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U.S. Coast!Guard Tradition

and Technology

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TVolume 32 June 1989 Number 6

JAMES PUGHExecutive Director re CEO

TOM KORNEGAYManaging Director

JAMES BAKERDirector of I’ort Operations

F. WILLIAM COLBURNDirector of Economic Development

STEVE JAEGERDirector of Marketing

LINDA REESEDirector of Administration

JOE SCROGGINS, JR.Director of Facilities

JOE FLACKCounty Auditor

THE PORT OF HOUSTON MAGAZINE (ISSN 0032-4825)is published monthly by the Port of HoustonAuthority, P.O. Box 2562, Houston, Texas77252-2562, and is distributed free to maritime,industrial and transportation interests in theUnited States and foreign countries. SECONDCLASS POSTAGE PAID AT HOUSTON, TEXASAND AT ADDITIONAL MAILING OFFICES.POSTMASTER: Send address changes to PORTOF HOUSTON MAGAZINE, P.O. Box 2562,Houston, TX 77252-2562. The magazine staff in-cludes: Communications Manager, 3anet Ander-son; Editor, Ann Bordelon; Writer, Susan tlum-phrey; Advertising Manager, Sheila Adams; Pro-duction Supervisor, Nancy Switzer; and Photo-grapher, Ray Soto. This publication is notcopyrighted and permission is given fi~r thereproduction or use of any original materials,provided credit is given to the Port of HoustonAuthority. Additional information, extra copiesor advertising rates may be obtained by writingthe PORT OF HOUSTON MAGAZINE.

Page 4

T A B L E 0

U.S. Coast GuardMixing tradition and technology

F C 0 N T E N T S

4

Houston International FestivalAnniversary of French Revolution is observed

7

History: Part VIEarly rivalry between Houston and Galveston

8

U.S. Customs and the computerGuest column: Patricia McCauley, Houston Customs director

13

Pan American Awards GalaPort and airport are recognized for contributions

15

DEPARTMENTSPort Tidings 17

Port Side 35

Liner Services 38

Executive Offices1519 Capitol AvenueP.O. Box 2562

Houston, TX 77252-2562Tel: (713) 226-2100TWX: 910-881-5787Telecopier: (713) 226-2134

Field Offices60 East 42nd StreetNew York, NY 10165Tel: (212) 867-2780

Fax: (212) 983-2746

ON THE COVERA Dolphin helicopter, the U.S. (’Past

Guard’s latest high-technology tool forocean rescue and patrol, stages a mock

rescue over Clear Lake, an estuary of

Galveston Bay.

Torte KLM, Pent I-touseAvda. Romulo GallegosSanta Eduvigis

Caracas 1071, VenezuelaCountry Number: 01-58-2Tel: 283-2067, 283-1489Fax: 283-2067

Telex: 25541,27244

PORT COMMISSIONERS

NED HOLMES HJ MIDDLETON MILTON CARROLL ROBERT GILI.ETTE LEROY BRIJNER C C SMITHERMAN J. MICHAEL SOLARChairman Commissioner Commissioner Commissioner Commissioner Commissioner (]ommissiol~cr

U.S. COAST GUARDT he ancient Greeks believed dolphins

rescued sailors stranded at sea. Todayanother Dolphin -- a high-tech heli-copter named for its graceful coun-

terpart- performs similar tasks for theU.S. Coast Guard.

Four of the $3.5 million computer-equipped helicopters recently were deliv-ered to the Coast Guard Air Station at Ell-ington Field, near Houston. The deliverywas made as Coast Guard personnel pre-pared for the armed force’s bicentennialcelebration.REPLACING "SEAGUARD" HELICOPTERS The twin-engine Dolphins were built by AerospatialeHelicopter Corp. to replace the Sikorsky"Seaguard" single-engine helicopters usedby the Coast Guard since 1963. Coast Guardpersonnel in Houston recently marked thetransition from the old helicopters to thenew during a ceremony at Ellington Field.

"I’m very enthusiastic. The Dolphin isup-to-snuff in terms of technology," RearAdm. William Merlin, commander of theEighth Coast Guard District, told reportersbefore the transition ceremony. After theceremony, Coast Guard personnel staged asearch-and-rescue demonstration using theDolphins over Clear Lake.

Nationwide, 96 Dolphins were on orderor had been delivered to their Coast Guarddestinations. Aerospatiale builds the heli-copters at its complex in Grand Prairie,Texas.SOPHISTICATED AIRCRAFT The Dolphin is equippedwith a sophisticated flight computer thatallows an almost hands-off flight from lift-off to touch-down. The system permits thehelicopter crew to concentrate their effortson searching for and assisting survivors.The computer can automatically pilot theaircraft on a computer-generated searchpattern, locate a vessel or person in distressusing onboard radars, home in on thetarget and maintain a 50-foot hover 800 feetfrom the target.

