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TVolume 32 November 1989 Number !1

JAMES PUGHExecutive Director & CEO

TOM KORNEGAYManaging Director

JAMES BAKERDirector of Port Operations

F. WILLIAM COLBURNDirector of Economic Development

A.W. HIETALADirector of Trade Development

LINDA REESEDirector of Administration

JOE SCROGGINS, JR.Director of Facilities

JOE FLACKCounty Auditor

...... ~ ~/,TL-H/

Page 4

T A B L E 0 F

Serving shippers onlinePHA facilities in the computer age

C 0 N T E N T

Omniport-Houston openingCeremony held at automated terminal

Proposed channel improvementsProject funding slated for Nov. 7 vote

Seventy-five years of progressPlans are set for port’s diamond anniversary

All-water alternativeZim Lines has found its niche

S

4

7

9

11

13

THE PORT OF HOUSTON MAGAZINE (ISSN 0032-4825)is published monthly by the Port of HoustonAuthority, 1519 Capitol Ave., Houston, Texas

77002, and is distributed free to maritime, in-dustrial and transportation interests in theUnited States and foreign countries. SECOND

CI.ASS POSTAGE PAIl) AT HOUSTON, TEXAS.POSTMASTER: Send address changes to POWF

OF HOUSTON MAGAZINE, P.O. Box 2562,Houston, TX 77252-2562. The magazine staff in-cludes: Communications Manager, Janet Ander-son; Editor, Ann Bordelon; Writer, Susan Hum-phrey; Advertising Manager, Sheila Adams; andPhotographer, Ray Sort). This publication is notcopyrighted and permission is given for thereprodut tion or use of any original materials,provided credit is given to the Port of HoustonAuthority. Additional intormation, extra copiesor advertising rates may be obtained by writingthe PORT OF HOUSTON MAGAZINE.

DEPARTMENTSHistory: Part Xl 14

Guest Column 17

Port Tidings 19Port Side 36Liner Services 39

Executive Offices1519 Capitol AvenueP.O. Box 2562Houston, TX 77252-2562Tel: (713) 226-2100TWX: 910-881-5787Telecopier: (713) 226-2134

Field Offices60 East 42nd StreetNew York, NY 10165Tel: (212) 867-2780Fax: (212) 983-2746

PORT COMMISSIONERS

ON THE COVERA picturesque Houston sky provides acolorful backdrop for the Port ofHouston Authority’s Turning BasinTerminal.

Torre KLM, Pent HouseAvda. Romulo GallegosSanta EduvigisCaracas 1071, VenezuelaCountry Number: 01-58-2Tel: 283-1221, 283-1489Fax: 283-1221Telex: 25541, 27244

NED HOLMES H. MIDDLETON MILTON CARROLL ROBERT GILLETTE LEROY BRUNER CC SMITHERMAN J. MICHAEL SOLARChairman Commissioner C(~mmissioner Commissioner Commissioner Commissioner Commissioner

SERVING SHIPPERS ONLINE

"Hello. This is AQZ Freight Line. I’msending a driver over to pick up a con-tainer of widgets from Genoa. Thenumber is MXQO000000."

"Certainly. It’s in the southeast cor-ner of our property next to the containerof Christmas decorations from Taiwan.It’s got a red ’W’ on the side. Just askthe toplifter operator to fish it out foryou when you get here."

A nyone in the intermodaltransportation businessknows the telephone con-versation above is strictly

fiction. Picking up a containerfrom one of today’s busy inter-4

modal terminals just isn’t thatsimple.

lntermodalism has acceleratedthe movement of cargo and led tothe development of larger, moreefficient terminals. It has alsocreated a need for faster methodsof exchanging information so thatcargo can be kept moving.

The Port of Houston Authorityis committed to satisfying thatneed. Since 1977, computers havebeen used to track container ac-tivity at the Fentress BracewellBarbours Cut Container Terminal.Today, computers are used in avariety of ways to keep cargomoving at Barbours Cut and otherPHA facilities.NEW EDI SYSTEM The newest addi-tion to PHA’s list of computerized

information services is an elec-tronic data interchange (EDI) pro-gram which will give BarboursCut customers direct access to theterminal’s Container InventoryControl System (CONICS).

