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Houston * Galveston ¯ Freeport ¯ Corpus Christi

September 1983 1

Our facihhes on the Houston Ship Channel

Cut downtime with full topside repair,cleaning, and oil spill services!

Gulf coast servicerepresentatives for:Diesel Propulsion

SULZERM.hk.NBURMEISTER & WAIN

RefrigerationEMAILCARRIER TRANSlCOLD

CranesLIEBHERR

Full service: dockside,at sea, overseas.Foreign diesel repairsCentrifugal rebabbittingElectronic and automatedsystems repairsMotor and generatorrewindingBoiler repairs and steelworkCertified gear testingTank cleaning and oil spillrecovery

Complete facilities forany job.Machine and boilermakershops with largelathes, mills and pressesBearing shopElectrical and motorrewind shopLay berth with utilitiesCrane barge, tug, andworkboats

Full stock of portableequipment.GeneratorsCompressorsGangwaysPumpsWeldersBoom and winch trucksVacuum trucks

~/SINCE 1910

We’ve got the experienced personnel to solve your problem.., any day, any time, in port or at sea.

Marine Maintenance Industries PC. Box 5455 ̄ 8201 Cypress at Broadway, Houston, Texas 77262, (713) 928-5911 ̄ Telex 792 769Galveston 1802 Mechanic, Galveston, Texas 77550 ̄ (713) 762-7785

Divisions: HARRISBURG MACHINE COMPANY ¯ CLEAN CHANNEL INDUSTRIES

Ma~ne Mainteaaace |ndustries(713) 928-5911 ,.0,-, o,.0.,,,,.,,,,,.,,~,.~

PORT OF llOUSTONVolume 27 Number 9

Port CommissionersAnd Staff

FENTRESS BRACEWELL, ChairmanW.D. HADEN, II, CommissionerMRS. MARCELLA O. PERRY, CommissionerJOHN H. GARRETT. CommissionerHOWARD J. MIDDLETON. CommissionerRICHARD P. LEACH, E~ecuti~e DirectorJ.R. CURTIS, Director of Port Operations

TED WALTERS, Manager, Marine DepartmentW.D. DUNNAHOE, Manager. lurnin g Basin TerminalsJOHN HORAN, Manager, Barbour~ Cut TerminalW.E. GREER, Manager, Hou.ston t~iblic (;rain

Ele~’atorLESLIE J. SANDERFER. Manager. Bulk Materials

Handling PlantA. MONROE BEAN, Manager, Storage Warehouse~A.J.M. VAN DE VEN. Manager, Mainlename

DepartmentCLAUDE BARTH, Manager, Security Department

ARMANDO S. WATERLAND. InternationalSale.s Manager

R.B. AKKERMAN. General Saleg Mana~,,erLEON UTTERBACK, Eastern Sales ManagerJACK WOJEWNIK, At,st. Eastern Sales ManagerDAVID W. SIMPSON, 14;estern Sales ManagerJERRY D. KOTECKI. Midwestern Sales ManagerEDWARD L. HORN. (Ummunications Manager

NORMAN E. HUENI. Director oj Engineering

TOM KORNEGAY, (’hie/EngineerF. WILLIAM COLBURN, Director o/Admint~tration

LINDA REESE, ControllerALTON B. LANDRY, Manager. Personnel DepartmentTHOMAS CONBOY, Manager. Real Estate DepartmentBETTY GARRETT. Manager, Purchasing Department

ALGENITA SCOTT DAVIS, Couns-elLOUIS F. BROWN, JR.. Manager. SaJely and Insurance

DepartmentJOE SCROGG[NS, JR., Director o/Planning

MICHAEL SCORCIO, Director o/ Communit) RelationsJOE F. FLACK. County Audnor

EXECUTIVE OFFICES1519 Capitol Avenue, Houston, Texas 77002

P.O. Box 2562, Houston, Texas 77252Telephone: t7131 225-0671

TWX: 910-881-5787

TERMINAL OFFICESTurning Basin: 1713) 672-8221Barbours Cut: (713) 470-1800

BULl( PLANT OFFICE3100 Penn City Road, Houston, Texas 77015

Telephone: (713}453 3531

FIELD OFFICE60 East 42nd Street, New York 10165

Telephone: (2121 867-2780

OSeptember 1983

Official Publication

Port of Houston

Authority

September 1983

Moving to Intermodalism--Bangladesh Shipping Companyis planning to move into the container age. 6Hurricane Alicia--Port of Houston Authority facilitieswere back in operation the day after the tropical stormstruck. 8

Foreign-Trade Zone--The Port of Houston Authority’s ap-plication for a foreign trade zone permit is approved. 12

