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YOUNG AND COMPANYContract Stevedores and Terminal Operators

P.O. Box 4445 2855 Mangum Road Houston, TX 77210Western Union Cable: YOUNGCO Telephone: (713) 688-7700 TWX: 910-881-0031

New Orleans ¯ Beaumont. Galveston ̄ Orange ̄ Freeport. Port Arthur

Richard P. Leach, Executive l)ircclor

James D. Pugh, Managing Director

I.R. Curtis, Director of Port Operations

John Green, I)cputy Director of Port Operations

W.D. Dunnahoe, Manager. Turning Basin Terminals

John Horan, Manager. Barbours Cut Terminal

W.E. GreeT, Manager. Ilouslon Public Elevator

I,cslic J. Sanderfer, Manager. Bulk Plant

Donald R. Alice, sales Manager

Leon Uttcrback, Eastern Sales Manager

.lack Wojcwnik, Assistant Eastern Sales Manager

David W. Simpson, Wcslcrn Representative

James Widman, Midt~cst Representative

D.C. mocrschcl, Marketing Manager

Diana Payne, Marketing Analyst

Lee Vela, t~omnaui~icatio/ls Manager

Arfllando Watcrland, Inter American Sales Director

Misael Breton, Latin Anlcrica Representative

Tom Kornegay, l)ir¢ctor ol Engineering

Norman g. gucni, Engineering Consuhant

F. William Colburn, Director of Administration

Lillda Rcese, Controller

Alton B. I,ai’ldry, Manager. Personnel [;,eparmlent

Betty Garrett, Manager. Purchasing I)cparmacnt

James Eldridgc, Manager, Management Information

Algcnita Scott Davis, Counsel

Joc Scroggins, Jr., l)ircctor of Facilities

Ted Waiters, I)cputy Director of Facilities

a.J.M, van dc Vcn, Manager. Maintenance Dept.

Charles Martin, Manager. Security [)cpartmcnt

A. Monroe Bean, Manager. Real Estate

LOtliS F. Brown, Jr., Manager. SalcQ.’ and Insurance

Michael Scorcio, I)ircctol of Community Relations

Joe F. Flack, County Auditor

EXECUTIVE OFFICES1519 Capitol Avenue

Houston, Texas 77002P.O. Box 2562, ttouston, Texas 77252-2562

Tc1:(713) 226-2100 TWX:910881 5787

TERMINAL OFFICESTurning Basin: (713) 670 2400Barbours Cut: (713) 470-1800

BULK PLANT OFFICE3100 Penn City RoadHouston, Texas 77015

Tel: (713) 453 3531

FIELD OFFICE60 East 4and Street, New York 10165

Tel: (212) 867-2780

VOLU~ 29 ~MBER 3 ~RCH 1986

PRINCE OF WALES VISITS TEXASPrince Charles tours Houston Ship Channel

THE YEAR IN REVIEW1985 brings challenges and changes to Port of Houston

I I TARIFF CHANGEPHA cuts freight handling rates for bagged agricultural goods

HOUSTON OUTLOOK ’86Conference panelists optimistic about city’s future

7 MARITIME FESTIVALFund-raising event to be part of National Transportation Week

1 8 TEXAS MARITIME HISTORY, PART 3Cotton was Port of Houston’s leading export for decades

2 1 INTERAMERICAN CHAMBERCommerce official promotes export trading companies

23 AMERICAN ASSOCIATION OF PORT AUTHORITIESPHA hosts seminar for members of governing boards

DEPARTMENTS ]

HOUSTON HUMMER 7 PORT TIDINGS 27PHA PROGRESS 25 PORT SIDE 52

On the cover: HRH Prince Charles is welcomed aboard the M/V SAMHOUSTON by Chairman Archie Bennett, Jr.

