of houston
TRANSCRIPT
THE PORTOF HOUSTON
July/August 2007
Texas Lawmakers Deliver to the Port of Houston
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Contents
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32 Who Works at the Port: Scott Forbes, government relations manager
34 Political Stakeholders The port’s greatest assets
COVER STORY
July/August 2007
A bi-monthly publication.
16 Political History of the Port It’s all about great leadership
22 Staying the Course PHA Chairman Jim Edmonds
and his political vision
24 Meet the Port of Houston Authority Commissioners A dedicated group
28 PHA Salutes the Late Fentress
Bracewell as a Port Maverick His vision foresaw Houston as
world-class port 30 Houston Ship Channel Security District Clears First Hurdle
FEATURES
Legislation Beneficial to PHA Signifies Banner Year
4 A Message from the Executive Director H. Thomas Kornegay, P.E., P.P.M.
6 The Manifest PHA news highlights
38 Business Connections Economic Alliance,
Houston Port Region
40 Spotlight on Small Business J. A. Harris Trucking, Inc.
IN EVERY ISSUE
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James T. EdmondsChairman
James W. Fonteno, Jr. Commissioner
Jimmy A. BurkeCommissioner
Elyse LanierCommissioner
Janiece LongoriaCommissioner
Steve PhelpsCommissioner
Kase L. LawalCommissioner
Executive Office Port of Houston Authority111 East Loop North P.O. Box 2562 Houston, TX 77252-2562 Phone: 713-670-2400 Fax: 713-670-2429
Executive Director H. Thomas Kornegay
Managing Director Wade M. Battles
Director of Trade Development John P. Horan
General Counsel Erik A. Eriksson
Director of Finance and Administration James O. Eldridge
Director of Facilities James B. Jackson
Director of Public Affairs Argentina M. James
Director of Operations Jimmy M. Jamison
Director of Planning and Environment Charlie Jenkins
Director of Small Business Development Gilda Ramirez
Harris County Auditor Barbara J. Schott
Field Offices New YorkJack Wojewnik 1650 Sycamore Avenue, Suite 23 Bohemia, NY 11716 Phone: 631-244-3677 Fax: 631-244-3757
South AmericaArturo Gamez Resd. Prado Royal P.H.Ave. Ppl. Lomas de Prados del EsteCaracas 1080, Venezuela Tel: 58-212-976-8813Fax: 1-281-754-4647E-mail: [email protected]
Port of Houston Magazine’s editorial staff: Argentina James, director of 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., design and production.
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 online
www.portofhouston.com
THE PORT OF HOUSTON
AUTHORIT Y
John C. Cuttino (Brazil Representative) Av. Brigadeiro Faria Lima, 3729, 5 andar Sao Paulo, SP Brazil CEP: 04538-905 Tel: 55 (11) 3323-5878 Tel. +55 (11) 3323-5878 Fax +55 (11) 3323-5916 Houston Access (832) 239-5076 email: [email protected]
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channel
H. Thomas Kornegay, P.E., P.P.M.
For the Port of Houston, the 80th session of the
Texas Legislature, which closed at the end of May,
was a prime example of effective political processe-
sat work. I am pleased to say that key legislation
of concern to the port passed 100 percent. That
includes HB 3011, which will permit the creation
of a Ship Channel Security District, the first of its
kind in the nation.
security funding
The Ship Channel Security District, comprised of a unique public-private partnership, allows for a system-wide approach to security for the Harris County portion of the Houston Ship Channel.
PHA, along with Harris County, the private terminals represented by the East Harris County Manufacturers Association and other security part-ners, supported HB 3011. Anticipating its success, the U.S. Department of Homeland Security hopes other ports throughout the nation will emulate this example of cooperation among public and private entities. HB 3011 was authored by state Rep. Wayne Smith and sponsored by state Sen. Mike Jackson. Representatives Rick Noriega, John Davis and Ana Hernandez co-authored the bill. Sen. Mario Gallegos co-sponsored the Senate bill.
In 2003, the Port Strategic Security Council was formed. Its purpose was to identify, seek funding for and implement security projects that would improve the security of the entire ship channel system. The council, now the Ship Channel Security Council, is a partnership of the area manufacturers, refineries and petrochemical plants represented by the East Harris County
shipA MESSAGE FROM THE EXECUTIVE DIRECTOR
channel
Manufacturers Association, local cities along the chan-nel, Harris County, including both Judge Ed Emmett and Precinct Two Commissioner Sylvia Garcia, the University of Houston, the Port of Houston Authority and other private and public entities. The effort of the council has been supported with funding from the U.S. Department of Homeland Security. To date, Harris County and the council have been awarded more than $31.5 million in federal port security grants.
The seventh round of the Port Security Grant Program also awarded the PHA $5.3 million, 100 percent of the requested amount, and a total of $7 million when the PHA local share is added. The program had $201.2 mil-lion available nationwide, and $15.1 million was awarded to the Houston-Galveston-Texas City port areas. Harris County and the Port Strategic Security Council (soon to be the Ship Channel Security District) were awarded
$5 million. Private petrochemical plants received $2.7 mil-lion, and Texas City was awarded $2 million.
But more good news is that the FY 2007 War Supplemental bill appropriated $110 million for Port Security Grant Program funding that will be available to ports this year. And in late June, it was announced that the U.S. Army Corps of Engineers and the PHA as the local government sponsor of the Houston Ship Channel will receive a total of $33.5 million in funding for the channel.
In this issue, we explore the importance of these politi-cal relationships as we profile some of the key players, including the PHA chairman and commissioners and other stakeholders involved in protecting the interests of the port. We are proud of the efforts of each person and all the agencies involved in ensuring a safe and secure Houston Ship Channel.
It is through the collaborations of these partnerships and the collective goal to protect this waterway that we fulfill our duties as good stewards of this vital resource for today’s citizens as well as generations to come. ■
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p h a n e w s h i g h l i g h t sTHE MANIFEST
RICA NAMES PORT OF HOUSTON “OUTSTANDING PORT”
The Railway Industrial Clearance Association (RICA) presented its 2007 Outstanding Port Award for Customer Satisfaction to the Port of Houston at the regular Port of Houston Authority Commission meeting on August 28. The award is based on an annual survey of worldwide RICA members, who are shippers of oversized cargo. RICA President Bob Felix presented the award to PHA staff members Walt Kleczkowski and Rainer Lilienthal, both long-time RICA members.
“They have continually supported our organization, and strived to always provide the best in customer service and follow-up,” said Felix, citing the most recent TXU Power Plant project in Comanche Peak, where Kleczkowski and Lilienthal “met with the manufacturer, shipper, receiver, railroad and engineers and made it happen.”
The Port of Houston dominated the other ports in all three categories, scoring particularly high in the categories of customer service and overall satis-faction. When respondents mentioned the Port of Houston, they generally ranked the Port of Houston first in that category.
Founded in 1969, RICA’s more than 500 members around the world represent the interests of over-dimensional and heavy-lift cargo service providers.
DONORS ARE LIFEBLOOD OF QUARTERLY DRIVE
Port of Houston Authority employees, tenants, vendors and con-tractors donated 47 units of blood in the portwide Summer Blood Drive for the Gulf Coast Regional Blood Center, on their way to a record-breaking year.
Donors in Central Maintenance and the Executive Office Building included 45 people who attempted, with 32 units of blood successfully donated; they included three red blood cell dou-ble donors and two first-time donors. Employees at Barbours Cut Terminal made 23 attempts, with 15 units donated. This brings the year’s total so far to 104 units.
Employees from the Houston Port Bureau, Volkswagen and All Transport also supported the blood drive, which was held in June.
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LAWAL RE-APPOINTED TO FIFTH TERM AS PORT COMMISSIONER
Houston City Council unanimously re-appointed Kase Lawal to the Port Commission of the Port of Houston Authority (PHA) for his fifth term.
Lawal, who was initially appointed in June 1999, served as the first vice chairman of the Port Commission. PHA commissioners serve two-year terms without pay.
