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Shippers and carriers realise the benefits of shipping through Houston

 


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Topping the list of plans for the future is Houston's ongoing transformation from regional port to gateway port to America's Midwest.

"For many years Houston was more of a regional port serving the state of Texas. We have been working very hard to change that to focus on middle America. We look at our hinterland now as being anything in between the Rocky Mountains and the Mississippi River," Mr Kunz said.

This hinterland that Mr Kunz speaks of covers roughly 100 million people, or approximately one-third of the population of the United States. And that is precisely why so many ports view this region as crucial to their business.

But despite operating in this highly competitive market, Mr Kunz is well aware of his port's strengths and is therefore confident of ongoing growth for many years to come.

"We are centrally located. We've got an excellent highway system, both interstate and up to middle America. We've got Union Pacific (UP). We've got Burlington Northern Santa Fe (BNSF). We're working with them all of the time, trying to develop the train services moving north, and it is working well," Mr Kunz said.

In total there are currently 94 trains departing from the Port of Houston every week. And with ongoing discussions with both UP and BNSF the Port Authority expects to see an increase in the number of rail services per week as the volumes transiting through Houston continue to grow.

As noted earlier, BCOs are also seeing the value of Houston. The Port Authority is also actively engaging these customers to explain the advantages of establishing distribution centres near Houston.

"Many of the major retailers have come here and set up DCs so that they can supply not only the state of Texas, but further out as well. As time moves along, we're also moving our boundaries out, going further and further. So that is our goal to serve middle America, as well as the state of Texas," the vice president said.

In spite of the increased focus on serving a deeper hinterland, the state of Texas still provides the port with a very significant and growing consumer base, and a comparatively robust economy compared with the rest of the United States.

"We [Texas] were the last ones into it [the recession] and we were the first ones out. So we have been very fortunate to have a bit more of a robust economy here," he said.

Looking specifically at the state of Texas, the port serves a local population base of roughly 25 million people, with six million alone living in the immediate Houston area. And that number is expected to grow significantly as more of the American population is drawn to the state.

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