Port of Houston Leads Texas Ports with Record Earnings

For the ninth consecutive year, the POH continued growing, with new contracts awarded for dockside electrical container cranes and a construction contract for a dedicated truck entrance to a terminal. Elsewhere, Texas port projects move forward.

Texas Ports Rank Among World’s Best

Despite suffering the ravages of Hurricane Ike in September, the ports along the Gulf Coast of Texas continue to rank among some of the top ports in the United States and as they move forward with capital improvement and expansion projects.

Two M1 Abrams tanks load aboard Military Sealift Command large, medium-speed, roll-on/roll-off ship USNS Fisher at the Port of Beaumont. Photo courtesy of the U.S. Navy.

The Port of Beaumont has a $58 million capital improvement program and the Port of Houston approved almost $300 million in new projects at the end of 2008. Despite substantial damage inflicted by the hurricane on the Port of Galveston, a revenue report released by the seaport shows that revenues are rebounding quicker than anticipated.

According to the report, the Port of Galveston exceeded its projected revenues for the month of December by $300,000 with total revenues of $2 million. Annual revenues for 2008 were $20.8 million, which were only $500,000 short of the record revenues recorded by the port in 2007.

In 2006, the Port of Houston ranked first in the United States in foreign waterborne tonnage, second in the U.S. in total tonnage, and 10th in the world in total tonnage, according to Port of Houston information.

The Port of Houston handles 69.6% of the containerized cargo market in the U.S. Gulf, and 95.5% of the containers moving through Texas. Much of that activity takes place at Barbours Cut Container Terminal, the largest container terminal on the U.S. Gulf Coast.

The Port of Houston ranked 16 in the World Port Ranking in 2007 in total cargo volume with the Port of Beaumont ranking 53 and the Port of Corpus Christi ranking 54, according to the American Association of Port Authorities.

Local ports find themselves in demand. 

Since the labor union strike in Long Beach several years ago, many U.S. companies that import product from Asia have determined that they want another port so business won’t be interrupted again,” Barbara Cutsinger, spokesperson for the Bay Area Houston Economic Partnership, told Texas Construction. She says this is one reason she thinks the Gulf Coast ports are growing. “From that time, more and more ships have come through the Panama Canal and into Gulf Coast ports.” She adds that activity is expected to increase and accelerate when the widening of the Panama Canal is complete is 2014.

Earlier this spring, the ports of Orange and Beaumont each received $4 million economic recovery grants from the U.S. Economic Development Administration to support economic recovery for regions most severely affected by hurricanes, floods and other natural disasters occurring during 2008. 

The awards were the second supplemental appropriation approved by the Economic Development Administration, which is a bureau of the U.S. Department of Commerce. The ports of Orange and Beaumont submitted projects to EDA in early January. The projects funded by EDA will equip the Port of Orange to handle petrochemical products under an innovative cargo transportation system; the project on the Port of Beaumont’s Orange County site will provide intermodal railroad connectivity.

The Port of Beaumont is currently building a $22 million deepwater wharf. Previously, the port received a $1 million EDA grant to pay for construction of a bulkhead and roadway on the tract. In 2005, the port received a $3.12 million grant to build a permanent, heavy-duty access road linking the site to IH-10. 

In October a two-story $5.4 million 27,000-sq-ft building was completed to serve as headquarters for the U.S. Army’s 842nd Transportation Battalion at the Port of Beaumont. The battalion is part of the command’s 597th Transportation Group, which is tasked with supplying military equipment and resources to sustain U.S. forces in action worldwide. The port is the largest military port in the U.S., handling about one half of all the cargo shipped in support of war efforts in Iraq.

The U.S. Surface Deployment and Distribution Command’s 597th Transportation Group dedicated a new high-tech office building for military personnel at the Port of Beaumont during a ceremony beginning last fall.

The new building consolidates military personnel at the port and provides training and growth opportunities. The facility’s completion also brings the battalion in compliance with the U.S. Department of Defense’s force protection and security requirements, battalion commander U.S. Army Lt. Col. Marshall Ramsey said.

The office building is one of the key projects in the port’s aggressive $58 million capital improvement program. Other projects include a new wharf on the east side of the Sabine-Neches Waterway and a new $5 million 140-ton harbor crane.

Port of Houston Experiences Ninth Straight Year of Record Revenues

A year-end review of the Port of Houston Authority determined that PHA realized its ninth consecutive year of record-breaking revenue in 2008.

PHA’s eight system-wide priority areas that experienced success include the container, cargo and cruise port; financial strength; economic development; a safe and secure port; facilities and waterways improvements; environmental protector, steward; strong community, industry and government relations; and a strong workplace.

