OH Breakbulk

8/7/2019 OH Breakbulk

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COVERING OUR 10-COUNTY REGION: AUSTIN, BRAZORIA, CHAMBERS, FORT BEND,GALVESTON, HARRIS, LIBERTY, MONTGOMERY, SAN JACINTO AND WALLER

Fall 2010 $ 4.95 houston.org

PLUS

The Stateof the PortJames Edmonds reflectson his decade of leadership

andHow the Panama Canal

extension will impact the region

AMERICA

S

BEST

AIRPO

RTS

Travel + Leisure

July 2010

B r e a k b u l k 2 0 1 0 C o n

C o m e s t o H o u s t o n

O c t o b e r 1 2 - 1 4

Distribution and Logistics Issue


2/44800-688-DOCK (3625) | www.portofhouston

Whatever the cargo, wherever it needs to

go, the Port of Houston Authority is your

best choice. Bring It On We can handle it.

BRING IT ON


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OppOrtunity HOustOn | 1

cOntents

Opportunity HoustonSM is an aggressive ve-year marketing program that generates leads for economic developmentorganizations throughout Houstons 10-county region. A direct result of the Greater Houston Partnerships 10-yeaStrategic Plan,Opportunity HoustonSM will help create 600,000 regional jobs, attract $60 billion in additional capitalinvestment and increase foreign trade by $120 billion for the greater Houston area.Opportunity HoustonSM targets ve major economic sectors identi ed by The Perryman Group as critical to Houstons future prosperity: Aviation aaerospace Energy and petrochemical Life sciences and biotechnology Information technology Nanotechnology

Departments3 lETTER

From the Greater Houston Partnership

6 REGIoNAl UPDATEBusiness growth around the region

10 VISIoNARIESJames Edmonds

14 INSIGHT oN SITESLocation logistics

36 CUlTUREFort Bend

38 ART SCENEHouston events calendar

39 MY HoUSToNHouston answers the call of the canal

Features16 aLL access

Houston emerges as a hub to the world

24 rOads scHOLarHoustons approach to distribution and logistics education

30 tHe state Of tHe pOrt

A Houston economic powerhouse

32 Heavy LiftingBringing the Breakbulk 2010 Conference to Houston

pHOtOs: istOck, geOrge rancH HistOric park

16

36

UPCOMING FOR WINTeR

our next issue wi f cus n the2011 ec n mic ut k f r theH ust n regi n. Artic es wi inc udea g impse int the future f H ust nsec n my, h w the regi ns business

eaders p an t m ve f rward, aswe as c verage n the 11th annuaTexas C nference f r W men.

Fall 2010


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Wheres YOURHouston o ce?

www.houston.org

Travel + Leisure July 2010

Our award-winning international economic development team is on standby to provideexpedient access to the regions vast business opportunities, titans of industry, innovationleaders, regional allies, capital investment opportunities, Certi ed Property Program, skilledand energetic work force, international trade connections, and leading-edge research and

analysis data.

713-844-3647

U.S. Census Bureau March 2009

Ame r ic a s Be st Air por t s in H oust on

P or t of H oust on 1st in t he U nit e d St at e sin F or e ig n T onnag e

Expansion Solutions Magazine (as reported by GlobeSt.com) April 2010

T op 5 loc at ions f or L og ist ic s C ompanie s Gr e e nspoint Dist r ic t

Manufacturers News Inc. (as reported in the Houston Business Journal) May 2010

T op U .S. M anuf ac t ur ing C it ie s

# 2 L e ading Ex por t M e t r os

Seabury APGdat February 2009

U.S. Army Corps of Engineers,Waterborne Commerce Statistics Center 2009

H oust on Air por t Sy st e m 4 t h L ar g e st in t he U nit e d St at e s

Aviation International News (as reported in the Houston Chronicle) April 8, 2009

# 1 Be st Air por t Ope r at or in t he U .S. Sug ar L and Re g ional Air por t


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Greater Houston Partnership LeTTeR

has ranked frst in oreign tonnageor 13 consecutive years?

One o the worlds busiest sea-ports, this trade hub is set or a boom-ing uture. The expansion o thePanama Canal, which will allow largerocean reighters to pass through thewaterway, is truly a game changer orthe Houston region. The expansionis expected to increase the amount o cargo coming to Houston. Weare investing in improvements tothe in rastructure required to meet new cargo loads and the needs o our customers, said Port Commis-sion Chairman James T. Edmonds.The expansion has also spurreddevelopment o distribution centersin Houston and throughout Texas tocapture opportunities to handle theexpected cargo increase.

As the Port o Houston and thePanama Canal both near their 100thanniversaries in 2014, their parallelhistories become increasingly con-nected to their uture as worldwidetransportation thorough ares. From

the early days o dredging thesewaterwaysthe Panama Canal is 50miles and the Houston Ship Chan-nel is 52 milesit has appeared that their growth has been a matter o strategic planning.

The port also is recognized asa center or breakbulk and project cargo business. The 21st AnnualBreakbulk Americas Con erenceand Exhibition will be hosted at theGeorge R. Brown Convention Cen-ter in Houston, October 1214. Theconvention eatures a program o panels composed o industry lead-

ers, networking opportunities andBreakbulk Education Day, which o -

ers college students a glimpse intothe maritime and logistics industry.Jerry Nagel, President and CEO o Rickmers-Linie America, said, Hous-ton has the highest concentration o industry participants in one placeocean carriers, heavy haulers, project

orwards, EPC (energy, procurement and construction) companies, andoil/refning companies. Houston iswhere the action is.

Along with the port, Houstonsthree airports connect the area to theworld. Recently, Travel + Leisure mag-azine ranked Houstons airports asthe best in the nation. George BushIntercontinental Airport (IAH), Wil-liam P. Hobby Airport and EllingtonAirport orm one o North Americaslargest public airport systems andserved more than 48.5 million pas-sengers in 2009.

Houstons extensive highway and railway systems complete thepicture, o ering businesses access to

markets outside the region.I you are going rom point A to point B, the Houston region o -

ers the best in service and availabil-ity. Houston is a key player in theglobal logistics and distribution o consumer goods, and will continueto lead the pack.

Onward,

JEff MoSElEY

President and CEO Greater Houston Partnership

for more information ,contact us at :

1200 Smith, Suite 700Houston, TX 77002phone 713-844-3600

fax 713-844-0200www.houston.org

P.S. I you would like to know more about relocating a business to our region,Craig Richard, our Chie Economic Development O fcer, is standing by to takeyour call! He can be reached at 713-844-3612 or c [email protected].

THE HOUSTON region hasalways been ull o moversand shakers. Uniquely quali-fed to move goods rom man-

u acturing to market and growers togrocers, the area is blessed with thein rastructure, innovative thinking,a ordability and central locationthat contribute to our success in thefeld o logistics and distribution.

This issue o Opportunity Hous- ton magazine highlights the regionsoutstanding logistical and distribu-tion channels that make commercehappen. Houstons port, airports,highways and railways o er busi-nesses a transportation network that is second to none and that can meet their burgeoning needs.

The Port o Houston is the areasdriving orce and one o the many reasons Houston lays claim to beingthe Gateway to Global Markets.Did you know the Port o Houston

HeReS AN OPPORTUNITY FOR YOU TO Be HeARD

Send y ur c mments r ideas f r future issues t Opportunity Houston,P.o. B x 1569, Austin, TX 78767 r inf @ pp rtunityh ust n. rg.


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Youre not the onlyone in Houston whowants your businessto be o -the-chartssuccessful!

We Do Too!

houston.orgOur award-winning regional economic development team is on standbyto provide expedient access to the regions vast business opportunities,titans of industry, innovation leaders, regional allies, capital investmentopportunities, Certi ed Property Program, skilled and energetic work force, international trade connections, and leading-edge research andanalysis data.

So reach out to your local Economic Development office at the GreaterHouston Partnership today to learn about business retention andexpansion offerings throughout the Houston ten county region.

