PHA Commission Approves $4.5 Million to Fund Final Design Work for Bayport Container Terminal Gate Expansion

Jan. 30 Meeting Called to Consider Action Following Tom Kornegay's Retirement Announcement


HOUSTON, Jan. 29, 2009 (GLOBE NEWSWIRE) -- The Port Commission of The Port of Houston Authority (PHA) authorized $4.5 million for the final design component of a professional services contract with Klotz Associates for the Bayport Container Terminal gate expansion and approved amending an agreement with TxDOT/Harris County for a $1.08 million project to widen Main St. in Galena Park at its regular Jan. 27 meeting.

At the meeting, Chairman Jim Edmonds announced "with sadness and regret" PHA Executive Director H. Thomas Kornegay's intention to retire, expected to be effective Feb. 1, 2009, bringing to a close his 37-year tenure with the port authority. Kornegay has served as PHA's executive director for nearly 17 of those years, a record for that position.

Kornegay will be stepping down for family reasons associated with the recent death of his mother. Chairman Edmonds has called a special meeting of the Port Commission on Friday, Jan. 30, to consider action following this announcement.

As a result of its 2008 operations, the port authority posted its ninth consecutive year of growth, according to Kornegay's report at the meeting. Unaudited figures show that PHA increased its operating revenue by about $7.6 million or 4 percent, to $196.5 million from 2007's record-breaking $188.9 million.

Total tonnage in 2008 was up six percent from the previous year, from 40 million to nearly 43 million, as reported by Jimmy Jamison, director of operations.

PHA recorded all-time records of imported steel in the amount of nearly 6 million short tons (breaking the record set in 1981), export steel at 337,530 short tons (breaking the record set in 2007), and an all-time record for total steel handling at 6.3 million short tons.

1.8 million container TEUs were handled portwide for 2008, a 1 percent increase.

Gilda Ramirez, director of Small Business Development, also reported that, through 2008, the port authority awarded nearly $239 million, or 37 percent, of eligible contracts to registered small businesses since its inception in 2002.

SECURITY MATTERS

(Agenda G4) Commissioners approved awarding a contract to Texas Technical Services, Inc. (TTSI) for the purchase and installation of TWIC Readers and associated equipment and software for the Turning Basin and Barbours Cut terminals for $165,637. TTSI is an approved small business firm in PHA's Small Business Program, has worked with the port authority and is familiar with the equipment required for this project. The TWIC helps prevent individuals who pose a threat from gaining unescorted access to restricted areas of the nation's maritime transportation system.

ENVIRONMENTAL MATTERS

(Agenda G5) Commissioners approved awarding a professional services contract to Brown and Caldwell for waste management consulting services for a term of one year for $100,000. The Port Commission authorized the advertisement and receipt of proposals for environmental consulting services to provide technical expertise and assistance with waste management issues. The services are intended to assist the EAD in addressing regulatory compliance, meeting Environmental Management System (EMS) goals, and planning and implementing waste management projects and programs as part of PHA's strong commitment to environmental stewardship.

GALENA PARK MATTERS

(Agenda G7) Commissioners approved amending an agreement with the Texas Department of Transportation (TxDOT) and Harris County for widening Main Street in Galena Park for $1.08 million. The TxDOT project is funded under the METRO Mobility/Rehabilitation Program, which permits federal funding of 80 percent of the cost of a project, up to a maximum federal cost of $2.88 million. In order to participate in such funding for the project, PHA must be responsible for all costs in excess of the federal participation. TxDOT completed a subsequent review of costs after it obtained bids for this work and advised PHA staff in November that the low bid TxDOT obtained exceeded the estimated construction costs. Accordingly, PHA's share of the total costs also increased and TxDOT is now requesting reimbursement from PHA for the excess construction costs of $1,037,771.

BAYPORT MATTERS

(Agenda G8) Commissioners approved the final design component of the professional services contract with Klotz Associates, Inc. for Bayport Marine Terminal Gate Expansion, Stage 3, for $4.5 million. The project will include inbound and outbound lanes, buildings, canopies and associated infrastructure for Bayport's ultimate buildout. PHA staff has negotiated with Klotz Associates, Inc., to complete the design and prepare construction documents for the final gate configuration. Klotz's scope of work will also include a geotechnical investigation, surveying, architecture, engineering design and construction phase services. Items added to the project since its inception include expanding the drainage investigation, modeling to ensure the gate electrical system is fully compatible with the existing Bayport electrical system as well as future expansion of the electrical system, 3D modeling of underground utilities to avoid utility conflicts, the extension of southern berm and the telecommunications and security system.

PERMIT MATTERS

(Agenda I1) The port commission approved issuing a port authority marine construction permit to ExxonMobil Corporation to deepen its berths 5 and 6 in Baytown, Texas, in the William Scott Survey, A-66, in Harris County. The berths will be dredged to a depth of -47 feet. The work is being conducted in conjunction with ExxonMobil Corporation's normal maintenance dredging schedule.

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, more than 7,700 vessels call 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

To access the port's Web site photo gallery, please visit http://www.portofhouston.com/publicrelations/publicrelations.html and click the link for PHA Photo Gallery.

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