Two Houston shipping agentsbegan testing the new system inSeptember. Norton, Lilly & Co.,acting on behalf of its client,China Ocean Shipping Co.(COSCO), was the first companyto test the system, which permitsthe exchange of ocean manifestand container movement data.Maersk Line has also sent andreceived data using the new EDIprogram, according to Jim Eld-ridge, management informationservices manager for the PortAuthority.

LEFT: The Management InformationServices Department is the heart of thePort Authority’s computer operations.

RIGHT: Computers at Barbours CutTerminal, such as the one Jennifer Heidtis using here, provide fast and accurateinformation on container activity.

"Other companies are showingan interest in participating in thisproject, too," Eldridge notes. "Ofcourse, we are prepared to enterinto the same kind of EDI part-nership with other Barbours Cutusers."

STANDARDIZATION Other ports havealready established EDI systems,but the Port Authority has donesomething different with itssystem. PHA’s system uses na-tionally recognized "standardtransaction sets."

The shipping industry has onlyrecently come to terms with oneof its biggest problems in tryingto electronically exchange data --a lack of standardization¯ Most ofthe systems developed in the pasthave had their own ways of ar-ranging and labeling data. Dataformatted for one system has tobe rearranged and relabeled to becompatible with another system.The PHA system is one of the firstto use transaction sets selected bythe industry for generalized use.COMPATIBILITY "As more and moremembers of the transportationcommunity begin using the stan-dardized transaction sets, userswill have less and less troublewith inconsistencies," explainsOrin Rehorst, manager for the

EDI project. "They will be able touse one program to communicatewith a variety of ports and com-panies and will be able to use thedata as its is received in their owncomputer systems¯

The first phase of the PHAsystem will involve the exchangeof messages such as ships’manifests and gate and vessel ac-tivity. It will streamline documenttransfer and data related to inter-national shipments, reducing theadministrative burden for steam-ship lines operating in Houston.Subsequent phases will include ad-ditional parties and messages.CONICS The new EDI program of-fers computer-to-computer accessto the CONICS system¯ However,direct access via on-line computerterminals has been available forsteamship lines since 1977. Agentsfor 19 ocean carriers at the ter-minal use this service to accessand update container information.They also use it to enter pre-arrival and status information onexport containers¯

"PHA was the first port to pro-vide this type of data via EDI andwas instrumental in the develop-ment of the EDI transaction setsfor manifests and container activi-ty," notes Eldridge.VOICE RESPONSE Another technologi-cal development at Barbours Cut

has been the initiation of a "voiceresponse" system to give motorfreight lines and others direct ac-cess to container data. Using atouch-tone telephone, a truckingcompany representative can deter-mine the status of an import con-tainer prior to pickup, avoidingdelays and unnecessary trips tothe terminal.MODELING SYSTEM Still in the devel-opmental stage is a computermodel that simulates operations atBarbours Cut. A pilot model thatsimulated the terminal’s gate ac-tivity under varying conditionshas already been used to improvetruck turnaround time. The com-pleted model will allow PHA per-sonnel to simulate differences invessel arrival rates, containermoves per vessel, equipmentavailable for container handling,truck turnaround times, equip-ment maintenance, staffing levelsand other information.(Continued on Page 34)

]

LEFT: Joe Carwile of Sea-Land ServicesInc. uses a new voice response system toobtain information on the status of acontainer at Barbours Cut Terminal.

RIGHT: Computers are used in a varietyof ways to keep cargo moving at PHAfacilities.

t ¯ " "

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6

OPENING CEREMONIES HELDAT OMNIPORT HOUSTON

0pening ceremonies were heldrecently for Omniport Houston,the first automated cargo handlingfacility of its kind in the United

States. Federal, state and local officials wereon hand for the ceremonies, held Sept. 20.

