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DOCKSIDE - Port Freeport

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FROM THE BRIDGEA.J. “Pete” Reixach, Jr.Executive <strong>Port</strong> Director/CEOSeaports are entitledto harbor tax fundsAt <strong>Port</strong> <strong>Freeport</strong>, we have been blessed withcontinuing success, even at a time of nationaleconomic downturn. But ports throughout thecountry are challenged by the fact that they arenot getting federal funding to which they areentitled.The Harbor Maintenance Tax (HMT) wasestablished by Congress in 1986 to use fundscollected from owners of imported cargospecifically to help keep U.S. navigation channels open for commerce.However, as much as half of the approximately $1.4 billion in annual HMTcollections is used for unrelated purposes while the surplus of collections hasgrown to nearly $5 billion. The surplus is anticipated to soar to $8 billion by2011, according to a report last year by the U.S. Government AccountabilityOffice.At the same time, vital dredging needs of U.S. harbors and channels aregoing unfunded, as efforts to secure funding through federal appropriationsprocesses fall short. Indeed, our nation’s ability to handle critical commerceis dwindling while the Harbor Maintenance Trust Fund surplus is swelling.In an era when government leaders are looking for ways to provide economicstimulus, doesn’t it make sense to give a boost to the sustainment of maritimecommerce by using money that is supposedly dedicated for such investment?Not only as the top appointed executive of <strong>Port</strong> <strong>Freeport</strong> but also in mynewly elected role as vice chairman of the U.S. Delegation of the AmericanAssociation of <strong>Port</strong> Authorities, I am committed to doing all I can to see thatports benefit from federal funding to which they are entitled.While we appreciate all the hard work and past support of our friends atthe U.S. Army Corp of Engineers, the U.S. Congress, our clients, as well aslocal and state representatives, bottom line, we need to use the HMT fundsfor their intended purpose, maintenance dredging of our nation’s seaports.Your support in this effort is appreciated, so that we can continue to beconfident in saying…Stay tuned. The best is yet to come!PORT COMMISSIONJames F. Brown, Jr.ChairmanThomas S. PerrymanVice ChairmanRavi K. SinghaniaSecretaryBill TerryAssistant SecretaryJohn W. Damon<strong>Port</strong> CommissionerJ.M. “Mike” Lowrey<strong>Port</strong> CommissionerGeorge T. Wommack, Jr.General CounselDIRECTORSA.J. “Pete” Reixach, Jr.Executive <strong>Port</strong> Director/CEOPhyllis SaathoffManaging DirectorDavid M. KnuckeyDirector of Engineering/ConstructionAl DurelDirector of OperationsMichael WilsonDirector of Trade DevelopmentRick BenavidezDirector of Safety and Securityport freeport1dockside


TABLE OF CONTENTS<strong>DOCKSIDE</strong>DoleForeign-TradeZoneVulcan357Nancy StephensEditorTricia ParkAssistant EditorJoe CarralesArt Director<strong>Port</strong> <strong>Freeport</strong>PublisherKaye StarustkaBayStar PrintingAccount ExecutivePaul Scott AbbottWriterTricia ParkDarlene WinklerPhotographersA.J. “Pete” Reixach, Jr.Contributing Writer<strong>DOCKSIDE</strong> is published by<strong>Port</strong> <strong>Freeport</strong>200 W. Second St., 3 rd Floor<strong>Freeport</strong>, TX 77541Phone: 1-800-362-5743Fax: (979) 233-5625E-mail: stephens@portfreeport.comWeb site: www.portfreeport.com<strong>DOCKSIDE</strong> © 2009 by <strong>Port</strong> <strong>Freeport</strong>,all rights reserved. Reproduction inwhole or part without express writtenpermission is strictly prohibited.<strong>Port</strong> NewsEmployee FocusMilestonesReixach elected vice chairman<strong>Port</strong> promotes BenavidezSwift recovery from IkeProject earns major awardVelasco TerminalGFOA Award<strong>Port</strong> attends Breakbulk Conference<strong>Port</strong> Christmas Reception9ON THE COVERport freeport2docksideVulcan Materials Company import aggregateconstruction material into <strong>Port</strong> <strong>Freeport</strong>.


