brazos river harbor navigation district - Port Freeport

B R A Z O S R I V E R H A R B O R N A V I G A T I O N D I S T R I C T

Tasked with ensuring the safe navigation of vessels in and out ofPort Freeport, the captains of the Brazos Pilots Association usemodern technology and expert knowledge to fulfill their criticalrole in the Port’s operation.“Without the pilots, who know the intricacies of the Port and itschannel, you couldn’t bring cargo in,” Port Freeport ManagingDirector Phyllis Saathoff simply stated. “The pilots are a great assetwhom we rely upon regularly.”The pilots, who serve under appointment by the Texas governor,board incoming and outgoing vessels, then direct ship movementsfrom the bridge.“The job can be extremely demanding, both with weatherconsiderations and as we move larger and larger vessels, meaningthe room we have to work with shrinks,” explained Capt. JohnGunning, who has been a Brazos pilot since 1978. That sameyear, Capt. Max Blanton entered service; they are joined byCapt. Billy Burns and Capt. James Teeter, the latter of whomcurrently serves as presiding officer.The pilots are looking forward to having more room with whichto work, with the advancement of a project to substantially widen,as well as deepen, the Port Freeport channel.In fact, the Brazos Pilots have played a key part in moving thechannel improvements forward, lending their expertise as theplanned project makes its way through a series of federal andstate governmental approvals.Gunning, who recalls the channel being 200 feet wide when hejoined the Brazos Pilots nearly three decades ago, noted that it iscurrently 400 feet wide. The improvements would widen and deepenthe channel.The channel improvements are particularly important as PortFreeport anticipates the new Freeport LNG Quintana Terminalto receive its first mammoth tanker shipment of liquefied naturalgas by late 2007.Last year, the Brazos Pilots began benefiting from a new electronicsystem that uses a buoy-mounted offshore current-monitoring deviceto provide real-time information to pilots’ laptop computers.The Brazos Pilots have a pair of 65-foot-long, aluminumhulledboats with twin diesel engines that facilitate speedsof up to 23 knots.Typically, a pilot rides one of the boats from the dock out tomeet an entering vessel outside the sea buoy, about 3 miles offthe beach. The pilot climbs a rope ladder to board the vessel,goes to the bridge and directs the movement of the vessel intoport. He does not disembark until the vessel is safely securedat the dock.A similar procedure, in reverse, is used by pilots in guidingdeparting vessels.“Our main role is as the local experts with specificknowledge of the currents, shoaling, weather conditionsand all of the aspects related to the navigation of vesselsin our waterway,” Gunning said. “We serve as a guardianfor the Port, ensuring the safe navigation of all vesselsentering and leaving the Port.”3 P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT 4

Port Freeport has a $9 billion impact on the Texas economy,while directly generating 11,131 local jobs, three-quarters ofwhich are held by Brazoria County residents, according to aneconomic impact study report.“This study quantifies the significant favorable impact PortFreeport has on Brazoria County, the state of Texas and ournation as a whole,” said Port Freeport Executive Director A.J.“Pete” Reixach, Jr. “The fact is that, if Port Freeport were nothere, there would be more than 11,000 people and their familieswho would have to look elsewhere for employment.”Reixach conveyed such facts Aug. 31 to Assistant Secretaryof the Army John Paul Woodley, Jr. as the top official of theU.S. Army Corps of Engineers visited Port Freeport. Officialsof Port Freeport and the Corps of Engineers are progressingwith efforts to widen the Port channel as well as deepen it fromits current 45-foot depth. The enhanced channel would helpgenerate further positive impacts.The report, prepared for the Brazos River Harbor NavigationDistrict by Lancaster, Pa.