TEXAS PORTS STRATEGIC MISSION PLAN & PORT CAPITAL PROGRAM. November 16, 2016 November Transportation Commission Workshop November 16, 2016

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1 TEXAS PORTS STRATEGIC MISSION PLAN & PORT CAPITAL PROGRAM November 16, 2016

2 Texas Ports Strategic Mission Plan Section of the Texas Transportation Code requires the Port Authority Advisory Committee (PAAC): 1) Prepare a maritime port mission plan 2) Review each project eligible to be funded under Ch. 55 and make recommendations to TxDOT for approval or disapproval 3) Every two years prepare a report on Texas maritime ports, with a list of projects that have been recommended by the committee, including the funding level for each project The PAAC is required to submit the report on Texas ports to the commission for distribution to the Governor, Lieutenant Governor, and Speaker of the House of Representatives 2

3 Texas Ports Strategic Mission Plan Purpose: Fulfills statutory requirement for the preparation of a port mission plan Outlines the trends and issues impacting the Texas port system Identifies the key challenges and opportunities Provides suggested strategies to improve Texas competitive position Lays the groundwork for the Port Capital Program 3

4 Texas Ports Strategic Mission Plan Process: Meetings/interviews with the ports Summer 2015 Develop strategies to address challenges and take advantage of opportunities Fall 2015 PAAC approval of the draft Texas Ports Strategic Mission Plan Dec. 19, 2015 Update of the economic section to incorporate the data from the Texas Ports Association economic impact study PAAC approval of the Texas Ports Strategic Mission Plan Oct.4, 2016 Submission to the Transportation Commission Nov. 16, 2016 Submission to the Governor, Lt. Governor, and Legislature Dec. 1,

5 Texas Ports Strategic Mission Plan Key Strategies for the Texas Port System: Secure a recurring General Revenue funding source from the State that supports the growth of the Texas Maritime System Optimize the statewide intermodal transportation system to streamline the movement of freight and passengers Develop and maintain state of the art port systems that will strengthen the global competitiveness of Texas ports Identify and capitalize on key markets to increase exports to the Americas, Asia and Europe Advocate to secure resources for smaller regional ports to continue to exist and grow Develop a communications strategy to engage State agencies and the Federal government 5

6 Section of the Texas Transportation Code requires the PAAC to prepare a two-year Port Capital Program. The Port Capital Program must include: The construction of transportation facilities connecting any maritime port to another transportation mode; and The efficient, cost-effective development of transportation facilities or maritime port facilities for the purpose of: Enhancing international trade; Enhancing security; Promoting cargo flow; Increasing cruise passenger movements; Increasing maritime port revenues; and Providing economic benefits to the state The PAAC must submit the Port Capital Program no later than Dec. 1 of each evennumbered year to the Governor, Lt. Governor, Speaker of the House of Representatives, and the Commission 6

7 Two-phase application process Phase 1: Ports submit project applications Jan. 5 Feb. 28, 2016 PAAC Screening for eligibility Mar. 31, 2016 Phase 2: Ports submit full applications with supporting information Apr. 1 May 30, 2016 Assess financial, environmental, and construction feasibility of projects May 1 May 30, 2016 PAAC scoring and ranking of the projects June 1 Oct.1, 2016 PAAC approval of the final Port Capital Program Oct.4, 2016 Submission to the Transportation Commission Nov. 16, 2016 Submission to the Governor, Lt. Governor, and Legislature Dec. 1,

8 Documentation required for project applications: Project narrative outlining the project s purpose and need Detailed cost estimate Evidence of financial commitment of matching funds An economic analysis of the project Project design status and documentation Permit status and documentation Letters of support from local government, industry and public Letters of commitment from third party financers Statement of safety (safety improvement projects only) 8

9 Selection criteria: Economic benefit to the State Significant operational benefit in terms of cargo movement, reduction in vehicle wait times, improved access, or other efficiency factors Enhancement of connectivity to the State s intermodal transportation system Construction readiness Matching funds Safety improvements for port operations Each port was eligible to submit up to 4 projects and total grant amount for any one port request could not exceed $20 million Cost sharing: 75% State, 25% local for each project Grants must be encumbered within the two year budget cycle Projects or studies that are based on the transfer of business or cargo from one Texas port to another would not be eligible 9

