THE PORTOF HOUSTON

May/June 2007

$ 117.6 billion

$ 39.3 billion

$ 3.7 billion

State-Wide Economic Benefit

Personal Income

State and Local Taxes

T h e N u m b e r s S p e a k f o r T h e m s e l v e s

Jobs in Texas

Related User Jobs

Jobs Related to Cargo Activity at PHA Facilities

Direct, Induced and Indirect Jobs

785,049 586,066 393,147 198,983

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Contents

10 32 Who Works at the Port

Under Construction

36 Strength in Numbers Port of Houston affects 785,049 jobs

40 Direct Jobs Increase Tied to Growth in Tonnage

To view The Port of Houston Magazine in Spanish, please visit www.portofhouston.com

COVER STORY

May/June 2007

A bi-monthly publication.

14 Determining Economic Impact It’s all in how you find the numbers

16 Jobs and Jettas — Where the Rubber Meets the Road

18 25th IAPH World Ports Conference Brings Together Global Maritime Community from 50 Countries

24 PHA and Port of Galveston Agree to Long-Term Planning for Container-Handling Facility on Pelican Island

28 Trained Workforce Boosts

Economic Impact West Gulf Maritime ensures productivity

FEATURES

Martin Associates Study Measures Horsepower of Port Economic Engine

4 A Message from the Executive Director H. Thomas Kornegay, P.E., P.P.M.

6 The Manifest PHA news highlights

42 Business Connections Greater Houston Convention

and Visitors Bureau

44 Spotlight on Small Business QC Laboratories, 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: agamez@poha.com

Port of Houston Magazine’s editorial staff: Argentina James, director of public affairs • Lisa 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: jcuttino@poha.com

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EconomicH. Thomas Kornegay, P.E., P.P.M.

While “a picture is worth a thousand words,” as an

ad from the 1920s proclaims, numbers can tell a

compelling story, too. And the release of the 2006

Local and Regional Economic Impacts of the Port

of Houston by Martin Associates has a multitude

of numbers to ponder.

ImpactA MESSAGE FROM THE EXECUTIVE DIRECTOR

At the April 23 Port Commission of the Port of Houston Authority meeting, Dr. John C. Martin gave an overview of the report, which shows a dramatic increase, positively affecting the state of Texas on several fronts. During 2006, the Port of Houston affected 785,049 jobs, $39.3 billion in personal income and expenditures from those jobs. In addition, port-related activity resulted in $3.7 billion in state and local taxes. All totaled, business activity related to the Port of Houston contributed to $117.6 billion of state-wide economic benefit.

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Economic

In this issue, we take a closer look at the origin of the numbers and what they actually mean. But you don’t have to be a math genius to understand the enormity of these figures and their effect statewide.

This tremendous growth in economic activity gener-ated by the Port of Houston was driven by a nearly 50-million-ton increase in cargo during the last six years, with liquid bulk leading the way. Between 2000 and 2006, total cargo handled at the public and private terminals at the Port of Houston increased from 191.4 million tons to 240.9 million tons.

These 785,049 statewide workers fit into four types of jobs, measured according to their economic impact: direct, such as dockworkers and terminal operators; induced, such as healthcare providers; indirect, such as equipment and parts suppliers; and related jobs, such as manufactur-ing and distribution firms. And of those jobs, just about one half, 393,147 to be exact, are related to activity at facilities owned by the Port of Houston Authority.

ImpactAs part of the research process, Martin Associates

interviewed people from more than 1,000 firms, from freight forwarders to barge operators to warehouse workers representing more than 95 percent of the Houston seaport community. These are businesses that provide services to the cargo and vessels at PHA marine terminals and the private terminals along the Houston Ship Channel.

In the last six years, the port activity has added more than 3,400 new direct jobs annually, and the average sal-ary of these job holders has increased from $41,560 to $48,730. Let’s do the math: that alone shows a collective gain of about $24.4 million!

The numbers paint a promising picture for the Port of Houston, the people and the economy of the state of Texas. For more details, I suggest you take a look at the full report, available on the PHA Web site, www.portof-houston.com. ■

During 2006, the Port of Houston

affected 785,049 jobs, $39.3 billion

in personal income and expenditures

from those jobs. All totaled, business

activity related to the Port of Houston

contributed to $117.6 billion of

statewide economic benefit.

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p h a n e w s h i g h l i g h t sTHE MANIFEST

STARCHASER 4 ROLLS OFF AT TURNING BASIN

Nova-Starchaser 4, the largest rocket to ever launch from Great Britain, was off-loaded at the Port of Houston Authority’s Turning Basin terminal on March 21. The rocket arrived on the M/V Tagus. P&O Ports was the stevedore for the project.

Nova-Starchaser 4, a privately built and pri-vately owned rocket, left its country of origin on February 14 for a four-week transatlantic journey to the Port of Houston. The 37-foot-tall rocket,

along with the single-person Nova capsule, was transported west, courtesy of RT Electric trans-port on Interstate 10 to Las Cruces, N.M., for a tour before continuing its journey north to Colorado Springs, Colo., for appearances at the FAA/U.S. Air Force Entrepreneurial Summit and at the National Space Symposium.

It is presently on display at Starchaser Rocket City, a commercial space tourism center now under development near Las Cruces.

SPRING BLOOD DRIVE A SUCCESS; SUMMER DRIVE LOOMS

Mark the dates of June 26–27 on your calendars and be prepared to give the gift of life. Those are the dates for the Port of Houston Authority Summer Blood Drive. Organizers of the event are expecting the strong support for the Spring Blood Drive to serve as the impetus for an even stronger turnout at the summer event.

A total of 57 units of blood was collected during the Spring Blood Drive, held March 20, at PHA’s Executive Building and the Barbours Cut terminal.

Donors who gave at the Executive Building donated 33 units of blood and included four first-timers, while BCT donors contributed 24 units to the Houston Blood Bank. PHA’s 2007 goal is 250 units.

Employees from Cooper T. Smith, Houston Port Bureau, All Transport Services, Greenlight Courier Service and Cargo Net supported PHA’s Spring Blood Drive.

The summer blood drive is scheduled for June 26 at Barbours Cut and June 27 at the Executive Building.

PHA RIDERS SURPASS MS150 FUND-RAISING GOAL

A total of 40 riders representing the Port of Houston Authority combined to raise a team record $42,117 in this year’s BP MS150 Bike tour and fund-raiser, on April 21–22. The total exceeded this year’s goal of $35,000 by nearly 15 percent and smashed last year’s record of $32,000 by more than 25 percent.

