HOUSTON, Feb. 1, 2008 (PRIME NEWSWIRE) -- Port of Houston Authority officials applauded the diligence and assistance of U.S. Rep. Gene Green in the expansion of the U.S. Department of Agriculture bid points program at the Port of Houston. The program expands the bid quote points for delivery and shipping of USDA Food Aid cargo from two to eleven bid points in Houston. Food Aid cargo is exported to developing countries for economic development and humanitarian purposes.
The expanded bid points program is expected to ensure greater efficiencies and lower costs in the bidding, handling and shipping procedures.
"We are excited about the implementation of the multiple bid points at the Port of Houston," says H. Thomas Kornegay, PHA Executive Director. "This process provides the freight handlers the opportunity to work directly with the commodity suppliers in quoting their rates and services."
After an extensive campaign for change led by Green, PHA representatives, freight handlers and other maritime interests, the program transitions from a pilot program implemented at the Port of Houston in 2004. Prior to that pilot program, the costs associated with getting the cargo to Houston and unloading it onto the dock were all borne by the commodity vendor bidding on the project.
Previously, PHA's Turning Basin was one of only two bid points recognized by USDA, even though the shipments could pass through any number of other terminals located at the port. The uncertainty of where the cargo would land resulted in bids that were based on the highest handling and wharfage rates available. The pilot program provided some relief by shifting the unloading and terminal handling costs to the steamship lines, which had greater control over where shipments would be routed.
The expansion takes it a few steps further by allowing bids to come directly from the following bid points: (Turning Basin) Richardson, Cooper/T Smith Stevedoring, J.J. Flanagan, Commodity Solutions, Ports America, Shippers Stevedoring, Empire Stevedores; (Care Terminal) Coastal Cargo of Texas; (Jacintoport Terminal) Jacintoport International; and (Barbours Cut Container Terminals) Shippers Stevedores, Cooper/T Smith Stevedoring.
Under the program, each freight handler has direct communication with USDA and each stevedoring company bids directly to the commodity vendors. The costs of shipping and handling will once again be borne by the commodity vendors.
"From this interaction, the freight handlers will also be able to manage their transit shed space more efficiently and effectively," Kornegay continues. "We believe this process will provide the lowest landed cost in the handling of USDA products through the Port of Houston and subsequently benefit the taxpayer and those countries that have the greatest need for our products."
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 7,000 vessels call at the port, which ranks first in the U.S. in foreign waterborne tonnage, second in overall total tonnage, and 10th 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.
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