Additionally, PHA commissioners awarded a contract to Shanghai Zhenhua Port Machinery Co. Ltd. of China for three dockside electric container cranes for Bayport Terminal for $34 million. The operation of the terminal depends on the availability of dockside container cranes for loading and unloading container ships. At buildout, Bayport will be able to handle an annual container volume of about 2.3 million twenty-ft equivalent units or TEUs.

Commissioners awarded a construction contract to Huffman-based Triple B Services LLP for secure truck entrance at Cargo Bay Road at the Turning Basin Terminal for $7.3 million. The project will provide a new dedicated truck entrance to the Turning Basin Terminal from IH-610 to Gate One Road.

$35 Million Runway Returns to Service at Intercontinental Airport

Runway 9/27 at George Bush Intercontinental Airport in Houston is now equipped with a state-of-the-art approach capabilities after a complete re-construction. The runway began accepting Category Three approaches in late February. The upgraded runway allows pilots the greatest precision in landing aircraft in low and reduced visibility flight conditions.

The $35 million reconstruction project, which was partly funded by a $27 million federal grant, was completed several weeks early and allowed airlines to utilize the rehabilitated runway during the heavy spring break peak-travel period.

The rehabilitated runway places Houston's hub airport in among few airports in the nation that currently operate three parallel Category Three runways. Runway 9/27 is one of the five runways at IAH. The Houston Airport System was able to combine the re-construction project with the addition of the navigational aid to be completed at the same time.

The Houston Airport System passed all the safety tests necessary by the Federal Aviation Administration to reopen the runway. The 10,000-ft runway surface is expected to last more than two decades. The entire asphalt surface was replaced with a 14-in  concrete overlay designed to strengthen the base level by almost 400%. The enhanced lighting, markings and electronic systems allow pilots to conduct instrument landing under the most severe weather conditions.

Winning Projects Fight Climate Change by Harnessing Energy From Landfill Gas

A Waco plant was among seven innovative landfill methane capture projects, which were recognized by EPA for generating renewable energy while reducing greenhouse gas emissions.

The seven winners included a project that converts landfill gas to fuel for county vehicles and one of the largest multiple-customer landfill gas use projects in the country.

Methane, a primary component of landfill gas (LFG), is a greenhouse gas with more than 20 times the global warming potential of carbon dioxide. Methane emissions from landfills represent an opportunity to capture and use a significant energy resource. Instead of allowing LFG to escape into the air, it can be captured, converted, and used as an energy source.

The 2008 LFG award winning energy projects employed unique project structures and took creative approaches to use LFG from municipal solid waste landfills, creating a new source of renewable energy to benefit the local community. Mars Snackfood US in Waco was honored as an LMOP Community Partner.

KBR Awarded Kuwait Bulk Fuel Farm Operations Contract by U.S. Army

Houston-based KBR was awarded a contract by the U.S. Army Contracting Command to execute bulk fuel farm operations at specific military sites near Shuiba Port and at Camp Buehring in Kuwait. The one-year contract offers four one-year options for renewal and has an anticipated value of up to $19.2 million.

KBR will provide all services, resources, and management necessary to perform bulk fuel farm operations, fuel transfer, inventory management and operations, and related maintenance at specified locations for equipment and vehicles. Services will also include meter calibration and site expansion, as directed by the government under the contract. Work began in March.

Texas Water Development Board Approves $257 Million in Water-Related Projects

The Texas Water Development Board approved financial assistance totaling $257million for a variety of projects across the state.

The Clean Water State Revolving Fund awarded loans for $8.7 million to finance wastewater system improvements to the of Aledo; $6 million to finance wastewater system improvements to the city of Fort Stockton; $910,000 to finance wastewater system improvements to the city of Littlefield; $3 million to finance wastewater system improvements utilizing the pre-design funding option to the city of Seminole; $24 million to the city of Arlington to finance wastewater system improvements; and a $4.6 million loan to finance wastewater system improvements for the city of Oak Ridge North.

The Clean Water State Revolving Fund-Disadvantaged Communities Program awarded loans for $2.4 million to finance wastewater system improvements to the city of De Leon; and $6.1 million to finance water and wastewater system improvements, utilizing the pre-design funding option, to the Harris County Municipal Utility District No. 148. The Harris County entity also received a $2.9 million loan from the Clean Water State Revolving Fund; and a $2.7 million loan from the Texas Water Development Fund.

The Drinking Water State Revolving Fund-Disadvantaged Community Program awarded a $3 million loan to finance water system improvements utilizing the pre-design commitment option to the G-M Water Supply Corporation in Sabine and San Augustine Counties.

The Economically Distressed Areas Program Research and Planning Fund presented an $86,000 grant for the preparation of a wastewater facility plan to the city of Alpine; a $90,000 grant for the preparation of a water and wastewater facility plan to the city of Eldorado; and a $485,000 grant for the preparation of a facility plan to the city of Eagle Pass.