“Lawal understands the importance of the port as an asset in building business opportunities and he has a proven track record in working hard to
promote Houston around the world,” said Houston Mayor Bill White. “We certainly want to keep his energy and talents on the Port Commission.”
Lawal is chairman and chief executive offi-cer of CAMAC International Corporation, a multi-national corporation with about $1.6 bil-lion in revenue in 2006. CAMAC was named in the 2006 Forbes Magazine list of the 400 largest privately-owned corporations and was designated the 2006 Company of the Year by Black Enterprise Magazine. He is also the chairman of Allied Energy Corporation and a stakeholder and vice chairman of the board of directors for Unity National Bank, the only federally insured and licensed African-American-owned bank in Texas.
He established a petroleum engineering endow-ment at the University of Houston’s Cullen College of Engineering. Eileen and Kase Lawal serve as co-chairs of Hope Lives Here, a $300 million UNICEF campaign against HIV/AIDS in Africa.
CUSTOMERS GIVEN KUDOS AT APPRECIATION RECEPTION
Regarded as the Port of Houston Authority’s premier industry event, the annual Customer Appreciation Reception on June 25 was a huge success..
More than 550 attendees gathered at the Petroleum Club, including PHA management, port commissioners, major custom-ers, ship line representatives, and many sectors of the industry involved in global trade.
The 2007 reception boasted one of the largest numbers of attendees in recent years.
Chairman James T. Edmonds welcomed the attendees and thanked them for making the PHA such a resounding success. He also acknowledged the port could not have achieved back-to-back record results without their business.
Next year’s event is scheduled to be held at the new Bayport Cruise Terminal.
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p h a n e w s h i g h l i g h t sTHE MANIFEST
PHA RECEIVES $33.5 MILLION FOR HOUSTON SHIP CHANNEL
The Port of Houston Authority (PHA), the local government sponsor of the Houston-Galveston Navigational Ship Channel, received good news that $33.5 million in funding for the Houston Ship Channel was included in the Senate Appropriations Committee passed Energy and Water Appropriations Act.
The U.S. Army Corps of Engineers’ Galveston District will receive $16.3 million for general construction and $17.2 million for operations and maintenance in the Senate version. The House pre-viously passed an appropriation of $18.32 million for general construction and $15 million for opera-tions and maintenance. Once the full Senate passes the bill, a conference committee will decide the final amounts before the final bill is sent to the President.
“The announcement of this funding is great news not only for the Port of Houston Authority but the entire Houston region,” said Jim Edmonds, PHA chairman. “Over the past 93 years, the Houston Ship Channel has become one of the nation’s busiest waterways, providing a powerful regional and national economic engine, exquisite environ-mental resource, and vital trade link between the world and Houston. The port authority is fortunate to have great leadership in Congress, both in the Senate with Kay Bailey Hutchison, John Cornyn and our Texas delegation in the House.”
The project to widen the channel from 400 feet to 530 feet, and deepen it from 40 feet to 45 feet was completed in 2005. It reduces collision and oil-spill risks in the channel.
The project also has significant environmen-tal benefits by reusing materials dredged from the channel. Over the next 50 years, the dredge material from the project will be used to build 4,250 acres of tidal marsh and wetlands in Galveston Bay, rebuild subsided historical islands and create
oyster reefs and other natural enhancements. This is the largest wetland creation effort of its kind in the nation.
The project, which has an $87 million annual economic impact, is cost-shared between PHA and the federal government. The total cost for the project is $639 million.
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FOOD DRIVE HELPS HOUSTON’S HUNGRY
Employees at the Port of Houston Authority delivered the goods to the hungry, in KHOU-TV’s 20th annual Spirit of Texas Food Drive.
The PHA donated $2,170 and one and one-half bins of food items, and the Houston Pilots sup-ported the food drive with a donation of $2,500.
PHA Chairman Jim Edmonds and Captain Robert Thompson of the Houston Pilots presented the donations to KHOU-TV for the Houston Food Bank.
The Houston Food Bank, which feeds 80,000 people on a given week, is able to acquire $8 worth of food for every dollar donated.
COMMISSIONER BURKE’S ANNUAL BOAT TOUR TWICE AS NICE
Commissioner Jimmy Burke’s annual boat tour on the Sam Houston was so popular this year, he and wife, Peggy, hosted it on two days: June 21 and June 23. The event brings together officials from all of the cities incorporated in the Houston metropoli-tan area.
The annual tour allows elected city offi-cials to view the port from a personal vantage point. Commissioner Burke also provides first-hand insight into what really goes on at the Port of Houston Authority.
Councilman Beverly Gaines of Webster said, “Jimmy is the master of hosts for any event and he makes any type of get-together fun. Anyone who has ever been on it looks forward to it. Period.”
Along with providing information about the port, the tour informally acquaints newly elected officials with their contemporaries. “A lot of times, we don’t get to visit with elected people from other cities in an informal set-ting,” said Mayor Wayne Riddle of Deer Park “We got a chance to visit and get to know each other a little better.”
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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.
KUNZ JOINS PHA IN TRADE DEVELOPMENT
Ricky W. Kunz has joined the Port of Houston Authority as general manager in the Trade Development Division. Since 1981, Kunz served in multiple capacities in the U.S., Mexico, and Italy for Lykes Bros. Steamship Co. His most recent position with Lykes Lines was as vice president, Mediterranean Services.
A native Texan, Kunz earned a bach-elor’s degree in maritime transportation from Texas A&M University at Galveston.
He began his maritime career ashore with Hellenic Lines in 1978 as a sales representative and also worked for Farrell Lines, Inc. Kunz will guide the
sales team within trade development to increase vessel calls, cargo volume, and overall commerce through Houston via PHA facilities.
Kunz said, “What excites me the most about this position is the chal-lenge that lies ahead: what we are going to experience at Bayport; the continu-ing buildout, and bringing in services
focusing on Asia.”Kunz has lived around the world but is glad to be
back in Texas. He said, “It is just great to be back in this state. This is my home. My family is here and it’s good to be with them.”
THOR HAMMERS INTO THE GULF COAST
Suderman & Young Towing Company, L.P. unveiled its new Z-Tech tug boat, Thor, to an audience of more than 300 at Barbours Cut Container Terminal. Gay N. Greer was the sponsor for the July 14 christening.
Thor is the first Z-Tech tug of its kind to be manu-factured in North America. Designer Robert Allen said, “I think of Z-Tech as a concept rather than a model of a boat. It has proven very successful for ship handling and harbor operation duties.”
Thor is built with a design that uses the best fea-tures of both the standard tugboat engine and the new Z-Drive technology. It is capable of maneuver-ing in a full 360 turn without moving laterally in any direction. The engines also account for over 6,000 horsepower, far exceeding the power of conventional inland tugboats. This unique blend of power and agility will enable Thor to handle the ever-expand-ing loads of ship cargo that call into the Port of Houston’s terminals.
Even compared to the newest Z-Tech tugboats, Thor stands above the rest. “The Thor is larger than ones built to date,” said Allen. “It has 20 percent more power than other Z-Tech boats. The design principles are the same; it is just a larger version of the boat.”
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With the close of the session at the end of May came the news that a total of nine priorities reflected in Port of Houston or Texas Ports Association-supported legislation had successfully gone through.
Authorization to create the Houston Ship Channel Security District allows Harris County, after receiving a petition from the Houston Ship Channel industries, to create a district to assess ship channel-related facilities to pay for the operations and maintenance costs of grant-funded security infrastructure.
The Ship Channel Security District is a public-private partnership designed to help improve security within the
Signif ies Banner Year
LEGISLATION BENEFICIAL TOThe passage of critical state legislation during the recent 80th session of the Texas Legislature should prove benefi-cial to the Port of Houston Authority.
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Houston Ship Channel area, by assisting with the local share and operations and maintenance of security infra-structure. Proponents hope this district will be a model for port security nationwide as the federal government moves to portwide solutions to port security.
The district will be governed by a board of directors with staggered two-year terms. At least eight directors from the private petrochemical, chemical and refinery industries will be selected to represent the district’s secu-rity zones.