PORT COMMISSIONERS

A. Bennett, Jr. M.D. Perry H.J. Middleton R. Gonzalcs, Jr. A.B. Shepard, Jr.Chairman Conlmissioncr Commissioner Commissioner (k>nlnlissioncr

THE PORT OF HOI STON MAGAZINE (ISSN 0032 4825) is published monthly b,, tEc Port ol }{llustlltl Authority and is distributedfrec to maritime, industrial and transportation interests in the I nitcd ~,tatcs and ff~rcign coulitrlcs The i11;igazitlc stall itldudcsEditol. Lee Vcla; Associate Editor. Ann Bordelon; Advertising Manager. Sheila Adams: Staff Photographer. Ra) Carrir/gton; a[/d Production Supervisor. Nancy Switzer This pl.lblication is tlt)t copy righted and pcrt//issiotl is givetl for the reproduction or use ol an}original material, provided credit is given to t’{Ic Port of HOLlstoI1 Additiol3a[ ilMolmation, extra ciipics liT advcrlismg ral~.:s r/lay }1co{)taillcd I)y writing the PORT Or ]]()USTON MAGAZINE Second class postage paid :it Ih)tlStOl/. Texas and at :ldditil)tlal mailir]goffices. Send address change to PORT OF HOUSTON MAGAZINE. PO. Box 2562. lIotlston. Texas "=252 2562

Prince of Wales helpsTexans inaugurate

sesquicentennial celebration

Prince Charles tours Houston ShipChannel aboard PHA inspection boat

Acruise down the Houston ShipChannel aboard the Port ofHouston Authority’s inspec-tion boat, the M/V SAM

HOUSTON, was on the schedule asHis Royal Highness Prince Charlesof the United Kingdom of GreatBritain and Northern Ireland visitedTexas in February.

The Prince of Wales was inTexas as the guest of GovernorMark White and the Texas Ses-quicentennial Commission to markthe 150th anniversary of the state’sindependence.

His first stop was in Dallas,where he presented the WinstonChurchill Award to H. Ross Perot,chairman of Electronic DataSystems. The award is given an-nually by the Winston ChurchillFoundation of the United States tosomeone who epitomizes the boldspirit of Britain’s former primeminister.

While in Dallas, His Royal

Highness also toured Electra Com-munications Corp., a joint British-U.S. business venture; Perot’s firm,Electronic Data Systems; and IN-FOMART, a computer and telecom-munications market center modeledafter London’s historical CrystalPalace.

In Houston, Prince Charlesvisited Shell Oil Co.’s Deer Parkrefinery and chemical plant. Fromthe Shell facility, he rode the SAMHOUSTON to the San Jacinto Bat-tleground, site of the most decisivebattle in the Republic of Texas’sfight for independence.

Later in the day, he visited Mount-batten House, a Houston retirementhome run by the Daughters of theBritish Empire. The home is namedfor Lord Louis Mountbatten, theprince’s great uncle.

The next day, he met with Gov.White and other state officials inAustin and participated in aceremony that launched Austin’s

Texas Sesquicentennial celebrations.After having lunch with the

governor and his wife, PrinceCharles toured the EngineeringSciences Building at the Universityof Texas and discussed corporatecooperation in education withrepresentatives of Micro-electronicsComputer Corp.

During a brief ceremony in theAustin City Coliseum, His RoyalHighness cut the world’s largestbirthday cake, and later visitedwith Lady Bird Johnson at the Lyn-don Baines Johnson Library.

San Antonio was the last Texascity on his schedule, with visitsslated to the Vista Verde South ur-ban revitalization project andMirasol Homes, a part of the city’sself-help program for minority andlow-income families. []

Opposite page: Prince Charles and Port Com-mission Chairman Archie Bennett, Jr., discussthe mutual importance of import/export tradeto Houston and the United Kingdom.

Port Commissioner Alan B. Shepard, Jr., dis-cusses the future of the U.S. space shuttleprogram with His Royal Highness.

Shown in the lounge of the M/V SAM HOUSTON are, from left, Port Commissioner Shepard,Houston Mayor Kathy Whitmire, Prince Charles, Port Commission Chairman Bennett, and PortCommissioners Marcella Perry, Howard J. Middleton and Rey Gonzales.

Petroleum industry stillmajor trade link betweenthe United Kingdom and Houston

The trade relationship betweenthe United Kingdom and thePort of Houston is a symbioticone based heavily on oil and

the petrochemical industry.Both in tonnage and value, the

import-export relationship betweenthe Port of Houston and the UnitedKingdom is almost evenly bal-anced. Imports from the UK in

way, accounting for 36 percent ofHouston’s exports to the UK

Other significant imports fromthe UK at the Port of Houston areorganic acids, natural gas and pro-pane, hydrocarbons and lubricatingoils. These products and crude oilaccounted for 80 percent ofHouston’s British imports in 1984.

In addition to fuel oil. top Port1984 weighed in at 609,482 tons, of Houston exports to the UK wereaccording to the U.S Departmentof Commerce, while exports reach-ed 544,406. Imports were valuedat $362,744,830. while exportswere estimated to be worth$397,710,229.