The Dolphin can fly faster and fartherthan the Sikorsky helicopter, with a topspeed of 165 knots and a maximum rangeof 400 nautical miles.

The Dolphins will be used for law en-forcement flights along the Texas coast.However, one of the four Houston-basedhelicopters will routinely be deployed tothe Caribbean to assist in patrolling fordrug smugglers.AIR PATROLS SINCE 1915 The Dolphin is one ofabout 229 aircraft operated by the Coast

OPPOSITE PAGE: The U.S. Coast Guard’s Air-Station Houston, located at Ellington Field, hasacquired four of the sleek new Dolphinhelicopters.

TOP LEFT: Rear Adm. William Merlin, command-er of the Coast Guard’s Eighth District, speaksduring a transition ceremony marking the switchto the Dolphin helicopters.

TOP RIGHT: Coast Guard personnel stand atattention during the transition ceremony. At rightis the Sikorsky Seaguard helicopter the CoastGuard previously used; at left is a Dolphin.

RIGHT: Shown is the elaborate control panel ofthe Dolphin, which features a sophisticated flightcomputer that can pilot the aircraft.

SUCCESSFULLY MIXINGTRADITION AND TECHNOLOGYGuard. The Coast Guard started exploringthe use of aviation for patrol purposes in1915. But the service’s first exposure to avia-tion was in 1903, when the Wright Broth-ers made their historic lift-off at KittyHawk. Three surfmen from a lifeboat sta-tion - a forerunner of the Coast Guard sta-tion -- helped carry the brothers’ biplane

The Coast Guard started

exploring the use of aviation

for patrol purposes in 1915.

to the launch site. The only photograph ofthe event was taken by one of the surfmenusing the Wrights’ camera.

The Coast Guard has had a fascinatingpart in U.S. history during the past two cen-turies. In the country’s early days, the fed-eral treasury was meager. To make mattersworse, smugglers deprived the treasury ofmuch-needed import duties and excisetaxes. On Aug. 4, 1790, the United StatesCongress authorized Treasury SecretaryAlexander Hamilton to organize the Reve-

nue Cutter Service, a predecessor of theCoast Guard, to enforce U.S. customs regu-lations and ensure collection of customsduties.flISTORIC MERGER In 1915, the Revenue Serviceand the Life-Saving Service -- another Treas-ury Department entity- were merged toform the U.S. Coast Guard.

In 1967, the Coast Guard was reassignedto the Department of Transportation. TheCoast Guard still reports to that departmentexcept in wartime or by presidential de-cree, when the service is reassigned to theU.S. Navy.ENFORCING MARITIME LAWS Today’s Coast Guardemploys 40,000 people, 229 aircraft, 265ships and 2,000 small boats. The CoastGuard is the primary federal agency re-sponsible for enforcing U.S. maritime lawsand treaties and also is charged with pro-tecting lives, property and the environ-ment on the nation’s navigable waters andthe high seas. The Coast Guard also defendsthe country’s coast, ports, harbors andrelated industries from natural and man-made calamities.

On Aug. 4 of this year, the Coast Guardwill begin a year-long celebration of itsbicentennial. []

5

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"Regular Service Houston/Caribbean/West Africa/Red Sea/Arabian Gulf"6

PHA SPONSOREDINTERNATIONAL STAGE

INTERNATIONAL FESTIVALDRAWS RECORD CROWDSA record-size crowd turned out for this

year’s Houston International Festival,which honored France and the bicen-tennial of the French Revolution.

More than 1.2 million people attended the10-day festival held in downtown Houston.Now in its 18th year, the event is a tributeto the performing and visual arts and toHouston’s international ties.NINE THEME AREAS The festival included ninesections, each with its own entertainmentstage and refreshment and crafts booths. ThePort of Houston Authority sponsored the In-ternational Stage and set up a booth in thatarea, giving PHA representatives an oppor-tunity to tell the public about the port’s up-coming 75th anniversary. Other sections in-cluded the Jazz and Blues Stage, the Kid’sBlock, the Latin Stage, and Cajun/ZydecoStage, the Texas Stage, Danceplanade andthe Rock Stage."LA PETITE FRANCE" In the spirit of the Frenchtribute, City Hall Plaza was transformed intothe ninth theme area, "La Petite France," asmall French village. Activities here includedperformances by Theatre de l’Unite -- a Pari-sian street theater troupe- and sidewalk

At the Port Authority booth, PHA representativesJanet Anderson (left) and Sandra Galindodistribute information about the port to passersby.

cafes. Theatre de l’Unite staged the "FlyingBastille," an airborne program includingsky sculptures, fireworks and giant mari-onettes.CONCERT FINALE The last evening of the festivalfeatured a special concert with a fireworksdisplay and performances by French musi-cians Michel Petrucciani, Bernard Fauchet,

Adele Auriol, French jazz band Contreventand the Houston Symphony Orchestra play-ing French music.

