MARCH/APRIL 1999

OF HOUSTON

M A G A Z N E

4

8

1_8

22

H. Thomas Kornegayk:Xi: t ~!’,P i !RFC f’~)i~

John P. HoranD RECr@R OF TRADE

DE%’LL( PMEH

Rosie Barrera

[ ~- &i A;R:

James O. EldridgeF( ( R (:.-

*"L L1J~i [ ] R,"\ T 1:2)

James B. Jackson[-,iLl? :i ~, : :

FAT T

John T. Scardasisi ~ : ( ] 2) ~ iL k? A ! , ~ !:

Ted G. WaitersE; r~E’, T(’R ()F

p st( ; Ei: 7 ", 4 ’ ~’

Martha T. Williams:it ’,~t ~’= ;.’;Lt:t

Tommy J. Tompkins

Maga~,ine Staff

Editor - Caleen Burton Allen

Graphic Design - Limb & Associates

Writer Esther delpolyi&Associates

Ad Sales/Production - Limb & Associates

Photographer- Bruce Bennett

Photographer - Raymond Groscrand

FIELD

OFFICES

New Yo~kJack Wojewnik

1650 Sycamore Avenue, Suite 23

Bohemia, NY 11716

Phone: 516 244-3677

Fax: 516 244-3757

South Amer ca

Arturo Garnez

Torre Centrue, Local #2 PB, Ste 916

Avenida Venezuela, Urb. El Rosal

Caracas, Venezuela 1060

Phone: 011 582 421 5615

Fax: 011 582 976-7063

Fanny Marina GonzalezCalle Loma Redonda No. 2712Col. Lomas de San Francisco

Monterrey, Nuevo Leon 64710

Phone: 011-528-347 9188

Fax: 011 528-346 7740

E mail: phamty@iMosel.net mx

Jose Carlos Medina Rendon

Calle Loma Redonda No 2712

Col. Lomas de San Francisco

Monterrey, Nuevo Leon 64710

Phone: 011 528 346 7702

Fax: 011-528-346 7740

E mail: transproa@infosel.net.mx

4 - t:: (J,

Julieta Sanchez Trejo

Dakota No. 159

Col. Napoles

CP 03810

Mexico, DF

Phone: 011 525 536 6533

Fax: 011 .525 543 2681

E mail:

pha@mailnextgeninter.net.mx

This publication is not copyrighted and permission is given for the

reproduction or use of any original materials, provided credit isgiven to the Port of Houston Authority. Additional information,

address changes, extra copies, or advertising specifications may beobtained by writing to tile Port of Houston Magazine.

The Port of Houston Magazine is published by the Port of HoustonAuthority, P.O. Box 2562, Houston, Texas 77252-2562, and is

distributed free to maritime, industrial and transportation interests inthe United States and foreign countries.

Port of Housto~ web pacewww,portofhouston. :ore

Executive OfficePort of Houston Authority

111 East Loop NorthRO Box 2562Houston, TX 77252 2562Phone: 713 670 2400F~x: 713-670-2429www.porto~houston.corn

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PORTOF HOUS [ON MAGAZINE 3

2K petrochemical warnings

sounded "Officials race

computer-driven clock to avcrt

disaster at local plants" screaJned

a page one banner hcadlinc in a recent issue of

thc Houston Chronicle. Other Chronicle

headlines declare, "Only a t~)ol buys into quick

fixes tbr ’Y2K" bugs" :rod "With Y2K looming,

somc prcpare fbr life ~fithout tcchnology."

The ]ournal of Commerce has also given

the issue much coverage with headlines such

as: "Cargo execs tear othcrs’ millennium

woes," "Risk managers worry about Y2K

coverage," "Reports of Y2K f3.ilures on the

rise," and "Ship lines have a handle on

millennium bug, but others may not."

Notice to Ship Agentsfrom Greater Houston

Port Bureau

Y2K and Port Operations

December 31, 1999/January 1, 2000

Representatives of public and private

marine terminals at the Port of Houston

and maritime support organizations,

including the Houston Pilots, have

established that the operators of facilities

and services in the Houston Ship Channel

will conduct "business as usual" over the

Y2K period.

Each operator has expressed

confidence that their own computer-

assisted activities will be free of technical

impediment and in filll operation. Checks

and systems upgrades are ongoing and

will be completed before the new

millennium.

To ensure all vessels and barges

visiting the Port of Houston are well

prepared, a notice will be sent to all ships

agents doing business in the Houston

Ship Channel to alert their Principals that

all Port of Houston marine terminals and

port services including pilots, tugs, etc.

will be operating normally over the Y2K

period. It is expected that vessels and

their crews be fully operational during the

transition.