For more than a quarter of a century,Dole bananas have been coming into <strong>Port</strong><strong>Freeport</strong>,carried from Central America onincreasinglyefficient vessels.Witha five-year contract extensionrecently signed and officials of Dole FreshFruit Co. and <strong>Port</strong> <strong>Freeport</strong> continuingtheir mutual enthusiasm, the fruitfulrelationship is expected to be in placefor a long time to come.“We intend to stay there for aslong as <strong>Port</strong> <strong>Freeport</strong> wants us there,”said Stuart Jablon, vice president ofoperations for Wilmington, Del.-basedDole Fresh Fruit Company.“We’ve found <strong>Port</strong> <strong>Freeport</strong> to be avery progressive port,” Jablon continued.“Pete [<strong>Port</strong> <strong>Freeport</strong> Executive <strong>Port</strong> Director andChief Executive Officer A.J. “Pete” Reixach Jr.] isone of the more visionary port directors.”Jablon commended <strong>Port</strong> <strong>Freeport</strong> officials notonly for ensuring proficient handling of his firm’simports of bananas, as well as a lesser quantity ofpineapples, but also for helping Dole identify thirdpartycargos that are carried on Dole vessels. Suchcargo includes plastic resin that is exported fromthe Houston area.“In terms of location, <strong>Port</strong> <strong>Freeport</strong> is perfect,”Jablon said, noting that Dole serves such key Texasmarkets as Houston, San Antonio and Dallas from<strong>Port</strong> <strong>Freeport</strong>, “and we find the labor very efficient.”Since 1983, Dole has brought a weekly ship callto <strong>Port</strong> <strong>Freeport</strong>. Recently, Dole replaced its DoleGuatemala in the service with the Vliet Trader, aport freeport3dockside


larger, faster vessel that boasts the capacity to carry 300 fortyfoot-longrefrigerated containers filled with fruit into <strong>Port</strong><strong>Freeport</strong> each week.The vessel sails from Puerto Cortes, Honduras, to PuertoBarrios, Guatemala, to <strong>Port</strong> <strong>Freeport</strong> and then returns on itsrotation through the two Central American ports.Dole’s business model focuses on control of the fullsupply chain, from production through distribution, with apreference for using niche ports that are accommodating tothe company’s needs, Jablon said.Jablon cited <strong>Port</strong> <strong>Freeport</strong>’s addition of a Gottwald multipurposemobile crane as among developments that haveenhanced container-handling capabilities. More recently,<strong>Port</strong> <strong>Freeport</strong> completed in 2007 facility improvements atits Berth 2 truck transfer station, including adding a largecanopy that helps speed bananas through the <strong>Port</strong> day andnight, in virtually all types of weather.Dole alone moves a total of some 370,000 tons a year ofport freeport4import and export cargo through <strong>Port</strong> <strong>Freeport</strong>, accordingto Jablon. That total does not include the volumes carried byChiquita Brands Inc. and Turbana Corp./Isabella ShippingCo. Ltd., which have joined Dole as green-fruit importersenjoying the benefits <strong>Port</strong> <strong>Freeport</strong> has to offer.Reixach noted that it was Dole that brought <strong>Port</strong> <strong>Freeport</strong>into the containerized cargo market and that the <strong>Port</strong> built aterminal specifically suited to Dole’s needs.“They are very good to work with, very professional, acompany with first-class ships, first-class equipment and firstclasspeople,” Reixach said of Dole.<strong>Port</strong> <strong>Freeport</strong> <strong>Port</strong> Commission Chairman JamesF. Brown Jr. said he sees Dole and <strong>Freeport</strong> as virtuallysynonymous.“I like to think it’s been as good a match for Dole as it hasbeen for us,” said Brown, who has served on the commissionsince 1993. “We’ve had a good partnership, and I hope thatrelationship lasts for many years after my tenure is over.”dockside


