i,t’++i,

ml ¯

You can seton City Hall by the

Maersk Linesailings.

Houston is more than one of Amer-ica’s great metropolises. It has a longtradition as a thriving port for thevast Southwest region.

We like to think Maersk’s reputationfor reliable sailings has become partof that tradition.

We’ll strive to keep the familiar blueships coming and going just likeclockwork.

For information, call our Houstonoffice (713) 599-5200.

Fhis familiar landmarkhelps keep Houston on time.

COMPLETE SERVICE IN SHIP AND SHORE TANK CLEANING

15 YEARS EXPERIENCE

Services Available Worldwide

¯ Tank Cleaning, ChemicalCleaning, Dry Cargo, HoldPreparation

¯ Ships Crew AssistanceAvailable with Consultingand Equipment

¯ Dirty Water & SlopsDisposal

¯ Paint Preparation By HighPressure Water Blasting &Painting

¯ Line Moling to CleanPlugged or Dirty Lines

¯ Gas Freeing for Hot Workor Change of Cargoes,Such as Oil to Grain,Chemical to Chemical

¯ 15 Water Blasting UnitsAvailable from 10 GPM at10,000 P.S.I. to over 100GPM at 3,000 P.S.I. withMulti-gun Operation

¯ Port-to-Port Cleaning

REFERENCES AVAILABLE

PLEASE CALL FOR YOUR NEXT CLEANING QUOTE/

COASTAL HYDRO SERVICE619 BROADWAY . HOUSTON, TEXAS 77012

(713) 926-3213 . FAX: (713)923-5150

YOUR HAS NEVER BEENTREATED THIS WELL!

Ahh... Atlantic Container Line... first class treatment all theway across the North Atlantic. Anything and everything you ship -- fragile,oversized, or hazardous cargo -- deserves ACEs quality accommodationsand five-star service.

We’ll transport your cargo and see that it arrives on time -- in per-fect condition. And, we’ll handle all the details, so you can spend yourtime on other important things.

So, let ACL give you and your cargo the royal treatment. For moreinformation on ACL, GCL, and Atlantic Coast Express trucking service, call(800) ACL-]313. You’ll see that your cargo has never been treated so well!

QUALITY INNOVATION SERVICENo.1 on the North Atlantic

Volume 33 February 1989 Number 2

JAMES PUGHExecutive Director & CEO

TOM KORNEGAYManaging Director

JAMES BAKERDirector of Port Operations

F. WILLIAM COLBURNDirector of Economic Development

STEVE JAEGERDirector of Marketing

LINDA REESEDirector of Administration

JOE SCROGGINS, JR.Director of Facilities

JOE FLACKCounty Auditor

.o~OcSTO~’ %.F~ := %>~, Official

~: ~/~ %_ ~ Publication~: ~jI{~I~.gX I=~ Port of/, ~,~77~,,, ~ ,# Houston

IRE PORT Of HOUSION MAGMINE (ISSN 0032-4825) published monthly by the Port of HoustonAuthority, PO. Box 2562, Houston, Texas"77252 2562, and is distributed free to maritime,i[]dustria] and transportation interests in theLInited States and Ikoreign countries SECONDCLASS POSTAGE PAID AT HOUSTON, TEXASAND AT ADDITIONAL MAILING OFFICES.POSTMASTER: Send address changes to PORTOF HOUSTON MAGAZINE, PO Box 2562,Houston, TX 77252 2562. The magazine staff in-

cludes: Communications Manager, Janet Ander-son; Editor, Ann Bordclon; Writer, Susan Humphrey: Advertising Manager. Sbeila Adams; Pro-duction Supervisor, Nancy Switzer: and Photographer, Ray Soto. This publication is notcopyrighted and permission is given for thereproduction or use of any original materials,provided credit is given to the Port of HoustonAdditional information, extra copies or advertis-nag rates may be obtained by writing the PORTOF ffOUSTON MAGAZINE

Page 4

T A B L E 0 F C

Fentress Bracewell Barbours Cut Container TerminalKeeping in shape and preparing for the future

Argentine foreign trade undersecretaryArturo Hotton Risler visits Houston during U.S. tour

0 N T E N T

Economic impact of channel improvementsRice Center study analyzes extent of benefits

1989 - A watershed yearGuest column: U.S. Gulf containerization outlook

History: Part IICotton meant business in Houston for decades

!1

Positive news for Houston industriesDemand for petrochemicals and plastics to remain high

12

D E P A R T M E N T S

Port Tidings 19

Port Side 32

Liner Services 35

16

Executive Offices1519 Capitol AvenueP.O. Box 2562Houston, TX 77252-2562Tel: (713) 226-2100TWX: 910-881-5787Telecopier: (713) 226-2134

ON T H E COVER

Barbours Cut Container Terminal posteda record year in 1988, as evidenced byacres of container stacks and busywharves.