According to Department ofCommerce figures, crudepetroleum, much of it from theNorth Sea, is the leading commodi-ty the UK ships to the Port ofHouston, accounting for more thanhalf the total Houston importsfrom that nation. Heavy fuel oil isthe top product going the other

coal tar, creosote and light oil,other specific acyclic organic com-pounds; coke. pitch and anthraciteoil, and thermoplastic resins. Theseproducts (including fuel oil) ac-counted for 75 percent of the ton-nage that moved from the Port ofHouston to British ports.

Lord JeUicoe, chairman of theBritish Overseas Trade Board, toldthe British American BusinessAssociation in October of last yearthat the United States is by far theUnited Kingdom’s most importanttrading partner in the world. In

1984, British export sales to theUnited States came to some $15billion, he said, adding that "in-visibles" (such services as banking)accounted for another $15 billionin trade between the two coun-tries.

Each month, scores of vesselscall at Houston and such UnitedKingdom ports as London, Liver-pool, Felixstowe, the Clyde Portsand Southampton.

London, of course, is the best-known city in the UK, and itscenturies-old port shares manysimilarities with the Port ofHouston. Like Houston, London isan inland port, with facilities stret-ching more than 93 miles up theThames River.

Like the Port of HoustonAuthority, the Port of LondonAuthority (PLA) owns and operatescertain key facilities while privateinterests operate a wide variety ofother wharves and installations.

An aerial view of the Port of London Authority’s Tilbury Docks showsthe scope of both conventional and container operations at thiscenturies-old port.

4

The giant Royal Seaforth Grain Terminal is one aspect of a massivetransformation being carried out at the Port of Liverpool. Like thePort of Houston Authority, the operators of the Liverpool facilities areworking to expand their customer base in South America.

The PLA facilities at Tilbury Docks("The Port within a Port’~) handlecontainers, bulk and generalcargoes and roll-on/roll-off traffic.Some private riverside wharveshandle a range of cargoes, whileothers specialize in particular traf-fics. London’s seaport handlesmore cargo each year than anyother port in the United Kingdom.

The Port of Liverpool is locateda few miles from the northwesternEnglish coast on the Mersey River.It has been a major port since the1700s and was well-known as aharbor as early as the 14th century.It is operated by the Mersey Docksand Harbour Co., which wasestablished by Parliamentary actionin 1857. Among the port’s widevariety of facilities are special ter-minals for containers, timber, meat,grain, ore and bulk wme andspirits.

The Port of Felixstowe is apopular destination for vessels that

call at Houston. The harbour atFelixstowe has provided a pro-tected anchorage for boats for cen-turies, but the modern history ofits port began in 1875 when a fieryVictorian gentleman convinced theBritish Parliament to authorize thebuilding of a railroad from nearbyIpswich to an old wooden pier atFelixstowe. Today, the Port ofFelixstowe is a major port, withmodern facilities designed to han-dle a variety of cargoes, includinggeneral cargo, bulk liquid, con-tainers and roU-on/roll-off cargo.Privately owned and operated bythe Felixstowe Dock & RailwayCo., it is recognized as a pioneer inthe UK in the area of port com-puterization.

The Clyde Ports are nine portsalong the Clyde Estuary in Scotlandthat fall under the jurisdiction of asingle entity, the Clyde PortAuthority. They include Glasgow,Greenock. Hunterston, Finnart, Du-

noon, Gourock, Largs, WemyssBay and Ardrossan. Several ship-ping lines serving the Port ofHouston operate vessels that callregularly at the modern containerterminal at Greenock.

The natural harbor at Southamp-ton, sheltered from the AtlanticOcean by the Isle of Wight, is only65 miles from Le Havre, France;less than 150 miles from Antwerp,Belgium, and Rotterdam, TheNetherlands: and little more than300 miles from Hamburg andBremerhaven, Germany. Its loca-tion makes it a popular transfer sitefor cargo moving between NorthAmerica and Europe or the FarEast. Operated by the BritishTransport Docks Board, Southamp-ton offers facilities for containers,general cargo and roll-on/roll-offtraffic []

Paper rolls are unloaded at Felixstowe, aprivately operated port established in 1875.