-based John C. Martin Associates,details the substantial economic impacts of marine cargoactivity at the public and private marine terminals at PortFreeport. These economic impactsinclude 11,131 direct jobs with localfirms, accounting for $1.059 billionin personal income; 56,139 total jobs,including indirect, induced and relatedpositions, accounting for a total of$4.406 billion in personal income; $9.032billion in total economic activity inTexas; and more than $396.5 million instate and local taxes.Port Freeport ranks 23 rd in the nation in total domestic andforeign cargo tonnage handled, having moved 33.9 million totaltons in 2004, up 11 percent from the previous year.The growth is attributable not only to expansion of traditionallystrong petrochemical operations but also to diversification ofindustry related to Port Freeport, including food processingfacilities, such as the still-growing presence of American RiceInc. (ARI)/Grupo SOS. The liquefied natural gas terminalbeing built at the Port by Freeport LNG should give a furthersubstantial boost to activity; it is on schedule to receive its firstshipment by late 2007.With a channel depth of 45 feet, soon to be deepened andwidened, just 3 miles from open Gulf of Mexico waters, PortFreeport offers more than 8,000 acres for future development.The Brazos River Harbor Navigation District/Port Freeportserves its customers and stakeholders through development andmarketing of competitive world-class navigational capabilities,technically advanced marine and multimodal terminal servicesand port-related industrial facilities while achieving profits andcreating jobs as a leading economic catalyst for the District andthe Texas Gulf Coast.Since Martin Associates conducted asimilar study in 2003, the number ofdirect jobs increased by 38 percent, or3,041 jobs.According to the latest Corps ofEngineers data, Port Freeport ranks13 th among U.S. ports in internationalcargo tonnage handled, with 28.1million tons of foreign cargo moved in2004, up 12.1 percent from 2003 figures.5 P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT 6

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PORT FREEPORT NEWSDow Chemical AwardedDow Chemical Freeport facility earns top environmental awardContributed PhotoRepresentatives of Texas Operations accepted the William M.Benkert Award at the API Tanker Conference in San Diego.Contributed PhotoMembers of the application team, along with TexasOperations Leadership.The Dow Chemical Co.’s Texas Operations facility, located within the PortFreeport complex, has garnered the highest environmental award of the U.S.Coast Guard.The Dow operation received the top William M. Benkert Award in the largebusiness facilities category – a stunning osprey statute. The awards are namedin honor of the late Rear Admiral Benkert, a distinguished Coast Guardofficer widely known for his leadership and vision in marine environmentalprotection.The award, presented June 26 at the American Petroleum Institute TankerConference in San Diego, recognizes outstanding achievement in marineenvironmental protection, honoring programs that far exceed mere compliancewith industrial and regulatory standards.Dow Freeport’s Marine & Terminal Operations (FMTO) is a leading shipperin the Port Freeport area, with some 7.5 million tons of bulk liquid materialsannually crossing its six docks. The product mix includes organic and inorganicchemicals, hydrocarbon feedstocks and liquefied gases.In 1996, Dow announced a series of ambitious goals to improve environment,health and safety performance over a 10-year period. Since that time, it hasachieved significant improvements compared with the baseline year of 1994,including:• 78% reduction in loss of primary containment (LOPC) incidents, such asleaks, breaks and spills• 41% reduction in pounds of waste generated per pound of product produced• 24% reduction in pounds of wastewater generated per pound ofproduct produced• 49% reduction in emissions of chemicals, excluding carbon monoxide,nitrogen monoxide/nitrogen dioxide and salts• 86% reduction in emissions of priority compounds• 59% reduction in volatile organic compound emissions• 80% reduction in process safety incidents• 88% improvement in Occupational Safety and Health Administration(OSHA) ratingIn addition, Dow Freeport’s commitment extends to include outreach programs,employee volunteerism and corporate contributions.Reixach AAPA Committee ChairmanReixach named to chair caucus, resolutions committee of AAPAAs Port Freeport Executive DirectorA.J. “Pete” Reixach, Jr. assumes newleadership positions in the AmericanAssociation of Port Authorities, he looksto seize opportunities to bring greaterunderstanding of ports in the Gulf Coastregion.