Field Offices60 East 42nd StreetNew York, NY 10165Tel: (212) 867-2780Fax: (212) 986-8731

PORT COMMISSIONERS

NED HOLMES HJ MIDDLETON MILTON CARROLL ROBERT GILLETTECbairnlan Comnlissioncr Commissioner Commissioner

Torre KLM, Pent HouseAvda. Romulo GallegosSanta EduvigisCaracas 1071, VenezuelaCountry Number: 01-58-2Tel: 283-2067, 283-1489Fax: 283-2067Telex: 25541, 27244

LEROY BRUNERCommissioner

C C SMITHERMANCommissioner

J. MICHAEL SOLARCommissioner

Once again, Fentress Bracewell Bar-boors Cut Container Terminal haspasted a year of record tonnage.Preparing for future grow~, the Portof Houston Authority has undertakenseveral expansion and improvementprojects at the intermodal facility.

arbours Cut Terminal finished1988 with a record 3.7million tons, up 12 percentfrom 1987’s total of nearly

3.3 million tons. In terms of con-tainers, the facility handled 430,00020-foot equivalent units, a 19 per-cent increase from 1987’s total of360,700 TEUs.

The tonnage figures are positive,but PHA officials say expansion ofBarbours Cut Terminal is essential ifthe facility is to remain competitive.One reason: Several shipping linesthat use the terminal expect to carryincreased tonnage in the years aheadbecause of growth in the traderoutes they serve.INCREASES EXPECTED "We expect tosee continued volume increases be-tween Barbours Cut Terminal andNorthern Europe, Australia and NewZealand, the Middle East, China andthe Mediterranean," says JohnHoran, terminal manager.

LEFT.. Tonnage /igures at Barbours CutContainer Terminal were positive in 1988,but expansion is the key to continued

competitiveness for this premier intermodalfacility.

BARBOURSFENTRESSBRACEWELL

cUT TERMINAL4

PHA General Sales ManagerDonald Allee agrees with Horan:"Many of the lines serving theseareas are optimistic and are expand-ing capacity as part of their long-term plans.""GROWING ROOM" Another factorthat makes expansion of BarboursCut Terminal desirable is capacity.The facility currently operates at ahigh percentage of its total capacity,making "growing room" a toppriority.

"Expansion is essential to main-taining the terminal’s reputation forfast vessel turnaround," Allee says."Growth is also important if we areto attract new lines to the terminal.You can’t tell prospective lines thatyou’ll expand your facilities forthem; the capacity must already bein place."

Construction projects at Barbours Cutinclude this new entry and exit gate fortrucks.

PROJECTS IN PROGRESS Several majorexpansion projects already are underway at the terminal. Some will befinished this year, including con-struction of sheetpile bulkheads fortwo new berths -- Nos. 5 and 6.Another improvement -- construc-tion of a second vehicle entry com-plex near Berth 4 -- was expectedto be finished around the beginningof this month. The complex willfeature one outbound lane and twoinbound lanes. The new facility willimprove truck turnaround time atthe terminal, where 600 to 700 com-mercial trucks arrive and departdaily.

"The new entry complex willhandle about 20 percent of the con-

Construction is under way on two new berths infew years.

tainer truck traffic moving throughthe terminal," Horan says. "Thecomplex also will improve truck ac-cess to Berth 4. Previously, vehiclesentered at the east end of the com-plex -- near Berth 1 -- and crossedthree wharf aprons to get to Berth4,,~

MORE PAVEMENT Paving of additionalacreage behind Berths 4 and 5 wasexpected to be completed aroundmid-year. The concrete surface isespecially designed to accommodatewheeled container loads and importcars. When the work is completed, atotal of 28 acres of paved area willadjoin Berth 4; 20 paved acres willbe located near the site of Berth 5.

"Berth 4 is frequently used bycarriers that handle wheeledcargoes," Horan says. "The addi-tional paving, combined with theconstruction of the new entry com-plex, will enhance our ability to

An electronic data interchange (EDI) systemthat will let shipping agents communicatewith the Bar&ours Cut CONICS computersystem is being developed.

anticipation of cargo increases in the next

move this type of cargo."MORE EQUIPMENT Plans also call forthe purchase of two additionalwharf cranes and four yard cranesfor the terminal, as well asupgrading of the terminal’s yardtractor fleet. Other equipment pur-chases include the recent acquisitionof three new top-lifters for movingempty containers.

New computer applications at Bar-bours Cut Terminal also are in theworks. The facility currentlyfeatures a computer database --called CONICS -- that enables PHAstaff to locate any container at theterminal within seconds. Recently,testing began on an experimentalelectronic data interchange (EDI)system at the terminal. The systemis designed to allow the terminal’scomputers and shipping agents’computers to exchange informationon container activity. The PortAuthority also is considering install-ing a modem and personal computerat the terminal that will allow agentsusing a touchtone telephone to findout whether a container is ready tobe picked up.

