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Houston Chronicle: Houston ranks No. 2 in domestic port jobs

Houston ranks No. 2 in domestic port jobs
Houston Chronicle
By Sarah Scully | February 23, 2016
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Houston, widely known as a major port for foreign trade, ranks second in the U.S. for domestic maritime jobs as well, a new study shows.

The local strength helped boost Texas to a No. 3 ranking among states, according to the PricewaterhouseCoopers study commissioned by the American Maritime Partnership. It estimated the industry has an economic impact of nearly $8 billion in the state.

"The report demonstrates exactly just how much of an economic driver that our maritime industry is for our local economy, our state economy and our national economy," U.S. Rep. Brian Babin, R-Woodville, said Tuesday after a tour of Kinder Morgan's facility and docks. "This cannot be overlooked. This area is a world leader in the maritime industry."

Babin added that his district, which includes most of the Houston Ship Channel and stretches northeast from there, is home to more refineries than any other congressional district in the country. He also said that he worked as a merchant seaman prior to Congress.

Babin and U.S. Rep. Randy Weber, R-Friendswood, joined Port of Houston officials and Chancellor of San Jacinto College Brenda Hellyer at Kinder Morgan's Bostco Storage & Terminal Services facility to share the report findings. They toured the facility, which stores and blends heavy fuel in more than 60 massive tanks, to exchange with ships and barges that visit its docks. Houston ranked behind only New Orleans in domestic maritime jobs. Petroleum products made up most trade through the region, with 59 million tons shipped from Texas annually and 58 million tons arriving at Texas ports from other states. More than 90 million tons of cargo are shipped to Texas from U.S. ports, and Texas supports about 39,000 domestic maritime jobs, the study found.

Nationally, domestic maritime trade supports 478,440 jobs, the Maritime Partnership reported, and $92.5 billion in gross economic output. The American domestic fleet is made of 40,000 ships.

"It's vital for our economy, not just in Texas but in America," Weber said of the industry. "It's vital that we keep this area strong and safe because a strong and safe Texas means a strong America and a safer world."

Hellyer said San Jacinto College recently opened a training center at the port and is working with companies to train workers to replenish the aging maritime workforce.

Kinder Morgan spokesman Dave Conover noted that the domestic maritime industry serves much more than the oil and gas industry nationally. Brett Conaway, who works in operations at the terminal, said the facility is busy.

"For Kinder Morgan, we're more like a toll road," explained John Powe, who does environmental compliance for the site. "So producers, manufacturers are going to store their product, and Kinder Morgan is going to get paid either way."

"As long as the Jones Act stays intact, the future is bright for this industry," Conover said. The Jones Act requires all trade among U.S. ports be done on U.S. ships with American crews.

Kirby Corp. spokesman Matt Woodruff emphasized the national security element of the Jones Act by keeping domestic trade in the hands of American companies.

"I think the Jones Act has a lot of support. I think it has such an importance here from a homeland security perspective," he said.

Otherwise, Woodruff added, "the Coast Guard would have six times as many vessels that they would be keeping an eye on."