The BP MS150 Bike Tour— the largest fund-raiser of its kind in the nation — is a two-day cycling adventure for 13,000 cyclists, from Houston to Austin that raises funds to help people living with Multiple Sclerosis. This marks the third year PHA has fielded a team.

“I’m most proud of the team and ecstatic about surpassing our fund-raising goal,” said team cap-tain Scott Aspelin. “That’s what the event is all about. Everybody stepped up and did an admirable job of soliciting.”

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p h a n e w s h i g h l i g h t sTHE MANIFEST

BURKE RE-APPOINTED TO PHA COMMISSION

By a unanimous vote, the Harris County Mayors and Councils Association re-appointed Jimmy A. Burke to the Port of Houston Authority (PHA) Commission for another two years. Initially appointed to the PHA Commission in August 1999, Burke also is a member of the Board of Pilot Commissioners. PHA commissioners serve two-year terms without pay.

“We welcome Commissioner Burke’s return,” said PHA Chairman Jim Edmonds. “He is a valuable member of the commission. He is highly regarded by the 26 Harris County cities that he serves. His dedication to the port and his constituents is greatly appreciated. We look forward to continuing our work with Commissioner Burke.”

Burke is chairman of the PHA’s community relations committee and past chair of the interna-

tional business development task force. He is the immediate past chair of the Economic Alliance Houston Port Region and for the past two years he has chaired the Houston Port Region Annual Coffee Symposiums.

A Deer Park resident since 1954, Burke retired from Shell Oil Co.’s manufacturing complex following 35 years of service. Commissioner

Burke also has been active in the Deer Park com-munity in both civic and governmental activities for more than 40 years. His achievements include serving nine terms as mayor from 1981 to 1999, as well as serving on city council from 1969 to 1981. One of the proudest achievements in Burke’s career was serving as president of the Texas Municipal League (1997–98) which represents 1,012 small cities.

WHITLOCK JOINS PHA AS COMMUNICATIONS MANAGER

Lisa Ashley Whitlock joins the Port of Houston Authority as communications manager. She is responsible for managing the PHA’s advertising and edito-rial media strategies for promotional and marketing development campaigns that include the multimedia “The Port Delivers The Goods” advertisement campaign. She serves as an official spokesperson and liaison in response to media inquiries. In addition to the departmental administrative duties, Whitlock also oversees the production processes for all PHA’s publications and marketing collateral materials.

Whitlock brings a wealth of professional experience in public affairs and a rich history of civic involvement. Since 1990, she has worked for Fox 26 KRIV-TV, starting as a news assignments editor and ascending to the position

of community affairs director for KRIV and its sibling station My 20 KTXH-TV.A graduate of Texas Southern University with a degree in speech communications, she is married to

Michael Whitlock.

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 ehenry@poha.com 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.

To view The Port of Houston Magazine in Spanish, please visit www.portofhouston.com.

MICELI JOINS PHA TRADE DEVELOPMENT DIVISION

Keith Miceli joins the Port of Houston Authority as Eastern Trade Development manager. Since 2004, Miceli served as senior vice president of the World Trade Department of the Greater Houston Partnership, where he also held the positions of executive director, Houston World Trade Center and executive director, secre-tariat, World Energy Cities Partnership.

Prior to that time, Miceli worked as executive director-Southern Regional Center for the Institute of International Education, which was established in 1952 by prominent Houston business and civic leaders to promote international educa-tion and professional exchange programs. He has also worked for Enron Corp. and — for 24 years — was deputy director, Latin America, Asia, and Middle East in the Center for International Private Enterprise.

YOUNG ACHIEVERS RECOGNIZED BY PHA COMMISSION

Ten local high school seniors who received $2,000 college scholarships from PHA’s Junior Achievement program took center stage at the May 22 PHA Commission Meeting. PHA has participated in the pro-gram for the last four years.

The 2007 scholars represent eight schools, including Clear Brook: Megha Patel; Clear Creek: Joshua Hale; Deer Park: Kaithlyn Dobrsenski and Shannon Garza; Goose Creek: La Tonya Edmeade; La Porte: Altaf Hernandez and Kelly Renee Smith; Pasadena: Diana Zaid; Waltrip: Elizabeth Nunez; and Wheatley: Floyd Stubblefield III.

Horsepower of Port Economic EngineMartin Associates Study Measures

So, how does one measure the horsepower of

an economic engine? The Port of Houston

Authority enlisted the help of economics

consultants Martin Associates to find out.Martin Associates, which has more than 20 years’ experience assess-

ing economic impacts associated with transportation systems, recently released results of a study of the Port of Houston’s economic impact, based on 2006 data.

The results reflect a dramatic effect on the Houston region and the Texas economy, as well.

According to the study, in 2006, the Port of Houston has some impact on 785,049 jobs in Texas (including 198,983 direct, induced and indirect jobs), and contributed to $117.6 billion of total economic activity in the state (including $8.1 billion in direct business revenue), and $3.7 bil-lion in state and local taxes. Those taxes included $1.3 billion of direct, induced and indirect state and local taxes.

John Martin, president of the Lancaster Pa.-based consulting firm, affirms the obvious — that the figures from the 2006 study show the pro-found and energizing effect the port has had on the economy over the past six years.

“You can see it,” Martin says. “Look at the direct impact numbers. It’s clearly there.”

Those “direct impact numbers” refer to three primary categories:Jobs: Between 2000 and 2006, direct jobs increased by 3,412 jobs from

54,730 to 58,142. The largest gains — about 1,200 jobs — were among freight forwarders, reflecting the growth in containerized cargo and steel, the study says. Other large employment gains were among longshoremen and dockworkers, reflecting the growth in containerized cargo, steel and other breakbulk cargoes.

Personal income: Annual direct personal income influenced by port activity increased by $559 million — from $2.27 billion to $2.83 bil-lion between 2000 and 2006.The average annual salary of these 3,412 job holders has increased from $41,560 to $48,730.

Horsepower of Port Economic Engine

Revenue: Annual direct revenue influenced by port activity increased by $1.2 billion — from $6.2 billion to $8 billion.

The study defines direct jobs as those jobs with local firms providing support services to the Port of Houston.