This impressive list of projects ispart of the Port Authority’s plan tobe ready for the next century, Alleesays. "If we want to still be com-petitive in the year 2000, we mustkeep a step ahead of our trafficvolume," Allee says. "By building atBarbours Cut Terminal, we’re doingjust that." []

The Smart Money moves

with all_water CGM- counting on

experience and reliability-

a service tailored to your

specific needs

6

handling cargoto and from

the U.S. Gulf/South Atlanticand the portsof Europe. ~’--~--":’"

Call today! ~~

Compagnie GGnerale Maritime

U.S. General Agent:

Kerr Steamship Co., Inc.2727 Alien Parkway, Suite 1500Houston, TX 77019(713) 521-9600

ARGENTINE FOREIGNTRADE UNDERSECRETARYVISITS HOUSTONA rturo Hotton Risler, Argentina’s foreign

trade undersecretary, recently visitedHouston during a U.S. tour aimed atpromoting trade and investment be-

tween Argentina and the United States.While in Houston, Risler toured Port of

Houston facilities aboard the Port Authority in-spection vessel M/V SAM HOUSTON. He metwith Mayor Kathy Whitmire and toured theJohnson Space Center.LUNCHEON SPEECH Risler’s Houston agenda alsoincluded speaking at a Houston InteramericanChamber of Commerce luncheon. He discussedArgentine governmental programs aimed at im-proving the country’s economic position.

"Our permanent objective is structuralchange, not simply stopgap measures," Rislertold chamber members.INFLATION DOWN Argentina has suffered from along period of persistently high inflation rates,Risler said. Inflation was as high as 28 percentbefore the introduction of governmental anti-

inflfitionary programs, he said, but dropped toless than 6 percent last November.

Until a couple of years ago, Argentina ex-ported only 5 percent of its gross industrialproduct. But exports hit 10 percent in 1988and Argentine officials expect that figure tosoon hit 20 percent, Risler said.INVESTMENT OPPORTUNITIES The undersecretarysaid Argentina now offers great opportunitiesfor foreign investors and exporters, with parti-cularly receptive markets for oil and gasmachinery, computers, construction and min-ing equipment, industrial machinery, electricalpower equipment, agricultural chemicals,medical instruments, and telephone and tele-phone equipment. Companies that wish toestablish operations in Argentina will find op-portunities in agriculture, food processing,supermarkets and hotels, Risler said.

In addition to Houston, Risler also visitedNew York, Washington and Los Angeles duringhis 10-day U.S. tour. []

"Our permanent

objective is

structural change,

not simply stopgap

I11easuIlts’ ’

Arturo Hotton Risler, Argentine undersecretary of foreign trade, recently visited Houston during a lO-day U.S. tour.Shown on the deck of the PHA inspection vessel M/V SAM HOUSTON are (from left) Lee Vela, PHA public relationsmanager; Miguel Guicbardot, Argentine trade commissioner in Houston; Richard Leach, PHA consultant; Risler;and Fernando Perrone, Argentine consul general in Houston.

R I C E C E N T E R A N A L Y S I S I S C 0 M P L E T E D ~ ~l n terms of personal income and retail sales, theHouston area has as much to lose by not making

!STUDY SHOWSECONOMICIMPACT OF

CHANNEL

improvements to the Houston Ship Channel as itstands to gain if the plan is approved and im-

plemented."The Rice Center of Houston recently completed an

analysis of what widening and deepening the HoustonShip Channel would mean to the Houston economy. Thestatement above is the final sentence in an executive sum-mary of that analysis.

The study was released recently by the Port of HoustonAuthority, local sponsor of the channel. Rice Centerresearchers prepared five scenarios for the study and ap-plied a regional econometric model to each. As reference

REAL RETAIL SALESCu~nulative Difference v. 1979 Peak

Billions (1982 Dollars)

¯ 83 Low

corps ot Er~

¯ 6% Ge~n

87 90 95 O0 05 10 15 20

Year

IMPROVEMENTSA proposal to widen and deepen the Houston Ship Channel iscurrently being reviewed by the U.S. Secretary of the Army

and the Environmental Protection Agency. The proposal woulddeepen the channel from 40 to 50 feet and widen it from

400 to 600 feet in certain areas. Recently the Rice Center inHouston analyzed the effects of the proposed channel

improvements on the Houston area economy.

points they used Port of Houston tonnage figures for1979, the highest recorded, and totals for 1983, the lowestin recent years. Projections were extended through theyear 2020.