Interest grows inby Foreign-TradeSince established in 1988, <strong>Port</strong> <strong>Freeport</strong>’s Foreign-TradeZone No. 149 has helped American companies involved in globalcommerce to save money on the products they import into theU.S. through deferral, reduction and/or elimination of Customsduties assessed on foreign merchandise, and port officials havebeen fielding a lot of inquiries about the FTZ of late.<strong>Port</strong> <strong>Freeport</strong> Managing Director Phyllis Saathoff, a pastpresident of the National Association of Foreign-Trade Zones,pointed out that there may be no better time for businessesengaged in international trade to explore the benefits FTZ No.149 has to offer.“Especially in challenging economic times,” Saathoff said,“we are pleased to be able to offer businesses in the region anothertool to stay competitive and reduce costs.”Among firms recently coming into the FTZ No. 149 foldis Gulfstream Fabrication LLC, a manufacturer of fiberglassreinforced plastic products, which is completing constructionof a facility on 3 acres within the 141-acre tract at the BrazoriaCounty Airport in Angleton that is part of the zone. GulfstreamFabrication officials look to gain duty-related benefits inconnection with components imported by the firm.The Brazoria County Airport site is one of three sites towhich the original 1,957-acre general-purpose zone of FTZ No.149 expanded in 2001. The expansion, which nearly doubled thetotal acreage of the general-purpose zone to 3,590, also added1,484 acres of industrial and business park property in Pearlandand 8 acres in Alvin.Recently, Customs and Border Protection approved theactivation of FTZ No. 149 Site 10 in Alvin allowing import dutydeferral benefits for the warehousing of catalyst which servicesthe refining and petrochemical industries. This site is operatedby RSI Warehouse South Ltd.One of the most recent beneficiaries of FTZ No. 149 was theowner of power generation plant components that came into <strong>Port</strong>port freeport5dockside


enefits offeredZone No. 149<strong>Freeport</strong> from throughout the world between 2001 and 2003. The cargo originallywas being gathered at the <strong>Port</strong> for export to Brazil, but, because of changes in cargoownership, the goods remained dormant, eventually being sold and shipped in thefall of 2008 to the Tennessee Valley Authority for construction of two power plants.Ultimately, the benefit of duty deferral and reduction of duty paid on the importedequipment was some $1 million less than would have been assessed had duty beenpaid upon entry of the goods seven years ago.Longtime <strong>Port</strong> tenant, American Rice Inc./Grupo SOS, which was instrumentalin <strong>Port</strong> <strong>Freeport</strong> filing an application with the Foreign-Trade Zones Board toestablish a foreign-trade zone in <strong>Freeport</strong>, has been consistent beneficiaries of FTZNo. 149 by eliminating duties on empty polypropylene bags imported from SaudiArabia that it later ships back filled with American rice.Since 2007, Suzlon Wind Energy Ltd. has been enjoying the benefits of thezone through the deferral of import duties on wind energy components it bringsinto <strong>Port</strong> <strong>Freeport</strong> from India then ships to wind farms in the United States.Currently, <strong>Port</strong> <strong>Freeport</strong> is sponsoring an application that is filed with theForeign-Trade Zones Board that seeks to expand FTZ No. 149 to a 300-acre site inFort Bend County. This property owned by GBI Group LLC is being developedfor multiuser warehousing, distribution and assembly operations.“The Foreign-Trade Zone offers us an opportunity to reach out to otherareas, both inside and beyond Brazoria County, expanding our capabilities andservices even further than our <strong>Port</strong> facility,” said <strong>Port</strong> <strong>Freeport</strong> <strong>Port</strong> CommissionVice Chairman Thomas S. Perryman. “Businesses increasingly are discovering thebenefits afforded by the FTZ program.”port freeport6dockside


lays growing foundation withimports into <strong>Port</strong> <strong>Freeport</strong>The aggregate construction materials importedinto <strong>Port</strong> <strong>Freeport</strong> by Vulcan Materials Companyare literally forming the foundation for the <strong>Port</strong>’sexpansion of cargo-handling capabilities, as wellas the base for highways and other commercial andresidential projects throughout the U.S. Gulf regionand beyond.Demand for the stabilizing rock material has beenso great that Vulcan brought 392,000 tons of cargointo <strong>Port</strong> <strong>Freeport</strong> from Mexico in the fiscal yearended Sept. 30, 2008, up 45 percent from its fiscal2007 volume through the port, according to generalmanager Clay Upchurch of the Texas Coastal Regionof Birmingham, Ala.-based Vulcan.“We absolutely are pleased with the positionwe have at <strong>Port</strong> <strong>Freeport</strong> and how it works for us,”Upchurch said. “With the growth potential that the<strong>Port</strong> has, we certainly see that as a ‘win-win’ for us all,and we look forward to participating in that growthand in growing the <strong>Freeport</strong> community.”Two primary materials make up Vulcan’s importsinto <strong>Port</strong> <strong>Freeport</strong>.One product, known as base material, consistsof tiny pieces of limestone rock used as stabilizationmaterial for <strong>Port</strong> <strong>Freeport</strong>’s projects like VelascoTerminal due to open in September this year and<strong>Port</strong> Parcels 25, 19 and 14 properties, as well as fora full range of highway, utility, oilfield and othercommercial and residential construction projectsas far away as Florida. Typically, the base material isport freeport7dockside