Direct jobs, the study says, are dependent upon the seaport activity and would suffer immediate dislocation if that activity were to cease. Those direct jobs include jobs with railroads and trucking companies moving cargo to and from the PHA’s marine terminals and private ter-minals, members of the International Longshoremen’s Association (ILA) and non-ILA dockworkers, steam-ship agents, freight forwarders, ship chandlers, warehouse operators, bankers, lawyers, terminal operators, and steve-dores. The 58,142 direct job holders received $2.8 billion of direct wage and salary income, according to the study.

The study goes on to show the radiant effects of the port’s impact on the economy through a look at induced, indirect and related jobs to the seaport.

Induced jobs are those created locally and throughout the regional economy through purchases of goods and services by those directly employed. They include jobs

with grocery stores, the local construction industry, retail stores, health care providers, local transportation services, local and state government agencies providing public services and education to those directly employed, and businesses providing professional and business services in support of those directly employed. These goods and ser-vices, the study says, would also be discontinued if seaport activity were to cease. As the result of local and regional

The 58,142 direct

job holders received

$2.8 billion of direct

wage and salary income,

according to the study.

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purchases by those 58,142 individuals holding the direct jobs, an additional 61,714 induced jobs are supported in the regional economy, according to the study.

Indirect jobs are those jobs generated in the local economy as the result of local purchases by the firms directly dependent upon activity at the Port of Houston. These jobs include jobs in local office supply firms, equipment and parts suppliers, maintenance and repair services, insurance companies, consulting and other busi-ness services. If port operations were discontinued, the study says, these indirect purchases and the associated jobs and income would also be discontinued. The study identified 79,127 jobs as indirect. A total of $5.9 billion of local purchases by businesses supplying services at the marine terminals and by businesses dependent upon the Port of Houston was spent in support of those indirect jobs, according to the study.

The study defines related jobs as those with manufac-turing and distribution firms like steel fabrication firms using the steel imported through the marine terminals, manufacturers producing or consuming containerized cargo, and firms producing and consuming dry and liquid bulk cargoes such as petrochemical firms. A staggering 586,066 jobs throughout the state of Texas are identified as being related to activity at the Port of Houston.

Related jobs are not dependent upon the port marine terminals to the same extent as are the direct, induced and indirect jobs.

“If the Port of Houston ceased to exist,” Martin says, “those jobs wouldn’t necessarily go away. The firms would simply use another port.”

The study intentionally excluded firms counted as directly dependent upon the port activities from the related jobs category to avoid double counting.

The total economic value is a key component of the 2006 study, Martin says.

“By looking at cargo flows from port to end consumers,” he says, “it allows you to quantify the impact of all the stages of that (cargo) handling from the time it is taken off the ship all the way to the final sale.”

The component takes into account “all distribution activities associated with (the cargo),” Martin says. “It takes the entire value at each stage of distribution. It gives you the opportunity to look at the full value of the product.”

Ironically, the methodology was developed specifically for the Port of New Orleans and Martin delivered it just two days before Hurricane Katrina hit the venerable Gulf Coast city. It is now being used as a formula for determin-ing the distribution of FEMA relief funds. ■

A staggering 586,066

jobs throughout the state

of Texas are identified as

being related to activity at

the Port of Houston.

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determiningeconomic

It’s all in how you fi nd the numbers

impactIf you want dependable information on a port’s economic impact, you go to the creator of the most accurate method for determining economic impact: Martin Associates. Led by John C. Martin, the fi rm has conducted more than 500 economic, planning and marketing studies for seaports throughout the world.

The study, conducted by Martin Associates, shows annual automobile and roll on/roll off cargo increased by 330,000 tons in the years from 2000 to 2006.

Automobiles, according to the study, create the largest number of direct jobs (2.23) per 1,000 tons due to the processing activity associated with the imported cars.

The assessment of the job impacts on a per-1,000-ton basis, the study explains, provides a tool for port planners to use in evaluating the relative importance of different commodities as economic generators.

Since 1958, Volkswagen of America has been leasing space from the Port of Houston Authority to handle and prep its import shipments of automobiles.

The company brings in between 100,000 and 120,000 automobiles a year by ship from overseas and by rail from

Mexico and Brazil, making the Port of Houston the larg-est port of entry for Volkswagen, Bentley and Audi auto-mobiles in North America.

Stuart Kessler, port manager, regularly assembles 45-person crews provided by stevedore P&O Ports to unload between 1,000 and 1,100 cars each day a shipment comes into the port.

The ship unloading process is a testimony to logistics management, coordination and efficient use of manpower. The average vessel, which consists of 11 to 13 decks, resembles a huge parking garage, with the automobiles parked in a counterclockwise stowage position.

The crews work primarily in two stages — unlashing the strapped vehicles and then driving them to the 82-acre Volkswagen compound. The drivers are loaded onto vans

Where the Rubber Meets the RoadWhen it comes to the radiant economic benefits delivered by the Port

of Houston, as outlined in the recently released economic impact study,

the rubber literally meets the road with automobile shipments.

Jobs and Jettas

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at the compound and driven back to the ships, where the process continues.

Consistent with what the Martin Associates study points out, the ripple effect continues throughout the sup-ply chain through point of sale.

Kessler also oversees an on-site auto processing facility responsible for accessories add-ons such as spoilers, mud guards and alloy wheels. The crews used to handle air conditioner installations, but that work is handled at the factory of origin now.

The labor-intensive work extends beyond the steve-doring crews as a beehive of activity continues even after the vehicles are unloaded. Kessler employs about 150 full-time workers.

About 120 of them are used to move the vehicles, while more than two dozen are involved in diagnostics, accessorizing and other prep work.

Kessler estimates between 20 and 30 truck loads (aver-aging 8–10 cars per load) are sent daily from his facility and trucked or railed to 700 dealers located in 35 states.

Take into account the truck drivers, the fueling, the hotel facilities, restaurants and retail outlets they visit en

route to their destination, the workers who unload, park and prep the vehicles once they arrive at the dealership, and the sales force responsible for passing them on to the consumer and you get a broader view of the far-reaching economic impact one shipment of vehicles can deliver.

There is a commonly held conception that the influx of foreign automobiles to this country takes jobs away from U.S. workers. But the labor involved in unloading, handling and ultimately delivering these imported goods suggests these vehicles generate a substantial number of local, regional and national jobs.

“The number gets to be pretty large,” Kessler says of the overall scope of job impacts. “What a lot of people don’t realize is the impact when you add up the total dol-lars. Our center alone did $1.8 billion in volume and duty value last year.