You have resources, options, incentives and major supporters youmight not even know about. Call Chad Carson at 713-844-3614 oremail [email protected].

Your success is our success. Economic Development TeamGreater Houston Partnership

president and ceO

Jeff Mose ey

executive vice president and cOO

Tracye McDanie

managing editOr and seniOr vice president,

ecOnOmic deveLOpment marketing

Marti Boone

cHief ecOnOmic deveLOpment Officer

Craig J. Richard

cHief financiaL Officer

Ron Jeffers

seniOr vice president, member services

Susan Asimakis

seniOr vice president, pubLic pOLicy

Russe Reese

seniOr vice president, internatiOnaL business

and WOrLd trade center HOustOn

Cody M. Sutton

pubLisHer

David B. DunhamprOject manager design

Caro yn Chavana Graphic Engine Design

Writers

Anju i B air, Ju ie Bonnin, Nate Janes, Deborah Mann lake,Ken Schneider, Matt Smith, Dayna Stee e

cOpy editOr/prOOfreader

Jan McInroy

advertising

Director, Kevin Evans, 512-320-6915Advertising Sa es Manager, Rebecca Akins, 713-960-5099

Southwest Sa es Director, Kristin Be t, 512-320-6924

2010. all h .Opportunity Houston l h o .

g Ho o p h ,1200 s h, s 700, Ho o , t 77002-4400

p h u.s.a.

GREATER HOUSTON PARTNERSHIP

houston.org


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6 | OppOrtunity HOustOn

From Singapore to Pasadena, Texas

Regiona l update News & Information

Business growth around the region

Direct ervice tosingapore get daily cheduleFor the second time this year, Singa-pore Airlines is expanding its sched-ule or direct service between Sin-gapore and Houstons George Bush

Intercontinental Airport (IAH).Singapore Airlines is currently o -

ering ve fights per week betweenthe two cities, but on October 31,2010, the operation will be expandedto accommodate daily service, with

fights arriving and departing Mon-day through Sunday.

The route, which o ers passengersnonstop service to Moscow, with con-tinuing service to Singapore, will keepthe daily schedule in place until at

A Singapore Airlines airplane upon arrival at IAH


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least March 26, 2011.The partnership between Singa-

pore Airlines and the Houston mar-ket has been incredibly success ul,says Genaro Pea, director o air ser-vice development or the Houston

Airport System (HAS). When theservice was rst launched, we werecon dent that it would succeed, but the passenger totals so ar have truly exceeded our expectations.

The nonstop fight was inaugu-rated in 2008 and since that timehas enjoyed a steady increase in thenumber o passengers taking advan-tage o the service.

B y are HoustonGul port Distribution Center will bebuilt on SH 225 near Beltway 8 in Pas-adena, the northwest corner o theintersection. The park will be rail-served by both Union Paci c Railroadand Burlington Northern Santa FeRailway. The rst phase is an $18 mil-lion, 440,000 square oot spec build-

economic dev elopment oRganizationsI n t H e 1 0 - c o u n t y r e g I o n

oRganization WeB sitea ch b r f c r www. h b r-h . rB y ar H e p r r h www.b y r h .B y ow /We Ch mbe Co y

Eco om c Develo me Fo d o www.b y ow edf.o gc rp e r y www.c rp e r y.c r H , i . www. r h .c y f a v www. v - x. vC y of F e d wood www.c .f e d wood. x.C y of Ho o www.ho o x.govC y of L po e www.l o e x.govC y of n B y www. b y.comC y of p de www.c . de . x.C y of ro e be g www.rosenbergecodev.comc y f s r l www. r x. ve m ry c y i r v d r www. x.e a H p r R www. r r .e d v a

f r Br r c y www. -b .e r y c rr r m d r www. r y rr r. re r y/t x www. r y.G lve o Co y Eco om c all ce www.gce .G lve o Eco om c Develo me p e h www.ged .o ggr r c r e d v c www. . rgr r F r B e d v c www.f r b y. rgr r H p r r h www.h . rG ee o D c www.g ee o .oH Co y Comm y se v ce www.hc x. eH c ch b r f c r www.h . rH e e ch b r f c r www. . rH H ch b r f c r www.h h h b r.i -a r ch b r f c r

f gr r H www. h.K y ar e d v c www.k y . rl m rq e d v c r r www. . - rq . x.Le g e C y Eco om c Develo me www.le g ec yedc.comM o C y www.m o c y x.gop r e d v c r r www. . r . x.se b ook Eco om c Develo me Co o o www.c . e b ook. x.se ly Eco om c Develo me Co o o www.c . e ly. x.s h m ry c y W

e d v p r r h www. r r h .tomb ll Eco om c Develo me Co o o www. omb ll xedc.o gu ed M geme D c of Ho o www.B y O k MD.o

www.ald eD c .o gwww.sh ow D c .com

www.iMDHo o .o gwww.Mo o eD c .o g

u w H d r www. w -h .W r c y e d v p r r h www.w r y. rW lle Eco om c Develo me Co o o www.w lle edc.o gWeb e Eco om c Develo me Co .o o www.c yofweb e .comW H a www.w h . rWe ch e D c www.we ch e.d . x.th W t w h www. h w w h - x. v

Bold denotes Greater Houston Partnership opp rtunity H ust n program investor


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ingconstruction will start in late2010. Planned or the second phase isa 412,000 square oot acility.

FedEx leased 146,792 square eet at Ellington Trade Center in Houston, at

12554 State Highway 3, or its homedelivery operations. Starting in Octo-ber, more than 250 employees will bebased at this location. The businesspark is across rom Ellington Airport.

Calpine Corporation leased 83,500square eet at Pasadenas Bay AreaBusiness ParkBay Area Boulevardat Red Blu Road. This locationwill house the turbine maintenance

group. The company is a major U.S.power company that delivers electric-ity to customers and communitiesin 21 statesU.S. and Canada. Thecompany owns, leases and operateslowcarbon, natural gasf red andrenewable geothermal power plants.Also, Transportation Consultants,Inc., leased 120,120 square eet at Bay Area Business Park or its distributionoperation.

texa Workforce Commi ionpre en san jacin o Collegewi h $1 million for mari imeand aero pace rainingThe Continuing and Pro essionalDevelopment division o San Jacin-to College has been awarded morethan $1 million rom the TexasWork orce Commission (TWC)

Regiona l update News & Information

Bay Area Business Park, Pasadena


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Skills Development Fund to providetraining or the maritime and aero-space industries.

TWC Commissioner Represent-ing the Public Andres Alcantar

signed and presented two checksat a reception held Wednesday, July 21, 2010, at the San Jacinto Collegecentral campus. The frst grant, or$394,577, will create or upgrade 195positions in the maritime industry.Seven sea and coastal transporta-tion and inland water transporta-tion companies have come togetherto request this training rom the col-lege, which will train workers or po-sitions o captain, mate, deckhand,and tankerman. Industry partnersin this training include BG Ameri-cas and Global LNG, G & H TowingCo., Harbor O shore Marine, Inc.,Helix Energy Solutions Group, Hig-man Marine Services, Inc., J.A.M.Distributing Co. and Signet Mari-time Corp.

The second grant, or $607,185,will help to create or upgrade morethan 500 positions or the aerospaceindustry, which relies heavily onleading-edge technology to support

experienced pro essionals, as well asdesign and development. This grant unding will provide training to

transition incumbent workers romsustainment and operations unc-tions to design and development

unctions. It will also provide train-ing to new hires who will move intothe positions vacated by transition-ing workers. Companies includedin the training are Barrios Tech-nology, Ltd., Booz Allen Hamilton,Inc., Cimarron So tware Services,Inc., Futron Corp., GeoControlSystems, Inc., Hamilton Sunstrand,Lockheed Martin Corp., MRI Tech-nologies, Oceaneering Internation-al Inc., United Space Alliance LLCand Wyle Integrated Science andEngineering Group.