A public meeting will be held in May

by the U.S. Coast Guard and the maritime

industry to review Y2K readiness and to

examine what additional steps may be

required to ensure a smooth transition.

Prior assurance of vessel and personnel

Y2K compliance may be called for before

a vessel will be permitted to enter the

Houston Ship Channel over the critical

time period. At this time, however, please

alert Ship Principals to Houston’s

millennium arrangements.

For more information or assistance,

please feel free to contact Alistair

Macnab, Executive Director, Greater

Houston Port Bureau, 713.678.4300

or 713.678.4839 (fax).

At the Port of Houston Authority,

addressing the potential problems of

the Year 2000 is nothing new.

Management Information Systems staff

has been carefully examining all critical

systems to ensure Y2K compliance since

early 1998. During a Port Authority

management retreat last year, Jim

Eldridgc, Director of Administration

and responsible fi)r the Port Authority’s

Management IntBrmation Systems

(MIS), urged broadening Y2K

preparedness because of the potential of

a Port-wide problem.

"Implementation of MIS’s plan

was already making the mainframe Y2K

compliant. What concerned me was the

possibility of embedded computer chips

in various pieces of machinery that we

use that may or may not be date

sensitive," states Mr. Eldridge. "To my

knowledge, we have found none and

we have done an inventory ofwherc we

might have exposure.

"For cxamplc," Mr. Eldridge

continued, "If there was a chip in a

wharf crane at Barbours Cut that did

something based on date, it could

become confused on January 1, 2000

and cause the Port operational

problems. It’s an unlikely scenario, but

unless you investigate it. you would

place yourself in a poor business

position just assuming that it will not be

a problem."

Port Authority upper management

immediately saw the wisdom in Mr.

Eldridge’s warning and developed a

detailed Year 2000 plan. The plan

covers all the Port’s business units and

includes scheduling, inventory,

assessment, validation, testing, and also

contingency planning fbr the Port’s

computer and tclecommunications

systems in case of so-called embedded

computer chips and code.

Overseeing progress of the plan is

Angus Hanes, Port Authority Assistant

Terminal Manager oftbe Turning Basin

and Year 2000 Project Coordinator.

Mr. Hanes says, "Fo my knowledge,

systems have been made compliant

including all acct)unting functions and

MIS mainframe tracking of vessels and

containers. Wc are now at the next

level, looking at each container crane’s

system and working with the

manufhcturers to make sure there are

no old embedded chips that need to be

updated."

Every new piece of sotiware and

hardware the Port Authority acquires is

examined for Y2K compliance. Mr.

Hanes is also diligently contacting

those systems that have or may have a

substantial impact on the Port’s ability

to conduct business without significant

disruption from thc Year 2000 event.

He is working with them to get

assurances that their systems are Year

2000 ready. "There are a number of

large vendors like Houston Lighting

and Power which provides electricity to

the Port. If such a vendor is not Y2K

compliant, it would definitely impact

our ability to service our customers,"

points out Mr. Eldridge

Mr. Hanes agrees. "In |act, when

appropriate, the Port plans to enter into

joint testing programs with outside

entities to determine whether the

conncctions are or can be made Year

2000 ready and sec if contingency plans

PORT OF HOUSTON MAGAZINE

nccd to bc developed to minimize any dis

ruptions in case such systems arc not Year

2000 compatible.’"

No onc, including thc Port

Authorit.v, can makc any guarantccs about

Ycar 2000 rcadincss. "The concern all of

us havc is that it will bc a ’R)r a want of

nail’ situation: SOl]]C small malthnction

that is relatively insignificant but might

cascadc into a largcr problcln," cxplains

Mr. Eldridgc. "Wc have a lot of people

who arc dcpcnding on us to do certain

things. Wc arc doing our bcst to check

and double chcck to insure wc have

things well in hand. But there is always

the potential l-br something completely

LII]SCCI] .~

Hm~cvcr, when you have tlaoughtour the situation and have madc every

conscientious ctfbrt to gct ready as the

Port of Houston Authority has, stocking

cmcrgcncy tbod and prcparing tbr the end

of the world is certainly not ncccssarv. ,,~

Slop Oil ServiceSpecialists in managing MARPOL Annex I

and Annex II substances.