“Volkswagen of America is proud of our relationship with the Port of Houston and the local community,” Kessler says. We’ve been supporting the community since 1958. That relationship has allowed us to provide 150 full-time jobs in the local economy. That translates into a larger number of roughly 1,800 jobs nationwide.” ■

Where the Rubber Meets the RoadJobs and Jettas

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Group Adopts Clean Air Resolution

25th IAPH World Ports Conference Brings Together Global Maritime Community from 50 Countries

The 25th International Association of Ports and Harbors (IAPH)

World Ports Conference, held in Houston April 27–May 4, proved

to be most productive as delegates from 50 different countries

gathered to discuss key issues in the global maritime community.

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IAPH’s commitment to world port environments was underlined at the conclusion of the conference when delegates unanimously adopted a resolution calling for ports to promote clean air programs to help fight global warming.

The IAPH resolution reaffirms the group’s recognition of ports’ need to adopt clean air programs to better sus-tain development of the global society. The IAPH reso-lution urges ports, members and non-members alike to take active and effective steps towards clean air programs while stressing the critical need to develop integrated action plans for individual ports.

Hosted by the Port of Houston Authority (PHA) the conference week was highlighted by six work sessions boasting a long list of distinguished speakers.

Keynoting the opening ceremony, Captain Nicola Arena, chairman and CEO of Mediterranean Shipping Co. (USA), emphasized the need to plan in a fast- paced business.

“Together, we have a shared responsibility to plan, invest and provide efficient and economical ocean trans-portation to our customers,” Arena said. “This is a dif-ficult and expensive task, but shipping has never been a business for the faint of heart.”

On the first day of the conference, IAPH President and PHA Executive Director H. Thomas Kornegay urged delegates representing the world’s leaders in maritime trade and transportation: “let us recommit our-selves to continue to address the challenges of the new global economy.”

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The first of the six sessions, “Globalization of World Economy and its Impacts on Ports,” addressed the growth in the cargo container industry. Challenges of the chang-ing world economy and the world trade impacts of the growing economies of Brazil, Russia, India, and China rounded out the session.

U.S. Department of Homeland Security Deputy Secretary Michael Jackson led the speakers of “Port Security and Risk Management” Work Session II. “We are not single-mindedly focused on security at all costs. Security and mobility are compatible,” said Jackson. Other presenters talked about how New Orleans dealt with the aftermath of Hurricane Katrina and the effects of the 2004 tsunami on port operations.

“Challenges to Port Environment” were discussed during Work Session III as experts outlined what can be done to make ports among the leaders in protecting fragile ecosystems.

Work Session IV, “Ports Adapting to Future Business Development Opportunities,” offered presentations on the fastest-growing segments of the maritime industry. Leading the list of those contributing to this session was Maurizio Bussolo, the CEO of the Port of Genoa, who spoke of the booming cruise industry, noting that 29 cruise ships were on order worldwide.

During Work Session V, “Logistics Infrastructure and Port Strategies,” Alberto Aléman Zubieta from the

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Panama Canal Authority spoke to how the new Panama Canal Project expansion will affect the areas of traffic, financial prospects and trade. Once completed, the proj-ect “will impact the way transit will move in the future,” declared Aléman Zubieta.

In the conference’s final work session, “New Technological Innovations for Port Operations,” present-ers discussed the new terminal innovations and automa-tion in each of their respective countries.

Other highlights of the conference included a cel-ebration commemorating the 30th anniversary of PHA’s Barbours Cut Terminal and the reunion of the delegates who attended the last IAPH conference in Houston. Also, U.S. Commerce Secretary Carlos Gutierrez addressed global economic issues and trade opportunities when he provided the keynote address at a luncheon dur-ing the week.

Incoming officers were also announced during the conference. O.C. Phang, general manager of the Port Klang Authority, was elected as the organization’s first woman president and first president from Malaysia. Phang pledged to make IAPH “an even greater force in the maritime industry.”

In his farewell remarks, outgoing IAPH President H. Thomas Kornegay urged delegates to “continue to share your ideas.” He said, “IAPH’s foundations continue to be based on unity, and cooperation is still alive and well.” ■

PHA Small Business

Development Program

5th Anniversary

25th IAPH World Ports Conference

25th IAPH World Ports Conference

Front row, seated, from left: Steve Cernak, Executive Director, Port of Galveston; H. Thomas Kornegay, Executive Director, Port of Houston Authority;

Benny Holland, Jr., Chairman, Board of Trustees, Port of Galveston; James T. Edmonds, Chairman, Port of Houston Authority; Back row, from left: Capt.

Chris J. Gutierrez, Presiding Officer, Galveston-Texas City Pilots Association; Jim Gilbert, Chairman, Economic Alliance Houston Port Region; Gio

Tomasini, Chairman, Greater Houston Partnership Economic Development Committee; Clyde Fitzgerald, President, International Longshoremen’s

Association; PHA Commissioner Steve Phelps; Jeffrey Sjostrom, President, Galveston Economic Development Partnership; Lyda Ann Thomas, Mayor

of Galveston; Gerald Sullivan, Vice Chairman, Board of Trustees, Port of Galveston; Walt Niemand, President, West Gulf Maritime Association; PHA

Commissioner Janiece Longoria; PHA Commissioner Jimmy Burke; and Capt. Robert Thompson, Presiding Officer, Houston Pilots.

PHA and

Port of Galveston

Agree to Long-Term Planning for

Container-Handling Facility on Pelican Island

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• Port of Galveston • Port of Galveston Currently Under Lease and/or Option Agreement • Port of Houston Authority

Aerial photo of Pelican Island with Port of

Galveston and Port of Houston boundaries.

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Officials from the Port of Houston Authority and the Port of

Galveston signed a Memorandum of Understanding (MOU) in

May to explore opportunities for the development and use of

property on Pelican Island as a future container-handling facility.

Both of the ports’ governing bodies gave the green light for the two ports to sign the MOU during their respective board meetings in April. The MOU calls for both ports to identify a joint action-planning team to cre-ate a master development plan for a container-handling facility on the island. The plan may address, among other things, financial and operational matters, acquisition of property, facility access, land use requirements and envi-ronmental impact.

Expectations are for container cargo growth to con-tinue at a double-digit pace. The two ports anticipate market demand to require development and operation of such a facility in the next 10 to 15 years.

The joint agreement stipulates that finance and devel-opment of the facility would not begin until after 2015, when the port authority’s Bayport Container Terminal is expected to be fully built out.

The MOU calls for both ports to put property that they own on Pelican Island to use in the development of the container-handling facility and for the Port of Houston Authority to operate the facility.

