooperation with other security stakeholders in region.

October 6, 2009: Commissioner Bill Meadows, Texas Department of Transportation — Commissioner Meadows and assistant Brian O’Reilly were visiting Houston proj-ects and wanted to tour and learn more about PHA, par-ticularly regarding road and rail projects as well as federal and state initiatives.

October 19, 2009: Matilda W. Parker, Managing Director of the NPA for the Port of Monrovia, Liberia — Congresswoman Sheila Jackson Lee hosted Madam Parker at PHA for briefing and tour. Madam Parker was interested in developing a sister port relationship. Update on current agreement and signing of the Memorandum of Friendship and Trade Cooperation.

October 20, 2009: Congressional District Directors Boat Tour — U.S. Congressman John Culberson and his Houston office hosted a group of Congressional staff from across the U.S. at briefing and tour of Houston Ship Channel. PHA staff spoke on federal interests in the channel and the Corps, port security, environmental issues and trade.

October 27, 2009: Texas State Representative Garnet Coleman — The purpose of the meeting with Coleman, chair of County Affairs committee, was to introduce PHA’s new CEO Alec Dreyer and familiarize him with the port’s priority issues for the state legislature.

The Port Delivers

WarmWelcome

to

PHA’s Governmental Relations Team Held a Number of Briefings and Tours

with Federal and Local Officials and Other VIPs During the Last Quarter.*

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November 10, 2009: Congressman Pete Olson Meeting — Purpose of meeting with Rep. Olson was to introduce PHA’s new CEO Alec Dreyer and familiarize him with the port’s priority issues for state legislature and keep him abreast of the port’s federal priorities.

November 11, 2009: City of Houston’s Trans-portation, Infrastructure and Aviation Committee — Councilwoman Sue Lovell invited PHA to speak to the Transportation, Infrastructure and Aviation Committee, which she chairs, and introduce new CEO Alec Dreyer.

November 20, 2009: Texas State Senator Rodney Ellis and Staff — The purpose of the meeting with Ellis, who is chair of the Government Organization and serves on the State Affairs, Transportation & Homeland Security committee, was to introduce PHA’s new CEO Alec Dreyer.

November 29, 2009: Texas State Representative Ken Legler Environmental Briefing — Representative Legler requested an environmental briefing concerning PHA’s port activities and stewardship endeavors. He was also shown the new hybrid yard tractor purchased with an EPA Clean Diesel grant.

December 1, 2009: Harris County Public Entities Briefing and Tours — The Government Relations depart-ment conducted a briefing and tour of PHA with govern-ment relations counterparts from other public entities in Harris County to help educate particularly those individu-als who interact with state and federal policymakers and to learn more about the port’s operations and facilities.

December 8, 2009: The Office of Management and Budget — The purpose of the meeting in Washington, D.C., was to start a dialogue with officials and build an understanding of the ship channel’s value and needs. Also to secure an adequate and sustainable level of funding for the ship channel and associated channels through the U.S. Army Corps of Engineers in the President’s Budget for Fiscal Year 2011 and beyond.

December 10, 2009: Governor’s Office of Homeland Security Briefing with Josh Havens — Havens, assistant director of the Governor’s Homeland Security Office, requested a briefing regarding the port’s security and how PHA worked with stakeholders to secure the port.

December 11, 2009: Meeting with Harris County Judge Ed Emmett — PHA Commissioner Jim Fonteno arranged for meeting with Judge Emmett, PHA Chairman

Jim Edmonds, PHA Commissioner Elyse Lanier and PHA CEO Alec Dreyer.

December 29, 2009: Meeting with Arthur “Art” Storey, Executive Director Harris County Public Infrastructure Department.

January 6, 2010: Meeting with Federal Railroad Administration and U.S. Department of Maritime Administration — PHA hosted a meeting with Karen Rae, deputy administrator of the Federal Railroad Administration, and David Matsuda, deputy administrator for the Maritime Administration to tour rail sites and dis-cuss regional rail priorities. The Gulf Coast Rail District was also a part of the meeting.

January 11, 2010: Briefing for Colonel Anthony Funkhouser, U.S. Army Corps of Engineers — The Galveston Division of the U.S. Army Corps of Engineers hosted the newly appointed commander for the Southwestern Division and requested a briefing on the Port of Houston and Houston Ship Channel. n

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Clipper Projects Parcel Service utilizes a diversified fleet of more than 40 modern multi-purpose vessels, ranging from 4,000 to 18,000 dwt, with lifting capacity up to 400 metric tonnes, accommodating various quantities of breakbulk, oversize, heavy lift, and project cargo. As a dedicated department within the Clipper Projects organization, our parcelling desk is ready to satisfy your needs for safe reliable transportation solutions.

Additionally, Clipper Projects continues to offer frequent sailings to other ports worldwide. Our mission is to continue the Clipper tradition of moving your cargo on time, with care. When it comes to the sea, the sky’s the limit.

