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Marine

PORT OF HOUSTONVolume 27 Number 4 April 1983

Port CommissionersAnd Staff

FENTRESS BRACEWELL, ChairmanW.D. HADEN, 1I. CommissionerMRS. MARCELLA D. PERRY, CommissionerJOHN n. GARRETT, CommissionerHOWARD J. MIDDLETON, CommissionerRICHARD P. LEACH, Executive DirectorJ.R. CURTIS, Director of Port Operations

TED WALTERS, Manager, Marine DepartmentW.D. DUNNAHOE, Manager, Turning Basin TerminalsJOHN HORAN, Manager, Barbours Cut TerminalW.E. GREER, Manager, Houston Public Grain

ElevatorLESLIE J. SANDERFER, Manager, Bulk Materials

Handling Plantm. MONROE BEAN, Manager, Storage WarehousesA.J.M. VAN DE VEN, Manager, Maintenance

DepartmentCLAUDE BARTH, Manager, Security Department

ARMANDO S. WATERLAND, InternationalSales Manager

R.B. AKKERMAN, General Sales ManagerLEON UTTERBACK, Eastern Sales ManagerJACK WOJEWNIK, Asst. Eastern Sales ManagerDAVID W. SIMPSON, Western Sales ManagerJERRY D. KOTECKI, Midwestern Sales ManagerEDWARD t. HORN, Communications ManagerDON ZULLO, Public Relations Manager

NORMAN E. HUENI, Director of EngineeringTOM KORNEGAY, Chief Engineer

F. WILLIAM COLBURN, Director of AdministrationLINDA REESE, ControllerALTON B. LANDRY, Manager, Personnel DepartmentTHOMAS CONBOY, Manager, Real Estate DepartmentBETTY GARRETT, Manager, Purchasing Department

ALGENITA SCOTT DAVIS, CounselLOUIS F. BROWN, JR., Manager, Safety and Insurance

DepartmentJOE SCROGGINS, JR., Director of PlanningMICHAEL SCORCIO, Director of Community RelationsJOE F. FLACK, County Auditor

EXECUTIVE OFFICES1519 Capitol Avenue, Houston, Texas 77002

P.O. Box 2562, Houston, Texas 77252Telephone: (713) 225-0671

TWX: 910-881-5787

TERMINAL OFFICESTurning Basin: (713) 672-8221Barbours Cut: (713) 470-1800

BULK PLANT OFFICE3100 Penn City Road, Houston, Texas 77015

Telephone: (713)453-3531

FIELD OFFICE60 East 42nd Street, New York 10165

Telephone: 1212) 867-2780

OApril 1983

Official Publication

Port of Houston

Authority

In This Issue

USS Houston Visits--The U.S. Navy brings one of itsnewest and proudest nuclear submarines to the city forwhich it is named. 8

Caribbean Stirring--Representatives of the various islandspresent their plans for development and attracting trade. 12

Costa Rica--A western Caribbean nation posts a new con-sul general in Houston. 17

Ringdai Seminar--Speakers at a Houston conference tracethe rise of Hong Kong ship owners and forecast prosperityfor independent tankers. 2O

Go Texan!--Every February, the nation’s fourth largestcity is gripped by rodeo fever, but it’s good for business andfor youth. 23

Port Tidings--A page of news and notes about people andcompanies in and around the Port of Houston. ~:3

On The Cover

USS HOUSTON bound for Barbours Cut Terminal on a gray Gulf Coast morning

PORT OF HOUSTONEDWARD L. HORN, Editor JOE CHAPMAN, Staff WriterDON ZULLO, Advertising Manager RAY CARRINGTON, Staff Photographer

SHEILA ADAMS, Typographer

THE PORT OF HOUSTON MAGAZINE (ISSN 0032-48251 is published monthly by the Port ofHouston Authority and is distributed free to maritime, industrial and transportation interests in theUnited States and foreign countries. This publication is not copyrighted and permission is given forthe reproduction or use of any original material, provided credit is given to the Port of Houston. Ad-ditional information, extra copies or advertising rates may be obtained by writing the PORT OFHOUSTON MAGAZINE. Second class postage paid at Houston, Tx. and at additional mailing of-rices. Send address change to PORT OF HOUSTON MAGAZINE, P.O. Box 2562, Houston, Texas77252.