The Port of Galveston, located at the entrance to Galveston Bay, leases and maintains facilities situated on the north side of Galveston Island and on adjacent Pelican Island. Pelican Island is a combination of unde-veloped property, an active rig repair facility and liquid bulk operations. ■

From left: PHA Commissioner Janiece Longoria and Lyda Ann

Thomas, Mayor of Galveston, with a map of Pelican Island.

Jim Edmonds

Chairman, Port of Houston Authority Commission

“The port authority looks forward to the opportunity

to work with the Port of Galveston to explore solutions

to the region’s long-term container capacity needs.

Now that we have our Bayport Container facility

open and running, it’s prudent for us to start the plan-

ning for Pelican Island.”

Lyda Ann Thomas

Mayor, City of Galveston

“The Port of Galveston is the city’s open door to the

world and a major economic engine for the city and

the state of Texas. Galveston is proud to join ranks

with the Port of Houston Authority in a mutually

beneficial agreement that is historical in its potential

for future growth and job opportunities.”

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Jeff Sjostrom

President, Galveston Economic Development Partnership

“The Galveston Economic Development Partnership

is excited about this new MOU between the ports of

Houston and Galveston. We feel this new develop-

ment will maximize the property on Pelican Island and

assist with diversification of the Port of Galveston.”

Benny Holland

Chairman, Board of Trustees of the Port of Galveston

“With the expansion of the Panama Canal, the West

Gulf region is in prime position to take advantage of

the future growth in the maritime industry. The Port

of Houston and the Port of Galveston have agreed to

form a partnership to develop a state-of-the-art con-

tainer terminal so they can benefit from the increased

traffic in this region.”

Jim Gilbert

Chairman, Economic Alliance Houston Port Region

“The Economic Alliance is pleased to see this joint

effort, which will maximize the utilization of the

strength of both ports and have a very positive impact

on the economy for the entire region.”

Walt Niemand

President, West Gulf Maritime Association

“This significant joint effort is appreciated since it

will help meet the needs of WGMA maritime mem-

bers as well as both local and regional economies.

The amount of containerized cargo moving through

the Houston-Galveston hub is expected to increase

in double-figure percentages per year over the next

10 years and modern, state-of-the-art facilities will be

essential to help meet the region’s needs.”

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Trained Workforce

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Boosts Economic ImpactWest Gulf Maritime Ensures Productivity

“The makeup of our group includes carriers that actu-ally own and/or charter the vessels, agents that represent the vessel owners or charterers as well as terminal opera-tors and direct employers that employ ILA (International Longshoremen’s Association) labor,” said Walt Niemand, president of WGMA. The group negotiates the collective bargaining agreement with the ILA, handles the payroll and provides training to the longshoremen.

“In any one year, we have 8,000 or more individuals in the industry who work one day or more in the industry,” said Niemand. “There has been great improvement in the industry and the number of man hours is going up, and that is driving the increased gross payroll we handle.”

In just three years, ILA man hours have jumped from 2,964,347 to 3,960,533, a 25-percent increase. Gross pay and benefits kept pace and increased by 18 percent. Attracting and maintaining a reliable workforce that is readily available for the growing needs of the port has kept the cargo moving and the economy growing.

“Under the union contract, the workers receive very comprehensive fringe benefits, including medical care, a retirement plan and a vacation plan,” said Niemand. “The workers contribute not only to the economy’s growth when they are working, but they also contribute when

The Port of Houston continues to have a dramatic impact on the economic well-being of the region,

because it offers shippers an experienced, well-trained, reliable labor force. Maintaining that stabil-

ity is paramount to the more than 70 members of the West Gulf Maritime Association (WGMA)

who are involved in maritime industry operations from Brownsville, Texas, to Lake Charles, La.

Trained Workforce

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the first ports to put safety items into the general tariff, for example,” said Niemand.

This level of preparation and cooperation made the open-ing of the new Bayport Container Terminal go smoothly.

“This year, with Bayport coming online, we expanded our training through a grant with San Jacinto College,” said Niemand. “This allowed us to bring more people in and provide better entry training.

“Our major goal is offering shoreside gantry (a mount for a traveling crane) training and Rubber-Tired Gantry (RTG) training. The port authority is cooperating with space and equipment, and the benefit is having a quali-fied workforce as a result. The workers are not required to pay for the training. It is being paid for by industry,” said Niemand.

“Skilled jobs on the waterfront have radically increased. With the return of steel shipments in the Turning Basin, the amount of breakbulk work has also increased,” said Niemand.

“While it is no longer necessary to physically handle every box and drum, breakbulk is not as sophisticated and not as efficient as handling containers. A large portion of the work is steel and project cargo, and that has remained an important percentage of the work,” said Niemand.

More work at more skilled wages for a well-trained workforce adds up to an additional economic impact from the port.

“Every dollar earned on the waterfront spins off another $3 to $5 in the local economy, and that is a good return for the workers and the community,” said Niemand. ■

they retire because if they qualify, those ben-efits continue based on years of work and num-ber of hours.”

Safety and training are the cornerstones of WGMA’s efforts. “We have the most compre-hensive drug and alcohol program in the maritime

industry,” said Neimand. “We regularly test management and labor to try to assure a drug-free workplace. In addi-tion, we have two professional safety engineers and one is also an industrial hygienist. They provide training and perform surveys to try to reduce accidents and injuries.”

Texas is a right-to-work state, and the port authority does lease to tenants who choose to use non-union labor. But the vast majority of workers fall under the contract negotiated by WGMA.

“The advantage is that pursuant to the collective bar-gaining agreement, our people meet 100 percent of gov-ernmental regulations, I-9 federal employment guidelines and full security training, which is vital to the port’s efforts to comply with a comprehensive security system,” said Niemand. “We also provide skill training that meets all OSHA requirements for the industry. It is a benefit to the employers that they have a better qualified workforce.”

Unlike other waterfronts, Houston has not had a major labor problem since the 1960s. Niemand attributes that in part to the relationships at the port.

“A good working relationship is one of the big differ-ences. WGMA works with the ILA and the port author-ity on projects routinely. The port authority was one of

Walt Niemand, president of WGMA

“ Every dollar earned on the waterfront

spins off another $3 to $5 in the

local economy, and that is a good

return for the workers and the

community,” said Niemand.

