PHA Commission Approves $33.8 Million for Bayport Cranes

Acting Executive Director Highlights PHA's 2008 Record Year


HOUSTON, Feb. 19, 2009 (GLOBE NEWSWIRE) -- The Port Commission of The Port of Houston Authority (PHA) approved $33.8 million for electric cranes at Bayport Container Terminal as well as a request for qualifications for professional services for the design of Stevedore Support Building No. 2 at Bayport, at its February 18 meeting.

Also at the meeting, PHA Acting Executive Director Wade M. Battles presented the Year-End Review, reporting that PHA realized its ninth consecutive year of record-breaking revenue in 2008.

Battles highlighted eight system-wide priority areas in which PHA achieved success: a premier container, cargo and cruise port; financial strength; economic development; a safe and secure port; improving our facilities and waterways; environmental protector, steward; strong community, industry and government relations; and a strong workplace.

"While PHA is fortunate to have such an extraordinary record of achievements in 2008, we must be realistic in light of the current economic downturn," Battles said. "Our diversified portfolio is an advantage during these uncertain times, but we are being extremely prudent with our budget and looking at other opportunities to use our facilities, such as non-traditional cargo. Despite these precautions, PHA will continue to operate as a first-class organization that responds proactively to the needs of our customers and community."

The PowerPoint of the Year-End Review presentation is available on the PHA Web site, www.portofhouston.com.

BAYPORT MATTERS

(Agenda G7) Commissioners approved awarding a contract to Shanghai Zhenhua Port Machinery Company, Ltd., for three dockside electric container cranes for Bayport Terminal for $33,796,000. The cranes will be manufactured, assembled and tested in the Peoples Republic of China. A separate contract will be required for third party inspection services. The operation of the terminal depends on the availability of dockside container cranes for loading and unloading container ships. At buildout, Bayport will be able to handle an annual container volume of about 2.3 million twenty-foot equivalent units or TEUs.

(Agenda K2) Commissioners approved issuing a request for qualifications for professional services for design of Stevedore Support Building no. 2 at Bayport Terminal. The Stevedore Support Building No. 2, also known as an "amenities" building, will be approximately 5,700 square feet in size and will provide offices and break areas. The building is potentially to be constructed using Intermodal Steel Building Units (ISBUs), which are recycled shipping containers, modified and engineered to be the primary structural system above the foundation. The consultant will assist in the planning, permitting and preparing of plans and specifications for this type of construction. The services will include architectural, civil, mechanical, electrical and structural design. Additional geotechnical, surveying and environmental tasks may be included in the scope of work and the consultant may also provide limited construction phase services. The consultant must be experienced with ISBU design and construction. The Stevedore Support Building No. 2 will provide a full-function workspace for stevedores serving customers at the Bayport Terminal.

MAINTENANCE MATTERS

(Agenda G1) Commissioners approved awarding two-year contracts to Bio Landscape & Maintenance, Inc. for mowing services and landscaping for $150,708, Coastal Spray Company for weed control for $47,996, and Brookway Horticultural Services, Inc. for finish mowing for $25,118, for a total of $223,822.

BARBOURS CUT MATTERS

(Agenda G5) Commissioners approved awarding a construction contract to Resicom, Inc. for Pavement Replacement at Barbours Cut Terminal for $1,131,160. Pavement in the storage yards and wharf areas in Terminals 1 through 5, as well as the ro/ro transit shed area at Barbour's Cut Terminal requires periodic maintenance in order to maintain its required level of service.

TURNING BASIN MATTERS

(Agenda G6) Commissioners approved awarding a construction contract to Triple B Services, LLP for secure truck entrance - Cargo Bay Road at the Turning Basin Terminal for $7,283,368. This project will provide a new dedicated truck entrance to the Turning Basin Terminal from I-610 to Gate 1 Road. The new road will incorporate the construction already completed for the new truck gate and credentialing stations. This project will also improve the remainder of Gate 12 Road and Ramp Road 7.

INSURANCE MATTERS

(Agenda G12) The port commission approved awarding contracts for primary and excess property and casualty liability insurance coverages beginning March 1, 2009, for a period of one year for $5,152,995. Contracts include Axis Insurance Company for primary protection and indemnity for marine liability for $56,631; Axis Surplus Insurance Company for the Executive Office Building property coverage for an annual amount of $55,340; a contract to underwriters at Lloyd's for excess general and automobile liabilities, marine hull and excess protection and indemnity, real and personal property, including equipment coverage, legal liability for property of others in the care, custody and control of PHA and primary coverage for public officials liability (referred to as the port package) for $2,984,453; a contract to underwriters at Lloyd's for terrorism coverage for property and equipment for $173,021; a contract to Illinois National Insurance Company for excess public officials liability coverage with a $20 million limit in excess of that included in the port package at an annual amount of $60,447; and contracts to ACE USA Company for primary casualty insurance coverage for Workers' Compensation, general liability and automobile liability for $1,879,734.

ENVIRONMENTAL MATTERS

(Agenda M6) Commissioners approved participation in the EPA SmartWay Drayage Truck Emission Reduction Pilot Project for $50,000. PHA would help fund emission control retrofit devices for on-road drayage trucks transporting containers between PHA terminals and a distribution facility in Baytown. This project provides an opportunity for two EPA Blue Skyways Collaborative partners to join forces with the EPA and the Environmental Defense Fund to contribute to better air quality in the region. PHA participation includes providing up to $50,000 to purchase retrofit devices that will reduce particulate matter emissions on drayage trucks enrolled in the program. The pilot project will serve as a national demonstration of these emission reduction activities and assist in securing future federal grants for additional projects of this nature. As part of PHA's commitment to environmental excellence, the project is expected to benefit PHA and the region by helping reduce particulate matter emissions that contribute to air pollution in the Houston area. It will also help demonstrate proactive measures for achieving continued compliance with the EPA particulate matter standard, while providing health benefits to truck drivers, PHA employees and nearby residents.

HOUSTON SHIP CHANNEL MATTERS

(Agenda M7) The Commission approved entering into a Memorandum of Agreement (MOA) with the U.S. Army Corps of Engineers (USACE) to expedite maintenance dredging of non-federal berthing areas and channels of the Houston Ship Channel (Turning Basin facility). This spring, USACE will be performing scheduled work and maintenance dredging in the channel adjacent to the Turning Basin Terminal. Maintenance dredging is currently needed at all of PHA's Turning Basin docks to re-establish program depth. By contracting this work through USACE's competitive bidding process, PHA will save money as compared to the cost estimate to conduct the work independently. PHA would contribute only to the cost of dredging PHA berths, which is expected to be up to $4 million, to defray the incremental costs incurred by USACE for additional non-federal work to be added to its contract for dredging the channel. This amount has been determined jointly by USACE, Galveston and PHA. PHA will seek reimbursement from FEMA for that portion of the PHA work that was caused by silting in the wake of Hurricane Ike. Keeping Houston Ship Channel waterways at optimum operating efficiency is a must for not only the port authority but the Port of Houston to remain successful.

This news release is not a substitute for the official PHA agenda. To view the complete agenda, please visit: http://portofhouston.com/publicrelations/meetings.html

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, there are more than 8,000 vessel calls at the port, which ranks first in the U.S. in foreign waterborne tonnage and second in overall total tonnage. 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. PHA is the first port authority in the world to receive ISO 28000:2007 certification for Port Police and the perimeter security operations at both the Barbours Cut and Bayport Terminals. 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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