Aerial view of part of~he Eastern Docks at Southampton shows the Princess Alexandra Dock,from which, in the height of the season, there are 66 sailings a week. At the top of the picture,Cunard Line’s Queen Elizabeth 2 is alongside the Ocean Terminal.

Our many satisfied andloyal customers know ofour harbor tug service inthe Texas ports we serve.

We provide safe, promptand dependable tug boatassistance.

ANOTHER FINEORGANIZATION IS:

How to keepyour child away

from drugs.Arming them in a suit of

steel might help. But oncethey leave your home,they’re really on theirown.

What can you do?Learn to recog-

nize the symptoms ofdrug abuse. Look forfalling grades in school.And irrational behaviorBut most importantly,keep your lines of com-munication open with yourchildren.

Show them youunderstand about peerpressure and how tough itis to walk away.

For the booklet, "Par-ents: What You Can Do

About Drug Abuse," write:Get Involved, PO. Box 1706,Rockville, Maryland 20850.

Help your kids tojust say no.

and the National Institute on Drug Abuse.

INTRACOASTAL TOWING

Galveston, Texas CityU.S. National Bank Bldg., 77550

(409) 763-6424

& TRANSPORTATION CORPTelex: 792-505 -- ITT TUGS

Houston1008 World Trade Bldg., 77002

(713) 227-2297

Freeport(409) 223-2201

Corpus ChristiPO. Drawer 9488, 78408

(512) 884-8791

HOUSTONHUMMER

People who make the Port ofHouston run

Change is routine for Larry Kellerl) I remember when we typed

the manifests on long-

I carriage typewriters. Weran everything off on

ditto machines. The blue ~nk gotall over our sleeves. We wenthome every night looking likeSmurfs."

Larry A. Keller, Gulf Coastregional manager for Maersk Lineagency, looks nothing at all like thelittle blue cartoon creaturesAmerican children watch on Satur-day morning television, but theanalogy helps him make a point.

He is standing in the center ofthe ultra-modern Maersk office onthe west side of Houston’s sprawl-ing business district. Around him,dozens of Maersk employees are in-volved in the daily routine of mov-ing cargo and vessels around theworld. On each desk is a computerterminal. Manifests for the giantcontainer ships Maersk Lineoperates are now sent from com-puter to computer around theworld.

"The ships we have now movefrom place to place so fast wecouldn’t get manifests to theirdestinations in time if we still did itthe old way," Keller says, smiling.

The old days, for Keller, werenot that long ago. He joinedMaersk Line in 1973, assigned tothe traffic department in the com-pany’s San Francisco office, aftercompleting a management trainingprogram with a grocery chain.

"Somewhere, during that train-ing, I decided I didn’t want to bein the grocery business," he says.When he joined Maersk Line, thecompany was pioneering the con-cept of container ships. A model ofthe M/V ARNOLD MAERSK rests in

Larry A. Keller

a glass case between the receptionarea and the central office, areminder of the first Maersk con-tainer vessels.

Another model, a replica of abreakbulk vessel named the M/VTOBIAS MAERSK, sits closer toKeller’s office. "This was verymuch like the first Maersk vessel tocall at Houston," he says, stoppingto touch the case gently.

Keller was named traffic managerwhen the line opened its Houstonoperation in 1975. "It was a goodtime. The company was on itsway, and the opportunities werethere."

In 1978, Keller was promoted tothe position of regional manager inBaltimore, Maryland. "We werethere for six years," he notes. "Itwas quite an experience, living soclose to Washington, D.C., andhaving access to so much history

and culture. My family really pro-fited from it."

Professionally, life was exciting,too, as Maersk roughly tripled itsbusiness in those six years.

Then, in 1984, after a majorchange in management, Keller wasoffered the opportunity to returnto Houston. "It took me about twominutes to say yes," he recalls.Now, he is in charge of Maerskoperations out of Houston, NewOrleans, Memphis and Dallas.Maersk Line is part of A.P. Moilerof Copenhagen, Denmark, a ship-ping organization that has servedthe United States for 55 years. Thecompany’s vessels serving the U.S.Gulf Coast travel fortnightly to theMiddle East, the Mediterranean,West Africa, India and Pakistan.

"We’ve done well this year, inspite of the tight economic situa-tion," Keller says, referring to thefact that the company’s businessrose approximately 5 percent in1985. "We tried to do a little moreof what we’ve always done--pro-vide service and customer supportin the best tradition of Scandina-vian shipping, and we’ve benefit-ted accordingly."

