May 5th 2017 | Posted in Transportation by Kristin Gordon

The Texas Department of Transportation (TxDOT) is best known for its roadways. Motorists traveling around Texas are likely to run across TxDOT employees refurbishing or building long stretches of road to improve our main source of transportation throughout the state. But did you know that TxDOT also handles railways and another mode of transportation that gives ships along the Gulf Coast the ability to deliver and transport goods to and from Texas ports each day?

In 2015, 563 million tons of cargo and 1.6 million cruise passengers were handled by 18 ports of Texas. These ports supported $368.7 billion in output to the state’s economy, which equated to 23 percent of the state’s total gross domestic product. The activity at the Texas marine ports also generated over $6.9 billion of state and local tax revenues.

In the Texas Ports Strategic Plan, presented to lawmakers of the 85th Legislative Session, Venezuela and Brazil account for more than 50 percent of the waterborne trade with Texas ports. Trade with Venezuela alone accounts for nearly 30 percent of the value of international waterborne trade with Texas and consists primarily of crude oil. Texas ports have not participated with Asia – particularly China – to the same degree as other U.S. ports. While China has experienced economic issues, it remains the dominant trading partner with the United States.

A $5.25 billion project to expand the Panama Canal was completed in 2016 allowing larger ships from Asia the ability to transit the canal and bring cargo to the Gulf that once went to West Coast ports. Are Texas ports prepared to accommodate these vessels?  In order to compete with other ports throughout the U.S., channels leading to the ports may need to go a little deeper and wider to accommodate these larger vessels. This also includes upgrading terminal operations and inland infrastructure to capture these new markets and opportunities.

Federal investment has been a low priority for Texas ports limiting the growth of Texas deep and shallow-draft ports. The federal government’s passing of the Water Resources Reform and Development Act of 2014 authorized new channel deepening projects for the Port of Freeport and the Sabine-Neches Waterway, and reauthorized the deepening project for the Corpus Christi Ship Channel. These three authorized deep-draft channel deepening projects have yet to be funded.

Texas has already identified over $1 billion in port capital improvement projects that are required to upgrade wharfs, terminals, and for the acquisition of more Post-Panamax capable cranes. The three authorized channel deepening and widening projects will require another $1.2 billion in non-federal matching dollars. Texas authorized $20 million from the Texas Mobility Fund for port road connectivity projects during the 84th Legislative Session. However, this is not a recurring program, and funds could only be used for public road connectivity projects off port property.

A bill authored by Sen. Brandon Creighton  passed in the Senate on March 30. As of May 1, a vote by the House was still pending on Senate Bill 28, the Texas Port Expansion Act. The bill would authorize a revolving loan fund for ship channel improvement projects that have been authorized by Congress. Such projects are expensive, and they generally require a port authority or state agency to pay 35 to 50 percent of the costs, according to a November report from the Senate Select Committee on Texas Ports. Other states help pay such non-federal costs. But in Texas, there is no state funding mechanism for ports, the committee report said.

TxDOT would be charged with administering the loan fund if Creighton’s bill passes both chambers. According to the bill, only those dredging projects approved by the U.S. Army Corps of Engineers would be eligible for the funding.

Download a spreadsheet of 2015 U.S. Port Ranking by Cargo Volume chart. Shown below are the water and port bills of the 85th Legislative Session.