topped with asphalt.The other product, known as clean stone,consists of somewhat larger pieces of limestone rock,each of between 1- and 1 ½-inch diameter that areused in ready-mix concrete and hot-mix asphalt forconstruction and paving projects.Vulcan, the nation’s largest producer ofconstruction aggregates, has been importing itsproducts into <strong>Port</strong> <strong>Freeport</strong> since 2002, using its ownself-loading, Panamax-class vessels. Shipments, whichtypically consist of about 55,000 tons each, arriveabout every six to seven weeks from the <strong>Port</strong> of Playadel Carmen, with the product originating at a nearbyVulcan quarry on the Yucatan Peninsula.The efficient offloading operation at <strong>Port</strong> <strong>Freeport</strong>takes the material off the vessels using conveyor beltsthat direct it into large bins, from which radial stackerunits place it in half-moon-shaped piles on the ground.Two Vulcan workers – Kenneth Oliver and JonathanSimmons – quickly, efficiently and safely handle alltasks involved at <strong>Port</strong> <strong>Freeport</strong>, from unloading theships to loading and weighing the trucks that deliverthe material.<strong>Port</strong> <strong>Freeport</strong> Director of Operations Al Durelsaid the Vulcan operation provides a “virtually endlesssupply” of aggregate material and delivers benefits thatreach beyond the <strong>Port</strong> itself.“Having an enterprise like this next to deep waterand centrally located for Brazoria County,” Durel said,“is an asset not just for the <strong>Port</strong> but for the whole area.”port freeport8dockside


PORT FREEPORT NEWSEmployee FocusOliver ‘just getting started’in 41st year at <strong>Port</strong> <strong>Freeport</strong>Terminal ManagerJames OIiverJames Oliver has worked at <strong>Port</strong><strong>Freeport</strong> for more than 40 years– the past five years as terminalmanager – and he still looksforward to coming on the jobeach day.“I’m just getting started,” saidOliver, 63. “I’m grateful to theLord for every one of my yearshere, and I’m still looking at manyyears to go.”Over the course of more than four decades, Oliver has seen lotsof progress at <strong>Port</strong> <strong>Freeport</strong>, about which he commented, “Thisport has really grown up. The facilities have multiplied, and theworkload has increased dramatically.”After a two-year stint in Vietnam with the U.S. Army, Oliver,discharged as a private first class, came to work at <strong>Port</strong><strong>Freeport</strong> on Jan. 4, 1968, as a timekeeper and clerk. He waspromoted in 1971 to assistant dock superintendent and later toterminal superintendent.As terminal manager, Oliver’s current wide-ranging duties includeordering labor to meet daily cargo-handling needs, supervisingport maintenance, scheduling vessel calls and handling <strong>Port</strong>purchases.A.J. “Pete” Reixach, Jr.Executive <strong>Port</strong> Director/CEOAAPAReixach elected vice chairmanof AAPA’s U.S. DelegationAs newly elected vice chairmanof the U.S. Delegation of theAmerican Association of <strong>Port</strong>Authorities (AAPA), <strong>Port</strong> <strong>Freeport</strong>Executive <strong>Port</strong> Director and ChiefExecutive Officer A.J. “Pete”Reixach Jr. is at the forefrontof efforts addressing nationaltransportation policy issues.“It’s an honor to represent theinterests of sister ports throughoutthe nation,” said Reixach, whowas chosen for the vice chairman position at the AmericanAssociation of <strong>Port</strong> Authorities’ 97th Annual Convention, heldin September in Anchorage, Alaska.“I’m looking forward to working with [Massachusetts <strong>Port</strong>Authority <strong>Port</strong> Director] Mike Leone, the delegation’s chairman,in addressing the Harbor Maintenance Tax and other challengesfacing the U.S. port industry,” Reixach said.The Harbor Maintenance Tax was established by Congress in1986 to use funds collected from owners of imported cargoto help keep U.S. navigation channels open for commerce.However, as much as half of the approximately $1.4 billion inannual HMT collections is used for unrelated purposes while thesurplus of collections has grown to nearly $5 billion.“I couldn’t think of a better ‘right-hand man’ than James Oliver,”said <strong>Port</strong> <strong>Freeport</strong> Director of Operations Al Durel, to whomOliver reports. “His dedication tothe <strong>Port</strong> and to his job is absolutelyunsurpassed, and it is a genuinepleasure to work with him each day.”Oliver, who was born in the EastTexas city of Lufkin and has livedmost of his life in Brazoria County,counts woodworking among hishobbies. He and his wife, Bonnie,live in Brazoria, and they have twodaughters, Suzanne and Sherry, andsix grandchildren. Oliver serves onthe board of deacons of Wild PeachBaptist Church.MilestonesFrom left, Managing Director Phyllis Saathoff, Terminal Manager James Oliver (40 years),Accounting Manager Mary Campus (15 years), Executive <strong>Port</strong> Director/CEO A.J. “Pete”Reixach Jr., Receptionist/Financial Secretary Judy Lagunas (5 years).port freeport9Reixach also holds a key AAPA position as chairman of AAPA’sGulf Caucus and previously held the position of chairman of theAAPA Resolutions Committee.docksideAAPA, with more than 150 portmembers, is the leading allianceof Western Hemisphere ports,protecting and advancing thecommon interests of its diversemembers as they connect theircommunities with the globaltransportation system.


