Posted on May 26, 2025
The U.S. Army Corps of Engineers (USACE) has allocated $131 million to the Houston Ship Channel in its FY2025 work plan.
The move was welcomed by the Port Commission of the Port of Houston Authority at its regular meeting on 20 May.
Of this total, $33 million will go towards ongoing construction under the Houston Ship Channel Expansion—Project 11—and $98 million has been designated for operations and maintenance to keep the channel dredged and operational.
This funding follows further progress on Project 11, as the USACE recently approved the federal Assumption of Maintenance (AOM) for Segment 1B of the channel, stretching from Redfish Reef to Bayport Terminal.
This complements the approval of Segment 1C—Bayport to Barbours Cut—granted in 2022. Together, these approvals represent the conclusion of nearly five years of collaborative effort and are projected to generate nearly $380 million in savings over the next 50 years.
Port Houston expects to complete dredging work on Segment 1C by late Q2 or early Q3 of 2025, with beneficial use features in Galveston Bay scheduled for completion in Q4 2025.
Despite a projected nine blank sailings at its container terminals over the next six weeks, Port Houston reported strong throughput figures for April and remains cautiously optimistic. Officials emphasised that the current forecast is far more stable than during previous periods of market disruption.
In line with its sustainability goals, Port Houston also commissioned 20 clean diesel yard tractors at Barbours Cut and Bayport terminals, retiring older models in the process.
In addition, the port is working with TxDOT, Houston Pilots, and Port Security and Emergency Operations to temporarily enhance air draft markings on the Interstate 610 bridge.
Earlier this year, the Department of Transportation (DOT) and the Federal Highway Administration (FHWA) granted the port almost $25 million in funds to build and run a hydrogen fueling station for heavy-duty vehicles. The Bayport HRS project aims to create a pipeline-based hydrogen refuelling station (HRS) that provides simple and publicly accessible fueling choices, promoting supply chain growth in Texas and the Gulf Coast area.