Water and Port Bills of Texas 85th Legislative Session

  1. SB 28 Relating to the financing of ports in the state.
  2. SB 708 Relating to an exemption from numbering for certain vessels propelled by trolling motors.
  3. SB 1000 Relating to the feasibility of creating and maintaining a coastal barrier system.
  4. SB 1029 Relating to the powers and duties of the board of pilot commissioners for certain ports.
  5. SB 1032 Relating to an exemption from and a limitation on the sales tax imposed on certain boats and boat motors.
  6. SB 1129 Relating to franchises granted by navigation districts.
  7. SB 1131 Relating to the powers and duties of a designated officer of a navigation district.
  8. SB 1133 Relating to the exemption from taxes and special assessments of property of a navigation district.
  9. SB 1269 Relating to the establishment of a task force to conduct a comprehensive study on flood control infrastructure for Harris and Galveston Counties.
  10. SB 1270 Relating to the allocation and use of certain border security funding to secure Gulf of Mexico ports.
  11. SB 1292 Relating to the creation of a revolving loan program to finance ship channel improvements.
  12. SB 1361 Relating to the powers and duties of the Sabine-Neches Navigation District of Jefferson County.
  13. SB 1395 Relating to the powers and duties of navigation districts and port authorities.
  14. SB 1432 Relating to the regulation of sport lagoons and granting rulemaking authority.
  15. SB1556 Relating to the management of commercial oyster boats in this state.
  16. SB 1864 Relating to the administration of the Port of Houston Authority.
  17. SB 2110 Relating to the composition of the Port Authority Advisory Committee.
  18. SB 2199 Relating to the powers and duties of a county or municipality to impose taxes on behalf of a navigation district.
  19. SCR 37 Urging Congress to increase appropriations from the Harbor Maintenance Trust Fund to properly maintain ship channels.
  20. HB 51 Relating to the management of commercial oyster boats in this state.
  21. HB 550 Relating to sound-producing devices on vessels.
  22. HB 1394 Relating to the administration of the Port of Houston Authority.
  23. HB 1395 Relating to the powers and duties of navigation districts, port authorities, and boards of trustees of municipal port facilities.
  24. HB 1396 Relating to the licensing and regulation of pilots in certain ports.
  25. HB 1528 Relating to the powers and duties of navigation districts and port authorities.
  26. HB 1625 Relating to the procedures for the enforcement by the General Land Office of the Oil Spill Prevention and Response Act of 1991.
  27. HB 1721 Relating to an exemption from and a limitation on the sales tax imposed on certain boats and boat motors.
  28. HB 1988 Relating to the use of emergency engine cutoff switches on motorboats.
  29. HB 2117 Relating to requiring certain persons to wear a personal flotation device while a passenger on motorboats.
  30. HB 2195 Relating to financial assistance for port security, transportation, or facility projects.
  31. HB 2196 Relating to the establishment of a seaport preliminary studies grant program.
  32. HB 2197 Relating to the creation of a port capital project revolving loan program by the Texas Department of Transportation.
  33. HB 2198 Relating to the establishment of a seaport preliminary studies grant program.
  34. HB 2199 Relating to the establishment of a seaport preliminary studies grant program.
  35. HB 2252 Relating to the feasibility of creating and maintaining a coastal barrier system.
  36. HB 2460 Relating to the board of commissioners of the Port of Beaumont Navigation District of Jefferson County.
  37.  HB 2499 Relating to the disposition of real property interests by navigation districts and port authorities.
  38. HB 2591 Relating to the exemption from taxes and special assessments of property of a navigation district.
  39. HB 2592 Relating to the powers and duties of a designated officer of a navigation district.
  40. HB 2593 Relating to franchises granted by navigation districts.
  41. HB 2610 Relating to the term for a lease of land owned by certain navigation districts.
  42. HB 2749 Relating to the composition of the Port Authority Advisory Committee.
  43. HB 2936 Relating to the administration of the Port of Port Arthur Navigation District of Jefferson County, including the authority to impose taxes.
  44. HB 2952 Relating to the powers and duties of the Sabine-Neches Navigation District of Jefferson County.
  45. HB 3636 Relating to the promotion of the cruise industry in this state by the Texas Economic Development and Tourism Office.
  46. HB 3641 Relating to the promotion of the cruise industry in this state by the Texas Economic Development and Tourism Office.
  47. HB 3650 Relating to the promotion and development of the cruise industry in this state.
  48. HB 3850 Relating to state fiscal matters; authorizing a fee.
  49. HB 3909 Relating to the powers and duties of a commissioners court to levy and collect taxes on behalf of a navigation district.
  50. HB 3941 Relating to the creation of a revolving loan program to finance ship channel improvements.
  51. HB 4021 Relating to the financing of ports in the state.
  52. HB 4088 Relating to the sunset review of navigation districts.
  53. HB 4123 Relating to the regulation of sport lagoons and granting rulemaking authority.
  54. HCR 78 Requesting the creation of a joint interim committee to study the development of a cruise industry on the South Texas coast.

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