When Cooper loads or off-loads your containers, heavy-lifts, bulk or general cargo, you can be sure it’ll getfirst class handling.With expert personal supervision, the latest equipment and the lowest costs. After all, at Cooperwe’ve built a nationwide reputation on this. And the way we figure it,that’s what our customers deserve. So, when youwant your cargo to get where it’s going think about Cooper first. CooDer Stevedorinu

Ports of Operation: Mobile, St. Louis, New Orleans, Darrow, Lake Charles, Louisville, Long Beach, Los Angeles, San Diego, Gulfport, Pascagoula,Pensacola, Beaumont, Broumawille, Corpus Christi, Freeport, Galveston, Houston, Orange, Port Arthur, Point Comfort, Norfolk, Ports of Hampton Roads,Newport News, Portsmouth. 440 Portway Plaza, 1717 E. Loop, Houston, Texas 77029, (713) 672-5663.

Port of Houston Magazine

Advantage:U.S.A. General Agent:

U.S. Gulf Agent:

Medafrica Line (U.S.A.) Inc.22 Cortlandt StreetNew York, N.Y. 10007Tel.: 212-962-5111

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April 1983 7

The Port of Houston Authority welcomed theUSS HOUSTON with a traditional maiden voyageplaque and received a plaque in return from thecommander of the new nuclear submarine. PortCommissioner John H. Garrett, who made thepresentation in behalf of the Port Authority, isshown above reading the inscription on the pla-que just handed to him by Captain George H.Mensch.

Nuclear sub USS Houston thrillsresidents of city it’s named for

The 80-foot Coast Guard cutter bob-bed atop six-foot swells of sapphire-blue water like a fishing cork. Thesmaller boats in the convoy were hav-ing a rougher time--they looked liketoy boats caught in a washingmachine.

For an hour, the convoy had plow-ed the Gulf of Mexico while the crewsand passengers tried to ignore thepitching of the boats. They were look-ing for something on the horizon, butthe waves proved to be formidableobstructions.

SUDDENLY, as the cutter crested awave, a form was visible on thehorizon. It was not an oil rig this time;the shape was not right. This objectlooked like a large shark’s fin withwings. The black, winged fin lookedominous in the early morning mist.

The people in the convoy knew that8

the winged fin was the conning towerof the USS HOUSTON, one of theU.S. Navy’s newest nuclear-poweredfast attack submarines. TheHOUSTON is the fourth naval vesselnamed after the city.

On March 16, the submarine calledon the city that gave it its name, dock-ing at the Port of Houston Authority’sintermodal facility, Barbours Cut Ter-minal. Several Coast Guard vessels,with a contingent of media personnelaboard, braved the light rain and thechoppy seas to cover the submarine’shistoric trip up the Houston ShipChannel.

THE HOUSTON was in town as partof a recruiting drive and public rela-tions effort. Approximately 5,000 per-sons received passes to tour the sub-marine. The passes were distributed bylocal Navy recruiting stations. The de-

mand was so great that, within fourhours of the first day of distribution,all passes were gone. Between 1,200and 3,000 people a day toured the sub-marine.

While the U.S. Senate was debatingPresident Ronald Reagan’s defensebudget, the chief of naval operations,Admiral James D. Watkins, and thechairman of the Senate Foreign Rela-tions Committee, U.S. Sen. JohnTower of Texas, delivered speeches onthe "affordability" of America’sdefense.

"We must do what is required of usif we are to preserve our nationalsecurity, maintain our overseas com-mitments and support our foreignpolicy objectives," Sen. Tower said.

CAPT. GEORGE H. Mensch, com-manding officer of the HOUSTON,and his crew were the toast of thetown during their five-day visit. Capt.

Port of Houston Magazine

Mayor Kathy Whitmore presents a plaque to Capt. Mensch during the ceremony at Barbours Cut.

Mensch was given a traditional Port ofHouston Authority maiden voyageplaque at a dinner sponsored by theHouston council of the Navy Leagueof the United States in a skyscraperthat gave him a lofty view of the city.A silver tea set was presented to the

submarine commander as a gift fromthe Port Authority.

During the official welcomingceremonies, Houston Mayor KathyWhitmire gave a plaque to Capt.Mensch, who, in turn, presented themayor with a plaque from the sub-

marine. Port Commissioners W.D.Haden, II, Marcella D. Perry, John H.Garrett and Howard J. Middletonwere on hand during the officialwelcoming ceremonies, along withRichard P. Leach, executive directorof the Port Authority. []

U.S. Senator John Tower, left, greets CharlesD. Collette, a crew member on an bll sub-marine during World War I. Collette, who said hespent 1917 and 1918 "duck hunting," wanted totour the USS HOUSTON for obvious reasons.’Tm probably the oldest submarine man inHouston," he said.