"This $110 million facility will increaseproductivity in cargo movement. We’rebringing the equipment to the cargo, ratherthan the other way around," said JosephStadelman, chairman of Houston Trans-modal Owning Co. HTOC is the private con-sortium that developed the facility.ADVANCED SYSTEM Omniport uses four sophis-ticated spiral conveyors -- called Spiralvey-ors -- to move bagged, boxed and similarlypackaged cargo. A series of reversible con-veyors move cargo between the wharfsideSpiralveyors and the warehouse. The con-veyor system is nearly four miles long andis coordinated by computer. All conveyorsare covered, making the system weather-proof. The terminal also features a330,000-square-foot transit shed.

Omniport was built on leased property atthe Port of Houston Authority’s JacintoportTerminal. Under the terms of the 30-yearlease, the Port Authority made numerousimprovements to the Omniport site, pro-

viding utilities, installing the transit shedand modifying the wharf and fender system.

EXPECTED VOLUME The facility is expected tohandle some 2.5 million tons of breakbulkcargo per year. Primary export products willinclude whole and processed grains, foodproducts, soybeans, rice fertilizers, syntheticresins and plastics. Primary imports will be

bananas, miscellaneous fruits, coffee, cocoabeans, vegetables and canned foods.

"Omniport will mean so much to the Portof Houston and also to consumers in ourregion," Ned Holmes, chairman of the Portof Houston Commission, told guests at theceremony. "Omniport will be a magnet forcargo to this port and will result in lowerprices to consumers."

TRIAL RUN The first movement of commercialcargo from the terminal was in July. Om-niport is currently operating on a test basisand will go into full commercial operationin April.

Houston Transmodal Owning Co. consistsof Bechtel Development, CMT Systems,Ryan-Walsh Inc. and LFC Financial Corp.Ryan-Walsh Maritime Services handles theoperation, maintenance and marketing ofthe facility. []

ABOVE: Ned Holmes (right), chairman the Port of Houston Commission,presents a plaque to HTOC ChairmanJoseph Stadelman to commemorate theopening of Omniport.

LEFT: Omniport’s sophisticatedSpiralveyors are expected to handle some2.5 million tons of breakbulk cargoannually.

The International Longshoremen’s Associationproudly joins in celebrating

the 75th Anniversaryof the Port of Houston.

ILA Longshoremen and the Port of Houston m partners for 75 years!

The International Longshoremen’s Associa-tion has been a partner in the growth andstability of the business at the Port of Hous-ton. With the West Gulf Maritime Association,the ILA has been the primary source of labor

at the Port of Houston for seventy-five years -and for good reason. ILA Longshoremen areskilled, seasoned specialists. They work hardand do the job right. Every time.

When you need the best m hire ILA Longshoremen.

International Longshoremen’s Association7811 Harrisburg

Houston, Texas 77012(713) 923-2564

FUNDS FOR CHANNELIMPROVEMENTS INCLUDED

ON NOV. 7 BALLOT

O n Nov. 7, Harris County voters will decidewhether to approve the sale of bonds to helpfund improvements to the Houston ShipChannel.

The results of the upcoming general election will deter-mine whether $130.3 million in bonds will be sold tofund the Port of Houston Authority’s share of the initialproject costs.

The Port of" Houston Authority is recommending aninitial project to enlarge the channel from its currentdepth of 40 feet to a depth of 45 feet and from its cur-rent width of 400 feet to a width of 530 feet.

Following are some of the questions frequently askedabout the project.

How much will the projed cost?The Corps of Engineers estimates that expanding

the channel to a depth of 45 feet and width of 530 feetfrom the Gulf of Mexico to the Shell Refinery will costapproximately $320 million. The improvementswould produce $1.40 in benefits for every dollar spent.

How would the improvements affect vessel trafficalong the ship channel?

In 1988, 40 percent of the tankers and bulkers call-ing at terminals in the Port of Houston had designdrafts greater than 40 feet. A deeper channel wouldhave allowed these vessels to be heavier laden, thusreducing the unit cost of transportation.

The vast majority of vessel transit will continue tobe barges and smaller ships. A wider channel will pro-vide a greater margin of safety for these vessels.Larger tankers may be put into service, thus reduc-ing the number of tanker transits and chance formishap.

What economic benefits would the dredging projecthave?

From all the available information, it seems obviousthat a deeper channel would provide immediate eco-nomic benefits that would increase over time astrading patterns and methods of information arechanged to adapt to altered conditions. A wider chan-nel would increase the safety of marine operationson the ship channel.