When he’s not attending to busi-ness, Keller enjoys reading and at-tending concerts and theater per-formances. He also likes to take hisfamily camping in West Texas andin the Texas hill country.

He has also enrolled in a courseat Houston Community College tokeep up with the changing ccono-mic climate in which he operates."Texas business is changing, andwe’ll all have to grow with it," hecomments. "Actually, we’re readyfor the change here, and I’m veryoptimistic about 1986." []

Complete topsideship repair, cleaning,and pollution control!

1985 brings challenges and changesto Port of Houston

The year 1985 was one ofchallenges and changes forthe Port of Houston Authori-ty, with new marketing di-

rections at the top of the agenda.Increased emphasis was placed on

Latin America as it became apparentHouston was an ideal port of call forcargo taking a north-south route be-tween North America and the coun-tries of South and Central America

Chairman BennettChairman Bracewell

and the Caribbean. Trade missionswere sent to Mexico, Brazil, Chile,Venezuela and Colombia. To com-plete the chain of contacts, receptionswere held at inland U.S. cities, in-cluding New York City, Kansas Cityand St. Louis.

Continuing good relations withother markets was also a priority astrade delegations from the Port ofHouston visited Scandinavia and the

Commissioner Shepard

Far East, and dignitaries from Europeand the Far East visited Houston. Thetwo-week tour of the Far East washighlighted by the signing of a "sisterport" agreement between the Port ofHouston Authority and the Port ofDalian in the People’s Republic ofChina. This was the first such agree-ment for the Port of Houston Authori-ty. A second sister port agreementwith the Port of Santos, Brazil, wassigned later in the year. Theseagreements will enable the sisterports to exchange expertise andknowledge and foster internationalunderstanding, leading to expandedtrade opportunities among countries.

Visitors to Houston included PrimeMinister Rajiv Gandhi of India, theprime minister of Belize, Finland’sminister of foreign trade, Mexico’ssecretary of transportation, the gover-nor of the province of Antwerp,Belgium and delegates from Peru,China and the Cameroons.

In June, Fentress Bracewell steppeddown after 15 successful years aschairman of the Port Commission.Bracewell became chairman in 1970after serving two years as a commis-sioner. Archie Bennett, Jr., waschosen by the Navigation Board tosucceed Chairman Bracewell. Bennettis founder and chairman of MarinerCorp., which develops, owns andmanages hotels. Bennett’s spot onthe Port Commission was filled byformer astronaut Alan B. Shepard, Jr.

Diversification was the goal, astalks were conducted with fruit pro-ducers, cotton shippers and a varietyof other potential customers to deter-mine how the Port of HoustonAuthority could meet their needs.

One result was the creation of a"West Texas cotton motor-bridge,"which offers incentive rates to cottonproducers in West Texas who sendtheir cargo through the Port ofHouston Authority’s Barbours CutContainer Terminal.

Private and public facilitiesreported handling approximately 73million tons of cargo for the year, 14

Wharf No. 32, the Port of Houston Authority’s newest dock, received rave reviews in 1985. Continued on page 15

ST. JOHN’S

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STEAMSHIP COMPANY, INC.

Kerr Steamship Company, Inc., with its network of established offices, throughoutNorth America, is continually serving world markets successfully, since 1916.

¯Highly Motivated, Computer ResponsiveMarketing Organization

¯ Efficient, Computerized Logistical Controland Documentation Systems

¯ 35 Articulated, Full Function World Offices

- Steamship Agents - Terminal Operators - Stevedores -

Kerr Steamship Company, Inc.American General Tower ¯ Suite 1500 ¯ 2727 Allen Parkway ¯ Houston, Texas 77019

Telephone: (713) 521-9600 ¯ Telex: 775692

10

Tariff change is announced

PHA cuts freight handling ratesfor bagged agricultural goods

Atariff change reducing freighthandling rates for bagged agri-cultural goods has been an-nounced by the Port of Hous-

ton Authority (PHA)."This change, which went into ef-

fect Feb. 1, 1986, improves the Portof Houston’s ability to attractshipments of bagged agriculturalgoods exported from Texas and themidwestern United States to foreigncountries," said Richard P. Leach,executive director of the PortAuthority. "It increases the port’scompetitive position for such goodsas bulgur, wheat flour, cornmealand nonfat dry milk."