“My goal is to bring to AAPA and theport industry a new level of awareness ofGulf Coast ports, including the types andA.J. Reixach, Jr. characteristics of the cargoes we handle,Executive Port Director from steel and bulk commodities toliquefied natural gas,” said Reixach, who onSept. 14 was named chairman of AAPA’sGulf Caucus, as well as chairman of the AAPA Resolutions Committee.Reixach was selected by peers at the association’s 95 th annual convention, heldin New Orleans. He succeeds caucus chairman Gary P. LaGrange, presidentand chief executive officer of the Port of New Orleans.In his caucus chair role, Reixach assumes positions on the board of directorsand executive committee of AAPA. The association, with 161 port members,is the leading alliance of Western Hemisphere ports, protecting and advancingthe common interests of its diverse members as they connect their communitieswith the global transportation system.James F. Brown, Jr., secretary of the Brazos River Harbor Navigation District,commented, “Pete should be honored to have his peers ask him to representthem and lead them as chairman of AAPA’s Gulf Caucus. It is obvious thatthe members of AAPA’s Gulf Caucus recognize Pete’s leadership qualities, aswe have seen for many years here at Port Freeport. I am proud of Pete andconfident that he will do a good job.”9 P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT 10

PORT FREEPORT NEWSPORT FREEPORT NEWSEmployee FocusCommunications AwardsU.S. Coast GuardNew EntranceJesse Hibbetts fills winning roleas port’s operations supervisorPort Freeport honored withcommunications awardsCapt. William Diehl assumesCoast Guard sector commandSecurity enhancements continuewith new access control systemIf it hadn’t been for chronic shoulderproblems, Jesse Lee Hibbetts, III, mightbe pitching in the Major Leagues. But,fortunately for Port Freeport, Hibbettshung up his spikes after four years on theBrazoswood High School baseball teamand a season at Lon Morris College inJacksonville, Texas.Hibbetts, 30, joined the Port Freeportteam as operations supervisor in March,bringing with him his experienceas area manager at the Wal-Martimport facility in Baytown plus a pairof bachelor’s degrees, in industrialdistribution and logistics, from theUniversity of Houston.“Each day here at Port Freeport is definitely something new, which makesit very fun, interesting and challenging,” said the Lake Jackson native, whograduated from Brazoswood High in 1995. He now lives in Angleton.Hibbetts also has a busy home life, with he and wife, Nealie, havingwelcomed a second son, Hudson, on July 20, joining big brother Hayden,2. That hasn’t left Hibbetts much time of late for his hobbies of golf,hunting and fishing.If Hibbetts’ name sounds familiar, it may be because his father, JesseLee Hibbetts, Jr., served 27 years on the Brazosport Independent SchoolDistrict board and worked 32 years at the Dow Chemical Co.’s Freeportfacility. His father currently is a vice president with the brokerage firm ofA.G. Edwards & Sons Inc.The younger Hibbetts’ immediate supervisor, Port Freeport Director ofOperations Al Durel, said of him, “He has all the right tools and the abilityto become very successful in the maritime industry. We’re expecting greatthings from him.”11 P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICTDockside girls - Edna Hancock-Varner and Sarah RomeroDockside writer Paul Scott AbbottPort Freeport’s communications efforts continue to be recognized as amongthe industry’s best, with two awards from the American Association of PortAuthorities joined a pair of top honors from the Transportation Marketing& Communications Association (TMCA).On Sept. 13, at AAPA’s annual convention in New Orleans, Port Freeportreceived an award of merit for its Web site, as well as an honorable mentionin the periodicals competition for its quarterly Dockside Magazine. Judgesnoted that they were particularly impressed with the Port Freeport Web site’sutilization of color, graphics and photographs, plus its overall ease of use.AAPA, the Alexandria, Va.