According to the Texas Work orceCommission, upon completion o this training, workers in the mari-time industry can expect to receive

an hourly wage o ap-proximately $30.20,and those trained inthe aerospace industry can expect an average

hourly wage o about $38.64.San Jacinto College

serves a diverse popula-tion o more than 27,000students in over 140 de-grees and certifcates inuniversity trans er andtechnical programs.The college also servesthe community throughwork orce training. Stu-dents come with variousgoals and aspirations,and the college is com-mitted to their success.

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A Several factors contribute to Hous-tons strength, among them a di-verse cargo portfolio and an extraordi-

nary infrastructure and capacity.Sixty-six million tons of freight wereexported through Houston in 2009.The ow of exports helps keep the port strong and makes it less vulnerable tothe kinds of economic disruptions that a weak economic climate can create.

Many businesses along the HoustonShip Channel take raw materials andcreate nished materials that are either

transported somewhere in the UnitedStates or exported through the port. Forexample, high-quality steel from Japanand France is transformed into drillingpipe that is used for energy explorationall over the world.

As part of the largest breakbulk

and project cargo port in the country,we offer a convenient and ef cient in-termodal gateway to local and globalmarkets. Nearly 65 percent of allmajor project cargo for this country moves through Houston, includingparts of re neries, wind turbines, rail-road locomotives, and other giganticpieces of machinery and equipment.As a result, for the rst time in its 21-year history the Journal of Commerce Breakbulk Conference will come toHouston in October, with about 2,500delegates from around the world.

National retailers have discoveredHoustons many advantages. For many

years, containerized goods from Asiaarrived at West Coast ports, wherethey were distributed eastward acrossthe United States primarily by rail. To-day, retailers distribute goods south tonorth from Houston to inland marketsby both truck and rail. These retailers

Port of Houston Bayport Container Terminal

ECONOMIC IMPACT SUMMARYPort of Houston on the State of Texas

Economic Impact Total (Direct, Induced, Indirect and Related)

Jobs 785,049

Personal Income $39.264 Billion

Business Revenue $13.997 Billion

State and Local Taxes $3.690 Billion

PORT OF HOUSTON ECONOMIC IMPACTMo e ha a half a m ll o job texa a e ed o ac v e a he po of Ho o .


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build gigantic new distribution facilitieshere and stock their stores as far northas Chicago from here. We continue topursue these new lines of business andanticipate continued growth, especially once the $5.25 billion expansion of thePanama Canal is completed in 2014.

Q What issues still need to beresolved to ensure the continuedsuccess of the PHA?

A Continuous improvement is a key to our sustained success. At thePHA, some $200 million in capitalimprovement projects were under way in 2009, and we have some $345 mil-

lion in capital improvement projectsplanned for 2010 and 2011. We havea saying at the port: When the port grows, Houston grows. Being ableto maintain our ability to grow isessential to the continued suc-

cess of our region. One of our many advantages over other ports is the sheersize of the port, which extends 25 milesalong the 52-mile Houston Ship Chan-nel. This has long provided us the roomto grow and develop a variety of differ-ent cargo-handling facilities.

Just as important is easy access to ma-jor traf c arteries in and out of Hous-ton. We work closely with affected com-munities and the Texas Department of Transportation to make sure that roadway improvements keep pace withthe constant increase in cargo movingthrough our port.

Making our freight

rail system workbetter will also

support the ports continued growth.In 2005, the PHA worked to promotestate legislation allowing the creationof a freight rail management district,which seeks out the federal fundingrequired to implement a freight railplan and create the kind of freight rail corridors Houston needs to im-prove the movement of cargo by rail.

In a region that acts as a breedingground for individual and corporatesuccess, achievements like those at thePHA still impress and inspire. With avisionary like Jim Edmonds as chair-man, the Port of Houston Authority will continue to have a powerful story

to tell about economic innovation andvitality, not only here, but around thenation and the world.

We have asaying at the

port: Whenthe port grows,Houston grows.


Bayport Container Terminal

Unloading breakbulk cargo


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RANKED AMONG THE

TOP 1%OF U.S. HOSPITALS.

Were ranked among Americas 50 Best Hospitals by HealthGrades .At Memorial Hermann, we believe it takes steadfast dedication to make breakthroughs come tolife. Thats why were especially proud to be named one of Americas 50 Best Hospitals * by HealthGrades. We earned this distinction by demonstrating consistent, outstanding patient careand a deep commitment to clinical excellence across multiple specialties which ensures betteroutcomes for our patients and a higher level of care for the community.

* As part of the Memorial Hermann Healthcare System: The Woodlands, Southeast, Southwest and Northwest Hospitals.


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InsIght on sItes

Location LogisticsBy Anjuli BlAir

DISTRIBUTION and logistics, anindustry concerned with issues that many o us know absolutely noth-ing about, plays an important rolein both the economy and our daily lives. In act, without this vital indus-try, the vast majority o the goodsand services we depend on each day would not be as easily obtained.

When it comes to distribution andlogistics, a company will consider anumber o variables be ore decid-ing very strategically where to placeits sites. Who better to give insight on the subject than a person withmore than 35 years o experi-

ence in distribution andlogistics? That person,Tim Feemster, SeniorVice President and Di-rector o GlobalL o g i s t i c sat Grubb& Ellis,

said that Hous-ton and its vicinity are in a good positionto serve as a hub or thedistribution and logis-tics industry.

According to Grubb & Ellissmarket trends report or the frst hal

o 2010, site selection involves 10deciding actors: (1) laborcosts, (2) highway avail-

ability, (3) tax ex-

emptions, (4) energy availability andcosts, (5) corporate tax rate, (6) avail-ability o skilled labor, (7) occupancy or construction costs, (8) state and

local incentives, (9) availability o advanced ICT services, and

(10) inbound/outboundshipping costs.

Playing a bigrole in the


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oPPortunity houston | 15

10-County Regions avor is the avail-ability o various modes o transporta-tion or distribution. Transportationis a huge actor in site selectionit accounts or more than 50 percent o the supply chain cost. Houston has

air transport covered, with GeorgeBush Intercontinental Airport, Wil-liam P. Hobby Airport and more than35 public-use airports. Additionally,more than $5 billion has been spent to improve mobility and capacity by upgrading highway in rastructure.And by the end o 2012, 97 moremiles o light rail, bus rapid transit,commuter rail and improved subur-ban bus service will be completed.

Houston has a seaport, a largeinternational airport, a good roadnetwork and a lot o people, saidFeemster. It also has good rail. . . .That makes or a good network o distribution.

The seaport Feemster is re erringto is, o course, the 25-mile- long Port o Houston, which connects the re-gion to the rest o

the country via three railroads and150 trucking lines. Shipping by wateris much cheaper than other methods,so being a port city gives Houston astrong advantage, especially since itsport is the largest container port on

the Gul Coast. For 13 years straight,the Port o Houston has rankednumber one in the United States in

oreign tonnage and number one inimports or 18 uninterrupted years.Another project that will have alarge impact on business movingthrough the Port o Houston will bethe completion o the Panama Ca-nal expansion. The ships that comethrough the Panama Canal now have40- oot dra ts, but a ter the comple-tion o the expansion project, theships will have 50- oot dra ts. A terthe expansion, it will be necessary toincrease the ports container capac-ity to accommodate the new shipswith their larger dra ts, as well aslarger cranes that are used to han-dle the container boxes aboard the

ships. Plans or such expansionsare already in place, and

Feemster believes theimprovements, oncecompleted, will serve

the region well.The addition and ex-pansion o the Panama Canal

will continue to grow and expandbusiness rom Asia, Feemster said.