April 1983 9

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10 Port of Houston Magazine

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Get the facts, then let’s get together.Manchester Terminal offers threedocks for ocean-going vessels;access to a fully-equipped containeryard; open area storage for steelproducts and machinery; storagewarehouses for cotton, bagged anddrummed goods; direct rail accessto all warehouses and docks. Andthere’s a lot more. Send for our com-prehensive new full color brochure.See it and then see us for completecargo handling in the Port of Houston.

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Manchester TerminalMANCHESTER TERMINAL COMPANYA wholly-owned subsidiary of Charter International Oil Company ¯ 10,000 Manchester Street * P.O. Box 87535 * Houston,Texas 77287 ° (713) 926-963

April 1983 11

Caribbean isles tryingto attract ships, trade

Houston seminar gives islandersforum for development messages

By JOE CHAPMAN

Caribbean islands are at the doorto the Gulf of Mexico. Ships sailthrough that door to reach Houstonand other Gulf ports. Few of themstop at Kingston, Jamaica; San Juan,Puerto Rico, or Port of Spain,Trinidad.

To get American businessmen in-terested in what the Caribbean Basinhas to offer, a three-day seminar washeld in Houston recently under theauspices of Texas Southern University.Representatives of the various islandsdiscussed opportunities available to theAmerican businessman.

Consider the cases of Jamaica, St.Vincent and Barbados as examples ofthe economic potential of the 23 islandentities, which include countries,dependencies and territories.

12 Port of Houston Magazine

One-way freetrade, $ aid

proposed byU.S. to help

in Caribbean

One-way free trade lies at the heart of improving and strengtheningboth economic and political ties with the Caribbean Basin, accordingto Reagan Administration officials.

Even though Caribbean countries are afforded liberal entry intoU.S. markets, duties still apply to some commodities originating in theBasin. To eliminate trade barriers and provide economic aid, the Carib-bean Basin Initiative bill has been put before Congress.

PETER M. JOHNSON, executive director of Caribbean CentralAmerican Action (CCAA), told participants at a recent seminar business opportunities in the Caribbean Basin that the bill could besigned into law by April or May.

Duties on all imports from the Basin except textiles and clothingwould be eliminated under a provision of the bill requested by Presi-dent Ronald Reagan. The legislation also contains a feature that pro-tects any U.S. industry severely affected by Caribbean Basin imports.

Tax initiatives include tax breaks to U.S. companies that invest inthe Basin. Tax deductions for trade missions to the Basin also may bepart of the legislative package.

ECONOMIC ASSISTANCE for the countries will total $823.9million for fiscal year 1982, if a supplemental $350 million emergencyaid package is approved. The supplemental aid is for countries that theAdministration has decided are in critical situations. Next year, theAdministration plans to ask for $664.4 million in economic aid for theregion.

Johnson of CCAA said the Administration has asked the organiza-tion to get the private sector involved in economic development of theCaribbean Basin. The bill contains provisions for the U.S. governmentto work with the private sector on such Basin problems as a lack ofmarketing skills, shortages of trained workers, and inadequatetransportation.

SECRETARY OF STATE George Shultz explained the importanceof the area to the U.S. during testimony before the Senate Committeeon Finance. Shultz said the sea lanes of the Caribbean are a "lifeline ofour trade" with half of all U.S. imports and exports, including three-quarters of oil imports, passing through the region.

Many Americans have roots in the area. Shultz said one out of fivepersons alive today who were born in Barbados lives in the U.S. Thesame is true for one out of six Jamaicans and one out of l0Salvadorans. Finally, the Caribbean represents a $7 billion market forU.S. products and services.

Bruce Rickards, immediate pastpresident of the Kingston Chamber ofCommerce and manager of the feedsdivision for Grace Kennedy, Ltd., ofKingston, described the 23 as a mix-ture of small territories with individualand common problems. The countriesneed help in breaking into the interna-tional trading arena, Rickards said,even though more than 100 multina-tional companies are operating in the

area and some have done so for 23years.