Old World Visit--A trade mission to Europe honors steam-ship owners and the shipping community there. 16Change of Command--The Houston Coast Guard unit getsa new commander in a colorful ceremony. 18Food and Drink--Houston port people have discovered ahangout that a well-known author would have loved. 22Salud!--The Port of Houston honors members of the inter-national trade and shipping community in Mexico. 26

Gulf Ports--Leading executives of sister ports visit Houstonfor a meeting of the Gulf Ports Association. 30

Texas Welcome--The new Japanese consul general iswelcomed at a Houston World Trade Association luncheon. 32Helping Texas Trade--The Texas Industrial Commission’sexecutive director discusses world trade efforts. ,.~

Port Tidings--A page of news and notes about people andcompanies in and around the Port of Houston. 38

On Th~ CoverThe M/V BANGLAR KAKOLI of Bangladesh Shipping Company

PORT OF llOUSTONEDWARD L. HORN, Editor RAY CARR1NGTON, Staff PhotographerJOE CHAPMAN, Staff Writer SHEILA ADAMS, Typographer

THE PORT OF HOUSTON MAGAZINE (ISSN 0032-4825) is published monthly by the Port ofHouston Authority and is distributed free to maritime, industrial and transportation interests in theUnited States and foreign countries. This publication is not copyrighted and permission is given forthe reproduction or use of any original material, provided credit is given to the Port of Houston. Ad-ditional information, extra copies or advertising rates may be obtained by writing the PORT OFHOUSTON MAGAZINE. Second class postage paid at Houston, Tx. and at additional mailing of-rices. Send address change to PORT OF HOUSTON MAGAZINE, P.O. Box 2562, Houston, Texas77252.

SHIPPING COMPANYThe only shipping company withtotal Saudl ownership.

4 Port of Houston Magazine

~PASADENA CONVENTION CENTER

Dallas

San Antonio Houston

Pasad~

Multi-purpose complex

13 million potential customerswithin 300 mile radius

Superior catering

Banquet capacity 2000

Exhibit booth capacity 170

Seating 3500 & 4000

Concert seating 3500

Beaches on the GulfFishing - Boating - CampingGolf - TennisEntertainment - Night ClubsFinest Gulf Seafood & Texas Beef

~/~.

PASADENA CONVENTION CENTER

OPENING OCTOBER 1983MAKE YOUR DATE

NOW7902 Fairmont ParkwayPasadena, Texas 77507

Contact:Ray Wilson, Director(713) 475-7837

September 1983

Bangladesh.Line plansfor growth

Oignificant growth plans are onthe drawing board for the government-owned Bangladesh Shipping Company,which is planning to increase containercapacity on the seas as terminals in thecountry build and develop to meet theintermodal challenge.

The line, whose vessels call monthlyat Houston and other Atlantic andGulf Coast ports, to and from theports of Chittagong and Chalna,operates a rather sophisticated all-around group of shipping serviceswhich are important to the economyof that developing nation.

A profile of BSC and its plans forexpansion were revealed by Com-

1

Stack sports distinctive "B"

mander A.A. Mustafa, managing direc-tor of the line, who was in the UnitedStates for a conference and a visit withthe line’s U.S. general agents, Hansenand Tidemann, Inc.

"Shipping in Bangladesh is an in-dustry by itself and not only a tradevehicle," he said. "It is an importantsource of employment for both land-side personnel and manpower at sea.There is a potential for tremendousgrowth--but not immediately becauseof the worldwide recession inshipping," he added.

Nevertheless, the line, whichoperates several different services, is

for Bangladesh Shipping

acquiring two new 13,000-ton multi-purpose ships which will be able tocarry 450 containers each. While onlyfive percent of Bangladesh’s water-borne trade is containerized, Mustafanotes that the ports are building forthe future. Chittagong has a major ter-minal for fully containerized ships, aswell as other vessels, near completion.

For now, the stuffing and strippingof containers is basically done at thepier in Bangladesh because of theabsence of inland container handlingyards and adequate inland transporta-tion for containers. "These are in thedevelopment stages as well," he said,noting that the country is dedicated to

6 Port of Houston Magazine

keeping pace with the internationalshipping community.

BSC was established in 1972 afterthe country became independent ofPakistan.

Its liner services, besides the U.S.route, include Bangladesh/U.K.-Conti-nent, as well as Pakistan/West Asiaand Far East/Japan. A conferencemember, Mustafa noted that only 2per cent of Bangladesh’s liner trades goto independents. "They are not a ma-jor factor," he said.