"Local freight handling interestsprovided the impetus for thischange, and local labor groups con-tributed by increasing the produc-

tivity of the gangs that per-

form these services," Leach noted."This is an example of the industry-wide cooperation that is helpingdiversify Houston’s cargo base."

Freight handling at the PHA is per-formed by private firms. Freighthandling rates cover the cost a com-pany incurs when cargo is movedfrom rail cars or trucks to storageareas at PHA facilities.

"When a product is sold, thebuyer is looking for the lowestdelivered price," explains JamesWidman, Midwest representative,PHA. "Freight handling contributesto that cost, and in today’seconomy, slight differences inhandling rates often determinewhich port gets the business." Asignificant amount of baggedagricultural goods is shipped from

Texas, Kansas,Nebraska,

Wisconsin,Illinois

and other

Midwestern states.The tariff change for bagged agri-

cultural goods is another example ofthe Port Authority’s efforts to ex-pand its effective market range,Widman noted.

Many of the bagged agriculturalproducts shipped from the UnitedStates go to underdeveloped coun-tries, he said. Funds to purchase andtransport these goods are providedby the U.S. AID program and privatecharitable agencies. The UnitedStates Department of Agriculture ad-ministers the purchase and shipmentof these goods. In 1985, the volumeapproached two million tons.

Unlike previous rates, the reducedPHA freight handling rates are nottied to daily minimum volumes orrestrictions, and they are applicable"portwide." []

Freight handling rates on bagged goodshave been reduced by the Port of HoustonAuthority.

H()USIbNOUTI9OR

Conference panelists optimisticabout Houston’s future

Although no one predicted acompletc turnaround inHouston’s economy in 1986,most of the 31 speakers who

participated in the 22nd annualHouston Outlook conference inJanuary expressed optimism aboutthe city’s ability to resume its forwardeconomic movement within the nexttwo to five years.

Sponsored by thc Houston Cham-ber of Commerce, the conferencefeatured local experts in marketing,finance, construction, energy andmanufacturing participating in foursimultaneous panel discussions. Aluncheon, with United States Sen.Lloyd Bentsen as the speaker, con-eluded the half-day event.

Robert S. Braden, vice chairman of

the board, Houston Chamber of Com-merce, set the tone for the conferencein an early morning speech that wastelevised so those attending all fourpanel discussions could hear it.

"The Houston region has not gone’bust,’ but is taking advantage of theslowdown to catch up in areas whichfell behind during the furious expan-sion of the ’70s and early ’80s,"Braden explained.

As examples, he cited city pro-grams to improve mobility and trans-portation, public and private effortsto attract new industry and more ag-gressive action by cxisting industriesto expand their markets, mentioningthe Port of Houston as a case in point.

"We are encouraged, I believe, tosee that the Port of Houston is enter-

ing into an aggressive marketing pro-gram to increase its competitivenessin the international market," he said."The new cooperative spirit shownbetween the Ports of Houston andGalveston is also a step in the rightdirection.

"The Houston region is still verymuch alive and growing," he con-cluded. "We have a lot going for us intraditional Houston spirit, and we in-tend to celebrate our Sesquicenten-nial in great fashion."

Commissioner Rey Gonzales of thePort of Houston Authority was a keyparticipant on the marketing panel,describing maritime industry effortsto diversify the port’s customer base.

"Early Houston entrepreneurs sawopportunity in the wilderness, and

12

they were willing to work to build amajor city in that wilderness," Gon-zales noted. "To many people today,Houston’s economic environment ap-pears to be a wilderness. Our businessenvironment is changing, and it is difficult to see where the changes willlead us. The people who will do wellin this transitionary period are thosewho look for opportunities in ourevolving economy and build new orrevitalized businesses around thoseopportunities.

"At the Port of Houston, we havelaunched several initiatives tobroaden our marketplace," Gonzalesnoted. "At the same time, we arestriving to improve our facilities andservices for the entire shipping com-munity." He cited examples of newcargo and new markets being serv-iced by the port as a result of diver-sification efforts by the Port Authori-ty, shipping agents and other mem-bers of the Houston maritime com-munity.

"One reason for Houston’s presentposition as this nation’s fourth largestcity is the free enterprise attitude Ifind consistently throughout thiscommunity," he added. "It is a largeinternational community, and it of-fers worldwide opportunities forbusinessmen with vision.

"We at the Port of Houston arekeeping our eyes and our minds opento new ideas. Those of you who dothe same may be among the successstories of the next decade."