-based alliance of leading ports of the WesternHemisphere, in July announced the winners of its annual communicationsawards competition, which drew 184 entries from 40 ports.At the TMCA annual conference, May 23 in Keystone, Colo., PortFreeport accepted two awards of excellence — one for Dockside Magazineand one for a 2005 series of testimonial advertisements. TMCA’s CompassAwards, previously known as Tranny Awards, recognize North Americantransportation and logistics organizations for effective strategic marketingand communications programs. Minneapolis-based TMCA received 200entries from 72 organizations.In prior years, Port Freeport has been a frequent recipient of communicationsawards from both AAPA and TMCA.“We are delighted to once again be honored for our efforts,” said Port FreeportExecutive Director A.J. “Pete” Reixach, Jr. “Port Freeport is blessed with atop-flight marketing and communications team that does a highly successfuljob of making key audiences aware of our port’s unique attributes.”Capt. William J. Diehl has assumed command of the U.S Coast Guardsector with responsibility over an area that includes Port Freeport.Diehl, who most recently has served as Coast Guard liaison officer tothe Panama Canal Authority, succeeded Capt. Richard M. Kaser ascommander of Sector Houston-Galveston at a July 14 ceremony. Kaseris now chief of the prevention division at the Coast Guard Atlantic Areain Portsmouth, Va.Port Freeport Director of Operations Al Durel commented, “Capt. Kaser wasextremely instrumental in elevating maritime security and will be missed.At the same time, we welcome Capt. Diehl and will place behind him allour efforts to further enhance area security.”Sector Houston-Galveston serves as command and control for all CoastGuard missions in the Southeast Texas/Southwest Louisiana area ofresponsibility. The sector coordinates law enforcement, homeland security,search and rescue and marine safety missions for the area.Diehl’s multiple roles include federal maritime security coordinator (FMSC),captain of the port (COTP), federal on-scene coordinator (FOSC) and officerin charge of marine inspection (OCMI).Diehl said, “I am responsible for all Coast Guard activities in the SectorHouston-Galveston area, including Port Freeport, and look forward toworking with our partners in industry and government to keep all sectorports safe and secure.”Diehl is a 1982 civil engineering graduate of the U.S. Coast Guard Academyand also holds a master’s degree in naval architecture, marine engineeringand mechanical engineering from the University of Michigan.Port Freeport’s entrance gate is taking on a heightened level of security witha new, state-of-the-industry access control system, including traffic arms andhydraulic barriers.The $800,000 project, which has received funding through the federal securitygrant program, is part of Port Freeport’s ongoing efforts to enhance security.Brazos River Harbor Navigation District Commissioner F.J. Richers, whosefamiliarity with port security includes his work as a consultant for TRCCompanies Inc., noted, “At Port Freeport, we certainly have made somemonumental inroads from a port security standpoint.“We have significantly enhanced security and safety, while, at the same time, ensuringthat commerce continues to flow swiftly and efficiently,” Richers added.The access control system allows Port officials to adjust access controlrequirements to meet current U.S. Coast Guard maritime security levels and isengineered to interface with the Transportation Worker Identification Credential(TWIC) card system being implemented nationwide by the U.S. Departmentof Homeland Security.Port Freeport is issuing new access control badges to tenant employees andcontract personnel who work within the port.“This is a major effort that is made easier because everyone is cooperatingwith the project,” said Rick Benavidez, port security manager at Port Freeport.“Everyone recognizes the need, and the new gate controls are another stepforward in ensuring a safe and secure work environment.”He pointed out that an added benefit of the new system is its ability tomonitor who is within port property at any given time. That could proveparticularly helpful in the event of an evacuation situation due to a hurricaneor other circumstances.P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT 12