TOTAL POPULATIONHouston CMSA: Diff. from 1979 Peak Tons

Thousands of People

a 83 Low

Corps of Eng

~

i I! ¯ 6% S~re

20 1

0 ~-~=...~====---

87 90 95 O0 05 10 15 20Year

So~ce R~ee C~t~

Of these, Michelle Foss of the Rice Center says threewere "the most revealing":

A baseline case- no improvements are made; totalGalveston Bay tonnage is constrained to the 1979 level,(166 million tons) and status quo is maintained;A worst case -- no improvements are made; the com-petitive position of Galveston Bay waterways erodes,and tonnage falls to the 1983 low, (137.5 million tons);A "most achievable" case -- improvements are madeand completed by the year 2000; Galveston Bay’s shareof tonnage shipped through the major Gulf Coast portsincreases by 4 percent by the year 2020. The studyshowed the 4 percent increase to be a reasonable ex-pectation if the improvements to the channel are begunby the mid- 1990s.

"MOST ACHIEVABLE CASE" If Houston’s share of Gulf ton-nage were to increase 4 percent by 2020, the researchersfound the following variations would occur:m,- By 2020, the region would offer 27,700 more jobs than

if the status quo were maintained.The region would have 48,000 more residents than inthe baseline scenario.

D,-Cumulative income would be $9.7 billion more than inthe baseline case.Cumulative retail sales would be $3.4 billion more thanin the baseline projection.

REAL TOTAL PERSONAL INCOMECumulative Difference v. 1979 Peak

Billions (1982 Dollars)

¯ s3 Low

Corps ot E~

87 90 95 O0 05 10 15 20Year

TOTAL WAGE & SALARY EMPLOYMENTHouston CMSA: Diff. from 1979 Peak Tons

Thousands of Jobs

¯ 83 Low

Corps of Eng.

¯ 6% Sh~re

87 90 95 O0 05 10 15 20Year

WORST CASE SCENARIO In the worst case scenario, thecenter found that the region would fall short of the base-line scenario in the following ways:

In the year 2020, the region would offer 18,000 fewerjobs than it would if the baseline scenario were to berealized;The region would have 38,200 fewer people than inthe baseline case;Cumulative income would be $13.6 billion less than inthe baseline example;

~" Cumulative real estate sales would be 4.8 billion lessthan in the baseline projection.

IMPROVEMENTS NEEDED The Houston Ship Channel handles68 percent of the water traffic in the Galveston Bay area."The portion attributed to the Houston Ship Channelalready meets the U.S. Coast Guard’s rated capacity forthe waterway," said Ned Holmes, chairman of the Port ofHouston Commission. "Maintaining tonnage at the peaklevels experienced in 1979 would cause an increase invessel delays, as well as increase the probability of seri(mscasualties.

"The Port of Houston Authority is committed to the im-provement project which will assure Houston’s com-petitiveness beyond the year 2000," Holmes asserted."We feel it will benefit Harris County citizens by creatingpositive economic opportunities." []

The Rice Center is an educational, non-projk’t corpora-tion affiliated with Rice L.:niversity to facilitate and en-courage research and the dissemination ~-knowledgeregarding communities.

SPECIAL PROJECT REQUIREMENTS?

CONTACT THE SPECIALIST: ATL (PROJECT CARRIERS) LTD.For over a decade ATL and their

associated companies have been transportingdrilling rigs, heavy lifts, containers, work boats,refrigerated cargo and hazardous materials toworldwide destinations for a wide varieWof clients.

Direct truck or barge to ship loading as well asdirect job site deliveries, ATL has the knowledge and

experience to transport project cargo safely andeconomically to its final destination.

Careful attention to detail, highly profes-sional personnel, and a worldwide network ofagents and representatives are the foundation

of ATL’s fine reputation in the market. A reputationsupported by more than 150 special project voyagessuccessfully performed.

ATL

For more information contact:

NEW ORLEANSGulfship Marine Inc.515 World Trade CenterNew Orleans, LA 70130Telephone: {504t 523-1923Fax: (504~ 568-9039Telex: WUD 584111 ’FIXED’

ITT 460228 ’FIXED’RCA 266074 ’FIXED’

HOUSTONGulfship Marine Inc.10500 Northwest Freeway, Suite 201Houston, TX 77092Telephone: t800~ 356 1034/(713) 682-1445Fax: ~713~ 682-2505Telex: 765469 ’FIXED HOU’

EUROPECarsten RehderGrosse Elbstrasse 42Postfach 5012802000 Hamburg 50West GermanyTelephone: 1040} 31180881Telex: 215237/215048

"Regular Service Houston/Curaeao/Trinidad/Guyana"

A s we enter a new year, it is useful toto reflect on the developments andchanges in the international inter-

modal transportation sector. Change willoccur at three different levels or segmentsof the industry including:

The fundamental relationshipbetween the supply of and de-mand for intermodal shippingand port facility capacityThe institutional manner inwhich the industry manages itsaffairs and, specifically, the con-ference systemThe manner in which carriers,ports and customers communi-cate with one another

In this article for the Port of HoustonMagazine, I will present how we see 1989

1989--A WATERSHED YEAR FORTHE CONTAINER SHIPPING INDUSTRY

AND THE PORT OF HOUSTONby

Leo J. Donovan

Vice President

Booz-Allen

& Hamilton, Inc.

unfolding in each of these three areas andtheir impact on carriers, shippers andports. At the end of the article I will con-clude with the implications that these andother issues may have on the Port ofHouston next year and in the early 1990s.