PORT FREEPORT NEWSNew Director<strong>Port</strong> promotes Benavidez toSecurity, Safety DirectorRick Benavidez, who joined <strong>Port</strong><strong>Freeport</strong> in September 2004 as<strong>Port</strong> Security Manager, has beenpromoted to the position ofDirector of Security and Safety.In his new position, Benavidez iscontinuing to advance numerousprojects to make certain that <strong>Port</strong><strong>Freeport</strong> meets or surpasses federaland state security requirements,<strong>Port</strong> <strong>Freeport</strong> Director of Securityand Safety Rick Benavidez and he also is engaged in strategicplanning and day-to-day efforts toensure that the highest safety standards are in effect at the <strong>Port</strong>.Since Benavidez came aboard at the <strong>Port</strong>, numerous securityenhancements have been made, including the opening of a newport security command center, installation of a closed-circuittelevision surveillance system and the addition of a security boatand two specially equipped security vehicles. The <strong>Port</strong> also hasinstalled a <strong>Port</strong>-wide radar and automatic identification systemthat detects vessels as they approach from 35 miles out in theGulf of Mexico.Most recently, Benavidez has been instrumental in securingfederal grants totaling more than $3.2 million that are enabling<strong>Port</strong> <strong>Freeport</strong> to add a Gate 4 access control facility; initiatetraining exercises for the entire <strong>Port</strong> community; and implementredundant communications connectivity between the ports of<strong>Freeport</strong>, Galveston, Houston and, eventually, Texas City.Benavidez is an FBI National Academy graduate with more thantwo decades of law enforcement and security experience. Prior tojoining <strong>Port</strong> <strong>Freeport</strong>, he was site contract security coordinatorat the BASF Corp. facility in <strong>Freeport</strong>. Last year, he earned hisCertified Protection Professional designation from the AmericanSociety of Industrial Security.He and his wife, Cathy, have three children and are members ofWillow Drive Baptist Church in Lake Jackson.“Rick is a proven professional and a tremendous addition to oursenior staff,” said <strong>Port</strong> <strong>Freeport</strong> Executive <strong>Port</strong> Director/CEOA.J. “Pete” Reixach Jr. “We are quite fortunate to have a personof his caliber.”port freeport10Hurricane IkePreparation proves critical inswift recovery from IkeDowned power lines at <strong>Port</strong> <strong>Freeport</strong>’s Gate Entrance after Hurricane IkeWhen Hurricane Ike made landfall in the <strong>Freeport</strong> area early themorning of Saturday, Sept. 13, bringing winds of more than 100mph and generating an inundating storm surge, <strong>Port</strong> <strong>Freeport</strong>was ready.<strong>Port</strong> <strong>Freeport</strong>’s response and recovery plan went off withoutincident, allowing the <strong>Port</strong> to service customers within twodays of the storm’s strike. The <strong>Port</strong>’s plan was adapted fromthe American Association of <strong>Port</strong> Authorities’ “EmergencyPreparedness and Continuity of Operations Planning Manualfor Best Practices,” developed as an international standard by<strong>Port</strong> <strong>Freeport</strong>’s own managing director, Phyllis Saathoff, inher role as chairperson of AAPA’s Emergency Preparation andResponse Working Group.While damage to range lights and shoaling at the <strong>Port</strong> channelentrance did cause some restrictions in vessel depth and downedpower lines forced a shifting of <strong>Port</strong> vehicular traffic during theinitial recovery, <strong>Port</strong> <strong>Freeport</strong> was fortunate to have suffered nomajor destruction as a result of Ike.As federal officials advanced efforts to secure funding foremergency dredging needs for all Texas ports impacted by Ike,<strong>Port</strong> <strong>Freeport</strong> stepped in to assist neighboring ports hit worse bythe storm by handling some of their normal cargo as those portsbegan their recoveries.<strong>Port</strong> <strong>Freeport</strong> employees whose homes were severely damaged bythe hurricane were helped out with temporary housing.“During these difficult times, our thoughts and prayers go tothose who have been affected by Hurricane Ike,” Saathoff said.“And we extend our thanks to all those who helped get <strong>Port</strong><strong>Freeport</strong> back in business.”dockside