Two representatives of each zone will be selected by a majority of facility owners within each zone. Other directors will be a representative of the port authority, a director appointed by the county, and a final director appointed by the Harris County Mayors and Councils Association.
“The cooperation of the public-private partners to increase security along the Houston Ship Channel high-lights the working relationship and communication the industry, the port authority and federal, state and local governments have had since 9/11,” said James T. Edmonds, chairman of the Port of Houston Authority. “This legisla-tion will allow the ship channel partners to move forward with security initiatives that will be the model for all U.S. ports.”
Edmonds also thanked state Rep. Wayne Smith, who authored the bill, state Sen. Mike Jackson, who sponsored the bill in the Senate and the co-authors and co-sponsors of the HB 3011: state Sen. Mario Gallegos, state Representatives Rick Noriega, John Davis and Ana Hernandez.
“The leadership shown by our state delegation on this issue again shows how lucky we are to have these dedi-cated people representing this region,” stated Edmonds.
Other port-related legislation that passed included:• Jones Act Venue Bill — This bill closes the loop-
hole allowing lawyers to “venue shop” tort cases
involving dredge companies by limiting the venue in which these cases can be tried to: the county where the incident happened or the county where the defendant’s principal office is located, Galveston or Harris counties or the plaintiff ’s home county if the defendant doesn’t have a principal office in Texas.
Prior to passage of the bill, which went into effect immediately, a flurry of lawsuits had taken place in just four South Texas counties — Starr, Hidalgo, Cameron, and Zapata. In a single year, 98 of the 170 personal injury lawsuits filed against dredg-ers in the entire nation were filed in those four counties — fully 58 percent of the country’s total. HB 1602 was authored by state Rep. Corbin Van Arsdale and sponsored by state Sen. Troy Fraser.
• Code of Criminal Procedure to Port Police — This law clarifies that port police have the same police powers as other special district police forces. HB 3435 was authored by state Rep.Abel Herrero and sponsored by state Sen. Juan “Chuy” Hinojosa.
• Validation Act — This bill creates a two-year rolling validation similar to a statute of limitations. On the second anniversary of an act by the port commission or any non-profit corporation of the port authority, the act is assumed to be valid. This will permanently
“ The leadership shown by our state delegation on this issue again shows how lucky we are to have these dedicated people representing this region.”
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replace the two-year validation act that had to pass the session every year. HB 1841 was authored by state Rep. Dennis Bonnen and sponsored by state Sen. Kyle Janek.
• Vendor Conflict Disclosure — This bill repeals the former port-only vendor conflict disclosure act. Ports will now only follow the statewide version of the vendor conflict disclosure act. SB 1396 was authored by state Sen. Tom Williams and sponsored by state Rep. Geanie Morrison.
• General Port Procurement and Salvage Property Disposal Bill — This bill amends a former bill and is designed to clarify the procurement powers of navigation districts and port authorities. The leg-islation also provides that the governing body of a navigation district can grant its executive direc-tor, and his or her authorized representatives, the authority to approve change orders up to the same amount as permitted for routine purchases. Existing law still uses the former procurement threshold for change orders. The legislation also clarifies the definitions of various purchasing contract methods presently available to navigation districts. Finally, it explicitly provides for the disposition of salvage and surplus property to permit use of the same methods in place for Texas counties. SB 1531 was authored by state Sen. Juan “Chuy” Hinojosa and sponsored by state Rep. Geanie Morrison.
• Reauthorization of the Texas Emissions Reduction Plan — This legislation extends to 2013 fund-ing for a comprehensive set of incentive programs aimed at improving air quality in Texas. The Texas Commission on Environmental Quality administers TERP grants and other TERP financial incentives. The legislature established the TERP in 2001. The PHA has supported the TERP program from its inception and supported the changes in this session. SB 12 was authored by state Sen. Kip Averitt and sponsored by state Rep. Dennis Bonnen.
• Freight rail funding — This bill allows TERP funding to be used for freight rail improvements or relocations if the resulting improvement or relocation will lower emissions. Only non-attain-ment and near non-attainment areas are eli-gible for funding. HB 160 was authored by state Rep. Jose Menendez and sponsored by state Sen. Jeff Wentworth.
• Freeport Exemption — This will allow local governments to apply the freeport exemption or goods-in-transit tax exemption to both interstate and intrastate goods. HB 621 was authored by state Rep. Norma Chavez and sponsored by state Sen. Robert Duncan.
• Veto of Property Condemnation Bill — In the face of a vigorous letter writing campaign by port author-ities and other local governments asking him to do so, Gov. Rick Perry vetoed the bill. Although port authorities fixed many of the onerous provisions in the bill, the authorities still opposed provisions in the bill that would have increased the cost of condemnation and caused extensive litigation in the future.
TPA President Chris Fisher of the Port of Beaumont called the results of this session “very successful.”
“Overall, I think we had a very successful legislative year in promoting legislation beneficial to ports in Texas,” he said. “We saw legislation passed that is beneficial to economic development and growth for the entire region and the state. I’m especially proud of the fact that we can do this through TPA in that it allows ports in Texas to put forth a united front. We appreciate our lawmakers listen-ing to and working with us.” ■
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Political History of the Port
The Port of
Houston’s des-
tiny has always been
intimately entwined with
elected offi cials and powerful
political fi gures who have advanced
the port’s needs and allowed it to grow
into the economic powerhouse it is today.
At each stage of the port’s history, leaders
stepped forward to open doors of opportunity.
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The dredging of the deep-water Houston Ship Channel relied on the ingenuity and perseverance of a single elected official, U.S. Rep. Thomas Henry Ball, Jr. Elected to congress in 1896, Ball patiently kept pushing the project before his colleagues and finally saw it come to fruition after he retired following four terms in office.
Houston’s Mayor Horace Baldwin Rice and Ball col-laborated to push through state legislation enabling local navigation districts to manage ports. Then Ball proposed a revolutionary concept that made the ship channel an almost irresistible project.
He suggested sending a delegation to Congress to propose sharing the cost with the federal government for dredging the deep-water channel to Houston. Ball felt sure that Congress would “jump at the offer,” and jump it did. Committee Chairman D.S. Alexander and the other congressional committee members voted unanimously to accept the bold proposal, which became known as the Houston Plan.
“Prior to Houston’s offer, no substantial contribution had ever been made by local interests to secure the adop-tion of their projects,” wrote Ball, “and no project has since been adopted by the national government without a promise of local contributions and assurances that the waterfront would not be privately controlled.”
The first port chairman was a man whose influence would forever shape the port’s prosperity. Businessman, banker, newspaper owner, hotel builder, chairman of the Reconstruction Finance Corporation (RFC), U.S. secre-tary of commerce, and trusted adviser to three U.S. presi-dents, Jesse Holman Jones made sure that Houston grew to become an important international business center. Jones made the dredging of the Houston Ship Channel a reality by persuading Houston banks to buy up $1.25 million in bonds to cover the local share’s cost.
When America entered World War II, President Franklin Roosevelt depended on Jones’ leadership at the RFC to find financial backing for the military buildup. Roosevelt made him secretary of commerce and the RFC remained under his control. The Saturday Evening Post reported, “Next to the President, no man in the government and probably the United Sates wields greater powers.” Jones used his power to the Port of Houston’s advantage.
Rubber was needed by the military, but natural rubber supplies were cut off when Japan conquered the Malay Peninsula, which was the source of 90 percent of the world’s supply of natural rubber. Jones pushed for a reli-able substitute which depended on petroleum. Half of the new synthetic rubber plants (23) were built in the Southwest, primarily in Texas and Louisiana. Two plants were developed on the Houston Ship Channel.
In all, $116.4 million was invested in plants and materials along the Houston Ship Channel for synthetic
Political History of the Port
It’s all about great leadershipThomas Henry Ball Jesse Holman JonesHorace Baldwin Rice
Jesse Jones at the synthetic business trade show.