THE UNENDING SUPPLY/DEMAND DILEMMAAs executives in the ocean container in-

dustry reflect upon 1988, there is little tobe pleased about and, more importantly,their 1989 crystal ball suggests, for theoptimistic, a moderately positive yet hazyview of the next year and, for the morepessimistic, a darker and cloudier 1989.

On the brighter side, there were sub-stantial increases in outbound movementsfrom the United States to Europe andAsia. These increases caused a corres-ponding increase in rates in that directionand more even equipment utilization intrades dominated by imports throughoutthe 1980s. Further, the number and scaleof carrier service restructuring and ra-tionalization suggests that 1988 was thefirst year that the ocean carrier sector tru-ly availed itself of the liberalizationscharacteristic of the 1984 Shipping Act.

These pluses were offset by a series ofdebilitating events and actions that, whentaken together, overshadow the goodnews and lead one to conclude that 1988was a year the industry could have just aswell done without.

High on the "bad" list was the dramaticdecline in imports of high-valued goodsfrom Asia and the softening of such ship-ments from Europe. This situation exacer-

bated the imbalance that has existed bet-ween dollar denominated revenue andforeign denominated costs for all but theAmerican carriers since 1987.

Compounding this unhealthy situationwas the addition of high-quality indepen-dent carrier service and/or the defectionof several major carriers from the oceanconference system governing (or notgoverning) the trade between the UnitedStates and Europe and the Far East.

With this as background, I may feelcompelled to advise our ocean carrierclients to either defer 1989 or take theyear off. Assuming neither is possible, it isessential to determine how 1989 will besimilar to or different from last year.

One thing is certain. We can expect theocean carrier supply/demand situation toget worse before it gets better. On the de-mand side, most forecasters project a mo-dest annual growth rate between 3 and 5percent during 1989 and 1990. I personal-ly feel it will be higher, perhaps 8 to 10percent in loaded TEUs between theUnited States and our major trading part-ners. But even at the high growth rate, itwill be insufficient to absorb the growthin capacity that can be expected during1989 and 1990. Exhibit I suggests that thesupply of large containerships over 2,000TEUs will grow by 57 percent betweenJanuary 1988 and January 1990, or about25 percent each year.

EXHIBIT IGrowth in The World Container Fleet of Ships

More than 2 000 TEU Capacity

DATE

JANUARY 1988

JULY 1988

JANUARY 1989

JULY 1989

JANUARY 1990

NUMBEROF SHIPS

213

237

262

267

315

I CUMMULATIVECAPACITY

547.630

626.250

707,400

775,000

860,410

CHANGEINDEX(JAN1988=100)

100

114

129

142

157

Of course this growth in large shipscould be tempered somewhat by a de-cline in smaller container vessels. Such areplacement has not occurred during theearly history of containerization as theolder and smaller container ships aresimply redeployed on other routes.

Should the excess capacity situationcontinue to worsen as I have suggestedhere, then the tenuous situation affectingocean conferences could deteriorate evenfurther. To either meet or overcome thischallenge, the conferences will need toadapt -- and this is the issue that I believewill dominate container shipping in 1989.Assuming I am right, it is important toconsider some of the implications of suchchange.(Continued on Page 2 7)

11

ABOVE LEFI’: Cotton is loaded aboard a paddle wheeler atAllen’s Landing.ABOVE BIGHT: A newspaper cartoon bragged onHouston’s cotton receipts at the turn of the centuryRIGHT: After the opening of the deep-water channel toHouston, cotton was loaded aboard larger vessels likethe SS MERRYMOUNT, shown here in 1919 at aHouston city dock.~LOW: Cotton began arriving in Houston on railroadcars in the 1850sBOTTOM: A comic strip published in 1959 related theimportance of cotton to Houston’s economic growth

EDITOR’S NOTE: This is the second in a series of articles onthe history of the Port of Houston. The series is beingpublished as part of the observance of the port’s 75th an-niversary. The comic strips shown u,ere first published inthe Houston Chronicle in 1959 as part o fan educationalcampaign sponsored by the Port of Houston Authority.The strips were drawn for PHA by Bob Scboenke. Thecommentaries have been updated for this series. Some ofthe information for this series is drawn from articlesand essays written Jbr the 1959 educational campaign.

