Posted on August 21, 2024
A contract has been awarded for the second phase of a project to deepen the Brazos Island Harbor (Brownsville) Ship Channel, which will allow the Port of Brownsville to accommodate today’s larger cargo ships.
The U.S. Army Corps of Engineers Galveston District on Aug. 12 announced that the $104 million contract had been awarded to Galveston-based Callan Marine Ltd. for the project’s “Segment B.”
The port’s estimated share of the $141.6 million cost of phase two is $73.6 million, while USACE is kicking in $68 million, money from the Bipartisan Infrastructure Law, signed into law by President Joe Biden in 2021.
USACE picks up 65% of the design cost of the project, while the non-federal partner (the port in this case) covers the remaining 35%, according to a USACE spokesman.
Segment B involves the 13-mile stretch between the port’s ship turning basin and the site of Rio Grande LNG. It will require the contractor to remove some 7 million cubic yards of material using a pipeline dredge. Work is scheduled to begin in October, with estimated completion in June 2026.
Deepening the ship channel to accommodate heavier ships has been a top goal of the Brownsville Navigation District for decades. The biggest obstacle was finding a way to pay for it.
NextDecade, which broke ground on its Rio Grande LNG terminal project on the ship channel a year ago, has committed to paying the entire cost of dredging/deepening the remainder of the channel. That stretch is referred to as “Segment A.” According to USACE, the initial 4.5 miles of the channel will be deepened to 54 feet before transitioning to 52 feet for the remaining 7.5 miles.
That contract for dredging phase one was awarded last year to Great Lakes Dredge & Dock Corporation, headquartered in Chicago. Dredging of ship birthing areas, installation of navigation aids and improvements to “placement area” (where the dredged material goes) are included in the project scope, according to USACE.
NextDecade Liquid Natural Gas development company continues construction Thursday, April 4, 2024, along Texas State Highway 4 at their Rio Grande LNG export facility in Brownsville.
A wrinkle arose recently when the D.C. Circuit Court, on Aug. 6, vacated Federal Energy Regulatory Commission approvals of LNG projects at the port including Rio Grande LNG and the associated Rio Bravo Pipeline project. Work continues at the Rio Grande LNG site pending a mandate from the D.C. court enforcing its ruling.
The court’s decision came after a lawsuit against FERC by the Sierra Club and other anti-LNG petitioners, who argued that the federal agency’s review of the LNG projects was inadequate before granting authorization to proceed.
Ramon Navarro, senior project manager with the Galveston District’s project management branch, said the deepening project coming to fruition is the result of a close partnership between USACE and the port.
William Dietrich
Galveston District Commander Col. Rhett Blackmon said the port’s willingness to share the cost of the project “has allowed the Corps to undertake this transformative infrastructure improvement, which will have lasting positive impacts on the south Texas economy.”
“By deepening the ship channel, we are not only fulfilling our mission to maintain America’s vital waterways, but also generating immense economic benefits through increased trade, shipping efficiencies and supporting the region’s industries,” he said.
William Dietrich, appointed port director and CEO by the BND board on Aug. 7, predicted the deepening project would set the port on a “strong path for the future.”
“This investment ensures that the port remains a critical player in the global supply chain, supporting sustainable growth for diverse industries,” he said. “Our partnership with the USACE and NextDecade on the (channel) project further solidifies the port’s commitment to advancing our position for the betterment of our region and the communities we serve.”
Brownsville’s port is ranked 50th among the top 150 U.S. maritime ports for the movement of waterborne cargo, according to USACE’s 2022 annual report. Major commodities moving through the port include wind energy components, petroleum products, ores and minerals, steel and other metals, vegetable oils, grains and a variety of aggregates.