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rubber by 1945. The investment kept a great number of people employed and also established a new industry that blossomed further after the war. In 1955, Goodyear pur-chased one of the Houston synthetic rubber plants from the U.S. government. Today, Goodyear operates three of the world’s largest synthetic rubber plants in Houston and Beaumont, Texas.
Throughout the years, the port authority has turned to the Texas legislature for actions that allowed the port to prosper and grow. During the 1957 session, a bill unanimously passed, per-mitting the port commission to issue long-term revenue bonds that make it possible to finance the port’s expan-sion from future earnings. As a result, between 1957 and 1965, more than $37 million was invested in improvements and new facilities at the port, such as the Bulk Materials Handling Plant.
During the first 50 years of the Houston Ship Channel, federal and local governments saw a tremendous return on their investment of $92 mil-lion in the port’s public facilities. In 1963 alone, the tax revenues gener-ated for all governmental entities from port activities was $148 million.
The federal government invested $64 million in dredging and maintain-ing the Houston Ship Channel during its first half-century. In return, federal tax collections reached $129 million in 1964 just from port business. Local taxpayers benefited as well. Total port development costs during the first 50 years were $28 million in local tax fund-ing, the same amount that port activi-ties generated in local tax revenue in just one year.
Today, no one person wields the type of power that Jones once did to influence investments along the Houston Ship Channel. Federal fund- ing for such critical projects as the deepening and widening of the Houston Ship Channel requires the persistence of the entire Houston
congressional delegation year after year to keep funds flowing until the project is complete.
Constant communication is essential so that each member of the delegation understands the port’s priori-ties and needs. The port’s economic contribution to the regional and state economy cannot be underestimated. Elected leaders understand the port’s importance and work hand in hand with the port authority so that its economic strength continues. ■
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KHOU-TV’s Spirit of Texas
Food Drive
Commissioner Burke’s
Community Tours
Commissioner Longoria
Women in Transportation
Trade Development
Customer Reception
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“Why is politics so important? All of us are directly affected by government actions,” Edmonds says, “and government is affected by elected officials, who set the policy and direction.
“The port is so critical to the economic well-being of Texas,” he continued. “Our job is to keep our local officials abreast of current events, where we are and what our needs are.”
The port authority relies on state and federal funding to support the waterways as well as specific projects, such as those relat-ing to security and the environment. The port’s never-ending needs include big ticket items such as maintenance of the Houston Ship Channel and creation of the freight rail district.
“Because we are reliant on the govern-ment for funding, we have to work on rela-tionship-building and educating elected officials about our needs,” he says. “To our benefit, the Harris County delegation to the
Texas legislature understands the importance of the Port of Houston. Our delegates, who have long been supporters of the port, understand the importance of its economic impact and its job generation.
“We’re also fortunate that voters have always been sup-portive of us. They have understood the impact to their daily lives that the port delivers.”
First appointed as a PHA commissioner in October 1996, representing Harris County, Edmonds’ experience
Staying the CoursePHA Chairman
Jim EdmondsPHA Chairman Jim Edmonds believes in the Port of Houston and knows
the impact it has on people’s daily lives. That drives his commitment to
serve the port’s needs using the
delicate art of politics.
and his Polit ical Vision
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says. “Industry and its port-related organizations did a good job of testifying, working with Senate and House committees and key legislators to get the bill passed.”
The 80th session also saw the reauthorization of the Texas Emissions Reduction Plan (TERP). This extends to 2013 funding for a comprehensive set of incentive pro-grams aimed at improving air quality in Texas.
Edmonds says that among issues the port authority will be looking at in the next session are more innovative ways to use TERP money, such as upgrading or replacing engines to meet environmental standards.
“Governmental relations and politics are an ongoing process. We work at it all the time. Our federal needs
are annualized – security and ship channel maintenance, transportation money, environmental stewardship, now the freight rail district. We are continuously developing legislative agendas.
“Politics is a part of our way of life. It is in our self-interest to understand how this process works, how to engage in the process and make it work to meet the port’s needs,” he says. “It’s not just about asking for money, but also asking for the ability to expand our business base, job generation and economic imperatives.”
An example of expanding the business base, Edmonds says, is that without the leadership of the Texas legisla-ture, PHA couldn’t have gone to the voters, who sup-ported waiving the inventory tax for coffee in 2001. Now the Port of Houston is the top-ranked coffee exchange port in the U.S. as a direct result of legislative leadership.
“I appreciate the quality of people that we work with,” he concludes. “Members of the Texas delegation are smart, understand our needs and are willing to go to bat for us. The U.S. Congress looks at ports all over the country. We’ve been successful since the quality of people from Texas who serve is outstanding and, consequently, they are instrumental in our success. These people stay the course. We are fortunate that our elected officials at the state and federal levels have become our partners.” ■
on the commission and in-depth knowledge about the workings of the port help him to effectively communi-cate the port’s needs. Edmonds was appointed chairman in June 2000. He is president of Edmonds & Company, a business consulting firm.
“I’ve been doing this for a long time,” he says. “Hopefully, I am knowledgeable of the subject matter. Of course, you need to have interpersonal skills and be able to communicate what and who we are and what we need to elected officials.
“PHA faces challenges, such as being able to continue to grow at a pace that allows us to meet market demand and customer needs. We must continue to be leaders in
environmental stewardship. We want to ensure that the port is safe and that we securely deliver cargo to market. We also want to continue to reach out to people in the neighborhoods near the port to make them partners in our efforts.”
With the close of the 80th session of the Texas Legislature at the end of May came the news that a total of nine priorities reflected in Texas Ports Association- supported legislation had successfully passed.
In June, the PHA, as the local government spon-sor of the Houston Ship Channel, received notice from Washington that the Senate Appropriations Committee appropriated $33.5 million in funding for the Houston Ship Channel.
“It was a good session,” he says. “We appreciate very much the Harris County delegation’s support of our ini-tiatives. The most significant action was the creation of the Houston Ship Channel Security District, which will be a model for the country.”
Like several Homeland Security initiatives in other parts of the country, the more than $31 million in federal grants given to Harris County had no maintenance and operation (M&O) money included.
“Harris County and the entire port family came together to jointly support the security district,” Edmonds
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Meet the Port of Houston Authority
C o m m i s s i o n e r sA Dedicated GroupThe seven members of the Port Commission of the Port of Houston Authority
are tireless and unselfish ambassadors for one of the most dynamic contributors
to the state’s economy.
Port commissioners serve two-year terms without pay. Yet, they are expected
to attend monthly commission meetings, serve on several task forces, partici-
pate in oversees trade missions and attend countless community functions on
behalf of the port authority.
They are a diverse, energetic and deeply dedicated team that manages to
blend business and political savvy, extensive community service and a passion
for service while contributing to the growth and prosperity of the communities
they represent.
He began his career in public service as an admin-istrative aide to long-time Harris County Commissioner Jim Fonteno.
As a former intern, he is a strong advocate for PHA’s student internship program. He works on transportation issues in Southeast Harris County and other areas
affecting economic development for the area. This year, he serves on the PHA Cruise Task Force and chairs the PHA Pension Committee.
Phelps volunteers his time as an auctioneer for chari-table events, raising more than $2.5 million for worthy projects in the community over the past 20 years.
He previously served as trustee, Edgar A. Smith YMCA; vice president, South Houston Lions Club; trustee, Bay Area Museum Board and Pasadena Strawberry Festival chairman.
Phelps Melds Public Service, BusinessCommissioner Steve Phelps can appreciate the unique challenges a government entity faces operating in a busi-ness environment.
Phelps considers it an honor to represent Pasadena on the port commission.
For the past 10 years, he has drawn upon more than two decades of experience in public service and as a suc-cessful independent businessman to help shape PHA policy and direction.
“I don’t see business and government as being mutually exclusive,” Phelps says. “I believe the two can work hand-in-glove toward the benefit of the overall community.
“It is a privilege to have the opportunity to meet and work with such a great group of people.”