The Port of Houston Authority, the official spon-sor of the ship channel, is convinced that the proposedimprovements will benefit the communityeconomically, save shippers time and money, andmake the port safer and more competitive. A studycommissioned by the Port Authority found thatfailure to complete the proposed improvements

could adversely impact the local community and thechannel industries that are the economic lifeblood ofthe region.

What environmental impacts would the proposed im-provements have?

The 45-foot project will produce only 37 millioncubic yards of dredged material, and the proposedislands will affect only 2,000 acres of bay bottom, lessthan 0.6% of the bottom. Widening and deepeningmostly involves removal of virgin materials shownto be clean.

The improvements may increase salinity in thearea of existing oyster beds. Only in periods of ex-tremely low fresh water inflows will this have any ef-fect on oyster harvesting.

How much community support has the proposalreceived?

The project seems to have significant support. Morethan 40 trade and transportation organizations, cham-bers of commerce and local cities have endorsed theproject. Approximately 90 private companies supportthe improvements as well.

A recent survey conducted by the Houston Post andKHOU-TV in conjunction with the Rice Institute forPolicy Analysis showed strong voter support for theproject. Nearly 61 percent of the 600 people polled in-dicated they will vote for the bond issue Nov. 7.Only 15 percent said they were opposed to issuing thebonds. []

ESTIMATED PROJECT COSTS - PHASE ONE(! 987 dollars)

LOCAL COSTS - PORT OF HOUSTON AUTHORITYNavigation featuresLands, easements, etc.Entrance channelDredged material disposal

Total

LOCAL COSTS - INDUSTRYUtility relocations, etc.

Total

FEDERAL COSTSNavigation featuresEntrance channel

Total

TOTAL PROJECT COST

$ 31,543,00053,901,0007,040,000

37,839,000

$130,323,000

$ 68,000,000

$ 68,000,000

$ 81,031,00039,960,000

$120,991,000

$319,314,000

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10

FESTIVITIES TO INCLUDECEREMONY, EXHIBITION

PORT’S 75TH ANNIVERSARYOBS ERVED THIS MONTH

A cannon shot will be fired atthe Turning Basin Terminalon Friday, Nov. 10, markingthe Port of Houston’s 75th

anniversary as a deep-water port.Three days of events are planned

for the anniversary celebration,commemorating the opening of thenewly enlarged Houston Ship Chan-nel to oceangoing vessels.

Entertainment will start at 11 a.m.Nov. 10 at the Port of HoustonAuthority’s Turning Basin Termi-nal. At noon, the official anniversaryceremony will begin. During theceremony, a replica of Texas’historic "Come and Take It" cannonwill be fired. The shot will re-create

the day of Nov. 10, 1914, when Presi-dent Woodrow Wilson pushed a but-ton in his White House office thatfired a cannon on the banks of theHouston Ship Channel. The original"Come and Take It" cannon, whichfired the first shot in Texas’ fight forindependence from Mexico, will beon display at the port.

On Nov. 11 and 12, a trade and in-dustry exhibition will be held in awarehouse at the Turning Basin Ter-minal from 10 a.m. to 5 p.m.Houston area industries andtransportation-related businesseswill have booths at the event. Pro-ceeds from the booth fees will benefitthe U.S.S. TEXAS, a historic dread-

nought battleship that is beingrestored.

Sponsors for the exhibition in-clude the North Channel AreaChamber of Commerce, severalother local chambers of commerce,Coors International Brands, GulfStates Toyota and Chevron.

For more information about theanniversary festivities, contact thePort of Houston 75th AnniversaryExecutive Committee at (713)455-3860. []

On Nov. 10, 1914, Sue Campbell,daughter of Houston Mayor BenCampbell, dropped white roses into thewater of the Turning Basin Terminal,christening the Port of Houston.

-"I christen thee Port

of Houston and hither

the boats of all nations

may come and receive

hearty welcome."

--Sue Campbell --" ~"~2~J~ .