During the luncheon, Bentsen pro-vided a national economic view,focusing on the federal budget andthe nation’s trade deficit. He said thetime has come to level out thedefense budget and predicted a tax in-crease in 1987.

The senator also advocated con-sideration of an oil import fee to keepoil prices in the United States at cur-rent levels.

"If we let prices erode, the countrywill once again become extravagantin its use of energy," he warned."What we are seeing is a temporaryglut. Let OPEC push Mexico and theUnited Kingdom into joining them inprice controls and you’ll see thatprice escalate. We’ll be right backwhere we were the last time that hap-pened."

Bentsen said each $1 of import feeplaced on oil would bring $1 billionto $2 billion into federal coffers tooffset the budget deficit.

As for the trade deficit, the senatorsaid he felt federal intervention has

been beneficial and advocateddevelopment of a coordinated tradepolicy, a halt to present controls onU.S. exports and a new round of tradetalks with Japan to open up marketsfor U.S. goods in that country.

"We have to quit apologizing forself-interest," he said. "If we don’tact in our own interest, in anotherfive years, we’ll be the No. 1 debtornation in the world."

Henry Volquardsen, vice presidentof Citicorp Investment Bank, talkedabout the Port of Houston as he par-ticipated in the finance panel discus-sion.

He predictcd port performance willbottom in the second half of 1986,and cited two advantages that keep

VOLQUARDSEN:

"At this time next

year, upward trends

should be moving for

recovery in grain

exports, for strong

export activities."

13

ONE.ALL ROADS LEAD TO BAYPORT.The Bayport Industrial Complex is located on Galveston Bay,just 25 miles from downtown Houston, Texas.

From Bayport there’s direct access to the Houston ShipChannel and the Gulf of Mexico.

There’s a complete network of rail service and roads lead-ing to all plant sites in Bayport, plus a sophisticated pipelinenetwork.

TWO.40 FEET CARRIES A LOTOF WEIGHT.The forty feet we’re so proud of is the channel depth of theBayport Division, Port of Houston. That depth, plus a 1,600by 1,600 foot turning basin, makes Bayport an internationaldeepwater port capable of accommodating 70-80,000DWT class cargo vessels. And that’s a lot of weight.

THREE.WHERE THE ACTION IS.Forty percent of the petrochemical production in the UnitedStates comes from the Texas Gulf Coast area. And Bayport’sin the middle of it all.

That makes raw materials, feedstocks and fuels readilyand economically available.

There are two public, liquid storage terminals in Bayportserved by rail, highway and the 40-foot draft port. There’salso an operating industrial waste treatment plant in Bayportwith additional treating capacity for new plants.

Furthermore, utilities are available to all sites, including90 million gallons of water daily. And after twenty years ofoperation, our environmental standards have proven to bepractical and effective.

FOUR.A CLIMATE FAVORABLETO INDUSTRY.At Bayport you’ll find that the industrial backdrop couldn’tbe petter. The climate is temperate year round. Workers--skilled, semi-skilled and professional--are available. Andthere’s no state or corporate income tax in Texas; a statewhich encourages growth.

FIVE.AN INTERNATIONAL PORTOF CALL.There are a lot of sound reasons to channel your businessto Bayport. And a lot of international, as well as Americancorporations, recognize Bayport’s advantages and benefits.

Foreign-owned firms with facilities here include: AkzoChemie America (Netherlands); American Hoechst Corpo-ration (Germany); Haldor Topsoe (Denmark); ICI Americas,Inc. (Great Britain); Lonza, Inc. (Switzerland); and OdfjellWestfaI-Larsen Tankers (USA), Inc. (Norway).

American firms in Bayport include: ARCO ChemicalCompany; Big Three Industries; Celanese ChemicalCompany; Chevron Chemical Company; El Paso ProductsCo.; FMC Corporation; Goodyear Tire & Rubber Co.; andPetrolite Co.

Presently, 52 companies hold 6,534 acres, and 42 plantsare either built or under construction.

If you’d like to know about Bayport, call or write for ourbrochure. Friendswood Development Company, IndustrialProperty Sales, One Corporate Plaza, 2525 Bay Area Blvd.,Suite 600, Houston, Texas 77058. Or call (713) 486-2813.

BayportHOUSTON, TEXAS

A PROJECT OF FRIENDSWOOD DEVELOPMENT COMPANY,A SUBSIDIARY OF EXXON CORPORATION.