PORT FREEPORT NEWSEnvironmental AwardProject earns <strong>Port</strong> <strong>Freeport</strong>major environmental awardFrom left: <strong>Port</strong> Commission Chairman James F. Brown, Jr.,<strong>Port</strong> <strong>Freeport</strong> Environmental Coordinator Lisa McMichaeland <strong>Port</strong> <strong>Freeport</strong> Director of Engineering David Knuckey.A project to removean abandoned mobileoffshore drilling unitfrom the west bank ofthe <strong>Freeport</strong> HarborJetty Channel hasearned <strong>Port</strong> <strong>Freeport</strong>top honors from theAmerican Associationof <strong>Port</strong> Authorities(AAPA).AAPA, the organization representing the interests of seaportsthroughout the Western Hemisphere, recently honored <strong>Port</strong><strong>Freeport</strong> as the sole recipient of its Environmental ImprovementAward for Stakeholder Awareness, Education and Involvement.Judges cited as a key to their decision the fact that <strong>Port</strong> <strong>Freeport</strong>involved a local school in the effort. <strong>Port</strong> <strong>Freeport</strong> EnvironmentalCoordinator Lisa McMichael led the initiative to engage seventhandeighth-grade students at Lake Jackson Intermediate Schoolwho, as the Mission Possible Environmental Team, were educatedon environmental issues while tracking the project. The studentsbecame involved to the extent that they wrote letters to Congresssupporting the unit’s removal.Decontamination and removal of the “Zeus” unit – acollaborative effort of numerous federal, state and local entities– took away a potential source of ecological peril for a nearbycounty park and other recreational areas, said <strong>Port</strong> <strong>Freeport</strong>Director of Engineering / Construction David Knuckey. Theunit’s removal, utilizing $2 million in state funds, also openedopportunities for future development of upland property andeliminated the possibility of disruption of harbor commerce thatcould have occurred – at a cost of some $19 million a day – if theunit had capsized into the channel.“The <strong>Port</strong> staff, with strong support from the commissioners,strives to always keep the environment at the top of ourpriority list,” said <strong>Port</strong> <strong>Freeport</strong> <strong>Port</strong> Commission ChairmanJames F. “Jimmy” Brown Jr. “The removal of the Zeus unitsends a strong message to the community that we will worktirelessly to keep our waterways and shorelines clear of potentialenvironmental hazards.”Velasco TerminalVelasco Terminal advancestoward opening in fall 2009The fi rst phase of construction has begun onthe Velasco Terminal.Construction ofthe first phase of<strong>Port</strong> <strong>Freeport</strong>’sVelasco Terminal isproceeding towardanticipated openingin the fall of 2009.Groundbreakingtook place inOctober 2006 for the project, which is to encompass the newestcontainerized cargo facility on the Texas Gulf Coast, as well asberthing for ships carrying project cargo and other goods.<strong>Port</strong> <strong>Freeport</strong> Director of Construction and Engineering DavidM. Knuckey noted that, as 2008 was drawing to a close, theplacement of foundation piles and sheet pile wall was nearlycomplete and concrete was beginning to be poured at the VelascoTerminal site.The $40 million first phase is to include the first 800 linear feetof an eventual 2,400 feet of berthing. The first phase also calls forcompletion of a 125-foot-wide apron, dock access road, lightingand other features. Rails are being installed to support gantrycranes that are expected to come in a later phase. Ultimately,the terminal is to include development of 90 acres of supportingbacklands.The <strong>Port</strong>’s ship channel on which the Velasco Terminal is beingdeveloped already has a depth of 45 feet, and <strong>Port</strong> <strong>Freeport</strong>officials are working with U.S. Congress and U.S. Army Corpsof Engineers in an effort toward widening the channel anddeepening it to 55 feet.The terminal is named in honor of the historic town oncesituated across the Brazos River from <strong>Freeport</strong>. Old Velasco, nowpart of Surfside Beach, was the site of Stephen F. Austin’s firstcolony in 1821. On June 26, 1832, it was the site of the Battleof Velasco, the first armed confrontation of the Texas war forindependence. By 1836, Velasco was made temporary capitalof the Republic of Texas and was the site of signing of treatiesending hostilities between Texas and Mexico. Old Velasco wasdestroyed by a hurricane in 1875, and the town was partiallyrebuilt in 1891 some 4 miles upstream from the original site.port freeport11dockside