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HOUSTON SHIP REPAIR, INC.16201 Wood Drive, P.O. Box489Channeh’iew, "l~,~as 77530 UY, A(713) 452-5841, ]~,lt’x: 792282

ZIM OFFERS SHIPPERSALL-WATER TRANSPORT

~n a time when many shippers cite theadvantages of landbridge shipping, ZimLines has made its niche in all-watertransportation.

"We’re committed to all-water service. Ourintention is to continue in this mode and ex-pand upon it," says William Corrow, vicepresident of the Gulf District for Zim-American Israeli Shipping Co. Inc. Zim-American is agent for Zim Israel NavigationCo. Ltd.

The Israeli-flag carrier has offered all-water service between Houston and the FarEast since the early 1980s. Of course, Corrowsays, Zim will provide landbridge transportwhen a customer prefers it, but shipping en-tirely by water is often advantageous.ADVANTAGES "Certain cargoes are difficult tomove by rail or truck because of their sizeor other factors," he says.

"By moving cargo all-water, I can offerclients more competitive rates," Corrowadds. "And many people like to put theircargo on ships that they can see."

Earlier this year, Zim officials decided tomove their service from a private terminalin Galena Park to the Port of HoustonAuthority’s Turning Basin Terminal. Zimvessels now sail from Wharves 21-23. JamesJ. Flanagan Stevedores, freight handler forthe three wharves, operates a paved, lighted

The M/V ZIM KINGSTON H is a feeder vessel deployed in the Zirn ContainerService, which includes calls at Kingston and ports in the Meditteranean, FarEast and Caribbean.

and fenced container yard nearby.TWO SERVI(ES Zim Lines offers two servicesfrom the Turning Basin Terminal: its North

America Service (NAS) and the Zim Con-tainer Service (ZCS).

NAS vessels provide combined breakbulk,bulk and container service between theUnited States and the Mediterranean. Threevessels are employed in the service -- theM/V ZIM HOUSTON, the M/V ZIM MAR-SEILLE and the M/V ZIM MIAMI. Theseships call at Houston every 18 days. Medi-terranean ports of call include Haifa andAshdod, Israel; Livorno, Italy; and Cadiz,(Continued on Page 16)

The M/V ZIM MARSEILLE is one of threevessels in Zim’s North America Service,which includes calls at U.S. andMediterranean ports.

13

TOP LEFT: Oil fields like this one fed therefineries along the Houston Ship Channelin the early part of this century.

TOP RIGHT: The special needs of the oil andchemical industries kept equipmentmanufacturers and the transportationindustry busy.

RIGHT: The Long Reach docks, Houston’slargest private terminal available for hire,was leased to the U.S. Air Force for storagein 1952. In 1964, the Navigation Districtpurchased the docks, which became part ofthe Turning Basin Terminal.

EDITOR’S NOTE: This is the eleventh in a series ofarticles on the port’s role in the development of theHouston economy. The comic strips shown were firstpublished in the Houston Chronicle in 1959 as part ofan educational campaign sponsored by the Port ofHouston Authority. The strips were drawn for PHA byBob Schoenke. The commentaries have been updatedfor this series. Some of the information for this seriesis drawn from articles and essays written for the 1959educational campaign.

ELEVENTH IN A SERIES OF TWELVE ARTICLES

HOUSTONENTERS THE

OIL BUSINESSOil was discovered at the

Spindletop field near Beaumont,Texas, on Jan. 10, 1901. Thiswas not the first oil discovery inthe state, but the size of thefield and its proximity toHouston provided the founda-tion for an industrial complexthat would benefit Houston fordecades to come. As the city’seconomy grew around this newcommodity, so the Port of Houstondeveloped around the transport of oil and themany products made from oil.

I n the five decades between 1901 and 1950,Houston became the center of a web ofpipelines that brought oil into the city’s

refineries and processing plants and carriedthe products they created away from the city.

Not all the pipelines stretched inland. Manyof them led to terminals along the banks ofthe Houston Ship Channel. From theseshoreside terminals, barges and tankers car-ried the industrial center’s products todomestic and foreign markets.