Tourism at the festival provides an esti-mated $35 million in economic impact forthe Houston area, festival officials said. Nextyear’s festival will honor Great Britain. []

A huge wind sock swirls about as visitors stroll past arts and crafts booths atthe Houston International Festival.

/ ....

:5:T~ :~2 :i~, ,i

~i :il ~i~:~ ~ i; ~ii~ !i:~ ~ i

TOP RIGHT: In the late 1830s, Galveston was notmuch of a town, and Houstonians viewed theisland as a depot for goods that could bebrought to Houston by barge.CENTER: Buffalo Bayou and part of the city ofHouston as it appeared in the late 1880s.BEL0~’ LEFT: By 1884, when this photo wastaken, Galveston had outstripped Houstonbecoming the "great commerical emporium"of Texas.BOTTOM: A cartoon version of how Houstonfirst became a "salt-water port."

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.... ~ :i~i~~~~~ i,~ii::]:~ !~ ~ ~

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EDITOR’S NOTE: This is the sixth in a series ofarticles on the port’s role in the development ofthe Houston economy. The comic strips shownwere first published in the Houston Chroniclein 1959 as parr of an educational campaignsponsored by the Port of Houston Authority.The strips were drawn .for PHA by BobSchoenke. The commentaries have beenupdated For this series. Some of theinformation for this series is drawn fromarticles and essays written for the 1959educational campaign.

["Z~ f~IGHT BE EXPECTED, Gf~LVESTONI~N5 WErE~IYlIJSE[:) BY HOU5TON~,qNS’EFFOI~T5 TO BUILDFOI~:’T FIFTY MILE~ ~{~OM THE ~E,q rN THE ~pO’5,~ G,qLVESTONt fVlEI~C~t,qK ~5,qMP’50N H~JDENHEIME~,~H PPED 5~× B,qlT.GE Lo,q~5 OF 5~ILT TO HOLISTO~.THE B,qR;’GE5 N~ C,q~JGHT IN .q CLOUDBUIL~T, ,qND

~gTEP 5;lILT ~,qN OUT ~N]~O BUFP,qLO Bfr’/oU."

~~ME G,qWESTON NEW5 COMt,~krTEp:HOUSTOn, ,qT LP,.ST HA5 .q 5~LT w~qTEKFoRT GO(] ,qLMiGHTY FU~NL~#IEDTHEW~ITER’ ~EDENHE~ME~’ FUK~NISJ4~PTHE 5lILT.

I~’~0PAY, THE PORT OF HOLISTON IS THE II

THII~I) LA~,E~ST PO/;~T IN THE 1JNITEb STA~, ~

. :¢,

SIXTH 1N A SERIES OF TWELVE ARTICLES

HOUSTONAND GALVESTON:

A SIBLINGRELATIONSHIP

Galveston and Houston are portcities in close proximity to eachother. Thirty miles apart byland, 50 miles apart by water,the two towns grew uptogether in the latter part ofthe 19th century. Like siblings,they went through periods ofcooperation and periods ofrivalry.

W~hen Houston was founded in 1836,

there was still no town on GalvestonIsland. As a consequence, Houston-

ians initially took a possessive view ofGalveston, seeing the harbor as their own andthe island as a depot where merchandisedestined for Houston could be unloaded fromocean-going vessels and reloaded onto bargesor steam packets bound for Houston.

However, by the time Texas became part ofthe United States in 1845, Galveston hadoutstripped Houston, having approximatelytwice as many citizens and being con-siderably more prosperous. An 1845 guide-book called Galveston the "great commercialemporium" of Texas, a title the AllenBrothers, who founded Houston, hoped theircity would hold. Still, Houstonians continuedto think of Galveston as their own ocean port,and Galveston merchants considered Houstontheir inmost distribution point.

But the honeymoon was coming to an end.

The roads to Houston were notoriouslyhad in the late 1840s, and people in the in-terior began looking for new ways to reach thecoast. Planters on the Trinity and Brazosrivers and Galveston businessmen launchedan effort to bring agricultural products direct-

ly to Galveston by water.The Galvestonians backed

resourceful workers who cuttrees along the riverbanks andmade rafts to bring cotton toGalveston. As steamboats withless draft were developed,Galveston businessmen sentthese to collect produce alongthe rivers.