PORT FREEPORT NEWSCommissioner BrownTexas Gulf Bank presidentcontributes to Port’s boardC-TPAT Operations Certification InternPort’s first Texas A&M internacquires hands-on experienceJames F. “Jimmy” Brown, Jr. may be bestknown in the community as presidentof Texas Gulf Bank, but, since 1993, theFreeport native has played an equallyvital role on the Brazos River HarborNavigation District commission, thesix-member elected board which governsPort Freeport.Brown, who currently serves as thecommission’s secretary, lends the boardhis extensive banking and businessexpertise.Brown joined what was then known asChemical National Bank in 1981, twoyears after graduating from Sam HoustonState University with a degree in finance, and was named president of that bankin 1987. Following a 1990 merger, he became president of Texas Gulf Bank.He lives in Lake Jackson with his wife of 22 years, Jo Ann, and their son, James,a senior at Brazoswood High School, his father’s alma mater. Daughter Jessicais entering her sophomore year at Texas A&M University.“It has been a pleasure to watch the Port grow,” said Brown, who cited developmentsuch as Port Freeport’s increasing importance as a fruit import hub, the building ofa new berth, and the building of the Freeport LNG terminal.MilestonesErnie Liest hopes a job will be available for him at Port Freeport in May 2008,when he graduates from the Maritime Academy at Texas A&M Universityat Galveston. Port Freeport Director of Operations Al Durel, under whomLiest recently completed a summer internship, hopes so, too.Liest, the first Texas A&M Maritime Academy student to hold such aninternship at Port Freeport, returned to school in the fall for his junior yearwith significantly enhanced practical knowledge and a great appreciationfor Port Freeport.“It’s been an experience I won’t ever forget,” said Liest, a Brazoria residentwho graduated from West Columbia High School in 2004. “Port Freeporthas got a lot of room for growth, so this internship could open a lot ofdoors in the future.”Liest handled a full range of port operations duties during the three-monthpaid internship. His tasks involved such functions as vessel scheduling,facility maintenance, cargo handling and port safety and security – whatDurel described as “well-rounded training.”“He’s been a big help for the operations department,” said Durel, who citedplans for the internship program to continue in future summers. “It’s beenextremely successful on our part.”Ken Bailey, director of career placement for Texas A&M at Galveston, saidthe school’s maritime studies program encourages students to complete atleast one professional-grade internship.Port Freeport employees celebrated milestones at the Port Freeport Employee Awards Luncheon. Pictured from left to right:Christie McDermott, projects coordinator (5 years); Rodney Blackstock, mechanic (5 years).“The students get a real-world professional experience,” Bailey said. “Theyget to try on a job and see if it fits. It also gives an employer an ability tosize up a student, with, if all goes well, a good chance they may hire thestudent after graduation.”13 P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT P O R T F R E E P O R T • BRAZOS RIVER HARBOR NAVIGATION DISTRICT 14

Port Freeport/Brazos Harbor Navigation DistrictP. O. Box 615Freeport, Texas 77542-0615PORT FREEPORT ADMINISTRATIONPORT FREEPORT DIRECTORYFOREIGN-TRADE ZONEForeign-Trade Zone No. 149 . . . . . . . (979) 233-2667PILOTSBrazos Pilots Association . . . . . . . . . (979) 233-1120PRIVATE TERMINALSBASF Corporation. . . . . . . . . . . . . . (979) 238-6100The Dow Chemical Company. . . . . . (979) 238-2011ConocoPhillips Terminal I . . . . . . . . (979) 239-4190TEPPCO Seaway Pipeline Co. . . . . . .(979) 239-1281STEVEDORESBryan Coastal Services . . . . . . . . . . . . . . . . (979) 233-5622Cooper-T. Smith Stevedoring . . . . . . . . . . . (713) 675-0017Flanagan, James J. Shipping Corp. . . . . . . . (713) 928-5683Gulf Stream Marine, Inc. . . . . . . . . . . . . . . (713) 926-7611P&O Ports, Texas, Inc. . . . . . . . . . . . . . . . .(713) 928-3330Shippers Stevedoring Co., Inc. . . . . . . . . . . (713) 451-5777Southern Stevedoring Co., Inc. . . . . . . . . . (713) 453-3388Stevedoring Services of America . . . . . . . . . (713) 678-7308Suderman Contracting Stevedores, Inc. . . . . (409) 762-8131For a more detailed directory visit our website at www.portfreeport.com