SECOND IN A SERIESOF TWELVEARTICLES

COTTON MEANTBUSINESS IN HOUSTON

FOR A CENTURYCotton was the most valuablecargo exported from the Port ofHouston in I914. The soft, fluffyplant fiber had been a profitablecash crop for Texas growerssince the 1830s. In I844 wharf-master Daniel G. Wheeler report-ed that 6,892 bales of cotton leftHouston by water. By the end of1860, more than 15, 000 bales ofthis valuable commodity were be-ing shipped out of Houston each year.

Many citizens of Texas depended on thecotton trade in the 1840s and 1850s. Thefarmers were at the beginning of the cy-

cle, with the cotton gins next in line. At the endof the cycle were the longshoremen and thecrews that manned the vessels on which thebales were loaded. In between, the cottonpassed through a number of hands.

Moving the bales from the cotton gins to thewharves provided a living for some resi-

dents. At first, wagoners brought the baledfiber to Houston in oxcarts. Five main wagontrails converged on the town, and cross trailspermitted the wagoners to turn off intoWashington Road, cross the bayou and taketheir choice of several camping grounds, orwagon yards.

One early yard was "Vinegar Hill," a spot ofhigh ground where the Southern Pacificrailroad station was eventually built. There thecotton planters and wagoners spent their hard-earned money on entertainment which causeddismay among the "solid" citizens of Houstonand inspired many a sermon in the city’s earlychurches.

Later, railroads carried the cotton to thebanks of the bayou. Workers began layingtrack for the Buffalo Bayou, Brazos and Colo-

rado Railway Co. in 1851. In1853, the company announcedbiweekly rail service betweenStafford’s Point and Harrisburg, adistance of 20 miles. By the eve ofthe Civil War, Houston was therailroad center of Texas. Fiverailroads radiated from the town.Texas had about 450 miles oftrack, and 350 miles of that led toHouston.

The cotton had to be kept somewhere nearthe wharves until it could be loaded on the

steamboats. At first sheds were constructedalong the bayou, providing some protectionfor the baled cotton. In about 1850 Tom Whit-marsh built a large warehouse for cotton andother commodities on the banks of the bayou,a short distance east of what is now MainStreet. By 1910 there were 12 cotton ware-houses in Houston.

In order to save warehouse and vessel space,cotton compresses were built. The Davis Com-press was one of the earliest, established in1844. Others included the Houston CottonCompress, established in 1860; the Bayou CityCompress, established in 1875; and the PeoplesCompress in 1881. In 1910 the city had sevencompresses.

Cottonseed oil factories produced oil, coke,meal, linters, hulls and soap stock, and

shipbuilders and companies that maintainedrailroad equipment flourished with the cottontrade.

Merchants also made money from the ex-change of cotton. Col. Cornelius Ennis was thecity’s first cotton merchant in 1840, handlingcotton grown in Fort Bend County.

The Civil War disrupted the cotton trade, butit made fortunes for certain enterprising(Continued on Page 23)

13

%,

Complete topsideship repair, cleaning,and pollution control!The facilities at our locations havethe capacity to resolve your ship repairand maintenance problems.

Our Houston Ship Channel berth onBrady Island accommodates ships to780’, full utilities, 25T tower crane, andcomplete workshops.

The Orange, Texas facilities have twoworking berths accommodating ships to700’, full utilities, 50T floating crane,and complete fabrication and machineshops.

Experienced and reliable personnelhandle all phases of ship repair, dieselrepair and reconditioning, electric motorrewinding and trouble-shooting, cleaning,exterior painting, and tank lining. Whenyour ship leaves our facilities it run.C

TEXASORANGE

HOUSTON

CORPUS

HOUSTON SHIP REPAIR, INC,16201 IAbod DrMe, f’0. B<>~ 4~’9(’hannelvie~, 7~’~a,~ 77530 USA¢71 ?)452 5841. 7i,h,v. 7922~’2

NORTH AMERICANMARITIME MINISTRIESCONFERENCE

EUROPEAN AND NORTHAMERICAN CHAPLAINSMEET IN HOUSTONA pproximately 185 chaplains from Europe and

North America gathered in Houston recently forthe annual North American Maritime MinistriesConference.

The conference, held at the Wyndham Hotel-TravisCenter, was last convened in Houston 15 years ago. Thisyear’s attendance was the largest ever for the conference.EVENTS During the five-day program, participants at-tended several seminars on topics such as seafarers’ rightsand trends among seamen’s centers around the world.

