Posted on August 12, 2024
HOUSTON– On Thursday, the Port Commission of the Port of Houston Authority held a special public meeting to discuss the proposed Houston Ship Channel Expansion – Project 11 user fee ordinance and receive public comment. Port Houston is implementing a user fee based on federal law to pay for the local share of costs for Project 11. The purpose of the meeting was to provide further updates and clarifications on the user fee ordinance and receive public input.
“This ordinance represents the official language that will put the user fee into effect and is the result of extensive collaboration with private industry to create a transparent, fair, and equitable user fee,” said Port Commission Chairman Ric Campo. “The idea of implementing a user fee is based on a proposal originally suggested by members of major industries along the channel,” he shared.
The Houston Ship Channel is a cornerstone of the U.S. economy delivering high-value exports and other goods and commerce to the nation. Earlier this year, the U.S. Army Corps of Engineers (USACE) ranked it the No. 1 busiest waterway in the nation, despite being the narrowest channel at 530 feet (before the start of Project 11); many major U.S. ports exceed 1,000 feet. Improvements to the channel are vitally necessary to increase safety and reduce congestion in the channel complex.
“The partially completed channel is already creating immediate and tangible congestion benefits for all vessels by significantly reducing daylight restrictions on subject vessels up to two hours in each direction,” Chairman Campo shared. Project 11 will expand the channel by 170 feet in some parts.
The fee is expected to go into effect later in 2025 and end when all local costs have been recovered, which is an estimated 30 years. “The money collected through the user fee can and will only be used for the reimbursement to Port Houston for the money spent on Project 11,” Chairman Campo further highlighted.
The Port Commission and staff will consider all comments prior to finalizing the ordinance. The Port Commission could approve the ordinance as soon as the next Port Commission meeting, which is scheduled for Tuesday, September 24 at 9:15 a.m. The proposed draft ordinance can be accessed here.
About Port Houston
For more than 100 years, Port Houston has owned and operated the public wharves and facilities along the Houston Ship Channel, including the area’s largest breakbulk facility and two of the most efficient container terminals in the country. Port Houston is the advocate and a strategic leader for the Channel. The Houston Ship Channel complex and its more than 200 private and eight public facilities is the nation’s largest port for waterborne tonnage and an essential economic engine for the Houston region, the state of Texas and the U.S. The Port of Houston supports the creation of nearly 1.5 million jobs in Texas and 3.37 million jobs nationwide, and economic activity totaling $439 billion in Texas and $906 billion in economic impact across the nation. For more information, visit the website at PortHouston.com.
