This commentary appeared in the print edition of the Jan. 6, 2020, Journal of Commerce Annual Review and Outlook.
The container shipping industry continues to change at a rapid pace. There have always been challenges. Today, the ships are getting larger, the shift in trade from Asia grows exponentially, and production of hydrocarbons in the US Gulf region fills boxes with export commodities at a faster rate than ever.
Capitalizing on the opportunities these challenges present is essential. Houston is one of the fastest-growing ports in the nation in container cargo, with 2 million TEU in 2015 to an annual volume approaching 3 million TEU by the end of 2019. That’s a 50 percent increase in four short years.
To remain efficient, reliable, and competitive, we must accelerate investments to accommodate the growth and stay ahead of the demand curve with facility infrastructure, including cranes, equipment, pavement, and technology. We have been successful in maintaining our competitiveness by investing more than $350 million in capital improvements over the last 2 years at our Barbours Cut and Bayport Terminals.
However, the main challenges for Houston and many other ports lie on the water. Safe and efficient movement of cargo along the Houston Ship Channel is critical to US energy security, given the Port of Houston is home to the largest petrochemical complex in the country.
Energy and manufacturing exports are increasing at the port, along with vessel size. Those new demands increase container imports and exports, and as ships get larger, channels have to increase in depth and width. The process for making it happen quickly is challenging.
Fortunately, we have responded proactively, beginning with a study with the US Army Corps of Engineers, which is completed and expected to receive a Chief’s report and Water Resources Development Act (WRDA) authorization in 2020, and we are partnering with industry to provide funding to expedite construction. Our channel must be improved quickly and can’t wait for the normal process that could take a decade to complete. We must and will make it happen.