Full Permitted Recycling and Treatment Facility

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Processing of Engine Sludge, Cargo Washings and BilgeWater

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Turnkey Service and Documentation

Chemsep, Inc. P.O. Box 1590 La Porte, TX 77572

Phone. (281) 457-5341 Fax. (281) 457-1595

E-mail: chemseperic@ghg.net

Is somcthing important

happening at your

company~ Big ncw

contracts or staff changcs

in scrviccs {{~ new

appointments ~>

Let us know about il and we may include

your news in an upcoming Port magazine

Please send your press releases to:

Port of Houston Magazine, P.O. Box

2562, Houston, TX 77252-2562

or by fax to 713/670-2425.

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PORT OF HOUSTON MAGAZINE

CottonReturns To Port of Houston Authority Terminal - Galveston

Galveston was once the world’s leading cotton port. After a

long absencc, cotton has returncd to the Port of Galveston duc to

eftbrt luring ncw carriers to the Port of Houston Authority

National Railway

Company of

Dixmoor, Illinois

recently imported

eight locomotives

to the Port of

Houston Authority’s

Dock 17 at the Turning Basin Terminal. The

locomotives were transported on the Jumbo

Spirit and manufactured in Australia. Each

weighs more than 150 tons.

1998, 450 containers filled with 40,000 bales of

by truck and by box car to the warehouse at Pier

majority of the shipment, 350 containers, left tbr South

on the "Florida", a Mediterranean Shipping Company

vessel The remainder of the containers went to Europc aboard K-

Line’s "Gulf Bridge 2’

Fhe Port of Galvcston, working closely with thc Port of

Houston Authority which operates thc container terminal,

pertbrmcd maintcnancc and repair work to fhcilitate the unloading of

the trucks and box cars, and thc stuffing of the COlltainers.

"The Port of Galveston will continuc to work in cooperation

with its parmcr, the Port of Houston Authority, to develop new

containerized cargoes fi~r this area," statcd Ron Popham, Director of

Marketing for Port of Galveston. "Our effbrts will result in new

carricrs tbr thc container terminal and reestablish the Port of

Galveston as a first-class container facility."

Galvcston saw thc rcsurgcncc in brcakbulk cxpo,ts through the

waterfront warehouses in 1997. Thc Port rcduccd thc tariff on

breakbulk cotton and in conjunction with concessions by Galveston

labor, created a significant package for promoting Galveston to

cotton shippers.

During the years that Texas led the nation in cotton production,

the Port of Galveston handled the bulk of America’s cotton exports.

In particular, the 1960s and 1970s were good to Galveston. In

1964, a record one million bales of cotton or one-third of all

production leI~ through Galveston. By 1966, the figure grew to 42

percent. The total then reached 55.2 percent of all exported cotton

in 1968. Throughout the 1970s, a million bales of cotton let~

Galveston’s Port annually. In the carly 1980s, cotton started moving

in containers and breakbulk cotton exports diminished.

PORT OF HOUSTON MAGAZINE 7

\ \

\

REAL CATCH-

he U.S. economy grows stronger each day while the

Asian, Russian and South American cconomies continue to

struggle. Such inequity puts the Administration in the

challenging position of having to balance our nation’s

need to protect domestic business interests and jobs while

allowing businesses to capitalize on economic

opportunities from abroad. No issue highlights the

complexiw of this challenge more than imported hot-

rolled carbon steel.

Until recently, the U.S. ranked as the third largest

producer of steel after China and Japan. However, strong

demand and favorable market conditions since 199B

spurred an expansion in U.S. steel making capacity. Such

increased capacity, combined with a sharp drop in Japanese

production, allowed the U.S. to become the world’s

largest producer of steel in 1998.

Despite such growth in U.S. steel production, global

output of steel, especially by Japan, Russia, Korea and

Brazil remained high at a time when global demand was

falling everywhere except in the United States. Across the

nation, steel imports surged to record levels in 1998,

rising more than 60 percent over 1997 levels according to

the Administration’s recent report to Congress. Faced

PORT OF HOUSTON MAGAZINE 9

On the Horns or a D

For the Port of Houston

Authority, imported steel

meant big business in 1998,

with economic uncertainty, foreign steel producing countries

simply tried to export themselves out of economic trouble.

For the Port of Houston Authority, imported steel meant big

business in 1998. Some 4,023,726 tons came in during 1998, up

an astonishing 58 percent over the 2,549,727 tons that came

through the Port Authority’s docks in 1997. Excessive foreign

production was also due to the fact that many foreign governments

cling to the notion that steel-making capability is essential to self-

sufficiency and economic achievement. Support of the steel

industry through government subsidies is not an unusual practice

by foreign competitors.

Excess production led to a dramatic price decrease. The

average value per metric ton for all steel imports fell fi’om $512 at

the beginning of 1998 to $400 by October.

