Port Freeport, a deep-sea port strategically situated on the Texas Coast, has for decades been serving its customers and stakeholders through state-of-the-art infrastructure, multimodal terminal services, and competitive expansion options. It is a leading port in the export of crude oil and natural gas liquids and handles automobile storage and processing, steel products, fresh fruit, petrochemicals, LNG, and other kinds of cargo.
Port Freeport is a fast-growing port in Texas. Its role will be further enhanced as a result of the ongoing expansion project, aimed at the deepening and partial widening of the channel and related navig-ational improvements, and several other strategic initiatives.
These include the expansion of the container-handling terminal, the development of a rail-served multimodal site and support for the development of an efficient transportation corridor to and from Freeport. After the channel project is complete, the depth of the harbour will range from 51 to 56 feet, making Port Freeport the deepest port in the Gulf of Mexico. This is expected to increase the Port’s capacity and broaden its customer base, enabling the Port to market itself to a wider range of global vessels and attract new liner services.
Progressing to plan
We first spoke to Port Freeport Executive Director and CEO Ms Phyllis Saathoff three years ago, at the onset of the global pandemic, when the channel deepening project was on the cusp of being initiated and a new berth was being constructed.
“The pandemic may have changed the way we work, but it didn’t hinder the Port’s operations. We still had a responsibility to vessel and cargo operations, and those activities and projects continued with the support of our partners and the workforce,”
she said. “The channel-deepening project and berth construction also continued without disruptions. We have had a few really productive years, and we are now benefiting from the results.”
She explained that all funding has been received for the various stages of the channel project, and four contracts have been awarded for channel construction work. The final allocation of funds for the
project completion was received at the end of 2022, bringing the total sum obtained from the federal government, for the Freeport Harbor Channel Improvement Project, to $207 million.
Work on the remaining segments started in June, and the project is on schedule for completion by the end of 2025. “The project completion will be an important milestone that will further enhance our capability, bringing new opportunities and new customers,” she acknowledged.
Solid partnerships
She reflected that recent market developments, specifically in the automotive sector, are bringing important changes to the Port.
At the end of 2022, Volkswagen Group of America announced Port Freeport as its new Gulf Coast hub for future operations, with a view to further improving vehicle logistics efficiency and increasing import capacities to serve nearly 300 dealers in the Texas market and beyond. The new port facilities are set to be operational in early 2024.
This will enable Volkswagen Group of America to import approximately 140,000 vehicles per year, primarily from its production hubs in Mexico, as well as imports from Europe. Port Freeport welcomes the utilisation of low-emission LNG-fuelled vessels, supporting Volkswagen Group’s goal of improving the environmental footprint of its global logistics.
But that is not the only investment in the pipeline. “We are expanding into a 100-acre area that’s adjacent to the container terminal, and also continuing to invest with our partners that wish to grow with the Port Freeport developments,” stated Saathoff.
Some of these partners have already been growing with the Port for several decades – such as Dole Fresh Fruit Company, a subsidiary of Dole Food Company, one of the world’s largest producers and marketers of high-quality fresh fruit and fresh vegetables. Dole marked the 40th anniversary of its partnership with Port Freeport in April 2023.
“Dole has been operating in Port Freeport since the mid-1980s and soon thereafter came Chiquita Brands International Inc. in the 1990s. Now the Port is proud to be adding Del Monte Fresh Produce N.A., Inc. in 2024. We are expecting more investment and job growth as a result of these partnerships, making us one of the leading ‘green freight’ import ports,” said Saathoff.
Sustainable growth
“Collectively with our partners, we are generating exciting economic activities in the communities that are adjacent to the port and opportunities for others to invest and benefit,” she added, reflecting that even with the challenges of the last few years there have been opportunities. “It’s about how you respond to those opportunities, developing to stay ahead of the demand, wisely investing resources and supporting our customers and our communities to deliver sustainable growth for all.”
Enhancement of the existing infrastructure is an ongoing process, and Saathoff highlighted the completion of the container terminal expansion in May 2023. The project included the construction of a multipurpose Berth 8, a 927-foot linear extension to the existing 800-foot Berth 7, plus an 85-foot Roll-on Roll-off (RORO) platform that will offer opportunities for further growth in the RORO segment and serve finished-vehicle, high-and-heavy and breakbulk operations.
Just recently, the port announced the formation of a new Environmental, Social, Governance, and Sustainability Committee of the Port Commission. Forming the Committee is a reflection of the Port’s commitment to being a responsible business partner and steward of the environment.
“As such, the Port not only plays an important role in the economic development of the region but also in promoting sustainability and environmental stewardship on a wider scale.”