Phelps is a licensed attorney who held elective office as a Harris County justice of the peace for nearly 13 years. He is a real estate broker, active in his family’s real estate development and insurance business. He is also president of Priority Development Corporation, which builds and leases office warehouses.
Commiss ioner Steve Phelps
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recognized by the maritime industry as a ‘model port’ in environmental compliance.
“Our new Bayport terminal, for example, was carefully designed with an Environmental Management System in place. It meets the ISO14001 standard for environmental
excellence and is also one of the nation’s green-est marine terminals.”
A large port authority also can’t function with-out strong financial support, he says. Fonteno, who serves as chairman of the Cruise Task Force and is on the PHA Pension Committee, takes seriously his role of providing financial exper-tise and oversight. “We must maintain the port’s financial wherewithal so that it can serve the community long into the future.”
Fonteno is inspired to do all this by a former commissioner, his father:
“When I was a little boy, I used to see him going to Commission meetings,” he recalls. “Thirty years later, I am proud to follow in his footsteps. The opportunity to serve means so much to me.”
Former Commissioner Inspires Fonteno’s Dedication During nearly eight years of service on the port commis-sion, Jim Fonteno has dedicated his time to two passions: the environment and public finance.
Appointed to the port commission in January 1999 to represent Harris County, Fonteno is an attorney and investment banker with a broad professional background in finance, real estate, environmental policy and international business. He served in the administration of President George H.W. Bush as a policy advisor at the U.S. Environmental Protection Agency in Washington, D.C.
“As the first U.S. port to imple-ment the Environmental Management System and be ISO14001 certified, the Port of Houston Authority is committed to managing its operations and resources in an environmentally sensi-tive manner,” he says. “But the port’s dedication to the environment goes beyond even that, with a goal of being
Commiss ioner James W. Fonteno, Jr.
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League’s Community Development Committee and 12 years on the Houston-Galveston Area Council.
Burke is also a former chairman of the HCMCA National Legislative Committee and is its former presi-dent and first vice president. Burke served as an appoin-tee to the National League of Cities Transportation and Communication Policy Steering Committee.
He served as president of the Texas Municipal League and worked with the National League of Cities
as president of the Small Cities Council.
As a commissioner, he helps ensure the small cities have a “place at the table.”
“The Port of Houston is a powerful economic engine for the entire region,” Burke says. “It is important that all entities –— large and small — share in its economic benefits.”
Burke Dedicated to Small Cities He ServesDeer Park’s Jimmy Burke has dedicated his time and energies to community service for more than 46 years, including eight as a commissioner for the Port of Houston Authority.
Burke was originally appointed by the Harris County Mayors & Councils Association (HCMCA) to the port commission in 1999. He is honored to be the face of those small cities on the port commission and vice versa.
“One of my major thrusts since taking a seat on the commission is to improve community involvement and help put a face on the port for those small communities that not only sit adjacent to the Houston Ship Channel, but small cities across the county,” Burke says. “Thanks to the efforts of the Public Affairs Division through expan-sion of its Community Affairs Department, we’ve been able to achieve that.”
Burke’s extensive history of community service includes nine terms as mayor of Deer Park; six terms on the Deer Park City Council; service on the Texas Municipal
Commiss ioner Jimmy A. Burke
Initially appointed in June 1999 to represent the city of Houston, Lawal is chairman of PHA’s Small Business Development Task Force, a member of the PHA Pension Committee and a member of the International Business Development Task Force.
“My focus on the commission has been to work with my fellow colleagues and the executive management staff to enhance the port’s strategic alliances by building success-ful partnerships,” says Lawal. “In addition, another initia-tive that I felt strongly about was developing a vehicle for small to mid-sized business owners to participate in port contracting and procurement opportunities. As a testa-ment to that vision, the port’s small business development program recently celebrated its fifth year anniversary.”
Lawal brings a rich and extensive history of civic service to his port position.
In 2003, Lawal established a $1 million endowment at Texas Southern University’s Jesse H. Jones School of Business for the Kase and Eileen Lawal Center for International Business Development.
Lawal Focused on Partnerships, Small BusinessAs the chairman and chief executive officer of CAMAC International Corporation, a multi-national corporation with about $1.6 billion in revenue in 2006, Kase Lawal brings a wealth of international business experience and devotion to community service to his role as a port commissioner.
“Unquestionably, one factor in Houston’s emergence as a leader in international trade is directly attributable to our success as a leading port of call,” says Lawal. “Houston manages the challenges of global-ization and the competition that drives it very well due to its close working relationship with the Port of Houston. The port’s capac-ity to handle international trade and cargo, stimulate regional eco-nomic development and tourism opportunities, and attract a highly skilled workforce is a crucial link in that success.”
Commiss ioner Kase Lawal
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focuses her practice on the trial, arbitration and appeal of a broad range of commercial litigation cases. She also serves on the boards of Centerpoint Energy and the Greater Houston Partnership.
“As a port commissioner, I have helped shape the port’s long-term plan, have provided guidance on international business projects, and environmental quality initiatives. I am proud of the port’s demonstrated sensitivity to envi-ronmental quality. The Port of Houston is an important economic engine as well as a responsible steward of our precious environment.
“We must be good corporate citizens and support pres-ervation of the environment,” she says. “A vital aspect of our work is to educate our constituents about our mission, our role in economic development, and our commitment to environmental quality.
“Serving on the commission is an opportunity to give back to the local community,” she adds. I am pleased to contribute to shaping the future of the Port of Houston and of our region.”
Longoria Brings Innovative Solutions to Business IssuesA commissioner since 2002, Janiece Longoria chairs the
International Business Development Task Force. As chair of that task force, her goal is to increase the port’s international presence and to continue to grow container traffic from international destinations. “We’ve made sig-nificant progress in developing relationships with foreign ports, which brings more con-tainers across our docks,” says Longoria.
As a lawyer with 25 years’ experience, she has brought creative and innovative solu-tions to address business issues. “The port is
critical to our local and regional economy,” she says. “It is important to have commissioners with the skills necessary to guide the port authority staff in attaining our mission.”
She is an honors graduate of the University of Texas, and received her J.D. from UT in 1979. For 10 years, Longoria has been a name partner in the law firm of Ogden, Gibson, Broocks & Longoria, L.L.P., where she
Commiss ioner Janiece M. Longoria
The commissioner has been the leading force behind the Port of Houston Authority’s new Clean & Green Program. This effort, in cooperation with Shell Oil Company and the Buffalo Bayou Partnership, is a perma-nent public works project to make the channel and banks environmentally clean and green. Lanier says, “This effort is about changing attitudes and behaviors.”
Lanier has served as chairwoman of the Houston Beautification Foundation and is a recipient of the Urban League’s Heritage Award and the YMCA’s Texas Star Award. She has been honored by Trees For Houston for her innovative leadership for urban forestry initiatives.
Lanier and her husband have been awarded the Distinguished Service Award from Leadership Houston, as well as many other distinguished honors. ■
Lanier is Well-Versed in Political Arena, EnvironmentCommissioner Elyse Lanier was appointed to the Port Commission of the Port of Houston Authority in 2006.Lanier represents Harris County. The wife of former Houston Mayor Bob Lanier, the commissioner is well-versed in the political arena. Lanier is dedicated to Houston, its business community and now the Port of Houston Authority, saying, “There is no reason the port, a major Houston economic engine, cannot be clean, green and enhance the environment.”
Lanier serves as chair on the PHA Pilots Task Force Committee. She is also a member of PHA’s Community Relations Task Force and the International Business Development Task Force.
Lanier was appointed as chairwoman of the Houston Image Group from 1996–2002 to advance Houston’s image. Always an advocate of community beautification efforts, her passion has evolved into environmental opportunities.
Commiss ioner Elyse Lanier
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It all goes back to August 1970, at the regular Port of Houston Authority (PHA) Commission meeting, when recently appointed chairman, Fentress Bracewell, announced the decision to build a marine terminal at Barbours Cut that would handle only containerized cargo. Now an industry standard, it was a radical idea at the time.