The line’s other businesses includechartering bulk vessels for the govern-ment to move petroleum, grain, andfertilizers to the country. BSC alsooperates a lighterage service inBangladesh.

In all, the company operates 25vessels which range from 13,000 to17,000 deadweight tons. Despite the30-foot draft in ports there, the line ispurchasing a 120,000-toh tanker andtwo smaller ones which will be used tolighter larger ships which exceed thedraft limitations.

The major commodity into theUnited States is jute, which is used inthe manufacture of carpet padding.Called carpet backing cloth, this pro-duct is facing stiff competition fromsynthetics, said Mustafa, and becauseof that shipping rates are very low tokeep the product price competitive.This is vital because the jute industryearns more foreign currency for thenation than any other business. Ship-ping, he added, is second.

Business is good, he said, but ship-ping rates are depressed. In additionBSC, while owned by the government,is a purely commercial, unsubsidizedventure. "We concentrate on pro-moting good service to our customersto stay on top," said M.G. Tarek, U.S.owner’s representative.

On the outbound leg, Houston playsan important role in the shipping ofcotton, one of the leading commoditiescarried by BSC from the U.S. toBangladesh. Hansen & Tidemann’sspecial knowledge of this field has beenan important plus for BSC. Other ma-

jor U.S. exports to Bangladesh includesteel and agricultural products,machinery and other consumer goods.Imports besides jute goods includefrozen shrimp, frog legs, handicraftsand garments.

Bangladesh has adopted theUnited Nations Conference on Tradeand Development (UNCTAD)40-40-20 cargo codes; its own cargoreservation clauses have not yet beenimplemented, however. With a well-balanced trade inbound and outboundin the United States service, BSC looksforward to making waves on theworld’s seas and hopefully, increasingservice to its ports of call, includingHouston. []

Bangladesh Shipping Company officials metrecently with their U.S. general agents, Hansenand Tidemann, Inc., in New York. Shown at thesession, from left, are G.M. Tarek, U.S. owner’srepresentative; Commander A.A. Mustafa,managing director of the state-owned line; SvendHansen, Jr., president of Hansen and Tidemann,and B. Wayne White, senior vice president anddirector of Hansen & Tidemann, headquarteredin Houston.

/

Tugboat crew prepares to re-float crane barge grounded by Hurricane Alicia

Hurricanedamage toport minor

Port of Houston Authority facilitiessuffered minor damage from HurricaneAlicia and were open for business theday after the passage of the worststorm in the area in 22 years.

The hurricane made landfallsoutheast of Houston before sunrise onThursday, August 18. At the Port ofHouston, cargoes were being discharg-ed on the following day and theHouston Ship Channel was re-openedon Saturday, August 18.

AS THE STORM moved towardthe coast, vessels of all types headedfor the safety of the Houston TurningBasin, head of deep-sea navigation.When Hurricane Carla hit inSeptember 1961, the scene was similar:Shrimp boats, sport fishing boats,sailboats, crew boats, work boats,salvage tugs, harbor tugs and otherstied up to Port Authority docks alongwith cargo ships.

In at least one instance, two cargoships were lashed side by side with oneof them moored to the dock in the

basin some 50 miles from the ragingGulf of Mexico.

Damage to Port Authority facilitiesincluded roof damage at the PublicGrain Elevator, a few sheets of cor-rugated siding and roofing blown offtransit sheds, and the destruction ofpart of the side of a transit shed whichwas struck by the bow of a ship. Thestorm surge was 15 feet above normaltide, sending the ship above the dock,one of the lowest in the port.

THERE WAS NO electrical serviceto the Turning Basin or Barbours CutTerminals Friday, forcing both areasto operate without the use of the PortAuthority’s computers. Power wasrestored the following Monday.

The Houston Ship Channel wasopened to outbound traffic on Satur-day after the storm. Inbound and out-bound movements continued on alter-nate days as aids to navigation wererepaired, but two-way traffic was soonrestored. []

8 Port of Houston Magazine

GuteWhen shipping to Bremerhaven andother European ports, you can restassured that your cargo will havea "good voyage" with Gulf EuropeExpress. Backed by Incotrans[Intercontinental Transport (ICT)BV] in the Netherlands andCompagnie Gen6rale Maritime(CGM) in France, we speak the rightlanguage to ensure that your cargoarrives quickly and intact to its Euro-pean destination. We have morethan 50 company-owned officesthroughout Europe, with extensivesales networks supporting eachof our five direct ports of call-Le Havre, Rotterdam, Bremerhaven,Gothenburg and Greenock.

For the same expert service in the U.S.,we are represented by Kerr SteamshipCompany, Inc., North America’s largeststeamship agency.