Feemster added that the Houstonregion is especially well positionedbecause Texas is a very business-

riendly, low-cost state in which tooperate, with state and local taxesthat remain below national averages.Factors such as inventory tax exemp-tions, tax abatements on property,R&D and pollution control, salestax exemptions, and tax-exempt in-dustrial revenue bonds add to thelist o amenities or which business-es search. Easily manageable utility costs also contribute to the a ord-ability o the region. More than 469million square eet o competitively priced inventory space are availableto businesses, giving the region oneo the nations richest concentrations

o industrial space. That number isexpected to increase by nearly 4 mil-lion square eet upon the completiono current projects.

A big consideration in site selec-tion is understandably location, lo-

cation, location. Fortunately, Hous-ton excels on this measure, as it iscentrally located between the East Coast and the West Coast. Planes candepart rom the region and arriveanywhere in the continental UnitedStates within a ew hours, o ering alevel o e fciency that is not an op-tion or other port cities. The areascentral location in the Central TimeZone means that communicatingwith businesses in other parts o thecountry is quite simple.

The 10-County Region also o ersa well-educated and diversifed labor

orce, which is always growing, saidFeemster. As a young, thriving metro

area, the region has an appealingnumber o experts in the key sectorsneeded or the distribution and lo-gistics industry: pipeline transporta-tion, water transportat ion, wholesaleand durable goods, rental and leas-ing services, and repair and mainte-nance services.

Grubb & Elliss report also men-tions that the Houston region han-dled the recent recession betterthan most other major metropolitanareas in the country, a point that il-lustrates the stability and promise o the area.

Photos: istock

Houston has aseaport, a largeinternational air-port, a good roadnetwork and a lot o people. It alsohas good rail . . .That makes or agood network o distribution.

Anotherproject that will have a

large impact on business mov-ing through thePort o Houstonwill be the com-pletion o thePanama Canalexpansion.


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16 | OPPORTUNITY HOUSTON

When access trumps location

BY MATT SMIT H


19/44

OPPORTUNITY HOUSTON | 17

The region leverages its geographicaladvantages with a transportation in-frastructure that is second to none. Anairport system that ranks as one of thebest in the nation, one of the busiest seaports in the world, multiple majorrailroads, and a world-class highway system keep goods owing to and fromthe city at a rapid pace. Houstons ex-ceptional transportation network canaccommodate any companys needs.

One of the main things compa-nies consider when picking a locationfor conducting business is access.They want to make sure they can ef- ciently distr ibute their productsand transport their employees, saidGenaro Pea, Marketing Director forthe Houston Airport System (HAS).When you combine the railway withthe port and a world-class airport,

you have the makings of a city that isa very attractive location for a com-panys headquarters.

AIRWAYS THAT SPAN THE GLOBEAll together, Houstons airpor tsGeorge Bush Intercontinental Airport (IAH), William P. Hobby Airport and Ellington Airportform one of North Americas largest public airport systems and position Houston as theinternational passenger and cargogateway to the south central UnitedStates and a primary connection toLatin America. The three airportsserved more than 48.5 million pas-sengers in 2009, including more than7.8 million international travelers.IAH is the base for all air cargo op-erations and distribution facilities forthe Houston Airport System. In 2009,IAHs Air Cargo Distribution Centerhandled more than 347,569 metrictons of cargo, from the largest to the

THE HOUSTON REGION offers an impressive array of logistical and disbution channels that businesses count on to meet the demands of todays fapaced marketplace. With a location thats equidistant from the East Coast and West Coast, and just hours by air from any metro area in the country, Houstis an ideal hub for companies that need national distribution for their produ

William P. Hobby Airport

Ellington Airport

George Bush IntercontinentalAirport (IAH)

6,993Number of acres on which IAH issituated, 22 miles north of Houstons

Central Business District. The airporthas no takeoff or landing curfewsand has ample land to expand its

facilities as demand increases

Number of passenger airlinescurrently serving IAH, as wellas 11 scheduled cargo airlines

Number of runways and terminalsat IAH, in addition to an FAA RouteTraf c Control Center and Terminal

Radar Approach Control Facility5


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In addition to being located only six miles from IAH, the area pro-vides easy commutes to locationsthroughout the city via Interstate 45,Sam Houston Parkway, the Hardy Toll Road, and U.S. 59. Greenspoint also offers incentives for developers

through a tax increment reinvest-ment zone, and the fact that compa-nies have access to Houstons diversework force is another amenity that attracts businesses from around theglobe. We also have an exceptional ITinfrastructure, said Jack Drake, Pres-ident of the Greenspoint District.

Very importantly, we are the cross-roads for the ber-optic infrastruc-ture of this region, added Drake.Greenspoint has the largest capac-ity for ber-optic infrastructure any-where in the region and one of thelargest capacities in the country.

The Houston region is home to morethan 3,700 energy-related companies,including more than 500 explorationand production rms which rely heav-ily on ber-optic for simulation and dis-tribution of data. The fact that Green-spoint is situated where Sam HoustonParkway and I-45 intersect is essential.The regional ber feed comes down

from the north via I-45. When it reach-es Greenspoint, it can head east andwest via Sam Houston Parkway. Greens-point is a strong base for energy com-panies, and when you combine its loca-tion with easy access to the roadways, berway and airways, you get a power-

ful combination that is very attractiveto companies, said Drake.

RAILWAYS AND HIGHWAYS THATPROVIDE SUPERIOR CONNECTIVITYSince its early days, Houston hasprospered because of its rail net-work. Rail lines were built to service

Distances by interstate highway from Houston to selected large U.S. cities

METRO AREA MILES METRO AREA MILES

Atlanta 793 Los Angeles 1,550

Baltimore 1,446 Miami 1,118

Boston 1,856 New York 1,631

Chicago 1,090 Philadelphia 1,570

Dallas 239 Phoenix 1,177

Denver 1,119 San Francisco 1,930

Detroit 1,306 Seattle 2,443

Kansas City 793 Washington, D.C. 1,412

TRUCKINGHouston is the hub of a major trucking network for the United States.

239

16

Houston highways

Number of major highways servingHouston, some of which include:

I-10, I-45, U.S. 59, U.S. 290, U.S. 90,Texas 288, Texas 225, Hardy Toll

Road, Sam Houston Tollway and theGrand Parkway (Texas 99)

1,212Number of non-local trucking

rms that serve Houstonmorethan cities such as Boston (602),

Washington (754), San Francisco(503), Phoenix (498), Baltimore(520), Portland (534), KansasCity (447) and Tampa (491)

Miles to Dallas from Houston


22/44


the coastal ports and emerging oil in-dustry. Rail became such a prominent

part of the city that by 1926 Houstonadvertised itself as the city where 17railroads meet the sea. Now there arenearly 1,000 shippers located in theHouston region that rely on this vast rail network. Each year, 700,000 railcars arrive or depart, making Houstonone of the busiest rail centers in thecountry.

Fourteen mainline tracks radiatefrom the city. Class I railroads rail-roads with operating revenue in excessof $5 million per year include Bur-lington Northern Santa Fe Railway,Kansas City Southern Railway, andUnion Paci c Railroad. Switching andterminal railroads include GalvestonRailroad, L.P., Port Terminal RailroadAssociation, and Texas City TerminalRailway Company. Combined, Burl-ington Northern Santa Fe Railway andUnion Paci c operate more than 96percent of the Class I track mileage inthe state of Texas. The widespread cov-

A KCSR train departs Houston

A PTRA train arrives in Houston

84%Approximate percentage of

Houstons rail activity attributed

to heavy industrial cargo suchas: chemicals and/or heavy bulkcommodities such as coal, grain,

and rock/aggregate

Approximate number oftrains per week that travel within

the Houston regional rail network,which is composed of tracks ownedand operated by the Union Paci c

Railroad (UPRR), the BNSF RailwayCompany (BNSF), the Port Terminal

Railroad Association (PTRA)

and Kansas City SouthernRailway (KCS)

2,200

1Houstons airports make

Travel + Leisures top spot ofAmericas Best Airports

Map ofHouston-area rail system


23/44


24/44


off the road.Railway optimization should also en-

able introduction of passenger trains tothe network for commuter alternatives.GCRD is currently studying the feasibil-ity of developing commuter rail along

existing track running northwest par-allel to U.S. 290 in exchange for add-ing capacity to a more direct existingnorthbound rail route. GCRD is alsoengaging the City of Houston and Har-ris County in further analysis of freight rail improvements recommended forthe most congested rail corridors ap-proaching the yards located on thecitys east side.

