PHA Commission Delivers Bayport, Environmental, Operational, Capital Improvement Matters


HOUSTON, March 29, 2004 (PRIMEZONE) -- The Port of Houston Authority (PHA) commission approved several recommendations involving contract awards, bids and proposals, professional services and general administrative and operational matters during its meeting on Monday, March 29, 2004. Chairman Jim Edmonds presided over the public meeting in the 4th floor board room at 111 East Loop North (exit 29 off Loop 610).

Bayport Matters

The commission authorized a special public meeting for oral presentations by the three companies that are finalists for the contract to construct the container yard for Phase 1A of the Bayport Container and Cruise Terminal. Representatives of McCarthy Building Companies, Inc., Texas Sterling Construction, L.L.P., and Zachry Construction Corporation are expected to present their competitive sealed proposals to the commission at 9 a.m. on Monday, April 5, 2004 in PHA's 4th floor board room. Following the presentations, the commission may evaluate and rank the CSPs and may authorize PHA to negotiate a contract award that is expected to range between $34 million and $40 million.

In another matter related to Bayport, the commission authorized PHA to advertise and receive qualifications for environmental and engineering firms to design two earthen levees and two associated spillways for the creation and enhancement of wetlands and prairie restoration of the Memorial Tract. The design contract for the project (which is part of the wetland mitigation plan that was required for the Bayport permit earlier this year) is expected to range between $65,000 and $130,000.

The commission also approved three separate recommendations to authorize the PHA to advertise and receive qualifications from prospective engineering firms that can provide concrete and soil testing along with materials verification testing services for Bayport Phase 1A.

Last month, in a move that clearly recognizes the importance of the Bayport project to the Houston region, U.S. District Judge Vanessa Gilmore declined to issue a preliminary injunction as requested by the plaintiffs. Instead, the judge scheduled a fast-track process that will allow for a ruling on the merits of the plaintiffs' claim on May 4. The PHA agreed to a standstill on the construction of the Bayport terminal until the ruling is issued.

The lawsuit was filed in June 2003 by a few local municipalities and organizations that oppose PHA's construction of the Bayport terminal. The plaintiffs contend that the Corps' delineation of jurisdictional wetlands was improper, among other allegations. The lawsuit did not name PHA as a defendant; however, PHA filed a motion to intervene in the lawsuit on behalf of the Corps.

In January, PHA and the Corps signed the federal permit for the Bayport project, marking the critical step in the process to build the $1.2 billion terminal. Phase 1A is designed to include 1,660 feet of the ultimate 7,000-ft. wharf and approximately 65 acres of the ultimate 1,043 acre facility. Pending the outcome of the federal court hearing and the start of construction, the facility's first phase is targeted to be operational in mid-2006. Additional phases are planned to be built incrementally over several years according to market demands.

Environmental Matters

The commission authorized PHA to advertise and receive CSPs to perform tallow control on the West Memorial Tract along Red Bluff Road. The PHA will receive and review CSPs from all qualified vendors interested in being considered for a contract award ranging between $65,000 and $130,000 to help prepare the site for wetland creation and enhancement and prairie restoration as required by the federal permit for Bayport.

In a separate environmental matter, the commission authorized PHA to advertise and receive qualifications for professional water quality consulting services. The PHA will receive and review the qualifications of firms interested in an estimated $200,000 two-year contract to provide technical expertise and field assistance related to regulatory compliance, best management practices, and ISO 14001 requirements.

Operational Matters

The commission approved the acquisition of a remote height assessment system that will detect and alert the U.S. Coast Guard when vessels along the Houston Ship Channel are too tall to pass under the Loop 610 bridge. The $85,000 proprietary laser system will be purchased from Smart Light Devices Ireland, Ltd. and installed on top of a coast guard transmission tower located on Kinder Morgan property. The PHA expects to contribute $25,000 of the cost and receive reimbursement from the Texas Department of Transportation once the system is operational. The Houston Pilots Association and a group of private companies are expected to contribute approximately $35,000 to the project. The coast guard would operate and maintain the system.

In a separate operational matter, the commission amended Tariff No. 14 for consistency in the way stevedoring and steamship companies handle credit for gang detention, crane breakdowns, and other operational interruptions. Previously, the tariff allowed credit for such incidents to be issued only in 15-minute increments. The amended tariff is expected to streamline the reconciliation process for all parties and help resolve crane operation bills more efficiently.

Capital Improvement Matters

The commission approved a recommendation to award an estimated $2.5 million construction contract to Infrastructure Services, Inc. for C1-C4 Return Road at the Barbours Cut Container Terminal.

The next meeting of the PHA Commission is scheduled for 2 p.m. on Monday, April 26, 2004 in the 4th floor board room of the PHA Executive Office Building, located at 111 East Loop North in Houston.

The Port of Houston Authority owns and operates the public facilities located along the Port of Houston, the 25-mile long complex of diversified public and private facilities designed for handling general cargo, containers, grain and other dry bulk materials, project and heavy lift cargo, and other types of cargo. Each year, more than 6,600 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and sixth largest in the world. The Port Authority plays a vital role in ensuring navigational safety along the Houston Ship Channel, which has been instrumental in Houston's development as a center of international trade. The Barbours Cut Container Terminal and Central Maintenance Facility are the first of any U.S. port facilities to develop and implement an innovative Environmental Management System that meets the rigorous standards of ISO 14001. Additionally, the port is an approved delivery point for Coffee "C" futures contracts traded on the New York Board of Trade's Coffee, Sugar & Cocoa Exchange. For more information, please visit www.portofhouston.com

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