Other Galvestonians support-ed a project to dredge a canal to link theBrazos River with Galveston Bay. The canal,when completed in 1855, was large enough tohandle steamboats, rafts and other small craft.At first the canal was successful, but the ex-pense of maintenance dredging cut deeply in-to the company’s profits, and the canal wasunable to compete with rail transportation.

Houston businessmen, alarmed by the

island’s attempt to bypass them, revivedthe Allen Brothers’ dream of bringing oceanvessels directly to Houston. In 1849, theOGDEN, a steam packet, sailed directly fromNew Orleans to Houston.

"It is evident from the success that has at-tended this experiment that a line of steampackets could be established to run betweenNew Orleans and Houston," noted theHouston Telegraph.

It was a pipe dream. No regular steamshipservice grew from the experiment. Vesselssmall enough to cross Redfish and Clopper’ssand bars, it became evident, were too smallfor safe ocean travel.

In the meantime, Galveston interests pro-

posed a network of railroads leading "fan-like" to Galveston and bringing the produce(Continued on Page 25)

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MEETINGCALENDAR

DELTA NU ALPHA-CHAPTER 36: Meets the last Tues-day of each month, 11:30 a.m. at Brady’sLanding. For information, call Steve Jaeger,226-2120.

DELTA NU ALPHA-CHAPTER 282: Next meeting to beannounced. For information, call AlthaWitliamson, 476-8269.

HOUSTON CUSTOMHOUSE BROKERS & FREIGHT FOR-WARDERS ASSOCIATION: Next meeting to beannounced. For information, call228-7447.

HOUSTON TRANSPORTATION CLERKS ASSOCIATION:Meets the second Friday of each month,11:30 a.m. at Brady’s Landing. For informa-tion, call Jeanne Hooke, 241-4768.

INTERNATIONAL MAINTENANCE INSTITUTE-SAMHOUSTON CHAPTER: Meets the third Tuesdayof each month, 6 p.m. at the ConcordHotel (formerly Ramada Inn-Hobby Air-port). For reservations, catl Joyce Rhoden,481-0869.

INTERNATIONAL TRANSPORTATION MANAGEMENTASSOCIATION: Meets the third Thursday ofevery month. For information, call KarenMoon, 880-9798.

MARINESERVICES ASSOCIATION OF TEXAS: Meets thesecond Tuesday of each month, 11:30 a.m.at Brady’s Landing. For information, callSusannne Pagano, 781-2713.

MARINE SQUARE CLUB OF HOUSTON: Meets the sec-ond Wednesday of each month, 11:30a.m. at Brady’s Landing.

NATIONAL DEFENSE TRANSPORTATION ASSOCIATION:Meets the last Thursday of each month,11:30 a.m. at Kaphan’s. For information,call Glenn Meadows, 468-4724.

PORT SAFETY AND ADVISORY COUNCIL: Meets the firstThursday of every odd-numbered month,11:30 a.m. at the International Seamen’sCenter at the Port of Houston Authority’sTurning Basin Terminal. For information, orreservations call Lt. David Atkinson,672-6630.

TEXASA&M UNIVERSITY MARITIME ASSOCIATION:Meets the fourth Wednesday of the month,11:30 a.m. at Brady’s Landing. For informa-tion, call Jim Moore, 928-5010.

TEXAS INTERMODAL TRUCKERS ASSOCIATION: Meets thefirst and third Tuesdays of each month, 6:30p.m. For information, contact Bernice Vann,674-7345.

TEXASPASSENGER TRAFFIC ASSOCIATION: Meets thesecond Wednesday of each month. For in-formation, call Tina Ruffeno, 236-4079.

TRANSPORTATION CLUB OF HOUSTON: Meets the firstTuesday of each month, 11:30 a.m. atBrady’s Landing. For information, call JimWilett, 228-2825.

U.S. MERCHANT MARINE ACADEMY ALUMNI ASSOCIA-TION, HOUSTON CHAPTER: Meets the firstThursday of each month, 11:30 a.m. atBrady’s Landing. For information, call BillBowes, 451-2711.

WOMEN’S TRANSPORTATION CLUB OF HOUSTON: Meetsthe second Monday of each month, 5:30p.m. at Kaphan’s. For information, callZelma Keenright, 896-7711.