U.S. steel producers were forced to try to match prices in

order to remain competitive. They also turned to elected officials

and the news media to air allegations that foreign producers were

"dumping" their steel. Dumping occurs, according to the U.S.

Commerce Department, when a foreign producer sells a product in

the United States at a price below that producer’s sales price in the

country of origin, or at a price lower than the cost of production.

U.S. production also dropped offby 7.8 percent from June to

October 1998 as compared with the same period a year before.

This placed many U.S. workers in peril. According to labor

statistics, domestic jobs in steel fell by 10,000 to 226,300 between

November 1997 and November 1998. Such a job loss was wholly

unexpected in an industry that was used to seeing average declines

of only 1,225 jobs annually from 1993 to 1997. Three steel

company bankruptcies are also blamed on cheap imports.

ILEMMAhile the U.S. Treasury Secretary got an earful

t~om businesses unwilling to give up cheap imported steel, labor

organizations and steel manut~acturers demanded sweeping trade

restrictions f~om the U.S. Secretary of Commerce. "It seems the

Administration is divided between supporting free trade on the one

hand, and on the other hand, labor and domestic producers who

feel that the local steel industry is being destroyed as a result of

cheap imports," explains John Scardasis, Director of Operations for

the Port of Houston Authority.

Also of great concern is the fact that steel-producing countries

like Brazil, Russia and Japan are already in an economic turmoil.

"There’s no real sense in making the situation worse for

them, because they are too vulnerable at this time," concludes

Captain Scardasis.

The Administration certainly agrees. According to its January

1999 "Report to Congress on a Comprehensive Plan for

Responding to the Increase in Steel Imports."

Economic recovery in Asia and other emerging markets would

be the single most significant antidote to excessive import pressures

in the steel industry. The U.S. steel industry has experienced the

direct effkct of large increases in lower priced imports. In addition,

our economy has been hit by the indirect effkct of price pressures

from an oversupply of steel exacerbated by falling demand in Asia

and Russia. In the absence of international efforts to stabilize the

economies and currencies of countries affected by the crisis, it is

likely that currencies would have fallen even further and the effects

on our trade flows would have been even larger.

In other words, the Administration is hoping for an global

economic turnaround betbre they are faced with having to

take decisive action in a situation that offers no obvious

win win solution.

10 PORT OF HOUSTON MAGAZINE

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SJDO# #UDm JOJ SlOAOI

1377 naa

Kate Hakala fbund her way into the

maritime industry, but only after taking

care of other lifE goals.

Kate started college in pre-mcd,

realized being a physician was not the

career she wanted, left school, got

married, and concentrated on raising her

children instead. Five years ago she

decided to return to the world of work

and took a job as an executive assistant at

James J. Flanagan Shipping Corporation.

Quickly she moved into terminal

management in the container yard and

overseeing the company’s empD’ yard

at Barbours Cut. "I got my education there,

seeing what the real lifE, day-to-day

problems were from both the shipping

company’s side and the truckers’ and

I learned how to keep ttfings moving,"

says Kate.

During her mo years at Flanagan

supervising gate, vessel, maintenance and

rcpair operations, Kate developed a

number of innovative changes that

increased productivity and customer

satisfhction. She completed the Institute

of International Container Lessors, Ltd.

(IICL) Container Chassis Inspector

examination and became a certified

intermodal equipment inspector.

From her work, Kate saw how the

industry had a real need for better control

ofintermodal equipment. By combining

her knowledge of the business with her

partner’s programming skills, Kate

opened Innovative Marine Concepts, Inc.

three years ago. The specialized

proprietary sofb.vare that they developed

and sell to customers performs all the

research, documentation, invoicing and

collection fbr container and chassis per

diem and for any damage. This

information is tracked on a national basis

using a steamship line’s raw gate move

data and interchange agreement.

In addition, Kate can transfer

important maintenance and repair

documentation online to monitor repairs

between the terminals and the steamship

lines. From this data, repair histories are

created that allow Kate to pinpoint trends

and problem areas l~br her clients. "When

you’re computerizing a large amount

data, you can see repeating events such as

missing data or other trends and advise

the client it is happening," explains Kate.

Kate feels women are a definite asset

to the transportation industry. "Women

bring to thc maritime industry a flesh

prospective. I hear all the time, ’That’s

not the way we used do it.’ This is a very

traditional industry where no one wants

to change. I believe that women are

more open to changes and investigating

possibilities," explains ILate. "Women are

willing to try to work with others and

accept input and look at things differently.

Women can see new possibilities."

Certainly Kate saw new possibilities

and built a thriving business as a result.

Four years ago, Jo Anna Allen became

the very frst woman to hold the position

of Operations Supervisor tbr the Port of

Houston Authorig~.