Monthly sailings from US to the Mediterranean and Middle East

CliPPEr PrOJECTS PArCEl SErViCE OPEn fOr bUSinESS

For vessel schedules and rate inquiries please contact:

Clipper Projects (Americas) Inc., 2500 City West Boulevard, Suite 500, Houston, Texas 77042 tel (713) 953 2200, fax (713) 735 1177, email: [email protected]

HoustonCharleston

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Jebel Ali

Clipper Projects Parcel Service Houston with map.indd 1 14-05-2009 10:37:35

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Reach YouR taRget maRketINTHEPORTOFHOUSTONMAGAZINE

C

The Port of Houston is expanding and your company could be a part of this growth in 2010! With the first

phase of the Bayport terminal now operating, the Port of Houston is becoming one of the fastest-growing

cargo and cruise ports in the world. The Port of Houston Magazine is a perfect marketing venue to capture

your segment in this growing market.

Targeted Circulation 12,500

With a targeted circulation of 12,500 readers for the Port of Houston Magazine, you can be assured that the subscribers are actively doing business within the Port of Houston community. This is a well-read publication that will showcase your company and deliver your message to market.

Who are these 12,500? Local, national and international senior level executives who are port tenants, manufacturers, shipping lines, freight forwarders, shippers, media contacts, international trade organizations and prospects ... with additional distribution at the port’s numerous trade conferences, exhibitions and community events. For extended reach and circulation, The Port of Houston Magazine is also published online at www.portofhouston.com.

Capitalize on this invaluable branding resource and you’re sure to reach your ultimate decision-makers throughout the year.

Special request ad positioning — add 15% to gross rate. Additional charges for ad production will be incurred when ads are not submitted to specifications and/or require rework by publisher to attain required specifications.

Feb/Mar 10 PHA Magazine Ad Close Jan 15; Materials due Feb 1

Apr/May 10 PHA Magazine Ad Close Mar 15; Materials due April 1

June/July 10 PHA Magazine Ad Close May 15; Materials due June 1

Aug/Sep 10 PHA Magazine Ad Close July 15th; Materials due Aug 1

Oct/Nov 10 PHA Magazine Ad Close Sept 15th; Materials due Oct 1

December 10 PHA Magazine Ad Close Nov 15th; Materials due Dec 1

Mechanical Requirements

Full pg trim: 8" w x 10.5" hFull pg bleed: 8.25" w x 10.75" h

Full pg live matter: 7" w x 9.5" h1/2 pg horizontal: 7.5" w x 4.75" h

1/4 pg standard: 3.625" w x 4.75" h

To Reserve Your Ad Space, or for Additional Information, Please Contact:

Alli McEntyre • Journal of Commerce Shipper Group • Phone: 225.784.0177 • Fax: 504.910.6453 • E-Mail: [email protected] • Web site: seaportsinfo.com

Print Advertising Rates and Specifications

display ads 1x 3x rate/issue 6x rate/issueFull Print Program

Package – 7x rate/ issue

Full Page 4 Color $2,950 $2,650 $2,500 $2,375

Full Page B&W $2,490 $2,190 $2,025 $1,925

1/2 Page 4 Color $1,950 $1,700 $1,650 $1,575

1/2 Page B&W $1,490 $1,290 $1,240 $1,175

1/4 Page 4 Color $995 $895 $850 $800

1/4 Page B&W $535 $450 $400 $275

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Global Events For Heavylift, Project Cargo,

RoRo & General Cargo

Breakbulk events are the largest and most important global industry gatherings now in the Americas, Europe and Asia for companies involved in the shipping of heavylift, project cargo, RoRo and traditional breakbulk cargoes. It’s where shippers have the opportunity to meet and develop relationships with the leading specialized carriers, forwarders, ports, terminals and packers who have the expertise and resources to handle oversized cargoes with unique handling requirements.

Put the dates on your calendar and join us for bustling exhibitions and 2-day conferences with industry leaders addressing the most pressing breakbulk transportation issues.

Visit our website for more information: www.joc.com/events

May 18-20, 2010Antwerp ExpoAntwerp, Belgium

January 24-26, 2011Suntec Singapore Convention & Exhibition CentreSingapore, Singapore

October 12-14, 2010Hilton Americas Houston & George R. Brown Convention CenterHouston, TX

©20

10, U

BM Gl

obal

Trade

OFFICIAL PUBLICATION

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Jacinto College for two-year certifica-tions, then to Texas A&M University – Galveston for four-year degrees, and, ulti-mately, the University of Houston – Clear Lake for post-graduate degrees. At each step, students who have obtained certification can enter the maritime workforce for financially rewarding careers.