10

A PATHWAY TODEREGULATION

SINGLE EUROPEAN MARKETMEANS MORE OPPORTUNITIESFOR TRADING PARTNERS

TIRMGARD ADAM-SCHWAETZER

he creation of a single European mar-ket will mean increased business op-portunities for trading partners ofCommon Market countries, West Ger-

many’s minister of state says."The disappearance of trade barriers means

more possibilities for others to participate,"said Irmgard Adam-Schwaetzer, minister ofstate for the West German Foreign Office.Adam-Schwaetzer was keynote speaker at a re-cent dinner of the German-American Cham-ber of Commerce of Houston.NO BORDER CHECKS "At present you have to lookto 12 different countries- their standards,their norms. You have to look at their regula-

tions to see what you have to take into ac-count when crossing their borders," Adam-Schwaetzer said. "But after 1992 there will beno border checks, no border patrol, not forgoods or services or capital or people.

"The way to a single market in itself willbe a way to deregulation," Adam-Schwaetzersaid.NOT A NEW CONCEPT The single market idea is nota new concept, Adam-Schwaetzer said. Themarket, once in place, will be similar to theUnited States but somewhat more diversified,she noted.

"The aim of Europe is not just to achievea single market," Adam-Schwaetzer said. "Thesingle market is just one step in order toachieve political unity."ELEMENTS ALREADY IN PLACE Many of the elementsnecessary to the single market already are inplace, the German minister said, but some dif-ficulties remain.

"We need to have harmony of direct and in-direct taxes" she said. "We need furtherliberalization of financial services. We needa harmonization of plant protection andveterinary controls, which we are nowdeciding upon."

Adam-Schwaetzer said the European com-munity must decide on a common currencyand must become less dependent on the U.S.dollar. But she said the European monetarysystem has stabilized in recent years, "andthat means that the economic policies fol-lowed by European countries have alreadytaken a shape that is advantageous to thepreparation for a common currency."MEETING CHALLENGES The world is undergoingmany changes that present challenges to boththe European community and the UnitedStates, Adam-Schwaetzer said.

"We can meet these challenges," she said."We can do that and we must do that together.And we will meet these challenges if we arealways aware of the things we have in com-mon, if we don’t let anyone drive us apart." []

"The way to

a single market

in itself will be

a way to

deregulation;’

11

PORT TONNAGE RISES 3 PERCENT DURING FIRST QUARTERTotal Port of Houston tonnage was

3 percent higher during the firstquarter of 1989 than during the firstthree months of 1988.

At the end of March, the port’spublic and private facilities reportedhandling 22.8 million tons of cargo,compared to 22.2 million tons for thesame period the year before.

At Port of Houston Authorityfacilities, cargo tonnage dipped 5percent to 4.1 million tons, com-pared to 4.3 million tons in 1988.

Containerized cargo movements atthe public wharves were down 13percent to 970,727 tons, compared to1.1 million tons in the first quarterof 1988.

Bulk cargo for the entire port rose5 percent for the quarter, reaching20.9 million tons, compared to 19.8million tons as of March 31, 1988.

The increase in bulk tonnage oc-curred in spite of a 33 percent down-turn in the movement of crudepetroleum. Crude shipments totaled

2.4 million tons, compared to 3.6million tons for the first threemonths of last year. This deficit wasoffset by a 32 percent increase in themovement of petroleum products,which totaled 10.8 million tons ver-sus 8.1 million tons for the sameperiod in 1988.

Industrial chemicals, which con-tributed heavily to growth patternsin 1988, rose 1 percent, barely top-ping 5 million tons for the quarter.First-quarter shipments of thesesame chemicals in 1988 totaledslightly less than 5 million tons.

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GORINI APPOINTEDTO NEW PHA POST

Richard Gorini has been namedenvironmental affairs manager forthe Port of Hous-ton Authority.

Gorini’s re-sponsibilities inthe newly creat-ed position in-clude establish-ing an environ-mental affairsprogram that en-sures Port Au- GORINIthority plans and projects are incompliance with federal, state andlocal regulations and are consistentwith economic objectives and en-vironmental concerns.

Before joining the Port Authority,Gorini was director of planning anddevelopment for the Port of Van-couver, Wash. He has more than 20years’ experience working in theport industry and with environmen-tal programs.

A U.S. Army veteran and a grad-uate of the University of Washingtonin Seattle, Gorini has lectured atseveral national and internationalconferences on port developmentand environmental planning.

Since coming to Houston, he hasbeen appointed to the Galveston BayNational Estuary Program andelected to the board of directors ofthe Texas Water Conservation Asso-ciation.