The bene ts of rail have been high-ly underrated. The Houston-Galvestonregion has one of the most extensiverail networks in the country. We arelucky to have so much rail to work within our efforts to sustain our incredibleeconomic and population growth,said Crocker.

Houston is also well served by a high-way system that provides excellent ac-cess to markets outside the region. Thecity is the hub of a major trucking net-work for the United States.

There are more than 1,212 non-localtrucking rms operating in the Hous-

ton metropolitan area, more than inother major cities, including Boston,Washington, and San Francisco. Hous-tons trucking industry is well integrat-ed with the Port of Houston, the Hous-ton Airport System and the mainlinerailroads serving the city.

ALL ROADS LEAD TO THE PORT

The Port of Houston is another vitallogistical asset that drives the regionseconomy. It is connected directly totwo major railroads, 150 truckinglines, and 1,000 international ports.

The busy man-made port ranks rst in the United States in volume of foreign tonnage and second in totaltonnage. It is the worlds 15th-largest sea hub, and its shipping lines arelinked to more than 1,000 ports in200 countries. The 25-mile-longcomplex is the base for a diverse mixof public and private facilities locat-ed just a few hours sailing time fromthe Gulf of Mexico.

The Port of Houston handles 69.6percent of the containerized cargomarket in the U.S. Gulf and 95.5 per-cent of the containers moved throughTexas seaports. Approximately 65percent of all major project cargo forthis country moves through Houston.The capability to manage this logis-tical effort is just one reason we farebetter than most other ports, saidAlec G. Dreyer, Chief Executive Of- cer of the Port of Houston Author-ity, in the June/July issue of the portsmagazine. There isnt a piece of car-

go made that the Port of Houston Au-thority cant handle better than any other port, said Dreyer.

We are known to our customers asa business-friendly port, Dreyer add-ed. We have an excellent relationshipwith labor, smooth access to inland

260

240

220200

180

160

140

100

80

60

40

20

PORT OF HOUSTON TOTAL TONNAGE

The Port of Houston in 2008 ranked rst among U.S. ports in volume of foreign tonnage

Millions of tons of cargo movedin 2009, as more than 7,700 ships

called at the Port of Houston220Billions of dollars (estimated) in

total value of foreign trade through

the port in 2009. Leading tradingpartners by value in 2009 wereMexico, Brazil, China, Venezuela

and Germany. These ve accountedfor 33 percent of the 2009 total

value of foreign shipments.

$106.3

Number of trucking lines that, withthree major railroads, connect the

port to the balance of the continentalUnited States, Canada and Mexico

150

1.79Millions of TEUs (20-foot equivalentunits) handled by the Port of Houston

in 2008, making it the leader incontainerized cargo among Gulfof Mexico ports, and the seventh

largest container port inthe United States

91Years 92 93 94 95 96 97 98 9 9 0 0 01 02 03 04 05 06 07 08 09


25/44


markets, and facilities designed to han-dle whatever cargo comes our way. Asbusinesses rebound, so has their reli-ance on Houston to ensure that cargoreaches their destinations.

Located near the Port of Houston,Dixie Cullen Interests, Inc., specializesin export packaging and serves as anindustrial storage and receiving facil-ity. The Houston Business Journal includ-

ed the company on its 2010 HoustonFast 100, a list of the 100 fastest-grow-ing companies in the city.

According to the Dixie Cullen In-terests President, Cathy James, many companies are interested in Houstonas a distribution and storage consolida-tion headquarters. Recently James met with a vice president of a brass tubingcompany from China that is lookingto start stocking inventory in Houston.Because Houston is halfway betweenthe East and West coasts and has otherlogistical advantages, the city and theport are ideal storage points for many businesses that ship throughout theworld. Our location and the services weprovide give them an advantage overtheir competition by providing the ca-pability of having material on the oorand ready to ship, said James.

The port is prepared for its next evolution of substantial growth in thenear future. The expansion of the Pan-

ama Canal, a project that will doublethe capacity of the canal by 2014, willallow super-sized ocean freighters totravel through the canal instead of go-ing around South America. The Port of Houston is the rst American port between the Panama Canal and Amer-ican customers.

As the project nears its 2014 comple-tion date, the Port of Houston Author-

ity is preparing to reap the bene tsof increased trade that the increasedcapacity should bring. Conservatively speaking, about 15 percent of our car-go comes from Asia via the PanamaCanal currently, said Ricky Kunz,Vice President of PHAs OriginationDivision. We expect that 15 percent to grow by 15 to 20 percent in the rst full year of operation of the new locksonce the canal improvements are com-pleted.

A CITY PRIMED FOR GROWTHThe expansion of the Panama Canalisnt the only project that will bringmore business to Houston. Otherplanned logistical developments forthe city include the expansion of con-tainer terminal facilities at the port and the toll road system, as well as thedevelopment of regional commuterrail and high-speed regional rail.

Houstons PBS&J provides compre-

hensive logistical and infrastructuralconsulting services to public and pri-vate clients. The company has assistedin all or part of the planning, environ-mental permitting, design, construc-tion and operational environmental

compliance for the infrastructureof most of Houstons transportationmodes. PBS&J currently provides con-sulting services to TxDOT, Metro, thePort of Houston Authority, HAS andthe Harris County Toll Road Author-ity, as well as private shipping and oiland gas companies.

Like many experts, Michael Bloom,a senior associate at PBS&J, predictsthat Houston will continue to thrivedue to logistical expansion. I antici-pate continued growth in the transpor-tation arena and am looking forwardto Houston continuing its emergenceas the gateway to North America, saidBloom. Houston will be the place tobe in the coming years.

Cargo boats approaching the Panama Canal

Map of the Panama Canal

Port ofHouston


26/44

24 | OppOrtunity HOustOn24 | OppOrtunity HOustOn

ROADS

SCHOLAR

ROADS

SCHOLAR

ROADS

SCHOLAR


27/44


Houstons region-wide approach todistribution and logistics education

by J U L I E B O N N I N

A S TA G G E R I N G N U M B E R of shipments from around the world pass

through the Houston regionwhether the cargo comes by truck, by rail, by air,through its massive port, or by a combination of transportation modes.But for industry, merely moving cargo is less of a challenge than moving it safe-

ly and ef ciently, with as little warehouse time as possible. And training the workforce who will be in charge of maximizing pro ts through distribution and logis-tics strategies is key, especially since transportation-related jobs have emergedas one of the fastest-growing segments in an overall weak employment market.



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The Houston region is recognizedas one o the leaders in education

or current and uture pro ession-als in the feld, with more than 60colleges, universities, and other de-gree-granting institutions, 10 com-munity colleges, and 750-plus voca-tional and technical schools.

Related educational opportunities

in the Houston region are growingto meet the accelerated demand, ac-cording to Elizabeth Wetzel, Directoro the University o Houston Center

or Logistics and Transportation Poli-cy and a ormer industry consultant.

Enrollment in the University o Houston undergraduate program hasgrown by 18 percent in the past threeyears, Wetzel said, with enrollment inthe all 2010 class up 30 percent overspring registration. While the collegedepartment, established or more than30 years, is the f th largest at UH, thecenter is a relatively new addition. It was established in 2007 to unction asa link between industry, government and education. The center o ers cer-tifcates in basic and international lo-gistics and conducts related research.

A regional network o other educa-tional options is helping to strengthenand enrich the distribution and logis-tics work orce. Degree and certifcateprograms at Houston Community Col-lege are also seeing increased enroll-ment, said Steven Woodland, Depart-ment Chair o Business Administrationprograms at HCCs northwest campus.Texas A&M University at Galveston ishome to one o the hand ul o mari-time academies in the country. AndHoustons Texas Southern University is launching its frst distribution andlogistics program in the all o 2010.

