Organization of American States, CIP Presented by: Tom Kornegay Executive Director Port of Houston Authority 1.

Organization of American States, CIP

Presented by: Tom Kornegay

Executive Director

Port of Houston Authority

1

PHA /Port of Houston

PHA• HSC sponsor• Public wharves• 15% total

tonnage• Consumer

goods

Port of Houston• 53-mile channel• 6th largest port• 85% total

tonnage• Petrochemical

industry

2

Port Commissioners

Jim Edmonds, chairman

Kase Lawal, vice chairman

Steve Phelps

Jim Fonteno

Jimmy Burke

Cheryl Thompson-Draper

Janiece Longoria 3

Economic Impact

• 287,000 Texas jobs

• $11 billion in revenue

• $649 million in state and local tax revenue

• 22 million state population

• 66 percent live in major metropolitan areas

4

Key Cargo Tonnage

Port of Houston:• Total ’03 port

tonnage – 190 million tons

• Half was

petroleum

5

PHA:• 77% increase in

steel• Trend continues to

1Q 2006

Record Year

• $120 million revenue

• 12% increase

• 1.24 million TEUs

• 8.4% increase

6

Barbours Cut Terminal

• 9.4 million tons Jan-Sept ’04

• 15% increase over 2003

• Terminal at capacity

7

Bayport Container and Cruise Terminal

• June 2004 groundbreaking

• 39,000 new jobs

• $1.6 billion state economic impact

• Most modern terminal

8

Bayport Container and Cruise Terminal

• 10-15 year building plan

• Phase I contracts awarded

• Ultimate 1,045-acre facility

• 7 ship berths

• 3 cruise berths

• 378-acre container yard

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Bayport Container and Cruise Terminal

• Triple PHA container capacity

• 64 % Gulf Coast containers

• 94 % Texas coast containers

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Latin America

Markets:

• Brazil

• Argentina

• Chile

• Venezuela

• Peru

• Colombia 11

Ocean Carriers

• P&O Nedlloyd

• Seaboard

• Crowley

• Maersk-Sealand

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South American Goods

• Steel

• Coffee

• Ceramic tiles

• Wind turbine equipment

• Forest products

13

American Market

• Consumer market growing

• Commodities move over Houston’s docks

• Increasing retail opportunities

14

Wal-Mart

• 2 million square foot distribution center planned near HSC

• Additional 2 million square feet potential

15

Environmental Awareness

• ISO 14001 compliant

• Environmental Management System

• Results: – 75 % reduction in absorbent

disposal– Eliminate oily rag disposal

16

Port Security

• $16.7 million security grant funding

• Security partners cooperation

• Elected official briefings

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Port Security

• Partner with cities along HSC

• Partner with Harris County for radio equipment and training

18

Port Coordination Center

• $4.35 million facility

• Advanced communication systems, data sharing equipment

• Communication command center for partners

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Maritime Transportation Security Act

• Port authority prepared in advance of July 1, 2004, deadline

• Comprehensive security plans submitted to US Coast Guard

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Conclusion

• Building on strengths of existing relationship

• Cultivating new relationships

• Capitalizing on market opportunities

• Focusing on environmental stewardship

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