PORT FREEPORT NEWSGFOAGFOA recognizes <strong>Port</strong> <strong>Freeport</strong>with Certificate of Achievement forExcellence in Financial ReportingFrom left, <strong>Port</strong> <strong>Freeport</strong> <strong>Port</strong> Commission Chairman James F.Brown, Jr., <strong>Port</strong> <strong>Freeport</strong> Managing Director Phyllis Saathoffand <strong>Port</strong> <strong>Freeport</strong> Accounting Manager Mary Campus.For the 18th year ina row, the Certificateof Achievementfor Excellence inFinancial Reportinghas been awardedto <strong>Port</strong> <strong>Freeport</strong> bythe GovernmentFinance OfficersAssociation of theUnited States andCanada, (GFOA), forits Comprehensive Annual Financial Report (CAFR).This Certificate of Achievement is the highest form of recognitionin the area of governmental accounting and financial reportingand its attainment represents a significant accomplishment bya government and its management. An Award of FinancialReporting Achievement has been awarded to <strong>Port</strong> <strong>Freeport</strong>Managing Director Phyllis Saathoff, who is the individualdesignated as primarily responsible for preparing the awardwinningCAFR.“Mary Campus, Accounting Manager, and the accountingdepartment staff are to be commended as well. This award-winningCAFR is a reflection of the excellent work they do consistentlythroughout the year,” Saathoff said. “It is a privilege to workwith such a dedicated and conscientious accounting team.”The CAFR has been judged by an impartial panel to meetthe high standards of the program including demonstrating aconstructive “spirit of full disclosure” to clearly communicateits financial story and motivate potential users and user groupsto read the CAFR. The GFOA is a non-profit, professionalassociation serving approximately 16,000 government financeprofessionals with offices in Chicago, IL and Washington, DC.<strong>Port</strong> <strong>Freeport</strong> currently ranks 16th among U.S. ports ininternational cargo tonnage handled. With a current channel of45-foot depth, soon to be widened and deepened, just 3 milesfrom open Gulf of Mexico waters, <strong>Port</strong> <strong>Freeport</strong> offers morethan 7,500 acres for future development. <strong>Port</strong> <strong>Freeport</strong> serves itscustomers and stakeholders through development and marketingof competitive world-class navigational capabilities, technicallyadvanced marine and multimodal terminal services and portrelatedindustrial facilities while achieving profits and creatingjobs as a leading economic catalyst for the Texas Gulf Coast. Formore information on <strong>Port</strong> <strong>Freeport</strong> visit www.portfreeport.comor call 1-800-362-5743.port freeport12Breakbulk Conference<strong>Port</strong> attends 19th AnnualJOC Breakbulk ConferenceTrade show attendees try their hand on the Nintendo Wii at the <strong>Port</strong>’s booth.For the seventh consecutive year, <strong>Port</strong> <strong>Freeport</strong> officialsgreeted importers and exporters, freight forwarders, stevedores,government officials, logistics technologists and shippingexecutives at the 19th Annual Journal of Commerce (JOC)Breakbulk Transportation Conference and Exhibition in NewOrleans.At the conference, held Oct. 14-16, the <strong>Port</strong> enticed attendeesto visit their trade show booth by allowing passer-by’s to playthe Nintendo Wii game “Mario Kart” for a chance to win theNintendo Wii or a LCD TV. <strong>Port</strong> representatives collected morethan 140 business cards from those who dropped by their booth,and then drew the winners’ names out of a trophy cup at the endof the conference.The winner of the LCD TV was Gottwald District Sales ManagerRafael Gonzalez and Rolldock Managing Director Eric Schmidleft the conference with the Nintendo Wii. However, everyonewho visited the booth was handed a stress reliever in the shapeof a car.“The breakbulk show is important because everyone who is aplayer in the cargo business is there,” <strong>Port</strong> <strong>Freeport</strong> Director ofTrade Development Mike Wilson said. “It is the kind of showwhere decision-makers show up.”dockside