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A total of 511 workers with about 30 contract fi rms are cur-rently involved in 45 construction projects at the Port of Houston Authority, with the majority at Bayport. Projects range from large: the fi rst phases of a container terminal gate control system and a wharf and dredging contract at Bayport, to small: wharf deck repair at Jacintoport. The myriad of projects in-between includes installation of the Intelligent Video Surveillance System, annual main-tenance painting for wharf cranes at Barbours Cut and Turning Basin and water line repair at Woodhouse.

“There’s been tremendous growth at the port,” said Steven DeWolf, PHA chief engineer. “A couple of weeks ago, I looked back 10 years and found we had 28 proj-ects under construction. The total construction cost now is more than $400 million. Then, it was approximately $58 million.

“Construction workers are very important to the port. That’s who we depend on to get a project in place. These days, there is a shortage of qualifi ed construction workers, but a lot of work is going on in the public and private sectors. There is a lot of competition for construction workers. Like the general population, the construction force is aging, people are retiring from business. There will always be opportunities for construction workers.”

A critical element of construction work is program management. Lockwood, Andrews and Newnam (LAN), a national fi rm offering planning, engineering and pro-gram management services, focuses on management of design and construction functions for the port authority. On the construction side, about 13 full-time project man-agers, inspectors and support staff from the fi rm and their associated subcontractors are currently involved daily at the Bayport site supported by another three or four full-time equivalents at LAN’s home offi ce.

“We oversee work as an extension of the port staff,” said Ty Thomas, LAN associate. “We serve as design consultants, overseeing and managing efforts for contract requirements with the designer. We make resources avail-able to designers, meet regularly to make sure we stay on schedule, handle invoices, proposal solicitations and procurement packages. We oversee fi eld staff day to day. We also do the mundane tasks, such as processing change orders, and a variety of spec work. What needs to be done we help take care of.

“The port is one of our oldest clients, going back to the 1940s, when Frank Newnam, one of the founders of the fi rm, devel-oped a Port-wide Master Plan. My personal involvement with Bayport goes back nearly 10 years as a member of the Master Plan Team.

“All these things are important to ensure that the port authority gets the benefi t of the project it pays for. What a great opportunity Bayport is for us, who are lucky to get one project like this in a career. It’s so signifi cant to the local and state economy.”

Inspectors are another critical part of the construc-tion process. One of 11 members of the PHA Engineering Department’s construction inspection crew, Debra Algiers recently received the port’s Star Award for safety.

“ The port has a higher set of standards,” explaining why some members of the crew also traveled to Poland and Finland to inspect cranes for Bayport, checking that the paint system, galvanizing and welding were done properly.

Debra Algiers, field inspector #3

WHO WORKS AT THE PORTUnder Construction

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“All the crew members bring out the best in each other,” said Algiers, who joined PHA seven years ago. “There is so much inspection at the port. We all have from 15 to 30 years’ experience in the industry. You have to be more knowledgeable. It’s not the same old, same old. Operations, wharf supervisors, tenants, all these ele-ments interact.”

The inspection crew oversees construction projects, such as a recent remodeling project for the Executive Office Building. Their duties also include building and wharf repair and working with dredging operations.

“The port has a higher set of standards,” said Algiers, explaining why some members of the crew also traveled to Poland and Finland to inspect cranes for Bayport, checking that the paint system, galva-nizing and welding were done properly.

“I work with won-derful people. It’s never boring, I’m outside. I’m proud to have received the Star Award. It’s nice to be recognized, but

the whole crew deserves the recognition. We all work together as a team.

“We’re the front line group out there. When we go to work, we have to work with truck drivers and tenants. Operations do not shut down (as in highway work) so we can do our job. Every day, we depend on other people in the team, such as tenants who help us by moving cargo for better access for our contractors. I love my job.”

Making up another part of the construction team are plumbers, welders, electricians, mechanics, HVAC technicians, skilled laborers, truck drivers and forklift operators at the Turning Basin.

According to Turning Basin Maintenance Department Manager James Hare, these workers maintain the infra-structure by making repairs to asphalt, warehouses, doors, windows and fences. They also maintain the container crane, forklift and fleets of vehicles and everything in the Turning Basin with the exception of Barbour’s Cut and Bayport.

“We’re in the midst of a major capital expansion, build-ing infrastructure and keeping it in good working order,” said Hare. “Our group ensures the project moves efficiently. We can’t function if we don’t maintain the infrastructure.”

At Barbours Cut, mechan-ics, electricians, welders and laborers help maintain order, doing outside maintenance, picking up trash, making small repairs, striping containers and parking lots, repairing fences, controlling grass and weeds and fixing small potholes with asphalt.

“The maintenance workers are extremely important to keep the facilities going,” said Paulo Soares, mainte-nance superintendent, Barbours Cut. “Housekeeping is huge — lots of trash is generated in the facilities. They remove all trash and clean inside the warehouses. They are fundamental to our operations. Without them, things would be in chaos.” ■

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Strength in

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From dockworkers and warehouse operators, bankers and bunkering firms to health care workers and government agents, shippers and manufacturers, more than three quar-ters of a million jobs in the state of Texas were in some way affected by the Port of Houston in 2006, according to the latest economic impact report by Martin Associates. A total of 785,049, to be exact. And of those, about one half, or 393,147, were related to cargo activity at Port of Houston Authority (PHA) terminals.

The report measures marine cargo activity at the pub-lic and private marine terminals along the Houston Ship Channel. They include PHA terminals and facilities as well as petroleum refineries, general cargo and dry bulk/fertilizer terminals and petrochemical plants.

Driving much of this activity was the movement of 240.9 million tons in domestic and foreign waterborne cargo via the public and private marine terminals, a 50-million-ton increase over 2000. Of the total, 40.6 million tons was related to PHA cargo activity.

Based on interviews with 1,046 firms in the Houston seaport community, the report classified 198,983 jobs as direct, induced and indirect and 586,066 as related user jobs.

Freight Forwarders

Among the 58,142 people in direct jobs, freight forward-ers saw the largest employment gains, about 1,200 jobs, reflecting the growth in containerized cargo and steel. Others in direct jobs include railroads and trucking com-panies moving cargo to and from terminals, dockwork-ers, steamship agents, ship chandlers, warehouse opera-tors, bankers, lawyers, terminal operators and stevedores. Between 2000 and 2006, direct jobs increased by 3,412 jobs, and the average salary of these job holders increased from $41,560 to $48,730.

“We are fortunate to have our business grow each year,” said Bill Roehr of TriStar Freight Systems, Inc.

The 20-year-old ocean/airfreight forwarding business based in the Port of Houston has “a very special niche,” said Roehr. “We deal in military household goods, moving U.S. servicemen and their families to and from overseas.

