Proposed Pelican Island terminal faces opposition, competition

THE proposed development of a new container terminal by the ports of Houston and Galveston has raised concerns the trade gateway could turn Pelican Island and areas such as Seawolf Park into a "bustling freight centre" by 2020, according to the Houston Chronicle.

It said that plans for the facility date back nearly a decade when Houston port leaders bought 1,120 acres on Pelican Island for US$6.1 million with the view to eventually building another box terminal.

Since then the Bayport Container Terminal, which opened in 2007 and is expected to cost US$1.4 billion when completed in 2020, has appeared on the scene. Houston's container ports in 2009 handled nearly 1.8 million TEU.

The report said that beyond Pelican Island, a handful of other Texas sites are also being considered by the Port of Houston Authority for what's being dubbed "Terminal Next," but officials would not disclose those locations, citing competitive concerns.

What's more, Texas City is working with Seattle terminal operator SSA Marine to build a container terminal on the city's Shoal Point, but its construction has been delayed because of the economic downturn, according to Nick Finan, Texas City's executive director of management services.

Mr Finan was cited as saying that he's surprised by the interest in Pelican Island for several reasons, including that Shoal Point would not be near capacity by the time the Galveston terminal is proposed to be constructed.

Port of Houston Authority officials said they considered in their analysis the possibility that private developers may build a container terminal in Texas City and would build their container terminal based on market demand.

In the event the Pelican Island terminal is built, it could occupy up to 800 acres on the island and cost $500 million to $1 billion, depending on the plan selected, according to Steven Cernak, Port of Galveston director.

Many Galveston residents are believed to be opposed to an option to relocate Seawolf Park, a recreational spot on the island's tip.

"You've got to balance the need for access, environmental impacts, impacts on neighbours. It's a hard balance," said Bob Stokes, president of the Galveston Bay Foundation, as a new terminal would create jobs and more revenue for the island that relies on mainly tourism.

Port officials said with the expansion of the Panama Canal coming to completion in 2014, larger ships will arrive at Gulf Coast ports from Asia, and Pelican Island is close to the Gulf's deep waters. At present, container vessels travel down the long Houston Ship Channel to arrive at Houston's two container terminals, a comparatively longer distance.
(Source:www.schednet.com)