Energy industries among major forces powering ports along Texas Gulf Coast

True to Texas tradition, with a boost from Eagle Ford shale play activity, energy industries are a key factor propelling growth at ports of the Lone Star State. Billions of dollars of facility investments by companies from throughout the world are not only bringing current opportunities for project cargo moves but, moreover, are providing the basis for millions of tons of cargo flow for decades to come. Not to be outdone by the private sector, port authorities along the Texas Gulf are advancing a plethora of projects, from adding new cranes and berths to putting better rail links and deeper channels in place. Here are the most recent developments at Texas ports, beginning just west of the Louisiana state line, then heading down the Gulf Coast toward the Mexican border: Port of Port Arthur

At the Port of Port Arthur, where forest products remain the driving force, recent infrastructure enhancements include a 7,000-foot-long rail installation and the 600-foot-long Berth No. 6. Project cargo, most notably oversize units heading to energy industry facilities being built in the region, also is a common sight at Port Arthur docks. Import wood pulp volumes are reported to be up at the Port of Port Arthur, as are exports of kraft linerboard to the Europe-Mediterranean region. But perhaps the most dynamic development at the Port of Port Arthur is the exportation of a green energy commodity – wood pellets that ultimately are used in European power-generation facilities. Wismar, Germany-based German Pellets has completed a second production site, this one a 1 million-tons-a-year plant in Urania, La., to go along with one opened in 2013 in Woodville, Texas. Pellets trucked from both sites are handled through a 75,000-ton-capacity storage facility and an enclosed vessel-loading conveyor at the Port of Port Arthur. Port of Beaumont

The Jefferson Energy Companies’ crude oil terminal at the Port of Beaumont has undergone a recent expansion, with an additional loop now facilitating simultaneous accommodation of multiple unit trains, as well as the ability to apply steam to heat and allow free flow of the heavy Canadian product that is used by area refineries. Construction is slated to begin soon on a direct roadway link between Interstate 10 and the oil terminal, which is situated on 250 acres on the east bank of the Neches River Ship Channel in Orange County, across from the Port of Beaumont’s longstanding facilities on the Jefferson County bank of the river. The terminal is served by three Class I railroads. The Port of Beaumont continues to be the world’s busiest port for military cargos and is seeing an increase in project cargo activity, both in support of tens of billions of dollars of local petrochemical plant construction and in transport of wind energy components. Port of Houston The Port of Houston, the No. 1 U.S. foreign tonnage port and handler of the majority of all containerized cargo transiting U.S. Gulf ports, is investing about $1 billion in projects over a five-year period in preparation for projected rapid growth. Some of that activity is expected to come via newly launched CMA CGM services with Europe-Mediterranean and Mexico-Caribbean regions, while much is to result from calls of increasingly large vessels that will be able to transit the expanded Panama Canal. Some $700 million of the capital plan money is being spent in redeveloping the 38-year-old Barbours Cut Terminal, including the addition in May of four super-post-Panamax wharf cranes capable of lifting and lowering loaded containers twice as fast as older, smaller units at Barbours Cut. Meanwhile, with federal permits in place, the Port of Houston Authority is deepening channels in front of its Barbours Cut and Bayport container terminals from 40 feet to 45 feet to match the depth of the Houston Ship Channel. Port of Galveston A new vehicle distribution center is being developed at the Port of Galveston, with sights on receipt of its first shipment of cars for processing in early 2016. At an April groundbreaking, officials said the facility is to be owned and operated by Wallenius Wilhelmsen unit WWL Vehicle Services America Inc. under on-site management by BMW of North America LLC. It is to include more than 44,000 square feet of processing space on about 20 acres. BMW officials said the center is targeted to handle importation and processing of about 32,500 vehicles a year. Port Freeport On the Texas Gulf about 60 highway miles south of Houston, Port Freeport is diversifying with $14 million in infrastructure projects to bring it its own roll-on/roll-off operation. Höegh Autoliners has announced plans to begin operations shortly with exports to the Middle East of Texas-made vehicles, with intention to augment that flow with imports from South Korea plus exports of personally owned vehicles to West Africa. AMPORTS is to handle vehicle processing. At Port Freeport’s Berth 7, a 20-acre backlands expansion is under way while two new post-Panamax cranes entered service last fall. Among ships being worked by the 110-gauge container cranes are those of Mediterranean Shipping Co. that bring Chiquita bananas from Central America. Also at Port Freeport, a fourth production train is being developed at Freeport LNG’s liquefied natural gas terminal and regasification facility and Mammoet USA South Inc. is busy handling project cargo shipments for that expansion plus others being undertaken by the region’s active petrochemical industry. Port Corpus Christi

Two hundred miles south of Houston on the Texas Gulf, about 160 miles north of the U.S.-Mexico border, Port Corpus Christi continues to enjoy its gateway location for the Eagle Ford shale energy play, and global companies have taken notice, investing $35 billion in projects at the port that range from a Chinese firm’s seamless stainless steel pipe factory to an Austrian company’s iron-processing facility to a Luxembourg concern’s chemical resin plant. The recently opened first phase of the port’s Nueces River Rail Yard enhances links via three Class I railroads. The facility offers four parallel ladder tracks covering a total of 15,300 feet, providing capacity for 253 railcars. The $18 million undertaking, largely funded via a Transportation Investment Generating Economic Recovery grant, facilitates efficient moves of such commodities as grain, petroleum coke and wind energy components and other project cargo. Also in the works is replacement of the 46-year-old, 138-foot-high bridge over Corpus Christi Harbor with a 205-foot-high span. Port of Brownsville Just north of the Mexican border, the Port of Brownsville also is benefiting from a TIGER grant, in its case for funding almost half the cost of a $26 million project at General Cargo Dock 16, where a new 600-foot-long multipurpose breakbulk dock has just been finished, allowing multiple steel vessels to be worked simultaneously. The port is buying a 120-ton-lift-capacity mobile harbor crane for the dock. Also at the Port of Brownsville, three companies – Texas LNG Holdings LLC, Annova LNG LLC and NextDecade LLC – are advancing plans for developing facilities for liquefaction and export of liquefied natural gas, with additional LNG companies showing interest. And construction has begun by Howard Midstream Energy Partners LLC on a new bulk liquid terminal, augmenting its existing terminal. A proposal to deepen the Brownsville Ship Channel to 52 feet from its present 42 feet has gained backing in a recent U.S. Army Corps of Engineers report but awaits funding from private and/or public sources.