IMPACT STRUCTUREActivity at the marine terminals impacts four distinct economic sectors, which include different catego-ries of workers. A fifth, banking/insurance law, is not directly involved in cargo or ship operations, but provides services such as financing export/import transactions and insuring cargo and vessels.

• Surface Transportation: Includes railroad and trucking industries moving cargo between marine terminals and inland origins and destinations.

• Maritime Services: Freight forwarders/customs-house brokers arrange for freight to be delivered between terminals and inland destinations, as well as ocean transportation. Steamship agents; chandlers, which supply the vessels with ship sup-plies; towing firms; pilots; bunkering firms, which provide fuel to the vessels, marine surveyors; and shipyards/marine construction. Longshoremen; stevedoring firms; terminal operators; warehouse operators; federal, state and local government, which includes such agencies as U.S. Customs, Bureau of Immigration, U.S. Coast Guard and Army Corps of Engineers.

• Shippers/Consignees: Totally dependent on public and private marine terminals are oil refineries and petrochemical plants and plants on the Houston Ship Channel who receive steel products. Steel fabrication firms, users, producers and consum-ers of containerized cargo and breakbulk cargo, and farmers producing grain for export are only related to the port.

• Port of Houston Authority: Includes PHA employ-ees whose purpose is to oversee port activity at PHA-owned marine terminals.

NumbersAlthough it has remained steady, we haven’t noticed a big upturn in that particular cargo.”

The company also forwards intermodal containers, lumber and freight of all kinds. The 25 employees include inbound and outbound coordinators, dispatchers, and workers who load cargo into containers to the port for overseas transit. Destinations are concentrated in Texas and the southwest and wherever U.S. military installa-tions are.

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State and Local Government

A total of 61,174 people are in induced jobs, those gener-ated by the purchases of the individuals employed as a result of seaport activity. The majority of the induced jobs are with state and local government agencies providing school, health care, police and fire protection, other com-munity and social services, as well as firms providing busi-ness and personal services. The second largest induced job impact occurs in restaurants and groceries.

Equipment and Parts Suppliers

Steve Flood of H&E Equipment Services is among the 79,127 people in indirect jobs, which are generated in the local economy as the result of $5.9 billion of purchases by firms that are directly dependent upon cargo and vessel activity at the marine terminals. Among this group, ship-pers/consignees located along the Houston Ship Channel saw increased employment corresponding to a more than 32-million-ton increase in petroleum and liquid bulk cargo. Indirect jobs also include local office supply firms, equipment and parts suppliers, maintenance and repair services, insurance companies, consulting and other busi-ness services.

“We’ve witnessed an exponential growth curve since the fall of 2004,” said Flood. “Our business is driven by the petrochemical industry.”

Chartered in 1962, H&E Equipment Services distrib-utes cranes, supplies, sales, parts and rentals. H&E is a leading supplier of equipment and parts for construction, earthmoving, compaction, paving and material-handling customers.

“Our company exports quite a bit in the U.S. and everything leaves from the Port of Houston,” Flood said. “Employees work in equipment distribution and as service technicians and shop and field technicians. We distribute and sell parts and rent equipment to refinery complexes.”

Jobs at PHA Terminals

Another large portion of jobs is related to cargo activity at the PHA. Cargo handled at PHA terminals alone gener-ated 20,021 direct jobs. As a result of purchases generated by these direct jobs, an additional 20,516 induced jobs

were supported in the local economy. Local purchases by firms dependent upon the maritime activity at the PHA terminals generated another 28,024 indirect jobs. The 324,586 related jobs at the public terminals brings the total to 393,147.

Jeff Davis, one of 575 PHA employees in nine divi-sions, is among those working at PHA terminals. He man-ages the operations and longshore staff at Barbours Cut and Bayport container terminals.

Davis’ staff handle vessel activity, truck gate processing and the container yard and operate container-handling equipment. They also manage the software and processes that drive the business. The six years since he became container operations manager has seen significant growth of the facilities and container volumes.

“Barbours Cut has reached full buildout and Bayport has opened,” Davis said. “The ships have gotten larger with greater capacity. The number of Rubber-Tired Gantry cranes in use at the facilities has doubled. The container operations have seen double-digit growth in each year except last year and we are up over 20 percent this year to date.”

One-Half Million Related Users

The largest group of jobholders are the more than half-a-million related users, which do not depend on the seaport marine terminals as the others do. They are with manu-facturing and distribution firms, manufacturers producing or consuming containerized cargo, and firms producing and consuming dry and liquid bulk cargoes such as petro-chemical firms. ■

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The steady rise in tonnage moving through the Port of

Houston from the year 2000 to 2006 helped lead to a

more than six-percent increase in direct jobs connected

to the seaport, according to a Martin Associates economic

impact study released earlier this year.

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Direct Jobs Increase Tied to

Growth in Tonnage

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The study defines direct jobs as those jobs directly gen-erated by seaport activity.

These jobs are identified as being dependent upon Port of Houston activity and surmises they would be lost if the port were to cease operations. They include jobs with railroads and trucking companies moving cargo to and from the PHA’s marine terminals and private ter-minals, members of the International Longshoremen’s Association (ILA) [union] and non-union dock work-ers, steamship agents, freight forwarders, ship chandlers, warehouse operators, bankers, lawyers, terminal operators, and stevedores.

Between 2000 and 2006, direct jobs increased by 3,412 jobs, the study points out, with the largest employment gains (about 1,200 jobs) among freight forwarders.

The study cites growth in containerized cargo and steel as the biggest factors contributing to the increase among freight forwarders. Those two categories, along with increases in breakbulk freight also contributed to signifi-cant increases in the number of longshoremen.

The study shows 58,142 full-time jobs were directly related to Port of Houston activity in 2006.

The average annual salaries associated with those direct jobs is nearly $49,000, according to the study, which amassed its data through interviews with 1,046 firms providing services to the cargo and vessels handled at the public marine terminals and the private terminals along the Houston Ship Channel.

These firms represent more than 95 percent of the firms in the Port of Houston community, the study says.

The job growth, the study reports, is tied to six-year growth in seven key categories:

1 Liquid bulk cargoes, including petroleum and petro-leum products, which grew by 36.6 million tons. The Port of Houston is home to the world’s second largest petrochemical complex.