12

On July 4, 1789, the First Congress of theUnited States passed its second act, the "TariffAct of 1789." Twenty-seven days later, VicePresident John Adams signed the "Act of the

First Congress of the United States to Regulate theCollection of Duties," which established the U.S.Customs Service. For the past 200 years, everyoneimporting merchandise into the U.S. has been requiredto obtain a clearance from customs before enteringthe goods, and everyone has faced the possibility thata customs officer will require that the entire shipmentbe unloaded and prepared for examination. Yet evenafter these 200 years, many people in the importing

U.S. CUSTOMS’.WHAT AND WHY

by

Patricia McCaulcy

Houston

District Director

U.S. Customs

Service

community do not know exactly what the CustomsService is or why customs officers have the broadauthority which Congress has granted them.

The Customs Service is a part of the Departmentof the Treasury. In fact, until the birth of the InternalRevenue Service (about the time of the First WorldWar), customs was the primary revenue producer forthe U.S. government. Customs revenues paid for thebuilding of the U.S. Military and Naval Academies,the transcontinental railroad and the city of Wash-ington, D.C. Although supplanted by the IRS as theprimary revenue collector for the federal government,the Customs Service continues to contribute to thetreasury to the tune of $18.07 returned for every dollarbudgeted in fiscal year 1988. The Houston District,which consists of the ports of Houston, Galveston,Freeport and Corpus Christi, assisted in this revenuecollection mission by collecting more than $457 millionin fiscal year 1988, more than half of the total amountappropriated by Congress for the entire CustomsService.

NOT DEPENDENT ON TRADITIONCustoms, however, is not dependent on tradition

for its day-to-day operations. Over the past severalyears, customs has changed the manner in which in-ternational trade is conducted by moving from theera of paper and pen to the era of bit and byte throughthe introduction of the Automated Commercial System(ACS). ACS is aimed at simplifying commercial proc-essing through computerization of both the CustomsService and the nation’s brokers and carriers, resultingin faster examination and release of cargo while allow-ing customs officers to target suspicious shipments

before physical examination begins. There are nownearly 3,000 on-line customs terminals in place, and800 remote batch terminals in the trade communitycommunicate with the Customs Data Center.

ACS has four basic modules: The Automated BrokerInterface (ABI), which provides for the electronic ex-change of data between customs and brokers/import-ers; the Automated Manifest System, which permitsthe exchange of electronic manifest data with carriersand port authorities; Cargo Selectivity, which is usedto identify high-risk shipments for intensive reviewby customs officers; and the Financial System, whichcontrols and accounts for more than $14 billion inpayments collected by customs each year. Currently,70 percent of Houston’s entries are transmitted throughABI. Five carriers - American President Lines, LykesBrothers, Maersk, Sea-Land and Trans Freight Lines -are transmitting data through AMS in Houston atpresent.

HUNDREDS OF REGULATIONSBecause the Customs Service and customs of-

ficers are present at the ports of entry into the UnitedStates, and because customs officers have beendelegated the authority to enforce some 400 laws andregulations which fall under the auspices of more than40 different federal agencies, international shipmentsare processed and permitted to proceed inland muchfaster than would be the case if each of these 40 agen-cies were required to maintain its own force of in-spectors and agents on-site at each port. Imagine, ifyou can, how long an importer would wait if eachshipment had to be inspected and cleared by the DrugEnforcement Administration, Food and Drug Ad-ministration, Federal Communications Commission,Department of Transportation, Consumer Product Safe-ty Commission and 35 other agencies before the en-try could be presented to customs!

These 40-odd federal agencies are a large part ofthe "why" of the Customs Service. Every customsofficer knows that his/her job is "to collect and pro-tect the revenue; and to enforce customs and relatedlaws." These "related laws" cover such diverse sub-jects as commercial fraud, carrier control, reportingrequirements for the Bank Secrecy Act, automobilesafety, flammable fabric restrictions and the protec-tion of U.S. business and labor through copyrights,trademarks and quotas.

ENFORCING NARCOTICS LAWSBut the most important of these related laws, and

the ones given first priority by the Customs Service,are the narcotics laws. Multi-ton narcotics seizureshave been made from ocean-going shipping contain-(Continued on Page 16)

13

RONALD BROWN IS PHA EMPLOYEE OF THE YEARRonald Brown, mechanic assistant

foreman at Fentress Bracewell Bar-bours Cut Container Terminal, hasbeen named the Port of Houston Au-thority’s employee of the year for1989.

In recognition of his accomplish-ments, Brown received a plaque dur-ing the Port Authority’s recent em-ployee picnic.

Brown’s responsibilities includemaintaining all yard equipment atBarbours Cut Terminal, includingyard tractors and chassis, empty con-tainer handlers, railroad stackersand light duty vehicles.

He joined the Port Authority inOctober 1972 as a laborer and laterbecame a mechanic. In 1987, he waspromoted to mechanic assistantforeman.