The Rev. Rene Gracida, national episcopal promoter forthe Apostles of the Sea, was the keynote speakerat the opening session of the conference. Gracida, whorecently retired from the promoter’s post, was given aplaque for distinguished service. The Rev. James Whitte-more of the Flying Angels presented the plaque. TheApostles is a Catholic group dedicated to serving seamen,and the Angels is its Anglican Church counterpart.HOUSTON CENTER Houston has its own seamen’s centerlocated within the Port of Houston Authority’s TurningBasin Terminal. Some 50,000 seafarers visit the HoustonInternational Seamen’s Center each year. []

During the conJerence, Ben ttansen ~[ the Corpus Christi Seamen "s

C~’nter presented a plaque to Mrs ./ohn MilI~ O, ~m beha!/ r~/ theInternational Conference of Seamen’s Agencies. Mrs. MilloF wasrecognized for her dedication as an administrator at the Corpus

Christi faciliO,.

Port of Houston Commissioner Michael Solar was master ~ceremonies fi~r a banquet held on the last *tight of thechaplains’ co*{/~rence.

Rev. Rene Gracida (left), national episcopal promoter for the Apostles of theSea, receives a plaque for dt’stinguished service from Rev. James Whittemore o/

the Fl},ing Angels.

15

H igh demand and high operat-ing plant rates for base petro-chemicals and polymers areexpected to continue through

1989, with the possibility of spotshortages for some products, accord-ing to projections by DeWitt & Co., apetrochemical consulting firm.

The outlook, coupled with Hous-ton’s role as the center of the petro-chemical and plastics industry,should spell good news for the Hous-ton economy, said William Kuhlke,vice president of DeWitt. Kuhlke wasthe speaker at a briefing held in NewYork by the Houston Economic De-velopment Council for chemical writ-ers.

"Additionally, the growing strengthof the Houston market, its concen-tration of polymer industries andtechnical support services shouldmake it an increasingly attractive sitefor manufacturers of finished plasticsproducts," he added.MARKET BALANCE Some of the short-ages of 1988 should start to ease nextyear as capacity b,egins to catch upwith demand and new plant expan-sions begin to come onstream in theHouston area, Kuhlke noted. "Webelieve 1989 will see a more balancedsupply-demand market characterizedby continuing high prices, good prof-itability and the possibility of spotshortages," he said.

Plants producing base petrochemi-cals such as ethylene, propylene andMany Houston plants involved in themanufacture of base petrochemicals and pol-gmers are operating near capacity thesedays. High demand for these products isprompting a number of companies to expandtheir facilities.

ELIEVE 1989 WILL SEE A MORE BALANCED

SUPPLY-DEMAND MARKET CHARACTERIZED BY CONTINUING

HIGH PRICES, GOOD PROFITABILITY AND THE POSSIBILITY

OF SPOT SHORTAGES.})’

benzene will continue to operate atvery high rates, Kuhlke told the writ-ers.MORE PRODUCTION NEEDED "The eth-ylene demand in early 1988 caught upwith and exceeded the supply. Theproblem now is to build additionalcapacity fast enough. The supply anddemand for ethylene will remain verytight with prices remaining high in1989," he said.

Similar scenarios are forecast forpropylene and benzene which, withethylene, are used to produce in-termediate chemicals used in such

With demand projected

to grow a 4 percent

annually, polyethylene

plants will continue to

operate at more than

90 percent in 1989.

brings 1.2 billion pounds of new ca-pacity on stream. With demand pro-jected to grow at 4 percent annually,polyethylene plants will continue tooperate at more than 90 percent in1989.

The market for polypropylene"may be reaching a peak in its growthcycle," said Kuhlke. At a probablelong-term growth rate of 5 percentannually, supply will continue to ex-ceed demand and plant operatingrates could drop below 90 percent.But at a 10 percent growth rate, theindustry will absorb planned newcapacity and maintain operating ratesof more than 90 percent.

Demand for PVC, which Kuhlkeexpects to grow by 3 percent, will

keep operating rates flat at about 89percent.POLYSTYRENES While polystyrene mar-kets are expected to remain strongthrough 1989, Kuhlke said currentshortages of aromatics are resulting inhigher prices for benzene and styrenemonomer feedstocks. The resultinghigher costs for polystyrene couldlead to the substitution of more com-petitively priced products, he said.

Houston currently has 43 percentof U.S. capacity for polyethylene, 49percent of polypropylene and 36 per-cent of PVC. Kuhlke expects Houstonto get its first polystyrene plant "inthe near future, which may signal in-creased growth in the area’s plasticfabricating industry." []

plastics as polyethylene, polypropy-lene, polyvinyl chloride (PVC) andpolystyrene.

High demand will continue forstyrene monomer and vinyl chloridemonomer, two key intermediatechemicals. Assuming a 3 percentgrowth in demand, styrene monomerplants "will operate full-out" andvinyl chloride monomer plants willoperate at more than 90 percent ofcapacity, Kuhlke projected.CAPACITY GROWTH He expects U.S.polyethylene capacity to grow by 6percent in 1989, as the industry Docking areas like this should be busy in 1989 as feedstocks are delivered and plastics and

other petrochemicals are moved out to meet the expected demand for such products.

