Expanding Produce & Floral Ports of Entry

Expanding Produce & Floral Ports of Entry

Imported Fruits, Vegetables, & Floral Products

• U.S. consumers expect a wide variety and year-round supplies of Fresh Fruits and Vegetables.

• Imports of Produce is necessary to give consumers what they want, when they want it.

• Imports also temper increases in food prices.• The demand for fresh fruits and vegetables is driven by

growing population, income and consumer awareness about diet.

• Imports of Fresh Fruit & Vegetables have more than doubled in the past 10 years.

Refrigerated Cargo

• Global transportation of Fruits & Vegetables is highly specialized & time-sensitive.

• It is estimated that refrigerated cargo will grow by 4.5 percent annually through 2016.

• Exotic tropical fruits such as kiwi, pineapples and avocados offer the greatest growth potential.

• Freight rates for refrigerated cargo are nearly 3.5 times that for ordinary dry cargo.

• For the maritime industry, refrigerated cargo can be very lucrative.

2013 Port of Houston Statistical Highlights

• 1st ranked US port in foreign tonnage• 7th ranked US container port by total TEUs in 2013• Largest Texas port with 46% of market share by

tonnage and 95% market share in containers by total TEUS in 2013

• Largest Gulf Coast container port, handling 66% of US Gulf Coast container traffic in 2013

• 2nd ranked US port in terms of cargo value waterborne (based on U.S. Dept. of Commerce, Bureau of Census)

What infrastructure is needed to handle Refrigerated Cargo?

• Refrigerated Storage Capacity.• Reefer Racks with Plug capacity – Many

inbound vessels now have over 2000 plugs.• Fumigation Facility Capacity.

USDA Barriers• High incidence of quarantined loads at any new port of

entry.• As of September 2013, APHIS has determined that 71 pests

on which we had been taking action at ports of entry to address their risk no longer qualify under the PPA as requiring such action.

• New technology (ELMO Project) exists at certain ports. This allows product to release in Real-Time and ready to move off port in minutes.

• USDA has approved in-transit cold treatment for certain ports. This allows for faster shipping and eliminates the need for fumigation.

Refrigerated Export Opportunity

• Texas accounts for 12% of Total Beef production• Port of Houston accounts for 1.3% of Beef

exports.• East Cost ports account for 6.6% of exports.• Most of those exports are going to the Asian

countries.• 83% of Beef exports are through West Coast

ports

3 Biggest Barriers to Expanding Refrigerated Imports

• Infrastructure• USDA• Export Business

Marketing to Attract New Business