Under Brown’s leadership, theyard equipment at Barbours Cut hasdeveloped a reputation for operatingreliably, according to James Baker,PttA director of operations. Brown,who is employed within the opera-

PHA ExecutiveDirector James

Pugh (left)presents

Employee ofthe Year

Ronald Brownwith a plaque.

At right isManaging

Director TomKornegay.

tions division, sees that the equip-ment undergoes preventive mainte-nance and has repaired equipmenthimself. Baker said Brown was nom-inated for the award because of hisenthusiasm, dedication and profes-sional abilities.

"He clearly demonstrates the qual-ities of an outstanding employee bybeing honest, safe, efficient and aleader," Baker said. "He truly has thegoals and success of the Port Authori-ty at heart and displays this in hisdaily activities."

Brown is a California native buthas lived in Houston since 1967. tteserved in the U.S. Army for twoyears. He has two grown daughters.

Brown is the first person to behonored as part of the Port Authori-ty’s employee recognition program.Each of the Port Authority’s fiveorganizational divisions will nomi-nate an outstanding employee dur-ing the year. The Employee of theYear will be selected from among thefive employees and recognized at theannual PHA picnic.

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ORGANIZATION OFAMERICAN STATESANNIVERSARY OBSERVANCE

PORT AND AIRPORT HONOREDAT PAN AMERICAN GALg

T he Port of Houston Authorityand the City of Houston Avia-tion Department were hon-ored recently at the Pan

American Awards Gala.The gala celebrated the 49th an-

niversary of the Organization ofAmerican States, as well as the eco-nomic, social and cultural exchangesbetween the Americas. Awards werepresented to PHA Executive DirectorJames Pugh and Aviation Depart-

ment Director Paul Gaines in honorof their organizations’ contributionsto enhanced relations among theAmericas. Texas Secretary of StateJack Rains was guest speaker for theevening.

PROCEEDS TO YOUTH PROGRAM Proceedsfrom the gala benefit the Youth In-itiative Program of Houston’s RipleyHouse. Ripley House is a non-profitcommunity service center servingresidents of Houston’s East End. The

Youth Initiative Program provides avariety of activities, including in-dividual and group tutoring, careerexploration, counseling and otherprograms.

Members of the gala’s executivecommittee included Port of HoustonCommissioner J. Michael Solar andformer Port Commission ChairmanFentress Bracewell. []

(From left) John Laird of the Houston Chronicle; James Pugh,Port of Houston Authority (PHA) executive director; andKHOU-TV’s Sylvan Rodriguez, master of ceremonies for the PanAmerican Awards Gala. (From left) Ned Holmes, chairman, Port of Houston Commission;

Jack Rains, Texas secretary of state; and Michael Solar, portcommissioner.

(From left) Sue Gillette; Port Commissioner Robert Gillette;Linda Reese, PHA director of administration; and TomKornegay, PHA managing director.

(From left) Hoyt Brown, deputy directory, City of HoustonAviation Department; Laird; and Rodriguez.

15

McCAULEY (con d,~ued from Page 13)

ers everywhere along the U.S.coastline from New York City toHonolulu, Hawaii, and intelligenceexperts from several federal agenciesbelieve that the flood tide has onlybegun to come in. Cocaine has be-come such a lucrative business in theU.S. that only through the use of bulkshipments can the suppliers hope tomeet the demand. In fiscal year1988, U.S. Customs seized more than19.5 tons of cocaine, but the successrate remains low.

MANIFEST REVIEWWith more than 300,000 contain-

ers arriving at the Port of Houstonin 1988, inspection of even a smallpercentage is a monumental under-taking. In order to make this jobmore manageable, customs has cre-ated a Manifest Review Unit (MRU)which consists of experienced in-spectors and analysts from the Oper-ations Analysis Staff (OAS).

Combining the experience pos-sessed by the inspectors with theability of the OAS analysts to accesscustoms computerized files such as

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those found in the Cargo Selectivitymodule of ACS allows customs of-ricers to target suspect shipments forexamination and, at the same time,release non-suspect shipments fromcustoms custody quickly and at aminimum expense to the importer.

AMS AND ABIThe advent of the Automated Man-

ifest System and Automated BrokerInterface modules in ACS has al-lowed much of this targeting to bedone before the shipment even ar-rives in the ports. Nationwide, 83percent of the imported cargo is be-ing released as non-suspect cargounder this program.

THE WHATSo what is U.S. Customs? Customs

is the federal revenue collection andlaw enforcement agency which pre-dates the founding of Houston by 47years, the agency which providesneeded revenue to the federal gov-ernment while, at the same time,protecting both manufacturer andconsumer.