We schedule weekly sailings to/fromHouston and New Orleans and biweeklysailings to/from Mobile and Miami. Scheduleyour next trans-Atlantic shipment with thecarrier that knows Europe -- Gulf EuropeExpress.

Havre

Gothenburg

Rotterdam ~_~

Gulf EuropeExpress

g,,~peU.S. General Agent: Kerr Steamship Company, Inc.,2727 Allen Parkway, Suite 1500, Houston, Texas 77019,713/521-9600

Chicago- Incotrans (USA), Inc., 312/297-8000Cleveland ̄ World Shipping, Inc., 216/228-7676Miami ̄ S.E.L. Maduro (Florida), Inc., 305/371-4581Mobile ¯ Kerr Steamship Co., Inc., 205/433-1200New Orleans ¯ Kerr Steamship Co., Inc., 504/566-0500New York ¯ Incotrans (USA), Inc., 212/952-0320

Atlanta, Boston, Cincinnati, Dallas, Detroit, Galveston, Los Angeles,Memphis, Portland, St. Louis, San Francisco, Seattle, Tampa

@1982 Gulf Europe Express. All rights reserved.

September 1983 9

SBA Shipyards:some bigger, none better.

After 20 years of constructing ocean-goingbarges, SBA Shipyards is still going full speedahead. In fact, our 98-acre operation is one ofthe largest of its kind west of Tampa, Florida.And in this highly competitive business, we’dhave sunk long ago if we weren’t providingthe best service to our customers--nationwide.

"Big talk!;’ you say. But we can backit up. Our facility boasts a 1500-ton-capacity marine railway, 15,000-tonengraving dock and three 110-ton-

capacity cranes. We can handle vessels up to425 feet long, with 74-foot breadth and 13-footdraft. We’re also accredited by ABS, the U.S.Coast Guard and Lloyds of London¯

Whatever the need m from simple repairs tofull scale conversion--you can count on SBA

Shipyards. There may be a few bigger,but none better.

Our services include: repair¯ machine shop ̄ steel fabricating¯ sand blasting ̄ barge cleaning¯ shaping and coating

SBA Shipyards, Inc.P.O. Box 1386 ̄ Jennings, Louisiana 70546 ̄ Telephone: (318) 824-1519

September 1983 11

Congressman Fields, Chairman Bracewell, Maier at notification ceremony

/

FTZ"Houston foreign-trade zone

¯ application given approvalThe Port of Houston Authority’s ap-

plication for a permit for a UnitedStates Foreign-Trade Zone in HarrisCounty was approved recently by theForeign Trade Zones Board. U.S. Con-gressman Jack Fields of Humble,Texas hand-delivered notification ofthe approval to Port CommissionChairman Fentress Bracewell.

Houston’s zone is unusual in that itis comprised of multiple sites, makingit the largest in the United States. All29 sites and three expansion areas thatwere part of the original applicationwere authorized without exception.Manufacturing operations involvingsteel or steel products are restricted toitems produced for export only.

THE HOUSTON FTZ Corpora-tion, under contract with the Port ofHouston Authority, will manage thezone. The corporation has executivesexperienced in dealing with foreign-

trade zones and international com-merce in general.

Cleburne Maier, former commis-sioner of U.S. Customs Region 6,which includes Texas and the fourstates surrounding it, is the Customsconsultant. F.J. Spencer is president ofthe corporation. He also is president ofInternational Management Services(IMS), which has handled the applica-tion work for four foreign-trade zonesin the United States and two abroad.

The company did the applicationwork for the zones in Houston,Galveston, Brownsville and McAllenas well as Rotterdam and the Philip-pines. Spencer’s company is consideredthe foremost expert in the U.S. onforeign-trade zones.

GENERAL MANAGER of theHouston FTZ Corporation is CurtisSpencer and the assistant manager isRonald Spencer.

At the few multi-sited foreign-tradezones in the U.S., Customs and securi-ty control are conducted at each site.Houston’s is different in that such con-trol will be handled from a centrallocation. According to Curtis Spencer,U.S. Customs and the Foreign TradeZones Board allowed the zones to becontrolled from one location becausethe system was "so security-consciousand well thought-out."

Houston’s zone includes 12 siteswhich are available for public use.Two of the sites cover 351 acres of thePort of Houston Authority IndustrialPark East and West located on thenorth side of the Houston Ship Chan-nel on both sides of the Loop 610bridge in the Turning Basin area.

ALSO AVAILABLE are three PortAuthority-owned areas of undevelopedland that have all utilities available.The expansion areas are located at the

12 Port of Houston Magazine