Another indication that Houston-area leaders understand the need toreach deeper still or its uture pro-

essionals: Two Houston high schoolsnow have magnet programs that intro-

the peoplelove our gragradua es h

gradua eElizabeth Wetzel, Dire

Enrollmentin the University ofHouston logistics

and transportationundergraduate program

has grown by 18percent in the past

three years.


29/44


duce younger students to related pro-essions in the industry.Such a broad-based approach to

education is essential or a eld that isnt instantly recognizable to most Americans, yet is indispensable to e -

ciently run companies and the U.S.economy as a whole, Wetzel said.

The average American doesnt havea clue about how goods get to the shel ,she said. Even high-level business man-agers o ten have a limited understand-ing o all that is involved in global ordomestic shipments, she said.

Companies are looking or people

who are at least trained in the rudi-ments, and they understand that there is a wealth o potential or ex-panding knowledge or those already in the eld, she added.

Those in the industry, like Port o Galveston Director Steven Cer-nak, say area educators are doing agood job o trying to make sure re-lated curriculum keeps up with ever-changing technology and sa ety-re-lated measures.

Theyre keeping current, he said.They have to adapt to changes [as]much as I do. From a practical stand-

point, the implementation o some o the new security measures has been amoving target. As it should be. Its not a static environment. To be air to theeducational institutions here, theyrekeeping abreast o it.

The industry itsel is evolving. Withglobalization you have to be competi-tive in the worldwide marketplace,and so your in rastructure needs tobe put to its ullest potential to makeit pay. I youre a new college gradu-ate, you need to come in attuned tothe economic/ nancial possibilities.

Graduates o the UH program bringup-to-date technical skills as well aspractical knowledge o everything

rom inventory fow strategies to amil-iarity with the numerous internationalagencies that oversee shipping.

The program is one o only a ew inthe United States that is housed withina college o technology, Wetzel said.It o ers students numerous hands-onlearning opportunities made possibleby the regions status as a transporta-

he Hous on regiona es, and all of oure jobs before heyshor ly hereaf er . . .ersity of Houston Center for Logistics and Transportation Policy

Texas A&MUniversity at

Galveston is home toone of only a handful

of maritimeacademies inthe country.


30/44


tion hub and the sup-port and input o many industry leaders.

The people in theHouston region loveour graduates, and all

our graduates have jobs be ore they graduate or shortly therea ter, she added.

Wetzels scope as director o the center encompassesreaching out to everyone rom high school students just

learning about the feld, to business veterans headquar-tered in the Houston area, to pro essionals located in otherparts o the world.

She recently returned rom a trip to South A rica, whereshe and Pro essor Dan Cassler traveled to lead about adozen employees o a mining and trucking subsidiary through the process o earning an international logisticscertifcate. The intensive weeklong program helped par-ticipants to see beyond their individual roles in order tocomprehend how each o their jobs fts into the numerousaspects o distribution and logistics, Wetzel said.

This was a ast-track way to help them understand thebusiness better and do their jobs better. And they got theimmediate opportunity to use what theyve learned intheir job, Wetzel said.

More and more well see companies go that route, sheadded, noting that the group interaction guards against tunnel vision, and invariably results in more e fciency and increased profts.

It takes a lot o people to move goods rom one placeto the next, and the people involved need to understandwhere they are in the chain, she said. Its particularly truein this business that you dont know what you dont know.

The center also plays a crucial role in helping to guide re-

gional planners, indus-try stakeholders andothers as they move or-ward with in rastructureplanning and other issues, she said.

Were starting to see those in the region move in sync witheach other, Wetzel said.

TexasSouthern

University islaunching its rstdistribution and

logistics programin the fallof 2010.

Degreeand certi cate

programs at Houstonscommunity collegesare also seeing

increasedenrollment.


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FASTER FRESHER FRESH AIR CARGOIAH

Did you know most of the owers, fruits and vegetables you buy are own to Miami thentrucked all the way to Houston? Did you know there is now a better way?

For the rst time, Fresh Air Cargo IAH allows local restaurants and grocers to import

products from around the world directly to Houston. Now owers and produce will arrivefaster and fresher. Imagine better tasting fruits, crisper vegetables, and owers that bloomdays longer. Plus, you can look forward to exotic new items never before available inHouston. Fresh Air Cargo IAH makes it all possible.

For more information contact 281.233.1033, visit y2houston.comor email [email protected]

DEMAND YOUR FLOWERS AND PRODUCE FLY DIRECTTO HOUSTON - THE FASTER, FRESHER WAY.


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30 | OPPORTUNITY HOUSTON30 | OPPORTUNITY HOUSTON

A Houston economic

powerhouse


33/44


A primary economic driver for the region and the

state, the Port of Houston has been instrumentalin Houstons development as a major center of in-ternational trade. Unlike other ports in the Unit-ed States, the Port of Houston is spacious, withmore than ample room to grow. Located along a25-mile swath of the Houston Ship Channel, theport encompasses a dynamic complex of diversi- ed public and private facilities situated just a fewhours sailing time from the Gulf of Mexico.

According to 2009 statistics, the Port of Hous-ton ranked rst in the country in foreign ton-nage, as it has for 13 consecutive years, and rst in imports, as it has for 18 consecutive years. It isthe seventh-largest U.S. container port, handlingmore than 1.8 million TEUs (20-foot equivalent units). An environmental and security leader, thePort of Houston was the rst U.S. port to achieveboth ISO14001 and ISO2800. Two major railroadsand 150 trucking lines connect the Port of Hous-ton to the rest of the continental United States,Canada and Mexico. More than 100 shipping linesprovide service between Houston and more than1,000 other ports worldwide. The success of thenew Bayport Container Terminal in opening uptrade with Asia has added to the Port of Houston

Authoritys ability to post another gross operatingrevenue record of an estimated $168 million.According to Edmonds, The ports ability to

grow and undertake projects such as Bayport toexpand our cargo-handling capacity is a testa-ment to the support the port has enjoyed eversince its creation. The port touches the lives of so many citizens, whether through jobs, the con-sumer goods passing through the port that areused in everyday life, or the materials used by industry. Whenever we have gone to the public

with a plan to make the port stronger, the votershave endorsed it. Continuing to maintain thepublics con dence is very important.

Remaining strong takes strong leadership. Forthe rst time in the ports history, the port com-missioners have chosen someone from outside themaritime industry to shepherd the port into the fu-ture. We chose an outstanding Houston business-man, Alec Dreyer, to bring new perspective to oneof the Houston areas most important assets.

Alec has been a leader in the energy-trad-ing, power-generation, alternative-energy, and nance industries. As the ports Chief Execu-tive Of cer, he has brought new energy for anew era at the port. Alecs exemplary businesstrack record and his fresh perspective are im-portant new assets for the port authority. ThePort Commission believes that his businessacumen will further advance the port author-itys mandate to create economic development and jobs through mar itime commerce.

In addition to operating or leasing port fa-cilities, the Port of Houston Authority is thesponsor of the Houston Ship Channel. In2009, Edmonds worked closely with U.S. Rep-

resentative Gene Green and other members of the Texas congressional delegation to help theU.S. Army Corps of Engineers receive $98.8million in funding from the American Recov-ery and Reinvestment Act. It was the largest single allocation of federal funding for infra-structure projects that the channel had everreceived. The waterways impact on the regionincludes about 785,000 jobs and $118 billionin economic activity. Across the United States,1.5 million jobs and $285 billion worth of eco-nomic activity are related to the ship channel.

The PHA played a major role in advancing rail-road transportation ef ciency by helping to cre-ate the states rst Gulf Coast rail distr ict. In addi-tion, the Houston Ship Channel Security Distr ict gained state legislative approval. Both projectsare highly regarded for setting standards of ex-cellence in public-private partnerships.