2 Containerized cargo grew by 6.2 million tons. The Port of Houston handles 72 percent of the contain-erized cargo market in the U.S. Gulf and 95 percent of the containers moving through Texas

3 Dry bulk cargo grew by 3.9 million tons.4 Iron and steel cargoes grew by 2.3 million tons. The

Port of Houston Authority handled its biggest vol-ume of import steel — 5.39 million tons — over the past quarter century in 2006.

5 Other breakbulk cargo grew by 800,000 tons.6 Automobiles and Roll On/Roll Off cargo grew

by 330,000 tons.7 Bagged grain grew by 240,000 tons.

The direct jobs center around four distinct sectors — surface transportation, marine services, shippers/con-signees using the port, and the Port of Houston Authority — the study says.

Steamship agents provide a number of services for the vessel as soon as it enters the port, the report says. They arrange for pilot services and towing, for medical and den-tal care of the crew, and for ship supplies. The agents are also responsible for vessel documentation.

Chandlers stock the ships with supplies and towing firms provide tug service to guide the vessels to and from the port.

The Houston Pilots provide the specialized and some-what tedious service of navigating the ships along the Houston Ship Channel to and from the various marine terminals located at the port.

There are bunkering firms to provide fuel to the ves-sels, marine surveyors to inspect the vessels and the cargo and shipyard/marine construction firms to provide repairs, as well as pier construction and dredging.

The army of personnel required to successfully get cargo through the port also includes longshoremen, steve-doring firms, terminal and warehouse operators, as well as government workers that perform services related to cargo handling and vessel operations at the port. U.S. Customs, Bureau of Immigration, U.S. Department of Labor, U.S. Department of Agriculture, U.S. Coast Guard, the Army Corps of Engineers, and U.S. Department of Commerce employees are all involved. ■

The average annual

salaries associated with

those direct jobs is

nearly $49,000 ...

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As the city of Houston’s promoter of tourism and convention

business, the Greater Houston Convention and Visitors

Bureau is an important ally in

boosting the Port of Houston

Authority’s cruise trade.

BUSINESS CONNECTIONSGreater Houston Convention and Visitors Bureau

Jorge Franz

“The advantage to the

partnership with the port

is that we are committed

to strong marketing.

Funded by a portion of the city’s sales tax, the orga-nization uses its $12 million budget to promote Houston tourism through regional advertising. It also produces various collateral materials, including the Official Visitors Guide to Houston. The organization includes the Houston International Protocol Alliance and the Houston Film Commission.

“The relationship with the port is very strong,” said Jorge Franz, executive director of tourism for the GHCVB. “We promote the cruise business at the port by working through travel agents and promoting cruises as a part of the pre- and post-stays in Houston for conventions.”

The GHCVB has attended major cruise conven-tions with the port authority, including the Cruise Lines International Association’s annual cruise3sixty convention and the Seatrade Cruise Shipping Convention. It has also been an asset as the port authority has worked to recruit additional cruise lines to the new Bayport Cruise Terminal, which is currently under construction.

“The advantage to the partnership with the port is that we are committed to strong marketing,” said Franz. “It takes showing the cruise managers what’s in the city to do and showing off places like NASA, the Kemah boardwalk and the museums.”

Franz is hiring an additional member to his staff to work with travel professionals who book cruises and to work directly with the port authority. In addition, the GHCVB’s convention sales department routinely works with meeting planners who organize major conferences and need to put together activities to supplement the conferences.

“The Offshore Technology Conference has been com-ing to Houston for years, with 67,000 people from more than 70 countries,” said Franz. “The economic impact is enormous, and our goal is to integrate cruising options into its schedule.” ■

”

SPOTLIGHT ON SMALL BUSINESSQC Laboratories, Inc.

There is no room for mistakes when building multi-mil-lion dollar port facilities. The task of testing and ensuring that materials meet the proper specifications often falls to QC Laboratories, Inc.

Founded in 1993, QC Laboratories offers construction materials engineering and testing, drilling and sampling, laboratory testing, environmental services, geotechnical engineering, field exploration, construction inspections and project management. Sixty professionals handle projects.

“At the beginning of any project, an environmental assessment is required to check for contamination,” said George Purvis, director of business development for QC Laboratories, Inc. “The soil is also drilled for samples that are tested in the laboratory, and recommendations are made concerning foundation types and road elements. The design engineer then comes up with the blueprints.

“During construction, we do structural materi-als testing. Soil will be checked for compaction and if stabilization is required. When the concrete is put down,

we take samples and in the laboratory test the samples for strength,” said Purvis. “If there is structural steel being erected, we check the steel to make sure the bolts and welds are done correctly. If there is asphalt pavement, we also take samples and test them.”

A graduate of Port University, the firm began pursuing projects for PHA nine years ago.

“As soon as the Small Business Development Program began, we became certified and have worked on proj-ects often as a sub-consultant to a prime consultant,” said Purvis.

QC Laboratories, Inc., is currently working as a sub-consultant on projects at Bayport and Barbours Cut. ■

B

C

D

1-800-688-3625\|| • www.portofhouston.com

A

Promoting trade and economic development at every level is the Port of Houston Authority’s mission. We are committed to creating opportunities for small businesses while building on established standards of competitiveness and high quality.

A & B Goals and Good Faith The Port of Houston Authority’s Small

Business Development Policy is goal-

oriented – requiring contractors of

the PHA to make good-faith efforts

to utilize certified small businesses.

C Supplying Solutions

We provide workshops and training

sessions on problems frequently

encountered by small businesses

during the proposal process and

while working on PHA projects.

D Joint Ventures

The PHA encourages joint ventures

and alliances between small businesses

and larger firms in the interest of

faster and more efficient results on

various projects.

Kenneth Coward, field representative

C

A Facts on Impact

Generating $117.6 billion in business

revenue each year and supporting

more than 785,000 jobs.

B The Regional Ripple Effect

Port-related businesses pay nearly

$1.3 billion in state and local taxes

each year.

C Expanding Global Reach

Over 7,000 vessels call at the Port of

Houston each year and more than

100 steamship lines offer services

linking Houston with more than

1,035 ports around the world.

Since the early 20th century, the Port of Houston

Authority has been at the hub of global trade and

commerce. Today, one in every three jobs in Houston

is directly tied to port activity. Greater levels of trade,

business growth and job creation are well within reach

as the Port captures new opportunities.

A

B

C

1-800-688-3625\|| • www.portofhouston.com

The Port of Houston PO Box 2562Houston, Texas 77252-2562

PRSRT STDUS Postage

PAIDHouston, TX

Permit #1395