Port Commission Approves Nearly $35 Million in Contracts for Bayport Container Terminal Improvements

Despite Fog Impacts in February, Steel Up 84 Percent Over 2010, CEO Dreyer Reports

The Port Commission of the Port of Houston Authority awarded a $33.2 million construction contract to Satterfield & Pontikes Construction, Inc. for the Phase 3 entry and exit gate at the Bayport Terminal and authorized a $1.1 million amendment to the Port Authority's contract with Lockwood, Andrews & Newnam, Inc. for Bayport Terminal, among several matters approved during the April 5 meeting.

In his monthly report, Chief Executive Officer Alec G. Dreyer noted that February was a tough month with significant fog-related impacts throughout the port, including 11 consecutive days when port activities were adversely affected by fog delays or were shut down entirely.

"Coming out of this lengthy fog slowdown, the Houston Pilots handled a record 95 vessels in one day, a testament to their commitment to keeping the Houston Ship Channel open for business," Dreyer said.

In spite of the fog conditions, steel had an excellent month in February, as the Port Authority handled more than 230,000 tons as compared to 125,000 tons in February 2010, an 84-percent increase.

"Year to date, steel is up 740,000 tons or 69 percent over last year, giving us a nice boost going into the strong summer season," Dreyer said. "Turning Basin revenue for the first two months is up some 23 percent, which is directly related to the strong increase in steel."

TEU (twenty-foot equivalent unit) volumes were down 6 percent, but container tonnage was down only 2 percent in February versus last year. Dreyer also noted that year to date, TEU volumes are flat compared to last year, while container tonnage is up 2 percent overall.

Container volumes for March looked reasonably strong through the first three weeks of the month, and Dreyer predicted a return to a stronger growth mode by month's end.

Engineering & Real Estate

(Agenda H5) The Port Commission approved a $1.1 million amendment to the Port Authority's contract with Lockwood, Andrews & Newnam, Inc. for Bayport Terminal Complex Phase I Program Management. The contract has been amended annually to provide for specific tasks scheduled for the upcoming year. Proposed Year Ten services will include design management for gate expansion, security and railroad signal projects. Also included will be construction management and inspection for security, multiple Bayport buildings and gate expansion contracts.

(Agenda H6) The Port Commission awarded a $33.2 million construction contract to Satterfield & Pontikes Construction, Inc. for the Phase 3 entry and exit gate at the Bayport Terminal. The gate provides for permanent inbound and outbound lanes, support buildings, canopies and associated infrastructure to support operations through ultimate buildout of the container terminal. Satterfield & Pontikes' proposal was determined to offer the best value to the Port Authority of the six competitive sealed proposals received.

As a separate item, at its meeting today, the Board of Directors of the Port of Houston Authority International Corporation (POHAIC) agreed to terminate the 2010 Memorandum of Understanding between POHAIC and Libya and to dissolve POHAIC in its current form.