James Edmonds has been Chairman of theBoard of Commissioners of the Port of HoustonAuthority since 2000. He was reappointed to an-other two-year term by unanimous vote of theHarris County Commissioners Court in 2010.

James Edmonds, Chairman of the Port of Houston Authority, addressed membersof the business community on the ports role in promoting advancement in theregion at the Greater Houston Partnerships annual State of the Port luncheon.

PHOTOS: GHP, PHA

Alec Dreyer James Edmonds


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The Port of Houston hasalways had a can-do attitudewhen it comes to attractingbreakbulk and project cargo



35/44


October 1214 brings the 21st Annual BreakbulkAmericas Conference and Exhibition to the GeorgeR. Brown Convention Center in Houston. For the past

20 years, the Journal of Commercehas organized the event to include a programof panels composed of industry leaders in thebreakbulk and project cargo industries. Thesepanels discuss industry issues and serve as aforum for the exchange of ideas and prospects.In addition to the expert panels and roundtablediscussions, the conference offers tremendousnetworking potential, a full day dedicated toeducation of the next generation of breakbulkexecutives, and even a charity golf tourna-ment and boat tours of the Port of Houston.

The theme of the conference this year is Break-bulk: The Path Forward. Janet Plume, Con-tent Director for Journal of Commerce BreakbulkEvents, will offer welcoming remarks on Tues-day, Wednesday and Thursday of the conferenceweek. We have assembled a cutting-edge agendaof high-pro le speakers for the regular confer-ence program Wednesday and Thursday, shereported, and their presentations and roundta-ble discussions will give everyone an insight intowhat the breakbulk transportation world willlook like for the foreseeable future.

Heavy Bringing the Breakbulk2010 Conference to Houston

B Y N AT E J A N E S

Lifting


36/44


37/44


speakers addressing the state of the steel industry and the current prospects for the recovery of gen-eral cargo industries following theglobal recession. Alec Dreyer, CEO,Port of Houston Authority, will offerwelcoming remarks for Thursday.On the topic of the recent economicdownturn, Dreyer expressed Hous-tons unique resilience. Businessesare locating in Texas for the pro-business environment, he noted.Existing companies are expanding.

Houstons immediate market, the broader Texasmarket, and truly Americas heartlandwhich isserved by the Port of Houstonwere less adverse-ly impacted by the global economic downturnthan most other markets in the United States.

Dreyer further cited Houstons unique quali -cations to be a transportation and distributionhub for the countryinfrastructure, balanced

trade and ef ciency. The infrastructure of thePort of Houston alone, to say nothing of thegreater Houston areas $5 billion investment ininfrastructure upgrades, boasts four breakbulkfacilities with more than four dozen wharvescapable of handling the biggest, heaviest andmost complex cargo simultaneously. Houstonis a robust source of export cargo in additionto its strong demand for import cargoes. Thisbalanced trade provides a tremen-dous logistical advantage for Hous-ton over the ports competing inthe eld. Finally, its state-of-the-art facilities and formidable work forceplace the Port of Houston amongthe most-ef cient and cost-compet-itive in the country.

Another exciting event at Break-bulk 2010, the rst of its kind in the20-year history of the conference, isBreakbulk Education Day for collegestudents. The industry response tothis event has been overwhelming.Occurring on Tuesday, Breakbulk

Education Day involves sponsors contributingto host more than 100 students for a day of educational sessions ranging from BreakbulkBasics to Breakbulk Careers. Jerry Nagel,President and CEO, Rickmers-Linie America,will conduct the Breakbulk Basics session,and his enthusiasm betrays the excitement of accomplishing something that he and hispeers have been working toward for sometime. During the past almost ten years, hesaid, I have been one of a number of indus-try executives who have been pleading withour educational institutions to teach about the maritime and logistics industry. Nagelsclass will cover two main topics: a broad over-view of the highly complex technological andlogistical considerations of the industry, andan explanation of the incredible opportunity that the industry will provide in the comingyears. On the subject of opportunity in the in-dustry in general, and in Houston in particu-

lar, Nagels comments are unequivocal: Theconference is considered the place to be forthis industry. It is no accident that 65 percent of the project cargo moves through Houston.Houston has the highest concentration of in-dustry participants in one placeocean car-riers, heavy haulers, project forwarders, EPCcompanies and oil/re ning companies. Hous-ton is where the action is.

George R. Brown Convention Center

Houston is not just a strongbreakbulk/project cargo port,but its also where a great majority of the breakbulk and project cargocompanies are to be found.Janice plume, Content Director for Journal of Commerce BreakBulk Events

pHOtOs: (prEViOus pAGEs) GEtty, pHA; (tHEsE pAGEs), pHA, tEXAs MOntHLy


38/44

George Ranch Historic Park

cUltUre Fort Bend

FromPlains toPlanesBY DEBORAH MANN LAKE

IF A SINGLE imaginative paint-ing could capture the past, present and uture o moving people andproducts through prosperous Fort Bend County, picture this: a cowboy

driving a herd o Longhorn cattlethrough the George Ranch while aplane rom the Sugar Land Region-al Airport passes over his head and,in the ar distance, a train leaves

rom the CenterPoint IntermodalCenterHouston Metro.

The roots o this thriving area goback to Texass own be-

ginnings with mem-bers o Stephen F.

Austins Old Three Hundred settlingaround Richmond in 1822. These grit-ty pioneers survived the Texas Battle

or Independence and the Runaway Scrape, and in 1837 Richmond be-came the county seat. Be ore the turno the century, Richmond was ship-

ping out cotton via the Bu -alo Bayou, Brazos andColorado Railway, andin 1878 Rosenbergsprang up through anextension o the Gul ,Colorado and SantaFe Railway and began

shipping cotton, corn,livestock and sugar.

The George Ranch, nowthe George Ranch Historic Park, was

ounded in 1824 by Nancy and Henry Jones (part o the Old Three Hun-dred) and remained in the amily asa working cattle ranch or our gen-erations, passed down rom motherto daughter. Oil was eventually dis-coveredyet another historic linkto Houstons heritage and the wealththat helped preserve the ranch. Cat-tle were delivered to market by cattledrives and later by rail, until the last generation o the Georges establishedthe George Foundation. Operated by the Fort Bend County Museum Asso-ciation, the 23,000-acre still-workingranch opened to the public in 1988,allowing everyone to be able to enjoy this icon o the Old West.

Cows also f gured in the ounding



39/44


o the Sugar Land Regional Airportat least a cow pasture did. In 1952oral surgeon Donald Hull landed inthe a orementioned pasture whilelooking or a small eld that could behome to the airplane he few across

southeast Texas to provide dental ser-vices to the Texas Department o Cor-rections, Southern Division.

In 1990 Hull Field was purchasedby the City o Sugar Land and hassince become the biggest reliever air-port in the southwestern sector o theHouston area, increasing its opera-tions more than 300 percent in thepast decade. With a strategy aimedtoward attracting corporate clients,it now draws more than 100 Fortune 500 companies annually. They enjoy the results o the more than $30 mil-lion in improvements made over thepast ve years, including the new 60-acre T-hangar complex that openedin 2009. More bragging rights comein the orm o Aviation International News magazines award honoring theairport as the Western HemispheresBest Operation in the 2010 FixedBased Operator rankings.

Meanwhile, the uture is un oldingat CenterPoint Intermodal Center

Houston Metro, a logistics park jointly ormed by the Kansas City SouthernRailway Company (KCSR) and Cen-terPoint Properties. Located alongU.S. 90 near Kendleton, the 800-acre,$450 million project, designed or

distribution, warehouse and contain-er equipment management acilitieson a giant scale, is changing the aceo rail and truck containerized ship-ping in Texas. This past March, theU.S. Department o Commerce ap-

proved its designation as part o thePort Freeport Foreign Trade Zone,which will allow direct access to Mexi-co, opening doors to partnering withMexican manu acturers. Anothernearby 340-acre acility, developed by GBI International, has also received aForeign Trade Zone designation andis looking to draw international cus-tomers, especially rom Asia.