Containerization was born when the world’s fi rst container ship, M/V Ideal X, sailed with 58 containers from New York/New Jersey and unloaded at the Port of Houston in April 1956. Despite that fact, it took another
21 years before this new shipping method really took hold in the Gulf of Mexico through the development of Barbours Cut.
The Barbours Cut Container Terminal carries Fentress Bracewell’s name in recognition of the foresight he con-veyed to his fellow commissioners that carrying cargo in containers was a trend the shipping industry would embrace. As a result of his vision, Bracewell played a vital role in building Houston into a world-class port.
In recalling that time in a profi le in the January/February 2000 Port of Houston magazine, Bracewell, who served the PHA as chairman until 1985, said, “There is no question about it — Barbours Cut was quite a risky thing as far as the Port Commission was concerned. We were sticking our neck out because we had no commitments at the time and no long-term contracts. But somehow we had a feeling that it was what we needed.”
Covering more than 600 acres, with a 40-foot-deep sea channel, a 1,600-foot turning basin and 17,141 feet
Fentress Bracewell Barbours Cut
Container Terminal — the full title
of this 30-year-old port authority
facility is not often heard — but
without its namesake, Barbours
Cut, as it’s more commonly known,
would not exist.
PHA Salutes the Late Fentress Bracewell as a Port MaverickHis Vision Foresaw Houston as World-Class Port
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of berthing space, the new terminal’s cost was projected at $100 million. In making the announcement, Bracewell said, “The new port facility has distinct advantages over any other such facility announced or planned by any other Gulf port.
“This gives us an unsurpassed geographical position,” he continued, “lying as it does just two hours from the open Gulf at the end of the straight, wide and deep Houston Ship Channel across Galveston Bay from Bolivar Roads.” Bracewell also stressed the new port’s position on the mainland made for “ideal surface transportation” through extensive rail and interstate highway systems and
that “proximity to our own large market and the vast mid- U.S. markets.”
Although the port had received tremendous public support from its earliest beginnings, Bracewell had to work behind the scenes to develop local support for the facility.
Bracewell was the last living founder of the Bracewell and Patterson (now Bracewell and Giuliani) law firm. Born in the old town of Harrisburg on the shores of the Houston Ship Channel, “he had a lifelong love of Houston and its commerce,” said his son, Brad Bracewell. His father, J.S. Bracewell, also served as chairman of the Port Commission in the 1950s.
During Bracewell’s tenure, an act of the Legislature changed Houston into a full-fledged Port Authority with expanded powers for fire, safety and navigation control of the ship channel. In addition, a foreign trade zone was created, and foreign tonnage nearly tripled in 1984. PHA’s financial standing stabilized and then soared during Bracewell’s time from a deficit in 1970 to a net income of more than $8.6 million in 1984, leading to his recognition by then Vice President George H. W. Bush, who presented the Houston Port the “E” Award in 1981 for outstanding contributions promoting world trade exports.
Also formed under Bracewell’s leadership, the Port Development Corporation issued $1.5 billion in rev-enue bonds to build, expand or modernize facilities along the channel.
Bracewell initiated public awareness programs to bring government, civic and community leaders an apprecia-tion of the port and its significance to the area economy. Countless trips aboard the M/V Sam Houston hosting local and visiting groups from around the world on channel inspection tours became a signature of his chairmanship.
The longest-serving chairman of the PHA Commission, Bracewell died June 13 at the age of 85. In a resolution at its regular June 26, 2007, meeting — nearly 37 years after the fateful decision to build Barbours Cut was announced — the Port Commission applauded his contributions and legacy to the PHA and Texas region and saluted him as a port maverick.
Earlier this year, PHA celebrated the 30th anniversary of Barbours Cut, which has made the Port of Houston the largest container port on the U.S. Gulf Coast. More than 50 years after the very first container ship sailed to Houston, the port handles 72 percent of all the container activity along the U.S. Gulf Coast and 95 percent of the container activity in Texas. ■
Praise for a Visionary
“Fentress Bracewell was a true example of integrity, vision
and wisdom. Fentress, as chairman of the Port of Houston
Commission, set the Port of Houston Authority on the
course of becoming the dominant container port in the
Gulf of Mexico. We all owe Fentress a debt of gratitude.”
— PHA Commission Chairman Emeritus Ned S. Holmes
“ I had the pleasure of knowing Fentress Bracewell person-
ally. He provided great leadership to the Port of Houston.
He was a visionary. The Port of Houston took a gamble
in the container business at Barbours Cut and his vision
proved to be the right way to move cargo.”
— PHA Commission Chairman James T. Edmonds
“ Fentress Bracewell was truly a great man and it was a
great honor to work for and with him. The achievements
made under his long tenure changed forever the course of
the Port of Houston and positioned it to be the world-class
port of today.”
— PHA Executive Director H. Thomas Kornegay
His Vision Foresaw Houston as World-Class Port
With the support of East Harris County Manufacturers Association, West Gulf Marine Association, Harris County, University of Houston and other partners, the Port of Houston Authority supported legislation by state Rep. Wayne Smith and state Sen. Mike Jackson. Co-authors of the bill in the House were state Reps. Rick Noriega, John Davis and Ana Hernandez, while the bill was co-sponsored in the Senate by Sen. Mario Gallegos.
The bill passed and was signed by Gov. Rick Perry in June.
The brainchild of Port of Houston Authority Chairman Jim Edmonds, HSCSD is a public-private partnership designed to help improve security within the Houston Ship Channel area, by assisting with the local share and operations and maintenance of security infrastructure.
The district will be governed by a board of directors with staggered two-year terms. At least eight directors from the private petrochemical, chemical and refinery industries will be selected to represent the district’s security zones.
Two representatives of each zone will be selected by a majority of facility owners within each zone. Other directors will be a representative of the port authority, a director appointed by the county, and a final director appointed by the Harris County Mayors and Councils Association.
The district is the nation’s first of its kind and is mod-eled after a management district. Management districts are established by the Texas Legislature and have the power to assess property owners for a variety of improve-ments and services.
Houston Ship Channel Security District Clears First HurdleThe Texas Legislature, in its 80th biannual session, authorized the creation of the
Houston Ship Channel Security District — an entity that, proponents hope,
will serve as a security model for ports throughout the United States.
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Forefather to the security district was the Port Strategic Security Council. The council was formed after U.S. Homeland Security Department officials accepted an invitation from U.S. Rep. Gene Green three years ago to visit the Port of Houston and explain what criteria went into determining how much in security grants ship chan-nel industries would receive, especially in light of the fact that the Houston Ship Channel is home to the world’s second largest petrochemical complex.
Representatives of ship channel businesses were told the department was looking for a port to apply for grants that would address port-wide security issues in addition to facility-by-facility needs. The Port of Houston facilities took up the challenge with Harris County Commissioner Sylvia Garcia and Judge Robert Eckels applying for the portwide grants on behalf of the PSSC.
Funding increased across the board over the next two years and the challenge before the group then became how to fund the continued operation of security devices such as Closed Circuit TV cameras, patrol boats and vir-tual fences.
The next step in the process will involve distribution of a petition presently being written. It must be signed by 50 percent of the facilities within the district and 50 percent of the facilities representing the assessed value of the district. Once signed, the petition will go to Harris County commissioners, who will then vote on whether to approve the district. The petition must include the shape of the district, including four to five security zones, and the purpose of the district. ■
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Scott Forbes was working toward a bachelor’s degree in business at Austin College when a course in political sci-ence left him intrigued with the idea of public service.
He switched majors his sophomore year, but had no idea at the time that he would end up in a profession intertwining the two disciplines.
Forbes is the government relations manager for the Port of Houston Authority. He works in PHA Public Affairs Division under the direction of Argentina M. James.
His job is to work with public offi cials at all levels on a daily basis, brokering their considerable infl uence with the economic, environmental and security issues associ-ated with the world’s 10th busiest seaport.
“I’m the liaison between the port, federal, state and local governments,” he explains. “On the federal level, I work on having money appropriated for port projects. On the state level, I work on monitoring and changing leg-islation to optimize the port’s opportunities in economic development, increased cargo and improvements in the procurement processes.
