Port of Beaumont: Cargo hub in the Gulf

Source: Exec Digital USA

Date :8/13/2008 11:44:49 AM

With an ideal location enhanced by ongoing expansion projects, the Port of Beaumont provides military and commercial access throughout the hemisphere and beyond.

Written by Kevin Doyle and Produced by Michael Magno

Ideally situated along the federally maintained Sabine-Neches Ship Channel on the Gulf Coast of Texas, the Port of Beaumont has long been a leader in world commerce. A US$52 million capital expansion project now under way will only enhance the port’s ability to handle cargo of any type.

The Port of Beaumont juts into the Gulf of Mexico at one of the Lone Star State’s eastern-most points, 84 miles east of Houston and 270 miles west of New Orleans. It is accessible from the Gulf of Mexico and Intercoastal Waterway via the Sabine-Neches channel. The Intercoastal Waterway and Mississippi River provide the facility with connections to Midwestern cities as far North as Minneapolis, MN.

“I’ve been blessed to be with the Port of Beaumont for a considerable amount of time and I’ve seen a lot of positive things happen,” says executive port director Chris Fisher, who started his career as a security guard in 1981 and worked his way up to the top spot in 2002. “I’ve seen the port continue to grow, particularly in the last five years when we’ve experienced record years.

The Port of Beaumont is the world’s second largest handler of United States military cargo. According to Fisher, approximately 49 percent of cargo shipped in support of operations in Iraq and Afghanistan passes through the port.

“The Port of Beaumont has been handling military cargo since 1952. We have handled military goods pretty much for every major conflict or war since that time. We’re very proud to serve our military customers in support of our troops,” Fisher says.

Security first

Given the sensitive nature of a significant portion of the facility’s cargo, security is of utmost importance. Port of Beaumont has spent approximately US$7 million since 2002 to upgrade security infrastructure.

The facility has a new command and control center; camera systems and gate access controls have been upgraded; and additional fencing, lighting and a crash barrier system have been installed. Additionally, the facility has its own police force, licensed as officers by the State of Texas. “Port security is extremely important to us, particularly since we’re a strategic military port,” Fisher says. “It’s our goal to present as hard a target as possible.”

Exponential expansion

According to Fisher, the expansion program involves “three major components.”

“One is a new headquarters facility for surface deployment and distribution command related to the transport of military cargo,” he says.

A US$16 million program will significantly upgrade the rail infrastructure for the land side of operations. Most importantly, in keeping with heightened security, a new interchange for the Class 1 rail carriers will be located within the port’s perimeter. The Burlington Northern Santa Fe connects the port with the country west of the Mississippi; the Kansas City Southern links the facility the Midwest and Mexico; and the Union Pacific traverses the Mississippi Valley, Great Plains and western United States.

Expansion will cross the river to a 455-acre expanse. “There will be a new dock in Orange County and that site could lead to the Port doubling in size. That property is very well-situated for transporting cargo. It’s on the deep-water channel, it’s bordered by Interstate 10 and it is bisected by a rail line providing direct access to all the three Class 1 railroads serving the port,” explains Fisher.

More than military

The Port of Beaumont is located in one of the Gulf Coast’s major industrial areas often referred to as The Golden Triangle. Fisher notes the Port is currently handling a large percentage of energy-related cargo.

“We’re handling a lot of wind energy cargo as well as a significant amount of iron and steel and large volume of LNG (liquid natural gas) pipe for two LNG facilities, as well as other petroleum-related cargo and cargo for clean coal combustion facilities. Right now the energy sector has a major positive impact on our business,” he says. “We also handle a significant amount of forest products, dry bulks and grain,” he says.

According to the Port of Beaumont’s website, Kinder Morgan operates a bulk terminal that

has two million tons of storage capacity and is designed to handle

a daily rate of 10,000 tons for unloading and 15,000 tons for

loading. Louis Dreyfus Corp leases the port’s grain elevator, which can accommodate 3.5 million bushels and has a loading capacity of 80,000 bushels per hour.

Figures show that firms from 43 countries conducted business through the Port of Beaumont in 2007. More than 240 vessels berthed at the Port. Together, the ships and more than 14,000 trucks and 27,000 railcars moved in excess of 3.5 million tons of cargo.

Moving forward

Port of Beaumont is a deepwater facility with a 40-foot channel depth capable of handling vessels of 1,000 feet or longer. Plans call for the Sabine-Neches to be deepened to 48 feet and widened as an efficiency measure.

“Proper funding for channel maintenance and improvements is a primary concern throughout the industry. We’re working with the local channel sponsor, whose role is to maintain and dredge the channel. The Sabine-Neches is a very important waterway and is fifth in the United States in total tonnage,” says Fisher.

Channel maintenance funding concerns are shared throughout the industry. In an interview with Exec, American Association of Port Authorities President Kurt Nagle says the increasing size of ships presents a problem. “Certainly the depth they require is increasing and is expected to be in the mid 50-foot range. We should be looking now to what we’re going to need 15-20 years down the road.”

The expansion of the Panama Canal, targeted for completion in 2014, will have a dramatic impact throughout the hemisphere. “We think that the Panama Canal expansion can only be a significant benefit to all the ports in the Gulf. Anything that opens up, particularly bringing the Pacific Rim cargo into the Gulf, will be very beneficial,” Fisher says.

The work force

Port of Beaumont has approximately 40 employees, primarily consisting of administrative staff. The remainder of the work force is contracted out and on any given day, according to Fisher, several hundred persons will be working on site.

While the Port does offer some lease space, its docks are publicly operated. A loading/unloading contractor handles all land-based cargo and union stevedores (longshoremen) work the barges and ships. The Port’s public facilities alone generate close to 2,000 jobs a year and an economic impact of approximately US$150 million annually.

“I think the most important thing to know is that we are a very customer-oriented port and we provide the highest quality service to all our customers,” Fisher concludes.