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Home Port News Port of Houston gains federal funds for ship channel expansion

Port of Houston gains federal funds for ship channel expansion

The Port of Houston has received notification from the United States Army Corps of Engineers (USACE) that it was awarded a “new start” designation and US$19.5 million in federal funds to begin construction of the Houston Ship Channel Expansion Project.

[s2If is_user_logged_in()]The project was authorised in the Water Resources and Development Act of 2020 as part of a larger legislative package passed by Congress in December.

The Houston Ship Channel Expansion, known as Project 11, will widen and deepen the channel for the safer and more efficient navigation of vessels calling the port’s eight public terminals and more than 200 private facilities operating along the channel, according to an announcement.

Port of Houston chairman, Ric Campo highlighted that the port needed less than a month to go from Congressional authorisation to securing a pathway for construction. “Project 11 will provide the greater Houston metropolitan area continued job growth and economic development opportunities, while improving air quality by reducing traffic congestion on the channel,” he said.

County Commissioner Adrian Garcia, who represents Harris County Precinct 2 and much of the port region, has also noted how important the ship channel is to the region.

“This new development is a huge win for the 1.1 million people in Precinct 2 in part because it will bring about more economic development, which invariably leads to more jobs,” he commented.

The award is critically important for the port and channel stakeholders, as this designation and funding will allow the Corps and the port to execute a Project Partnership Agreement and for the port to begin construction on the critical elements of the project, said the port in its announcement.

For the past seven years, the port, bipartisan Congressional delegation, and channel stakeholders have been working together to make this channel improvement project a reality, including writing letters and making calls to influential federal decision makers in Washington, D.C.

In addition to the “new start” designation and US$19.5 million in construction funds, the Port has also received US$55.5 million in annual operations and maintenance funding to ensure safe and efficient vessel traffic on the current channel.

The Port of Houston is now the largest port in the US in terms of total waterborne tonnage and the sixth-largest in terms of container volumes.

In particular, the port’s container activity rose again in December, pushing the level of
TEU for the year high enough to virtually match the level set in 2019, which was a record year. Port Houston handled 4% more boxes in the last month of 2020, compared to the same period in 2019, which translated to 264,626TEU.

Furthermore, Port of Houston chief infrastructure officer, Rich Byrnes, has presented a blueprint for the growth and development of the port over the next 20 years to the Port Commission in November.

These high levels of cargo activity were reached despite the adverse effects of the Covid- 19 pandemic and its impact on global commerce, according to the port, which said, “cargo began slowing worldwide in March and continued through the summer, while imports began improving toward the end of the year.”

As 2021 kicks off, Port Houston Executive Director Roger Guenther is optimistic that the rebound in container volumes underway at Port Houston will continue, as the port projections for this year indicate additional growth. “To support the growing customer base, Port Houston continues to expand, investing in infrastructure and labour,” he said.

The Port Houston 2040 Plan addresses a broad range of topics covering infrastructure, operations, emerging technology, environmental stewardship, safety and security, community partnerships, and market dynamics.

Additionally, the plan will provide a tangible vision of how Port Houston is creating a stronger and more resilient port, with sustainable contributions to the economy, environment, and local communities.

Ric Campo said the plan is a proactive one focused on Port Houston‘s ongoing and long-term efforts to be a world-class port.

The objectives of the proposals include communicating development plans and infrastructure needs to stakeholders; enabling flexibility and adaptability to respond to change over time; guiding longterm planning and decision-making; and to inform policies and prioritise investments.

Byrnes has noted that four core strategies for Port Houston’s future growth and development emerged through the planning process. “We have labelled these strategies the Four Cs of Channel, Cargo, Community, and Change to reflect Port Houston’s role as an authority, port operator, navigation sponsor, a responsive and responsible partner, and economic catalyst,” he pointed out.

“We recognise that achieving the goals established by the 2040 Plan will require the concerted efforts of Port Houston with numerous governmental agencies, port users, customers, non-governmental organisations, community leaders, and area residents,” Guenther commented.[/s2If]

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Antonis Karamalegkos
Managing Editor

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