“I have been fortunate to work on some projects that help the port — deepening and widening, port security
and transportation projects. All of these projects take money and I assist in getting the funding.”
“That money” amounts to $483 million in fund-ing Forbes has managed to secure for the port since the year 2001.
Because of the uniqueness of the Port of Houston as an economic catalyst for the region and the state, the bene-fi ts from Forbes’ efforts ripple far beyond the organization that issues his paycheck.
His team includes an assistant government relations manager, an administrative assistant, fi ve state and two federal legislative consultants.
Their efforts have contributed to the vitality of the Houston seaport, which has helped generate 785,049 statewide jobs, $117.6 billion of statewide economic activity and $3.7 billion in state and local taxes in the year 2006 alone. So says a 2007 Martin Associates eco-nomic impact study.
“The success the port authority has experienced in government relations is primarily due to the hard work of port commissioners, executive staff, port employees and contractors that understand the importance of good rela-tionships with our elected and non-elected governmental offi cials,” Forbes says. “It helps to have a good client when working to push legislation. Just as important, the port is very fortunate to have a strong delegation of leaders in federal, state and local governments that work to improve the port every day.”
Keeping that delegation of public offi cials informed on pressing port matters is one of Forbes’ biggest responsibilities.
He clocks “between 60 and 70 hours a week” at his job and every two years spends the better part of six months in Austin when the Texas Legislature meets.
Travel between Houston and Washington D.C. is a regular routine.
In 2006, an “off” year for Forbes, his team conducted 58 separate briefi ngs, tours and receptions for state, local and federal offi cials.
The whirlwind pace is taxing, to say the least. Adroitly explaining the numerous complex issues surrounding a seaport is a unique challenge. He has to maximize every minute of face time he gets with government leaders who have an ocean of equally complex issues to deal with every day.
The dream of maintaining a batting average of 1,000 is an impossible one at this level. The pie can only be
Who Works at the Port:
Scott ForbesGovernment Relations Manager
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sliced so far and you’re apt to lose more than you win. Forbes realizes that and even though he approaches his job with a healthy mix of passion and optimism, he knows you can’t personalize the losses.
Like any good mechanic, his tools are plentiful and varied to the point of being almost eclectic. He has to be as good a listener as he is a talker; patient, but persistent and subjective-assertive. The ability to multi-task with a sense of focus is essential.
“For someone aspiring to be a government relations professional, you have to have lots of patience, the ability to prioritize and multitask, be credible and trustworthy,” he says.
“Most of all, you have to stay optimistic that you will be successful in the end. I have seen many projects get funded and laws get changed after they have been pro-claimed dead by the pessimists,” he adds.
Prior to joining the port authority, Forbes served for six years as assistant director for state and federal relations for former Houston Mayor Bob Lanier and for two years in the same post for Lanier’s successor Lee P. Brown.
He is most proud of his team’s accomplishments in influ-encing port-friendly legislation at the state level during each biannual sessions. Most prominent among them are:
• Cocoa and Green Coffee legislation passed in 2001, which required a statewide election to change the Texas constitution to exempt these commodities from ad valorem taxes upon import. This legisla-tion by state Sen. Mario Gallegos and the late state Rep. Joe Moreno has enabled the Port of Houston to become the nation’s westernmost coffee port and the world’s fastest-growing green coffee port. It is listed on the New York Board of Trade.
• Design/build (procurement statute restructuring) in 2003 by state Sen. J. E. “Buster” Brown and state Rep. Joe Moreno gave the Port of Houston Authority and other Texas Ports the authority to use alterna-tive purchasing methods such as design/build and competitive sealed proposals.
• Freight rail district legislation in 2005 by Sen. Jon Lindsey and Rep. Peggy Hamric. The law autho-rizes the formation of a multi-jurisdictional freight rail district among Harris and Fort Bend coun-ties and the city of Houston. The district will work toward the consolidation of inbound and outbound freight lines into high-capacity, grade- separated rail lines, with the goal of lessening impact of freight lines on community mobility and safety.
• Houston Ship Channel Security District legislation in 2007 by state Sen. Mike Jackson and Rep. Wayne Smith. This law allows Harris County, after receiving a petition from the Houston Ship Channel industries,
to create a district to assess ship channel-related facil-ities to pay for the operations and maintenance costs of grant–funded security infrastructure.
In the end, Forbes says, much of the credit belongs to the lawmakers with the vision and commitment to devote the resources necessary to keep the Port of Houston strong.
“The very existence of the Port of Houston has depended on strong leadership in Congress, the state leg-islature, city halls and the county,” he says.
James reinforces Forbes’ comments. “Our elected offi-cials are some of the best you will find anywhere,” she says. “Their vision, their spirit, their sense of community is unparalleled. They work hard to ensure that our local, regional and state economies remain strong, while keep-ing those communities secure. The port is very fortunate to have them working on its behalf.” ■
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Political Stakeholders
The Po r t ’ s G r ea t e s t A s se t
From the local to the state and national level, the Port of
Houston Authority relies on elected officials to help mold
the port’s future and determine its destiny. By sponsor-
ing legislation, promoting funding allocations and
supporting port initiatives, the contributions by
key political stakeholders ensure the port’s
continuing economic vitality and security.
At the U.S. congressional level, both chambers look out for the port’s interests and work to secure funding for major projects. Senators Kay Bailey Hutchison and John Cornyn represent Texas in the U.S. Senate. They under-stand that the free flow of trade relies on both efficiency and security.
Hutchison’s critical amendment to the Port Security Improvement Act of 2006 provided an additional 275 Customs and Border Protection (CBP) officers at Houston and other ports. By raising the number of officers in the legislation to 1,000 nationwide, the CBP stopped the practice of moving its officers from the container ter-minals in the morning to the airport in the afternoon. Having adequate staff improves efficiency and reduces dwell time on the terminal while increasing security.
Senator Cornyn responded to PHA’s request for dis-tributing homeland security funds based on risk instead of geographical splits. He co-authored legislation with California Senator Diane Feinstein to distribute the nation’s limited homeland security resources using a risk based analysis. For port security grants, that means ports like Houston, which is home to the nation’s largest pet-rochemical and refining complex and moves more foreign tonnage than any other American port, would score high in a risk assessment based program.
Sen. Kay Bailey Hutchison Sen. John Cornyn Sen. Chet Edwards
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“Port security is an integral part of our national defense and economic security,” said Hutchison. “An attack on the Port of Houston and other ports with petrochemical facilities, could interrupt our energy supply, cripple our economy and threaten millions of lives.”
Year after year, Hutchison and Cornyn also go to their colleagues and convince them to continue funding the Houston Ship Channel Project. The deepening and wid-ening of the channel portion of the project is complete, but routine maintenance and construction of more levees for dredge material placement will continue for many years.
In the U.S. House of Representatives, Reps. Gene Green, Sheila Jackson-Lee, Kevin Brady, John Culberson, Nick Lampson, Michael McCaul, Al Green, Ron Paul and Ted Poe work diligently on the port’s behalf. Gene Green represents a district filled with the working men and women of the port. He is keenly focused on the port’s ability to continue generating jobs for his constituents, some of whom come from families who have worked at the port for generations.
“As a native Houstonian, I learned about the port’s importance early in life,” said Green. I’ve seen first- hand what a good job at the port means to a growing family. Supporting the port’s ability to grow and handle more international trade is essential to the welfare of my constituents.”
Jackson-Lee chairs the Subcommittee for Transportation Security and Infrastructure Protection, and is a senior member of the Homeland Security Committee which oversees the Department of Homeland Security and ini-tiatives to make America safe from terrorism. Her com-mitment to security, along with her local colleagues on the committee — Congressmen McCaul and Al Green, is unwavering.
“I have been on the Homeland Security Committee from the very moment of its creation, first as a select com-mittee and then as a full committee after 9/11,” Jackson-Lee said. I consider this my avocation and my professional duty as a strong advocate of the importance of securing the homeland outside of the Beltway.”