A major international consumergoods manu acturer is negotiating acontract or a proposed distributioncenter, which would kick o construc-tion o the CenterPoint IntermodalCenter (CPIC), said Jack Belt, VicePresident o Development and Mar-keting or the Greater Fort Bend Eco-nomic Development Council.

The location and linkages o thisintegrated inter-modal acility andlogistics park willcontinue to make it a pre erred option

through all phaseso current and u-ture business cy-cles, Belt said.

A Nissan Hous-ton Metro Distri-

bution Center has been created asa Texas regional hub at a site adja-cent to the CPIC in a joint venturebetween KCSR and Wallenius Wil-helmsen Logistics. Cars built inAguascalientes, Mexico, and trans-

ported via the Paci c port o LazaroCardenas are now linked to custom-ers in Texas, Louisiana, and Okla-homa on KCSR lines.

The Nissan regional distributionoperation at the KCSR intermodalshipper acility has been a major suc-cess, said Brian Bowers, Kansas City Southern Senior Vice President o In-termodal and Automotive. A secondautomotive customer has agreed tomove their Texas vehicle distributionto this location in 2011. This terminalhas exceeded our expectations as anautomotive and intermodal acility,and were adding track and parkingcapacity to accommodate the in-crease in customer demand.

Trains, planes and automobilesyoull nd them in abundance here.

SLRA terminalSugar Land Regional Airport


40/44


art scene

Jewels

September 23 - October 3 Houston Ballet www.houstonballet.org

Hairspray

October 5 - October 17 Theatre Under the Starswww.tuts.com

sHreK tHe MUsical

October 19 - October 31Broadway Across AmericaHoustonwww.broadwayacrossamerica.com/houston/

Village of waltz

October 22 - October 23 Wortham Theater Centerwww.houstontx.gov/worthamcenter

MadaMe BUtterfly

October 22 - November 5 Houston Grand Operawww.houstongrandopera.org

MasqUerade Ball

October 23 Houston Symphony www.houstonsymphony.org

BeetHoVens eroica syMpHony

October 28 - October 31Houston Symphony www.houstonsymphony.org

Brittens peter griMes

October 29 - November 12 Houston Grand Operawww.houstongrandopera.org

die flederMaUs

November 4 - November 13 Opera in the Heightswww.operaintheheights.org

HoUston grand opera presents

to cross tHe face of tHe Moon

November 13 Houston Grand Operawww.houstongrandopera.org

cinderella

November 13 - December 26 The Ensemble Theatrewww.ensemblehouston.com

frosty tHe snowMan

November 15 - December 24 www.expresstheatre.com

aHn trio

November 17 Society for the Performing Artswww.spahouston.org

a cHristMas carol -

a gHost story of cHristMas

November 19 - December 27 Alley Theatrewww.alleytheatre.org

tHe nUtcracKer

November 26 - December 26 Houston Ballet www.houstonballet.org

andrea Bocelli witH

tHe HoUston syMpHony

December 8 Houston Symphony www.houstonsymphony.org

Handels MessiaH

December 17 - December 19 Houston Symphony www.houstonsymphony.org

HoustonEvents Calendar


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THE YEAR 1914 was a big year inmaritime trade. The Port of Hous-ton officially opened to traffic onNovember 10, 1914 and in August of the same year, the SS Cri stibal wasthe first ship to navigate throughthe Panama Canal.

My Houston asks, What are yourthoughts and observations on theexpansion of the Panama Canal?

What, if any, effect will it have onHouston business?

Houston ports are poised to takemaximum advantage of the increasein waterborne cargo passing throughthe expanded Panama Canal begin-ning in 2014. And we must be ready,because commerce is dynamic andvery competitive. As global transport

patterns change, shippers will always gure out the most-ef cient andleast-expensive routes and use them.We are thrilled with the Port of Hous-tons leadership and decision to invest more money, by far, than any otherU.S. port to increase its capacity tocapture the resulting new businessfrom the expanded Panama Canal.This decision will mean more jobsand more positive economic impact to Houston for decades to come!

BOB MITCHELL

President

Bay Area Houston Economic

Partnership

The Panama Canal expansion,which will double the capacity of the50-mile-long canal, is set for com-pletion in 2014. That year will alsomark a signi cant milestone: the100th anniversary of both the canaland the Port of Houston. The Port of Houston Authority is already layingthe foundation for the expected in-crease in cargo coming to Houston,particularly from Asia, our fastest-growing market. We are investing inimprovements to the infrastructurerequired to meet new cargo loadsand the needs of our customers.The expansion has also spurred de-velopment of distribution centers inHouston and throughout Texas tocapture opportunities to handle theexpected cargo increase.

JAMES T. EDMONDS

Port Commission Chairman

MY HOUSTON

HoustonAnswers theCall of the CanalBy DAynA stEEL E

The Panama Canal under construction in 1907


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While we anticipate large increases inthe amount of cargo handled by thePort of Houston, for many of the ser-vice providers on the channel, such astugboats, we expect to see primarily incremental changes. While the num-

ber of ships should increase some, forthe most part we think well see thesame number of ships with a lot morecargo on them. Instead of ships with4,000 containers, we expect roughly the same number of ships with 8,000containers aboard. Fortunately, wehave already built the monster tug-boats these huge ships will require.

CAPTAIN THOMAS TRAY

Vice President and General Manager Bay-Houston Towing Company

The expansion of the Panama Canalwill bring bigger vessels into the mar-ket, and port calls in the Gulf will be

a matter of economics. Houston is tothe west of the Panama Canal, whichwill require vessels to backtrack, andthis takes time and money. The port,pilots, labor, those who service orare serviced by the porttruckers,

railroads, distribution centersallneed to work together to ensure that Houston and the west Gulf regionare not just competitive with portson the East Coast but offer a cost and service advantage to ocean car-riers. If the ocean carriers are con-vinced, we will see additional busi-ness here in Houston, in the regionand through to the Midwest.

ELIZABETH A. WETZEL, CTL

Managing Director Center for Logistics andTransportation Policy,College of Technology,University of Houston

The canal expansion will allowAsian manufacturers to delivergoods to the Houston region morecost-effectively, since waterbornecargo is generally less expensive totransport than rail or truck cargo.

This will increase container volumeat the Port of Houston Authority and the demand for support ser-vices at the port. The canal expan-sion coincides with the anniversary of the port. Its an exciting time.

MICHAEL F. BLOOM, P.E.

Senior Associate PBS&J

As the largest zinc oxide producerin the world and part of the third-largest zinc company in the world,Houston-headquartered U.S. Zincwill bene t signi cant ly from theexpansion of the Panama Canal,particularly in our trade and dis-tribution in the growing Asia Pa-ci c market. The gained ef ciency will provide us the opportunity toincrease our volume of exportedproduct. I believe that on the wholeHouston as a major internationalport of trade wil l strongly bene t inthe coming years.

MANFRED STANEKPresident U.S. Zinc

The widening of the Panama Canalwill have a tremendous economicimpact on Houston, bringing moretrade and cargo that will result inmore jobs. Houstons port already ranks as the second largest in theUnited States in total tonnage, andthis expansion will surely propelHouston to number one in the coun-try in total tonnage and make it thecenter for international trade.

DOUG D. LITTLE

Executive Vice President/ Managing Director PMRG | PM Realty Group

Dayna Steele i s a speaker, author, entrepreneur and native Houstonian. Follow her on Twitter @daynasteele or Email her at [email protected].


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www.bauer.uh.edu/wce C. T. Bauer College o Business is an AACSB accredited businessschool. For more in ormation, visit bauer.uh.edu/aacsb.asp

The University o Houston is an Equal Opportunity/A frmative Action institution.

Ranked #1 in Entrepreneurship in the U.S. byThe Princeton Review and Entrepreneur

For the Real World of Business


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