The Texas Water Development Fund selected the Buena Vista-Bethel Special Utility District for a $5.9 million loan to finance water system improvements. The entity also awarded $590,000 to finance water system improvements to the Caney Creek Municipal Utility District; $142 million to finance water system improvements utilizing the pre-design funding option to the North Fort Bend Water Authority>; $26.7 million to finance wastewater system improvements utilizing the pre-design funding option to the Upper Trinity Regional Water District; and $2.2 million to finance water system improvements utilizing the pre-design funding option to the Walnut Creek Special Utility District.

The Drinking Water State Revolving Fund Program awarded a $2 million loan to finance water system improvements utilizing the pre-design commitment option to the city of South Houston.

The Rural Water Assistance Fund awarded a $5 million loan to finance water system improvements for the Parker County Special Utility District; $4.9 million in financial assistance consisting of a loan in the amount of $3.9 million from the Rural Water Assistance Fund to finance water system improvements; and a loan in the amount of $965,000 from the Texas Water Development Fund to refinance outstanding financial obligations for the Riverside Water Supply Corporation; and  $8 million in financial assistance consisting of a grant of $2.4 million and a loan of $2.4 million both from the Economically Distressed Areas Program - Water Plan Disadvantaged; and a loan of $3.2 million from the Water Infrastructure Fund to finance development costs of a water supply project for the Palo Pinto Municipal Water District No. 1.

Fluor and Airtricity to Develop Offshore Wind Farm in Scottish Waters

Irving-based Fluor Corp. and its UK division, Fluor Limited together with Airtricity - the renewable energy development division of Scottish and Southern Energy (SSE) -  the renewable energy division of Scottish and Southern Energy, have been granted an exclusivity award by The Crown Estate to develop an offshore wind farm at Bell Rock off Scotland’s Angus coastline.

During the next year Fluor and Airtricity will work with a variety of local authorities, statutory and non-statutory entities and other stakeholders in order to undertake site specific consultations and environmental impact assessments before bringing forward a final plan for development of the site.

The proposed wind farm could have a total capacity of up to 700 MW from power generated by state-of-the-art turbines.

The Greater Gabbard Offshore Wind Farm Project is the world’s largest offshore development currently under construction. It was developed by a fifty-fifty joint venture between Fluor and Airtricity. Having successfully completed the development phase, obtained all necessary approvals and signed the construction contract, the 500 MW project in the Thames Estuary will provide carbon neutral, renewable energy for more than 415,000 homes, equivalent to the approximate domestic electricity demand for the County of Suffolk.

Fluor to Build Galp Energia's Portugal Refinery

Irving-based Fluor Corporation was awarded an engineering, procurement and construction contract for Galp Energia’s Porto Refinery Conversion project in Portugal. Fluor began the front-end engineering and design work in October 2007, which included conceptual engineering, front-end loading and early procurement of key equipment. The total installed cost of the project is expected to be about $455 million of which Fluor booked $400 million in the fourth quarter 2008.

The Porto Refinery Conversion Project, when completed, is expected to produce 2.5-million tons per year of diesel, gasoline and kerosene fuels. The completed refinery will meet the most up-to-date European environmental regulations, will increase the utilization rate of the existing refineries and will be capable of processing heavier crude oil.

Fluor’s proven multi-office execution approach is being led by its Camberley, UK, execution center with assistance from professionals in its Madrid office. Project completion is expected sometime in the fourth quarter 2010. Fluor previously built a naphtha hydrodesulfurization unit for Galp Energia in 2002.

Sulfuric Acid Manufacturers Agree to Reduce Air Pollution at Facilities

Three manufacturers of sulfuric acid have agreed to spend at least $12 million on air pollution controls that are expected to eliminate more than 3,000 tons of harmful emissions annually from six production plants in Louisiana, Ohio, Oklahoma, Texas, and the Wind River Reservation in Wyoming, according to the the U.S. Environmental Protection Agency and the U.S. Justice Department.

Chemtrade Logistics, Chemtrade Refinery Services, and Marsulex also will pay a civil penalty of $700,000 under the Clean Air Act settlement.

Chemtrade will upgrade existing pollution control equipment called scrubbers to meet new, lower emission limits for sulfur dioxide at its four production facilities in Beaumont; Shreveport; Tulsa; and Riverton, Wyo., between January 2010 and January 2013.

This settlement is the third nationwide compliance agreement in a Clean Air Act initiative under which DOJ and EPA expect to reach similar agreements with other sulfuric acid manufacturers. The first and second nationwide sulfuric acid compliance agreements were announced in 2007 with Rhodia Inc. and Dupont. As a result of the three settlements, this initiative has now secured pollution controls at 20 plants and is expected to eliminate a combined total of 35,000 tons of sulfur dioxide emissions per year.