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September 5, 2024
News
New Port of Houston Chief Sees Terminal Liquidity as Key to Container Growth

Author: Michael Angell

Source: Journal of Commerce

The Port of Houston's new chief said the port is testing a new truck reservation system and using artificial intelligence to manage container cranes to optimize the capacity of two existing shipping terminals, while also considering building a third. Port of Houston Executive Director Charlie Jenkins toldBusiness Magazine, along withThe port will start processing new Panamanian ships next year, the current dock capacity should be able to support it for the next decade. Even so, the port still wants to develop a plan to cope with future growth by increasing dock capacity.

“Terminal 3 will be coming, just as Terminal 2 is coming soon, that is, in Bethport, we are further refining the best candidates for the selection of Terminal 3 sites and working hard to make a decision next year. We want to handle cargo at the lowest cost, and if we can gradually improve our existing docks, we can do a lot of things to exhaust our existing capacity, which we think will take about 10 years. We will be able to continue to develop, intensify and improve cargo mobility.” Jenkins said.

Jenkins has worked at the port for 34 years, following Roger Guenther's retirement this monthTaking over as Executive Director, Jenkins also owned a container dock, Barbours Cut, which had 11 ship shore cranes when Jenkins began work. Barbours Cut is primarily responsible for trans-Atlantic and South American routes and currently has 14 cranes. Last week, Houston received three more shipboard cranes, which will be installed at the Bethport Container Terminal, bringing its total number of cranes to 18. Houston has also ordered eight cranes, which are expected to arrive in 2026.

The new crane will eventually serve Project 11, scheduled for completion in 2025, which is expected to be completed in 2025, a multi-year effort to widen Houston's shipping lanes to accommodate two-way traffic for New Panamanian vessels, allowing an additional 1,400 ships to pass through, with some of the roads also added Up to 46.5 feet deep to accommodate larger vessels.

A section of the shipping lane between the Gulf of Mexico and Bayport is nearing completion, which can accommodate large ships on Asian routes, Jenkins said. In November, an ocean carrier is expected to introduce a new Panamanian vessel to test the compatibility of wider waterways. He added that the port decided to fund its $1 billion project debt through revenue bonds and channel usage fees, which helped speed up the completion of the project.

“By investing our own capital, if we follow the traditional financing path, we are decades ahead and we will have a test ship this fall and by the end of this year we will be able to handle a ship of 15,000 TEU sizes.” Jenkins said.

Truck Reservation System

According to PIERS (Standard Poll GlobalBusiness Magazine(sister product) data that import container volumes increased by 10% this year through July, and the container docks in Houston remain smooth and efficient. According to port statistics, the truck turnover time for double container transport is less than one hour, while truck turnover time for single container transport is just over half an hour. Jenkins said that as freight traffic continues to grow, it will become more important for the dock to cope with the increase in truck traffic. Since June, the port has been testing its first truck reservation system, called Express Pass. Truck drivers can book up to three days in advance and have dedicated access to the pier.

Jenkins said 30% of truck transportation is arranged through Express Pass, which is still voluntary for truck drivers. He said he wants 80% of drivers to use the reservation system by the end of the year and believes it is a necessary step in the port to avoid overcrowding and congestion during the epidemic. “It enables us to better respond to what's going on and make sure we have the right crane orders and manpower resources, so that if we knew what truck was coming that day, we could put the box at the top of the stack instead of burying it like we did in the past.” Jenkins said.

Jenkins said the launch of Express Pass coincides with the port enhancing its ability to share operational data with truck drivers and shipping carriers through improvements to its app interface and similar data-sharing tools. Bayport's yard operations are being further refined with an artificial intelligence system that optimizes the use of dump rubber tire gantry cranes. Jenkins said a similar system will eventually roll out at Barbours Cut. “We see cranes being able to recalibrate in the most efficient way to meet demand, which has made very, very big improvements,” he said.

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