Port of Galveston - Board of Trustees of the Galveston Wharves

10/21/2024 | Press release | Distributed by Public on 10/21/2024 09:27

Maintaining Authorized Channel Depths for Major Industry

By Rodger Rees, Galveston Wharves Port Director and CEO

Few American waterways handle the diversity of cargos and business of Galveston Harbor. Last year, 1.5 million cruise passengers and 3.9 million tons of cargo, from cattle and cars to giant wind turbine pieces, crossed port-owned docks. Private operators, dealing in hydrocarbons and fertilizers, handled around 10 million tons.

Today the harbor can accommodate large ships, from 34-foot-draft cruise ships and car carriers up to 39-foot-draft liquid bulk carriers, because the federally owned portion in the middle of the harbor is dredged regularly to remove the silt that naturally builds up and reduces depths.

But rarely has the U.S. Army Corps of Engineers received enough federal funding to maintain the full depth of 46 feet federally authorized in 1996.

As a result, the port and private operators can lose business if deep-draft cargo ships can't safely navigate the harbor.

Port's Role as Local Sponsor

All federal channel work requires a non-federal sponsor to fund a portion of the work. As local sponsor, the Galveston Wharves provides millions of dollars for the required local match. We're also a vocal advocate and strategic partner for private operators on the channel to help the Corps of Engineers secure federal funding.

There's a big gap between what's needed to maintain channel depths and what's funded by the federal government. For the 2025 budget cycle, we asked for a much needed $48 million but received zero funding for annual maintenance dredging for the harbor.

The port and its stakeholders are advocating for full funding and nothing less.

As local sponsor, the port contributes significant funding and staff resources to advocate for our region's fair share of federal funding to maintain our harbor. Since 2011, the port has invested more than $15,643,525 in local matches.

West Channel Extension

As an example of working with private businesses on the harbor, the Galveston Wharves has supported a project to extend and maintain a 46-foot-depth in a section of the harbor west of port-owned property.

The 2,571-foot-long section between our West Port Cargo Complex and Pelican Island Bridge impacts Texas International Terminal on Galveston Island and private entities on Pelican Island. The extension largely benefits TIT, which moves liquid and dry bulk by deep-draft vessel, train and truck.

After years of review, in 2017 the Corps recommended deepening that section of the harbor for a total cost of $16.3 million. Through a cost-share agreement to fund the local match, TIT has pledged $3.8 million, and the port will pay $1.9 million. After years of work, the project has been federally funded.

But here's the rub. Authorization doesn't mean much without ongoing funding to maintain the extension.

Maintaining adequate depths is the lifeblood for public and private maritime operations on the harbor. In 2023, cargo activity generated $6.7 billion in economic activity and 19,136 jobs for Texas. Galveston's cruise business generated 4,547 regional jobs and $732.5 million in local business revenues.

Considering the harbor's multi-billion-dollar economic impact and critical role in global commerce, funding annual maintenance dredging is a relatively small investment with huge returns.