Rickards said Americanbusinessmen should remember that thearea is developing and developingcountries do not need nor offer ’hightech" opportunities. The basics areneeded, he said, and the islands wantcompanies that not only provide suchcommodities as flour and dried milk,

but are willing to establish a flour millor milk processing plant, for example.

The area’s goal is to become as self-sufficient as possible. Import trade iswelcomed, but the governments wouldprefer to have companies establish agood trade relationship first, and thenlook at setting up permanent opera-tions in the country itself. Eventually,only raw materials would be imported,and the locals would manufacture

April 198313

finished products for themselves andfor export.

Rickards compared setting upbusiness in Jamaica to bird hunting--shoot a few and leave a few, but donot shoot them all and leave. "Comeand stay and work with us," he urged.

Hudson K. Tannis, deputyprime minister and ambassador to theUnited States for St. Vincent and theGrenadines, echoed Rickard’s state-ment that the adventuresomebusinessman can find untappedeconomic potential in the islands. Tan-nis said the strategy of St. Vincent andthe Grenadines is to increase employ-ment and export earnings while tryingto replace imports with the country’sown raw materials that are developedas a result of increased business activi-ty.

Companies interested in agricultureand its myriad of related industries,such as canning juices, jams and thelike, will find St. Vincent and theGrenadines a good place to either shopor to set up shop, Tannis said. He alsonoted that the islands have establishedindustries that manufacture plastics,garments, electrical components, card-board boxes, fiberglass boats andgraphite tennis rackets. These in-dustries need more buyers, however,and companies that could lend exper-tise to these established yet growing in-dustries are welcomed, Tannis said.

He warned that before going intobusiness in the Caribbean, companiesshould realize they are working with23 entities whose total population, in-cluding 9.8 million Cubans, is approx-imately 30 million. Such a relativelysmall market cannot support the scaleof business that 235 million Americansdo. A small country has a limitedmoney supply, Tannis said. But, withexpanded markets resulting from an in-crease in international trade, a limitedmoney supply would cease to be a prob-lem, he added.

Courtney Blackman, governor ofthe Central Bank of Barbados, said theisland imports $500 million worth ofgoods a year, 60 percent of whichcomes from the U.S. Business op-portunities in Barbados lie in the elec-tronics industry, Blackman said. Healso said the country’s banking in-

April 1983

dustry, which has three Canadianbanks and two U.S. banks as a founda-tion, can accommodate even more.

Government agencies help foreigncompanies capitalize on business op-portunities in the Basin. Jamaica, forexample, has the Jamaica National In-vestment Promotion agency, which hasbeen endorsed by President RonaldReagan. The agency characterizes itselfas the country’s "red-tape" cutter.

Barbados has the Inter-AmericanDevelopment Bank, and David E.Coore, a representative of the bank,said the 22-year-old institution hasloaned more than $1 billion over theyears for large projects such ashydroelectric plants, schools andhospitals. Coore said the bank’s basicfunction is providing the infrastructurerequired to attract investors to theBasin.

The u.s. also has private

"The window to theCaribbean Basin isopen, but not fora long time"

organizations and governmental agen-cies ready to help American companiesinvest in the Caribbean Basin.

The Caribbean Central AmericanAction (CCAA) organization is sup-ported by approximately 75 majorAmerican firms with a budget ex-ceeding $1 million. Peter M. Johnson,CCAA executive director, told seminarparticipants the Reagan Administra-tion has given the organization thegreen light to push ahead with plans toget the private sector interested in theBasin.

Duties of the CCAA include in-troducing U.S. companies to the Carib-bean for investment and joint ventureprojects, publishing investmentbooklets aimed at promoting industrialdevelopment in the Caribbean, andbringing other Caribbean countriestogether for promotion of joint-ventureprojects.

Information is the key to any suc-

cessful business, Johnson said, adding,that a business thrives or dies on thequality of information available. TheCCAA has developed the CaribbeanBasin Information Network wherebythose in the system can interface withthe CCAA’s data base through a com-puter and have access to a wealth ofinformation.

By tapping into the data base, acompany can determine such things asthe status of a country’s health andeducation systems; the type of localgovernment it has, and civic organiza-tions that could be of help to thepotential investor, and the types oftechnology available for license, sale orexchange.

Such data on U.S. companies alsowill be available for Caribbean Basincountries plugged into the network.