The Port of Houston has ahvays been a part of

her lif~. lo Aama grew up in La Porte and her dad

worked on the Channel fbr many years as a pile

driver constructing wharves and clusters. "Ever

since I was a small child, I have ahvays associated

New Year’s Eve to the sound of the ship and nag

whistles announcing the new ),ear."

Jo Aama finished high school and worked in

fast fbod, retail, private securit3.; and banking befbre

landing her first job at the Port eight and a half

years ago as a Dispatcher fbr the Port Police and

then at the Bulk Materials Handling Plant as a

Grain Clerk.

She moved into the Operations Division i-bur

years ago where she coordinates each vessel by

assigning it to an appropriate wharf. When making

vessel assignments, Jo Amaa must consider several

factors. For example, vessel length, draft

PORT OF HOUSTON MAGAZINE 13

requirements, container cranes needed,

cargo destination, and point of origin fbr

inbound cargo.

Much of Jo Alma’s time is spent

gathcring vital infbrmation from the vessel

agents and the stevedore compmfies that ~411

be worldng on the vessel at the Port. "This

is first job that’s kept my interest. It is never

boring," explains Jo Anna. "There are

always changing factors that require your

attention or an immediate reaction. The job

is fast paced, with constant intcrruptlons.

You juggle lots of things at once and must

make quick decisions."

Jo Anna has ambitions of moving up at

the Port Authority and has been attending

college to prepare hcrselE Currently she is

working on her Associate of Science degree

in Business Administration at Ire College in

Baytown and MII continue at a local college

or university to complete a Bachelor’s

Degree in Business with a minor in

Environmental Science.

"Studying environmental science will

help me to get ahead in this industry. There

are much stricter guidelines than even five

years ago and the safk handling of materials

is an important part of Port business," says

Jo Anna.

Jo Alma had to work hard u) prove hcr

worth to all thc men x~ith whom she came

into contact durhag the first months on the

job. "It took me three months to learn

my job. After that everyonc xx’ith whom I

worked realized I wasn’t stupid. They’d

never dealt w~th a woman, but once I learned

the terminology, it became fun fbr me.

"I deal Mth very f~ew women on the

job. On a daily basis I handle 40 to 60

phone calls and talk to less than one woman

in a week. I do find the men treat me much

nicer than they treat each other or my

working partner, Mike Schubert,"

continues Jo Anna. "But this industry

needs women. In my job, it’s easier fbr a

woman to keep all sorts of b~ls in the air at

once to keep things going and to keep

things floxving."

Despite all the interruptions, Jo Alma

works hard to not lose sight of what she’s

doing each day mad where it could lead her

in the future.

Tiffany

Slocumb

found her

place in the

maritime

industry

quickly and

doesn’t ever want to leave the business.

She studied psychology for three

years in college and finds it very useful fbr

any occupation. She left school,

although she plans to finish her degree in

something beneficial to her new career.

After working in retail management

and fbr a general contractor, she landed a

job at Strachan Shipping Company as

a Yard Superintendcnt. She learned the

job quickly, and was soon offered a

position in sales by another employer

impressed with her positive and

ambitious attitude. Her boss at Strachan

had taken a new job in Califbrnia, so she

quit her job, never imagining she could

advance further there.

Within three days of resigning,

Strachan asked her to come back and be

Manager of Operations for Maintenance

and Repair, the youngest person to hold

that position in the company. "I never

dreamed in a million years I’d get nay

own yard," Tiffany declares after three

years at Strachan. "I arn grateful that I’ve

been given this opportunity to prove

myselt; because it takes a whole lot longer

far a woman to prove herself than it does

fbr a man."

Tiffany points out the need to work

hard to realize your dreams. "You have

to start somewhere and you’ve got to

have thc drive and motivation to want to

learn and succeed. There are good days

and there arc bad days, and the job isn’t

pretty all the time. I’ve encountered lots

of men whose attitude is that a woman’s

place is in the home and that what I do is

a man’s job. But there’s no reason that

other women can’t do what I’ve done."

Tiffany sets her goals high. "I have

no intention of retiring in the container

yard. I’m not married yet, have no

children, and am willing to work long

hours now so I can move tip later,"

Tiffany explains. She has her eyes set on

upper management, perhaps at the Port

of Houston Authority.

She’s also doing what she can to

help other women succeed in the

transportation industry. "I have three

girls working for me right now that I

hired. I want to be a role model and

show that a woman can be in charge."

There’s no doubt that Tff’fany is

doing all that and more. ,,?,,

14 PORT OF HOUSTON MAGAZINE