10 1 Brownsville 2 Beaumont 3 Port Arthur 4 Houston Port Project Total Cost Requested Match Construct two miles of rail on property to link to a new 112,500 sq. ft. multimodal dock, includes road construction, addition of a rail spur at the Palo Alto yard. Unit Train Expansion: Add 13,000 feet of new track, realign 4,200 feet of existing track; includes road, drainage, security and lighting upgrades. On-Dock Rail Berth 6 Expansion: 600-foot dock extension, on dock rail expansion, and design for future channel deepening. Port Road Phase 3 Road Expansion and Drainage Improvements: Add additional lane in each direction to Port Road into Bayport Terminal with associated drainage infrastructure. $32,431,180 $16,215,590 $16,215,590 $13,143,095 $ 9,857,320 $ 3,285,775 $35,000,000 $ 7,034,374 $27,965,626 $12,900,000 $ 9,675,000 $ 3,225,000 5 Bay City New barge terminal, including dredge placement area, new wharf, road. $24,000,000 $18,000,000 $ 6,000,000 6 Port Arthur 7 Port Arthur Phase 2 On-Dock Rail Berth 6 Expansion: Construction of a 600-foot by 100-foot cargo deck extension adjacent to Berth 6. On-Dock Rail Berth 6 Expansion: Improvements to rail reliever area, including 1,750 feet of track, crossovers, and switches. $ 5,000,000 $ 3,750,000 $ 1,250,000 $ 4,287,500 $ 3,215,625 $ 1,071,875 8 Aransas County Replace 1,886 feet of failing bulkhead. $ 3,000,000 $ 2,400,000 $ 600,000 9 Corpus Christi 10 Victoria Al Speight Yard Expansion: Construct two 2,500-foot rail storage tracks with yard improvements. Southside Industrial Park Site: Construct three-lane heavy haul road, extension of the general dock, and addition of five-acre container dock and warehouse with associated equipment. $ 1,500,000 $ 1,125,000 $ 375,000 $21,250,000 $17,000,000 $ 4,250,000 10

11 Port Project Total Cost Requested Match 11 Corpus Christi Bulk Terminal Crude Oil Transfer Station: Crude-by-rail transfer point consisting of 4,000-foot rail siding, supply pipelines, rail car loading station. $ 15,000,000 $ 9,250,000 $ 5,750, Corpus Christi Truck Queuing Area: Construct truck queuing area and administration building. $ 4,000,000 $ 3,000,000 $ 1,000, Galveston Old Port Industrial Road repairs: Raise and resurface road, drainage improvements, rail repairs. $ 2,217,186 $ 1,662,889 $ 554, Corpus Christi Permian Yard: New paving, drainage, security fencing, gates, lighting, rail upgrades. $ 11,400,000 $ 6,625,000 $ 4,775, Galveston Fill Slip 38: Design and construct bulkhead closure structure. $ 15,481,475 $ 11,611,237 $ 3,870, Palacios 17 Port Arthur 18 Palacios 19 Palacios Road and Drainage Improvements: Rehabilitate 4,600 feet of asphalt road, replace four culverts and improve drainage. On-Dock Rail Berth 6 Expansion: Elevation and stabilization of 8.34 acres of backlands adjacent to Berth 6. Timber Dock Replacement: Replace 1,000 feet of timber dock with steel bulkhead system. Port Commercial Center Backlands Development: Design and construction of a road extension, utilities, lighting, 60,000-square-foot warehouse. $ 805,000 $ 603,750 $ 201,250 $ 8,000,000 $ 6,000,000 $ 2,000,000 $ 3,500,000 $ 2,625,000 $ 875,000 $ 3,650,000 $ 2,737,500 $ 912, Galveston Port Strategic Plan: 5-year master plan, 10-year vision plan, 20-year vision plan. $ 650,000 $ 487,500 $ 162,500 TOTALS $217,215,436 $132,875,785 $84,339,651 11

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