The Overseas Private InvestmentCorporation (OPIC) is a U.S. govern-ment agency that offers political riskinsurance for U.S. investors in approx-imately 100 developing countries. Theinsurance covers such risks as ex-propriation and war damage. OPIChas other programs designed to funnelU.S. investments towards the Carib-bean Basin, such as loan programs.The organization also sponsors trademissions to the Basin.

Thomas Moore of the U.S.Department of Commerce’s CaribbeanBasin Business Information Center saidthat by the year 2000, 30 percent ofthe manufacturing will be done indeveloping third world countries suchas those in the Basin. Moore said thereis an "unprecedented concentration" ofresources in the area that both U.S.and Caribbean companies can tap.

Seminar participants also were urgednot to overlook the resources availablethrough the various chambers of com-merce as well as the help and informa-tion available from sources such as thePan American Development Founda-tion.

As Johnson of the CCAA said, "Thewindow to the Caribbean Basin isopen, but it is not open for a longtime. This country has to produce,either with legislation (see relatedstory) or with private sector initiatives.If this country does not produce, thewindow is going to close." []

15

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16 Port of Houston Magazine

Costa Rican marketvirtually untapped,new consul reports

Fernando Vicente

Since Costa Rica imports "practical-ly everything", American businessmenhave access to a market that is prac-tically untapped because the country isnot self-sufficient, Fernando Vicentesaid.

Vicente is the new consul generalin Houston for Costa Rica, a countrywith a population of more than 2.5million.

The consul general knows foreigntrade. His 16 years as port cap-tain for the United Fruit Company inGolfito taught him a lot. This helps ex-plain why trade promotion is at thetop of his priorities, as it is for CostaRica’s new president, Luis AlbertoMonge.

Coffee, bananas, meat andvegetables are main Costa Rican ex-ports to the U.S. and elsewhere.

Thermoplastic resins, distilled al-coholic beverages and knitting/.embroidery machinery were the maincommodities shipped from Houston toCosta Rica in 1981.

Several American companies havetheir products manufactured in CostaRica, Vicente said. One company, forexample, sends raw materials such asdenim to Costa Rica where the localsturn the fabric into jeans. The finishedproduct is then shipped back to theU.S. for distribution. Vicente saideven cowboy boots are manufacturedin Costa Rica.

Tourism will play a large part in thecountry’s trade. Vicente said visitorswould find the lush national parks andcrystalline beaches a delight--and thelobster is not bad either. Because ofthe advanced state of the transporta-

tion industry, even the country’s mostdistant neighbors are not far away.

Costa Rica also is a good place toretire, Vicente said. Retirees can bringeverything they have to Costa Ricaand not pay any duties. Plus, retire-ment money is not subject to incometaxes. Vicente said a retired personcould easily live on $500 a month.

The Caribbean Basin Initiative billcurrently before the U.S. Congress willhelp the area tremendously, Vicentesaid. He described the legislation as"wonderful." He said his countrywould benefit from the legislationbecause U.S. quotas on Costa Ricanimports would be relaxed. Also, thenew attention being focused on theCaribbean Basin in general should at-tract American businessmen’s interest.[]

April 1983 17

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From oil rigs to containers to rolling stock, ShippersStevedoring can provide you with all of the dock servicesyour shipment requires. Complete control of your cargoat all stages through one single office- that’s a bonus andthat’s efficiency.

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18 Port of Houston Magazine

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April 1983 19

Shipping’s

2O

Industryhealth

checkedin local

seminar

By JOE CHAPMAN

"Reports of my death are greatly ex-aggerated."

Mark Twain’s reply to a newspaperthat published his obituary too earlyalso is applicable to rumors that theshipping industry is dying, HelgeRingdal said in his opening address toapproximately 100 persons who at-tended the eighth annual RingdalMarine Transportation Seminar recent-ly in Houston.

Speakers were optimistic that thecurrent slump would end, though somewere more optimistic than others.

Anthony Hardy, chairman ofWallem & Company, Ltd., of HongKong, expressed guarded optimism. "Itis generally accepted that the currentshipping depression will continue for atleast a further two years and anyassessment beyond this time must beregarded as highly conjectural. Theprognosis for the medium term cannotbe good for any owner, whetherlocated in the East or West."

Hardy delivered a paper entitled"The Shift of Merchant ShippingStrength from West to East." Thepaper’s thrust was that Westernshipowners could learn from Easternshipowners, especially the Chinese whowent to Hong Kong during theupheavals in China during the late1940s and early 1950s. Hardy said thisgroup possesses "one quality orcharacteristic" that is atypical ofWestern shipowners. "That one ele-ment is their ability to adapt to chang-ing circumstances," Hardy said.