To date, the port authority has received $38.6 million in federal port security grants. The support from the entire Houston delegation has been instrumental in funding the port Security Grant Program and ensuring the port authority gets its fair share.
Just as it is in the Senate, appropriation requests for port priorities are a vital part of the port’s success. Congressman John Culberson is the only member from the Houston del-egation on the committee. Congressman Chet Edwards of Waco is one of the most senior members of the House Energy and Water Appropriations Subcommittee, which funds the U.S. Army Corps of Engineers projects. Despite the fact that the heart of his district is several hundred miles from the port, Congressman Edwards understands the economic impact of the Port of Houston on his cen-tral Texas district.
“The Port of Houston is an important center of com-merce responsible for many jobs that benefit our Texas economy,” said Edwards. “As a Texas member of the House Energy and Water Appropriations Subcommittee, I take very seriously the responsibility to ensure that
Rep. Gene Green Rep. Sheila Jackson-Lee Rep. Kevin Brady
Rep. Nick Lampson Rep. Michael McCaul
Rep. Al Green Rep. Ron Paul
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the infrastructure at the Port of Houston is maintained for the future.”
The port authority’s fiscal year 2008 priority projects have started to show success. Recently, the port author-ity received word from Congressman Lampson that he was successful in getting $250,000 added to the House-passed Transportation Appropriations bill for Port Road, which serves as the main roadway to the Bayport Container Terminal and Cruise Complex. The Water Resources Development Act was amended by Senators Hutchison and Cornyn to add three key provisions for the port authority. The Energy and Water Appropriations Act includes significant funding for the Houston Ship Channel as championed by our senators, Congressmen Green, Edwards, Green, Lampson and Paul.
At the state level, the port authority works with the Houston-area members of the Texas Legislature to pursue legislation on subjects affecting ports. The Houston-area delegation includes: Senators John Whitmire, Rodney Ellis, Mario Gallegos, Jr., Mike Jackson, Kyle Janek, Tommy Williams, and Dan Patrick. In the House, Ship Channel area, representatives include; Rick Noriega, Robert Talton, John Davis, Wayne Smith, and Ana Hernandez. The port authority is greatly supported by the entire 25-member Harris County delegation and members from areas near Harris County like Environmental Regulation Committee Chairman Dennis Bonnen from Angleton.
Legislation carried by Houston-area members can pave the way for increased business for the port. When the port authority decided to apply for green coffee port status with the New York Board of Trade, it was discovered that an inventory tax stood in the way of this lucrative new line of business for the port.
Gallegos, along with the late State Rep. Joe Moreno, authored Constitutional Amendment Proposition 3 to exempt all green coffee and raw cocoa stored in Harris
County from ad valorem taxes. The port gained green cof-fee port status and the coffee trade through the port began to grow.
During the last session of the Texas Legislature, the Ship Channel Security District was authored by Jackson and Smith, co-authored by Noriega, Davis and Hernandez with Gallegos as co-sponsor. Harris County Commissioner Sylvia Garcia, whose district includes the Houston Ship Channel, testified in Austin on the bill’s behalf.
With such widespread support from elected officials and the petrochemical and refining companies that use the Houston Ship Channel, HB 3011 passed the Legislature and it was signed by the Governor. The legislation allows Houston to implement a groundbreaking new approach to funding the operations and maintenance costs of port-wide security grants. The concept, developed through a public-private partnership with the East Harris County Manufacturing Association, Harris County and the port authority, is bound to succeed and create a model for other ports across the nation to emulate.
Local elected officials from Harris County and the City of Houston have partnered with the port authority on various projects, including the legislation creating the Gulf Coast Freight Rail District. The issues surrounding freight rail will determine the success of the port authority and area manufacturers, petrochemical and refining com-panies. However, the most prevalent impact can be felt in the general mobility of the Houston region.
With more than 1,200 public at-grade railroad cross-ings with roadways in the eight-county region, the need for innovative solutions to reduce impacts on the public while maintaining reliable and efficient service to rail-road customers is a job that is too big for a single entity to tackle. The freight rail district will be the catalyst for a public-private solution.
Local elected officials also share in the responsibility of appointing the port commissioners. In doing so, they choose the port’s leaders and ultimately the direction of the port’s interests.
Throughout the history of the Port of Houston, the selection of the Port Commission and its chairman has reflected the importance of the port to the community and state. Working together with elected officials at every level of government, the port authority has continued to enhance and develop new facilities and secure new lines of trade to continue providing an unparalleled economic stimulus locally and across Texas. ■
Commissioner Sylvia GarciaSen. Mike Jackson Sen. Mario Gallegos, Jr.
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The Economic Alliance, Houston Port Region, is a leader in promoting economic growth.
With more than 20 years of close association with the Port of Houston Authority, the orga-
nization has been able to unify the efforts of many city governments, businesses, and Harris
County to forge new partnerships and promote economic expansion in the Houston Port
Region. The Alliance is devoted to marketing and growing a vibrant regional economy.
BUSINESS CONNECTIONSEconomic Alliance, Houston Port Region
Since its 2004 name change, the Economic Alliance has streamlined its development strategies into a con-cise five-year plan. The plan focuses on three key areas: job/economic retention, marketing and advocacy for the Houston Port Region.
The strength of the Alliance’s work comes from part-nering with organizations like the PHA.
President/CEO Jan Lawler said, “The Port of Houston Authority has worked hand-in-hand with the community leaders and the Economic Alliance on some key strategic region initiatives.”
For example, the 3rd Annual Coffee Symposium, headed by former Economic Alliance Chairman and cur-rent Port Commissioner Jimmy Burke, is a joint venture
by both the Alliance and the Port of Houston Authority, which Lawler said “is a big success.” “That is something the communities could not have implemented ourselves.”
This event has brought accolades to the Economic Alliance and its partners. “We have received feedback from the New York Board of Trade,” said Lawler. “They reported having never been at an event with such interac-
tion with community leaders.” The vision of the Alliance stems from a desire to con-
tinuously improve the quality of life in the Houston Port Region. By increasing the region’s assets, companies will be drawn here and have more tangible incentives for their employees. Also, aggressively seeking an increase in tour-ist visits will promote the region on a more public level for increasing revenues to our community.
Lawler summed it up best: “The Economic Alliance is about being able to accomplish things together that we wouldn’t be able to do as individual parties. Our board is committed to regional partnering; it is what keeps all of us competitive globally in the next decade. We really value that.” ■
The Port of Houston is expanding and your company could be a part of this growth in 2007! With the
Bayport terminal opening, the Port of Houston will become 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
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Targeted Circulation 15,000With a targeted circulation of 15,000 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 mes-sage to market.
Who a�freight f� 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.
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SPOTLIGHT ON SMALL BUSINESSJ. A. Harris Trucking, Inc.
J. A. Harris Trucking, Inc., is only three years old, but thanks to the Port of Houston Authority’s Small Business Development Program, it is on the road to success.
Founded in May 2004 by Jaime A. Harris and Rogelio Gonzalez, the Houston, Texas-based trucking company specializes in flatbed cargo. Beginning operations with only three trucks and four trailers until its licensing was approved in August 2004, the company currently has 20 trucks operat-ing in 48 states.
J.A. Harris recently became a member of the PHA’s Small Business Development Program.
“We attended the Small Business fifth anniversary event and were introduced to a lot of people,” said Joe F. Harris Jr., who handles the administrative sector of the company. “In the short time we have been working with
the port authority, a lot of nice people have taken time to help us out.”
Although J.A. Harris doesn’t yet have any contracts with the PHA, the trucking company has benefited from connections made through the Small Business Development Program to help its business grow.
In March, the company was granted a brokerage license, which gives it the ability to broker excess freight to other carriers that its firm can’t handle.
“We are a young business and the relationships made here at the port have really been helpful to us,” said Harris.
The next step, Harris added, is to work more with financing so the company can buy more equipment and continue to expand. ■
Rogelio Gonzalez, Jaime Harris and Joe Harris
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