17

Cartagena

11Hc

Regional U,S.A. Agents:

& Johnson!, Inc.

1-10 East, Suite 630Texas 77029

455-1100

(713) 692-5000

FAX(713) 692-0546

ALTERNATE NUMBERS(713) 481-2254Day or Night

Toll Free1-800-727-4747

[CRISIS}TRANSPOR TA TION

COMPANY~SERVICES INC.4343 Robertson

Houston, TX 77009

TRUCK TRANSPORTATION SERVICES

1. Import~Export Containers 10. Mexico Export~Import2, Local Drayage-Houston & 100 Miles 11. Breakbulk Pier PU and Delivery

3. Interstate-Texas, Oklahoma & 48 States 12. Direct Discharge4. Company Vans and Flat Beds 13. Container Stripping & Stuffing5. TOFC/COFC 14. Storage & Warehousing6. General and Specialized Commodities 15, Intermodal Concurrence7. Regular and Hot Shot Service 16. Stop in Transit Privileges8, U.S. Customs Bonded Carrier 17. Super Heat{y/Overstzed Permit Bonded9. U.S. Customs Bonded Cartman-CHL 232 18. SPECIAL PROJECTS

TRUCKING EQUIPMENT

1. Import~Export Containers 6. Company Low Boy Trailers2. Company Volume Vans 7. Tandem Axle Truck Tractors3. Company Flat Beds 8, Hot Shot Pickup & Delivery4. Company Stretch Floats 9. Materials Handling Equipment5. Company Drop Deck Flat Beds 10. Heavy Lift & Spec(al Equipment

LICENSES AND BONDS1. Interstate Commerce Commission MC-148154F, MC-1833532. U.S. Customs Bonded Carrier MC-148154F3, U.S. Customs Bonded Cartman No.-CHL 2324. Texas Alcoholic Beverage Permit No. C138849 et al5. Super Heavy & Oversize Permit Bond No. 356185 et al

Dedicated To ServiceDelmas W. Heinke, President ~a

18

MEETINGCALENDAR

Delta Nu Alpha-Chapter 36: Meetsthe Last Tuesday of each month, 11:30a.m. at Brady’s Landing. For informationcall Steve Jaeger, 226 2120.

Delta Nu Alpha-Chapter 282: Next meet-ing to bc announced. For informationcall Altha Williamson, 476-8269.

Houston Customhouse Brokers andFreight Forwarders Association:Next meeting is Feb. 8 at DoubletreeHotel-Intercontinental Airport. For in-tbrmation call 228-7447.

Houston Transportation Clerks Associa-tion: Meets the second Friday of eachmonth, 11:30 a.m. at Brady’s Landing.For information call Jeanne Hooke,241-4768.

International Maintenance Institute-Sam Houston Chapter: Meets thethird Tuesday of each month, 6 p.m. atthe Concord Hotel (formerly RamadaInn-Hobby Airport). For reservations,call Joyce Rhoden, 481-0869.

International Transportation Manage-ment Association: Meets the thirdThursday of every month, noon, at theHoustonian Hotel. For information callVonnie McClellan, 861-7822.

Marine Services Association of Texas:Meets the second Tuesday of eachmonth at 11:30 a.m. at Brady’s Landing.For information call Susanne Pagano,781-2713.

Marine Square Club of Houston: Meets thesecond Wednesday of each month at11:30 a.m. at Brady’s Landing.

National Defense Transportation Associa-tion: Meets the last Thursday of eachmonth, 11:30 a.m. at Kaphan’s. For in-formation call Glenn Meadows,468-4724.

Port Safety and Advisory Council: Meetsthe first Thursday of every odd-numbered month at 11:30 a.m. at the In-ternational Seamen’s Center at the Portof Houston Authority’s Turning BasinTerminal. For information or reserva-tions call Lt. David Atkinson, 672-6630.

Texas A&M University Maritime Asso-ciation: Meets the fourth Wednesday oftile month, 11:30 a.m., at Brady’s Land-ing. For information call Jim Moore,928-5010.

Transportation Club of Houston: Meets thefirst Tuesday of each month at 11:30a.m. at Brady’s Landing. For informationcall Jim Willett, 228-2825.

U.S. Merchant Marine Academy AlumniAssociation, Houston Chapter:Meets the first Thursday of each month,11:30 a.m. at Brady’s Landing. For infor-mation call Bill Bowes, 451-2711.

Women’s Transportation Club ofHouston: Meets the second Monday ofeach month, 5:30 p.m. at Kaphan’s. Forinformation call Zelma Keenright,896-7711.

We Don’t Go Against The GrainThe Port of Houston is the leading wheatexport port in the United States. Go with thegrain. Give us a call at (713) 226-2100