Mao Tse Tung’s revolution was thefirst "circumstance" the shipownershad to adapt to. After leaving theirhomeland for Hong Kong, theyestablished themselves as bankerslawyers, insurers and traders. Learning

from their experience in China, thebusinessmen invested in floating assets,such as "ships, which would not bestranded in Hong Kong if their ownersever had to move on to otherpastures," Hardy said.

Of the 50 leading shipowners inHong Kong today, only two wereshipowners in China. The others werebusinessmen who knew a good dealwhen they saw it.

Japan’s industrial revolution was thesecond opportunity seized upon by theHong Kong Chinese. Hardy said ap-proximately 15-20 of the shipownerssaw the "revolution" coming, and vir-tually overnight, they sold their fleets,took the cash and went to Japan.

They placed orders for bulk carriersin the 14,000-18,000 d.w.t.-class at acost of approximately $2.5 million-S3million each. They knew Japan’s millswould need oil, ore, coal and woodproducts to operate. By securing 80percent credit over an eight-year periodat 5.5 percent interest, the Hong Kongowners got the ships they wanted, aswell as long-term charter contractsfrom the Japanese.

By the time the Japanese replacedthe time-chartered Hong Kong vessels,the owners were able to sell each shipfor approximately $3 million-S4 millioncash. Because the vessels were boughtfor $150,000, with the rest of themoney coming from such sources asJapan’s Export/Import Bank, the loanswere paid off from the profits from thecharters, and the sale price of the oldervessels was pure profit.

Not only did the "honeymoon" withJapan end, Hardy said, but the worldshipping community realized how theHong Kong Chinese made theirmoney, so long-term charters with fullpayout and no risk became a thing ofthe past.

Port of Houston Magazine

pulse still thereEuropeans, he noted, learned the

lesson too late and their practice ofmaintaining short-term speculativecharters put them "in great financialstrife."

With the money they made fromthe Japanese, Hardy said the HongKong Chinese launched a buyingspree. They bought good ships fromthe fleets of the "financially drained"European shipowners. Then, when themarket made an upturn in 1980-81,Hardy said the world looked to HongKong for ships. He said in light of theenergy crunch of the mid-1970s, theHong Kong shipowners presumed bulkcoal carriers would be in demand.They were right again and richer as aresult.

To survive, the Hong Kong Chineselooked to their old home--tbe People’sRepublic of China. "Clearly, they arelooking for a replacement for whatJapan previously offered them. Theyhave had some success in Europe...but,China--right on their doorstep, run bypeople who are kinsmen of theirs, avast and most populous country with adetermined modernization program--must seem to our Hong Kongshipowners to present the most logicaland compelling opportunities in thecourse of time," Hardy said.

In 1960, Hong Kong shipownerscontrolled 1 million deadweight tons.Today, they control more than 62million deadweight tons, Hardy said.Such a fleet was amassed by identify-ing future trends in the shippingbusiness and adapting to them.Western shipowners can learn fromthe Hong Kong Chinese, Hardy con-cluded.

The current shipping depression maycontinue for the next two years, ac-cording to Hardy, but Kenneth J.Szallai, executive vice president of

Troll Tankers, Inc., of Houston, saidthe end of the tunnel may be nearerfor the independent tanker owner.

He said he was optimistic that,because oil and chemical companiesare divesting themselves of ships, in-dependent tanker owners will have to"internationalize" operations, and theburden of risk will shift to the indepen-dent who is better able to determinerisk.

Oil companies are disposing of shipsfor several reasons, including the factthat the oil glut has reduced prices oncrude while the costs of transporting ithave continued to increase. Other"market impulses" at work, Szallainoted, are decreased consumption,reduced control over supply sources,the fragmentation of distribution, andthe development of domestic resources.

As major corporations reduce fleets,Szallai said greater reliance on the in-dependents will result. "In the nearfuture, there will be a redefined rela-tionship and closer cooperation be-tween the supplier and consumer ofmarine transportation, and, I mightadd, to the benefit of both parties," hesaid.

Independent tanker companies willhave to internationalize operations,and this causes optimism, Szallai said,because the companies will use thebest personnel and investors"regardless of national origin."