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41Yourcompany here.232MAP LEGEND1Velasco Terminal - The giant space in the middle,awaiting your shipments. It’s the first major additionto <strong>Port</strong> <strong>Freeport</strong> in 40 years, it’s nearly 100 acres andis expected to support almost 800,000 TEU’s a year.23Our 45’ Channel - Your gateway to the world.With fast, easy access out to sea in around 60 minutes.Terminal Data - 800,000 TEU’s, one over 4configuration, rtgs, reefer and on site rail.For informationon terminal managementMike WilsonDirector of Trade Development(979) 233-2667 ext. 4265wilson@portfreeport.com4<strong>Port</strong> <strong>Freeport</strong> - A deep water port 60 miles southof downtown Houston, TX with all the capabilitiesand none of the hassle.5www.portfreeport.com5Logo - To remind you that shipping is easier here.The coast is clear.200 West Second St., 3rd Floor<strong>Freeport</strong>, Texas 775411-800-362-5743port freeport14dockside


<strong>Port</strong> <strong>Freeport</strong>200 West Second St., 3rd Floor<strong>Freeport</strong>, Texas 77541PRSRT STDU.S. POSTAGEPAIDBayStar PrintingMain Switchboard ......................................................................................................................................(979) 233-2667(800) 362-5743Fax No. ...................................................................................................................................................... (979) 233-5625Executive <strong>Port</strong> Director/CEO ....................................................................................A.J. “Pete” Reixach, Jr., Ext . 4264Managing Director .................................................................................................................. Phyllis Saathoff, Ext. 4258Director of Engineering ..................................................................................................... David M. Knuckey, Ext. 4257Director of Operations ...................................................................................................................... Al Durel, Ext. 5263Director of Trade Development ............................................................................................ Michael Wilson, Ext. 4265FOREIGN-TRADE ZONEForeign-Trade Zone No. 149.......................(979) 233-2667PILOTSBrazos Pilots Association ...........................(979) 233-1120PRIVATE TERMINALSBASF Corporation .................................... (979) 238-6100ConocoPhillips Terminal I ........................(979) 239-4190The Dow Chemical Company ...................(979) 238-2011TEPPCO Seaway Pipeline Co. ..................(979) 239-1281STEVEDORESBryan Coastal Services...............................(979) 233-5662Cooper-T. Smith Stevedoring .....................(713) 675-0017Flanagan, James J. Shipping Corp. ............(713) 928-5683Gulf Stream Marine, Inc. .......................... (713) 926-7611<strong>Port</strong>s America, Inc. ......................................(281) 471-7613Shippers Stevedoring Co., Inc. ...................(713) 451-5777Southern Stevedoring Co., Inc. ................. (713) 453-3388Suderman Contracting Stevedores, Inc. ...(409) 762-8131For a more detailed directory visit our Web site at www.portfreeport.com

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