"The Houston Ship Channel is all about jobs," said Ric Campo, chairman of the Port Commission of the Port of Houston Authority.
The port produces 1.35 million jobs in Texas alone and 3.2 million nationwide. Twenty percent of Texas' GDP goes through the Port of Houston, Campo iterated. "It's a massive generator of economic activity, and economic activity is all about jobs," he said.
The Houston port is No. 1 in foreign waterborne tonnage and has been for 25 years. In the U.S., Texas is the No. 1 export state, and Houston is the No. 1 region for exports. The Houston Ship Channel is the largest petrochemical complex in America and the second largest in the world, Campo said.
The Port of Houston Authority manages the eight public terminals and the lands around them. The approximately 200 other terminals at the port are privately owned and operated. The private sector has ongoing investments to expand the petrochemical capabilities in the channel area - $50 billion, in fact. The Port of Houston Authority is the nonfederal sponsor of the channel and teams up with federal entities to manage operations and issues, Campo said.
"It's important to recognize the port is not just about businesses and moving cargo. It's about creating jobs, but also making sure the communities in and around the port are doing well," Campo said.
Throughout the pandemic, the port and its terminals have remained open, except for one day; he stressed the port is essential to the U.S. economy and needs to continually remain open. He expressed pride in all employees and the management team for ensuring safety and continuous operations. In 2019, 2 million tons of food, paper goods and medical supplies entered Houston through the container terminals, much of which has been vital in the ongoing pandemic.
After seeing some decreases in total tonnage year-to-date during this crisis, the port now has seen fewer "blank sailings" and an increase in products coming in. Campo said this is a positive shift and levels could return to normal within 12 to 18 months.
Expansion for the future
Although the current business environment has been impacted by COVID-19, Campo stressed that the industry and U.S. as a whole cannot focus on its current state.
"We have to focus on the future, and the future is very bright for Houston, the energy business and Port Houston," he said. "We have to continue to make investments in the channel to make sure we have the capacity to move products in and out efficiently."
Increasing vessel sizes and the growing pressure on shippers to become more efficient means there could soon be more congestion in the ship channel, which would lessen the safety of passing ships. The Port of Houston Authority is working on a private-public partnership to fund Project 11, the $1 billion deepening and widening project. The plan is to widen the channel from 530 feet to 700 feet by 2024. Awaiting federal funding for the project would mean a 2032 completion date, which Campo said is unacceptable.
"We can't go through the business as usual program given the demand we have in our industries and the demand of the channel," he explained. He called the private-public partnership the "Houston way" of accomplishing the task.
Among Project 11's benefits will be a safer flow of commerce, environmental improvements such as cleaner air and bird islands, and social equity.
"We have a responsibility to step up and say, 'We are part of the community.' It's not just about business; it's about jobs and quality of life, and we have to be out in front of those issues," Campo emphasized.