Another BAHEP initiative directly affects the entire Bay Area Houston region with economic repercussions for the entire country should the Port of Houston, specialty chemical and energy-related businesses shut down due to hurricane damages. Again, through IMAC, BAHEP has led the formation of the Coastal Storm Protection Alliance. This coalition consists of organizations, business leaders and individuals interested in evaluating storm surge pro-tection models and provides leadership to advance these models for further consideration and funding.

PHA’s small business community has also benefited from BAHEP. Through a partnership that began in 2008, SATOP provided technical assistance to 13 businesses as a result of a direct mail letter distributed by the Small Business Development Program.

“PHA’s Gilda Ramirez and Pedro Garcia were espe-cially helpful in implementing this successful program,” Mitchell says.

SATOP also participated in PHA monthly small busi-ness forums by presenting information on the free techni-cal assistance that SATOP provides.

“The Port of Houston Authority and BAHEP have had a long and mutually beneficial relationship,” he says. “The port’s facilities are a tremendous asset when we talk with site consultants about relocating businesses to the region. Our work on behalf of the maritime industry is producing exciting results that will benefit so many people. I look for-ward to the great things we will accomplish together.” n

BUSINESSCONNECTIONS

Since 1976, the Bay Area Houston Economic Partnership, or BAHEP, and its predecessor organization, the Clear Lake Area Economic Development Foundation, have served the Bay Area Houston region by encouraging new business expansions and relocations, thus creating new employment opportunities for residents while stimu-lating regional economic development.

Bob Mitchell, BAHEP’s president since January 2008, joined the organization in 2000 to oversee the state-wide implementation of the Space Alliance Technology Outreach Program as its executive director. SATOP, administered by BAHEP, is a state of Texas and federally funded initiative designed to transfer the knowledge and technology of the U.S. space program to small businesses to solve technical challenges.

A member-driven organization, BAHEP has a diverse membership encompassing 13 cities, Galveston and Harris counties, and the Port of Houston Authority. Mitchell says much of BAHEP’s success is due to its committee structure.

“We collaborate with approximately 260 investor companies, business professionals, local governments, and educational institutions in southeast Texas,” he says. ”Representatives from our partners participate in more than a dozen different BAHEP committees that work on initiatives as varied as aerospace, maritime, education, Ellington Field, health care and small business.”

BAHEP’s International Maritime Advisory Committee has been working on an opportunity to provide numerous interesting careers in the maritime industry. Recognizing that Houston Pilots navigate every vessel through the Houston Ship Channel and that the need for maritime personnel will become even more acute when the widen-ing of the Panama Canal is completed in 2014, IMAC has collaborated with the PHA Maritime Academy Curriculum Committee to develop a high school mari-time curriculum and is facilitating the development of curricula for high school programs in Bay Area Houston.

BAHEP has been coordinating its maritime workforce initiatives with the region’s institutions of higher edu-cation as well. Students from the high school programs will be able to continue on the maritime pipeline to San

Bahep, pha woRking togetheR foR the futuRe

Bay Area Houston Economic Partnership President Bob Mitchell

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SPOTLIGHTONSMALLBUSINESS

Hayley HubbardHayley Hubbard’s initiation into the trucking busi-

ness was a painful one. Her stepmother, Christine Louise Thompson, had started TLC Trucking and Contracting in the 1980s, but in 2002, injuries she received in a helicopter crash left her a quadriplegic. The next year, Hubbard gradu-ated from college with an advertising and marketing degree and began helping her dad run TLC (the letters stand for her stepmother’s initials backwards).

“I try to keep my stepmom involved in the business even though she can only communicate by blinking,” Hubbard says. “I read Christopher Reeves autobiography and he stressed the importance of maintaining normalcy. He couldn’t feed his dogs, but he could watch someone feeding them. Even if she can’t physically do it, I want to make sure she can participate in the business and help make decisions.”

Hubbard’s father was a highway/paving contractor so she was familiar with the business. After graduating from college, she began the process of rebuilding her stepmoth-er’s business. Seven years later, the company, which sup-plies trucks and materials for contractors, is doing well.

tlc tRucking gets tendeR loving caRe

“I’ve used my advertising background to redo the logo,” she says. “As a young woman, 5’4” and blonde, people don’t always take me seriously the first time they meet me. It can be hard being a woman in this industry. But I just kept on being persistent. Chris always stressed customer service, that the customer is always right.”

Hubbard’s perseverance paid off and people started tak-ing her seriously. She has developed a bigger client base of 20–25 different companies and owns four trucks. She has five full-time employees , including drivers and office staff, in addition to independent contractors.

TLC works with PHA’s Small Business Program and has done milling, asphalt overlay and wharf work at Barbours Cut Container Terminal.

“The Small Business Program has helped our company a lot,” says Hubbard. “It’s very important for women-owned businesses like mine. And we thrive on customer satisfac-tion, respect and quality. We are willing to work with any-one to find the best way to get the job accomplished.” n

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