THE WHYWhy is customs on the docks?

Because Congress has designatedcustoms as the United States’ firstline of defense against narcoticssmuggling along our borders andagainst the kind of commercial fraudwhich endangers the welfare andsafety of the American people.

Customs officers have performedthis job for 200 years and will con-tinue to work in harmony with thetrade community in an attempt tofacilitate the rapid movement oflegitimate cargo into the commerceof the United States while standingfirm against those who would shipnarcotics and fraudulent goodsthrough commercial channels. []

NOTE: Two members of the U.S.Customs staff in the Houston Districtoffice assisted McCauley in preparingthis article. They are Marvin Cable,deputy assistant, commercial opera-tions, and Doyle Morris, operations en-forcement analyst.

We Make Deals Over CoffeeAt the Port of Houston you’ll find fastdelivery and unbeatable service that’s not thesame old grind.

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16

PHA to purchase cranes, yard tractorsfor Barbours Cut Container Terminal

The Port of Houston Authority ispurchasing two electric wharf cranesand five yard tractors for FentressBracewell Barbours Cut ContainerTerminal.

The Port Authority recently soughtbids for the purchase of two electricwharf cranes for use at BarboursCut Terminal Berth 5, which is ex-pected to be completed in mid-1991. The cranes will cost an esti-mated $9.5 million.

Plans are under wayto clean old oil lines

Port Commissioners recentlysought bids for the cleaning andpossible removal of old oil lineslocated below wharves at the Portof Houston Authority’s TurningBasin Terminal.

An independent oil company onceoperated the lines- which arelocated below most of the terminalwharves- to fuel ships. Ownershipof the lines was transferred to thePort Authority in 1975, and theyhave not been used since.

Plans call for the lines to becleaned and, if necessary, removed.The work will be done in threephases: The first will include linesbelow Wharves 18-25; the secondwill consist of lines under Wharves8-16; and the third phase will in-clude Wharves 1-4 and 41-48.

Initial bids were being sought forPhase l, which win cost from$120,000 to $420,000, dependingon whether any of the lines must beremoved.

Port Commissioners have awardeda contract to Capacity of Texas Inc.for the purchase of five heavy-dutyyard tractors for Barbours Cut Ter-minal. The tractors will cost anestimated $250,000.

The terminal currently has 37 trac-tors that are rented to stevedoringcompanies for use in vessel loadingand unloading and for moving con-tainers and equipment. Long-rangeplans call for adding units to theterminal’s tractor fleet and replacingor refurbishing other tractors in thefleet.

A dockside container crane at theterminal will soon be repainted. PortCommissioners awarded a contractto Sline Industrial Painters Inc. to re-paint Crane 8, located at Berth 4.The work will cost an estimated$I05,000. Cranes 1-4 have alreadybeen repainted, and Crane 7 will berepainted next year. Cranes 5 and 6are owned and operated by Sea-Land Services Inc.

Fender system projectcompleted at Omniport

Rehabilitation of the fendersystem at the Omniport-Houstonfacility recently was completed.

Mid-Gulf Industrial Inc. recentlyfinished the work, which cost almost$580,000.

Houston Transmoda] Owning Co.is building Omniport-Houston onleased land at the Port of HoustonAuthority’s Jacintoport Terminal.Omniport-Houston will use highlysophisticated automated equipmentto move packaged commodities andwill be the first facility of its kind inthe country.

New water plant plannedfor Morgan’s Point

The Port Authority recently soughtbids for construction of a water

for the city of Morgan’s Point,Texas.

When the Port Authority acquiredproperty in Morgan’s Point onwhich to build Barbours Cut Con-tainer Terminal, the site of the city’swater plant was included. The PortAuthority agreed to lease the prop-erty back to Morgan’s Point andbuild a new water plant at anotherlocation.

Under that agreement, the PortAuthority recently sought bids tohave a new water plant built at acost of approximately $350,000.

PHA to install elevatorsfor wharfside cranes

Plans are under way to install per-sonnel elevators for the Port ofHouston Authority’s seven wharfsidecontainer cranes. The Port Authorityrecently sought bids for theelevators, which are expected tocost a total of $700,000.

The Port Authority currentlyoperates six wharfside containercranes used at Fentress BracewellBarbours Cut Container Terminaland one crane at the Turning BasinTerminal. Two other wharf cranes atBarbours Cut are owned by Sea-Land Services Inc.

Crane operators and elevator per-sonnel must climb the equivalent ofa nine-story building to operate andservice the cranes. The elevatorswill increase safety in working con-ditions and improve response timein case of crane breakdowns.

17

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New York, New York 10018Phone: (212) 239-3640

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