The oil business is more multina-tional than ever and the independentmust be able to operate in the interna-tional arena. Plus, to be competitiveand cost-efficient, the independenttanker owner must take advantage ofthe developing markets, such as thosein the Caribbean Basin. The most im-portant reason for going international,Szallai said, is to gain access to fundingthat does not exist on the local level.

"Internationalization, then, is both achallenge and an opportunity. Thechallenge is to create a cross-nationaloperation, one in which divergent ex-perience, education and competitive at-titudes mold unique solutions forunique problems. They ability to be-come truly international will perhapsbe the factor that determines whetherthe independent seizes these oppor-tunities that now exist, or whether hefails," Szallai said.

Shifting the burden of risk to the in-dependent was the last reason forSzallai’s optimism. "As an industryprofessional, the independent tankerowner should be in a better position toevaluate risk and make the appropriatedecision regarding the allocation ofresources to shipowning. As an en-trepeneur, the independent should beable to recognize and respond faster tochanging market conditions, andthereby protect his position," Szallaisaid.

Even though the speakers were op-timistic about the future, they realizedthat shipping will recover only if theworld-wide economy recovers. As Har-dy of Wallem & Company, Ltd., said,economic recovery is in the hands ofthe politicians. "Every day we are toldthat Reaganomics, Thatcherism orKeynsian pump-priming is beginning totake effect. Let us fervently hope so,because today it seems that all wehave to console ourselves with is SirWalter Raleigh’s 400-year-old credo forthe merchant marine: ’Whosoevercommands the sea, commands trade,whosoever commands the trade of theworld commands the riches of theworld, and consequently the worlditself.’

"Good stuff--but no doubt written ina booming market," Hardy concluded.[]

April 1983 21

NowDelta Line

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New Orleans ¯ New York ¯ San FranciscoOffices and agents in other major cities.

Life in the Port City

A bucking bull shakes off a cowboy who quickly scrambles to safety during the Houston LivestockShow & Rodeo, an annual event that celebrates Texas’ agricultural heritage and captures the imagina-tion of the fourth largest city in the United States for weeks.

Bucking bulls, cowboysexcite Houston annually,raise scholarship funds

A/-~ strange mania overtakes the

nation’s fourth largest city everyFebruary as people from across thestate, nation and world "Go Texan"for the annual Houston LivestockShow & Rodeo.

Those who have never ridden ahorse dress as if they grew up on aranch in Sweetwater, Texas. Thosewho have ridden a horse look asthough they just got off the range

April 1983

"punching dogies."Women do not look like they have

been out on the range at all, but shop-ping at the "Vogue" of western wearstores. If they wanted to look like An-nie Oakley, it would have cost themless, but they probably would not havelooked as pretty.

Diamond hatbands and gold-encrusted belt buckles were not un-common among the 1.9 million people

who looked at more than 30,000livestock entries housed in a $17million complex this year.

m small number of the visitorswere livestock breeders and buyersfrom countries as far away as Franceand Ireland. The livestock show is thenation’s largest and the world’s secondlargest.

Last year, approximately 2,000equine and bovine specialists from 45different countries came to Houstonfor the livestock show. This year, therecession cut into travel plans and onlyapproximately 600 buyers and breedersfrom 25 countries made the trip to theSpace City.

In the shadows of skyscrapers, peo-ple dressed in century-old styles cometo the Eighth Wonder of the World(the Astrodome, the world’s firstenclosed sports arena) to celebrate tradition initiated 111 years ago.

In 1932, the nation’s wranglersand livestock breeders first came toHouston, and since 1966 they havebeen coming to the Astrodome. Morethan 30,000 head of livestock were puton display this year, and the nation’stop cowboys and cowgirls put theirskills on display for a winner’s pursefilled with a five-figure prize.

A steer can sell for six figures if it isthe grand champion. In fact, world-record auction prices were paid thisyear for the grand champion steer,lamb, broilers and turkey. The grandchampion steer sells for more than$100,000.

The money paid for these animals ismore than a tax deduction. Theyoungsters who raise the animals usethe auction money to finance a collegeeducation or to fuel an entrepeneurialfire.

But students do not have to raisea grand champion to get collegemoney. The Houston Livestock Showand Rodeo offers scholarships toqualified students as well as scholar-ship endowments to 12 Texas univer-sities.

This year, more than $800,000 wasgiven to the 12 universities and ap-proximately $2.6 million was dividedbetween approximately 500 youngstersto help them pay for college. []

23

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24 Port of Houston Magazine