Port Update

Olga L. Rodriguez

Port of Houston

*7,700 ship calls a year*150,000 barges*225 million tons of cargo*150 public & private terminals*World’s 2nd largest petrochemical complex*1st in foreign tonnage for 13 years*2nd in total tonnage for 18 years*7th largest U.S. container port

Economic Power

*785,000 jobs, $118 billion economic impact*$3.7 billion in state and local taxes*Container tonnage up 9 percent*Operating revenues up 8 percent*Operating expenses up 6 percent*Net operating income up 42 percent*Net income up 172 percent

Market Strength

*Exports exceed imports*Largest U.S. breakbulk and project cargo port*65 percent of all major project cargo comes through Houston

Continuous Improvement

*$200 million in capital improvement projects under way in 2009 *$191 million in capital improvements scheduled for this year*$625 million in capital improvement projects planned for 2010 and 2011*Bayport construction through 2020

Asian Trade

*Asian containerized imports have grown from 8 to 32 percent of containerized cargo volume*Fastest growing cargo for 10 years*Up 54 percent from 2005 to 2008*16 percent of Port Authority trade*Trade with west coast of South America up 30 percent*Panama Canal expansion complete in 2014

Panama Canal

*Increased cargo will be containerized*Port handles 70 percent of containers in US Gulf*96 percent of containers in Texas ports*1.8 million TEUs now*4.5 million TEUs by 2030, 150 percent growth*Houston population doubles 2030-2040

Customers Need

*Access to multimodal logistics hubs*Easy access to major traffic arteries*75 percent of cargo moves by truck*Increasing traffic congestion, rising fuel prices will push more cargo onto rail*Freight rail corridors

Growth

*Port grows, Houston grows*Room to grow*Terminal Next*Pelican Island one of many potential sites

Ship Channel Maintenance

*Constant maintenance dredging needed*FY 2011 $41.6 million needed*President’s budget $23.8 million, House Appropriations $25.8 million, Senate Appropriations $29.0 million*$100 million generated annual for harbor maintenance *Not all funds return to Houston

Any Questions?