Port of Houston Readies Itself for New Panama Canal Traffic

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Port of Houston Authority is bustling with construction projects as it prepares for bigger ships and more traffic from the expansion of the Panama Canal.

Industrial Info is tracking nine Port of Houston Port Authority projects worth $347 million. The largest of these involve terminal expansions. The creation of a new traffic lane in the Panama Canal will double the waterway's capacity and allow bigger ships to move cargo from the Pacific to the Atlantic Ocean. Completion of the canal project is set for 2016.

For related information, see March 15, 2015, article - Port Spending Flows in Latin America as Panama Canal Expands. The Port of Houston, which handles about 66% of all the containerized cargo in the U.S. Gulf of Mexico, according to the port authority, is working to accommodate the new traffic from the Panama Canal. The 25-mile-long port ranks first in foreign waterborne tonnage, first in U.S. exports, and second in the U.S. in total tonnage, according to the port authority.

With a total investment value of $142 million, the expansion at the Barbours Cut Container Terminal in La Porte, Texas, is the largest project being tracked by Industrial Info. The expansion is part of a multi-phase, $700 million rehabilitation project that includes upgrades to the 34-year-old terminal, such as wharf rehabilitations, improved security, and the installation of larger cranes to handle more containers. The project kicked off in 2013 and is expected to see completion in second-quarter 2016. Dannenbaum Engineering Corporation (Houston), Jacobs Engineering Group Incorporated (NYSE:JEC) (Pasadena, California) and McCarthy Building Companies Incorporated (St Louis, Missouri) are participating in the project.

The Phase II extension of the Bayport Terminal's Wharf 6 is valued at $80 million. The wharf will be extended by 1,000 feet to increase cargo-handling operations. Kick-off is scheduled for second-quarter 2015, with completion in third-quarter 2017. CH2M Hill (Meridian, Colorado) is conducting equipment studies for the project.

Meanwhile, the Phase II, 664-foot extension of Wharf 2 at the Bayport Terminal has a total investment value of $50 million. Kickoff is slated for first-quarter 2015, with completion in first-quarter 2016.

The port authority's latest annual capital budget through November 2015 identifies improvement needs of about $325 million. According to the Port Authority website, about $283 million relates to continuing channel development projects at the Bayport and Barbours Cut terminals, and railroad projects at Barbours Cut. Another $26 million is likely to be used for concrete repair, wharf rehabilitation and other projects at the general cargo and bulk terminals in the Turning Basin area of the port. The remainder of the budget addresses building renovations, information technology projects, fire department equipment, and port security improvements.

The port authority forecasts container traffic to increase 3.6% to 902,000 units in 2015, while the number of automobiles that are shipped through the port will increase 8% to 67,000. Steel, however, is forecast to drop 11% to 5,385,000 tons. Other general cargo will increase 12% to 2,215,000 tons.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.