As the complex of refineries and chemicalplants along the channel developed, itoutgrew its source of local ’feedstocks’--crude oil and intermediate chemical productsneeded to produce final products. The samebarges and tankers that distributed Houston’sproducts to the world began to bring inmaterials from other parts of the world to feedthe local refineries and chemical plants.

By 1948, Houston had become the second-largest port in the United States, and Hous-

tonians had come to take the steady growthof waterborne commerce for granted. How-

ever, in 1955, Philadelphia andNew Orleans crowded Houstondown to fourth place, and localleaders had to consider thefuture of the port. The industriesalong the channel and good in-land connections assuredHouston of substantial andsteady business. However, allport facilities were being used tofull capacity, and business was

actually being turned away for lack offacilities. Much of this business was going toother Gulf Coast ports that had expanded theirfacilities in the early 1950s and were ag-gressively pursuing new customers.

If Houston was to meet the challenge of in-creased competition from other Gulf ports, amajor expansion program would have to bestarted immediately.

At a meeting of the Houston DowntownRotary Club, F.M. Law, a distinguished bankerand one of the city’s elder statesmen, de-scribed the situation:

~ ~ ith growing world trade and competi-¥¥ tion among ports getting tougher and

tougher, there will be a necessity for an ag-gressive and well planned effort to keep the

Port of Houston abreast and ahead," he said."Our port is losing business every day becauseits facilities are not adequate to meet the in-creasing demand. Much business which wouldlike to come here goes elsewhere because theyknow that facilities are lacking in Houston."

An added complication was the fact thatAnderson, Clayton and Co., in 1952, haddecided to lease Long Reach, the largestprivate terminal-for-hire on the channel, to(Continued on Page 30)

15

DON’T LET YOURCARGO MISSTHE BOAT!

GENERAL MARINE SURVEYORS& CONSULTANTS

ATTENTION EXPORT/IMPORTBANKERS, SHIPPERS,

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Do you need third party verifica-tion, for Letters of Credit or otherdocumentation? Do you needverification that cargo wasshipped? Do you need an accuratecount of cargo at supplier’spremises or on the dock prior toloading? It doesn’t matter whetheryour cargo is inbound or out-bound, we are there to assist you.Our services include:-k Preloading condition, verification of

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16

ZIM LINES CCo,,~n.ea ~o.,Page 13)

Spain.The feeder vessel M/V ZIM KING-

STON H is deployed in the ZCS serv-ice, calling at Houston every 11 days.Cargo is relayed between Kingstonand ports in the Mediterranean, FarEast and Caribbean.ALL-WATER ONLY "We are the only car-rier serving Houston that offers all-water service to the entire Far East,"says Corrow. ZCS vessels call at portsin the Philippines, Singapore,Thailand, Taiwan, China, Korea,Japan, Malaysia and Australia.

In the Mediterranean, ZCS vesselsserve ports in Spain, France, Italy,Israel, Greece, Egypt, Turkey,Romania and Cyprus. In the Carib-bean, ZCS vessels call at ports inJamaica, the Dominican Republic,Puerto Rico and Haiti.SERVICE NICHE "Zim has found a nichein terms of services to and from theFar East and Mediterranean alongall-water routes. Many carriers servethese trades primarily by servingone U.S. coast and mini-land-bridging it to the other."

Zim’s confidence in the future ofits all-water service is reflected in itsrecent order of seven 3,000-TEU con-tainer vessels. The ships will bedeployed in the ZCS service and willcontinue to relay feeder cargo fromKingston. The new buildings repre-sent a total investment of approx-imately $250 million. The first of theships will be delivered in April, anddelivery of the seventh is expected inAugust 1992. []

WATERLAND APPOINTEDCARE VICE PRESIDENT

Armando Waterland has beennamed vice president of businessdevelopment for Care Shipping Inc.of Houston.

Waterland will be responsible forpromoting Care’s private terminalon the Houston Ship Channel andthe company’s stevedoring opera-tion, as well as bringing the repre-sentation of additional shippinglines to Care Agencies.

Waterland previously directedbusiness for Care’s terminal andworked for the Port of HoustonAuthority for 11 years.

For SaleMobile Cyclonaire BargeUnloading VacuumSystem CompleteIncludes cherry picker and trailer.Rated at 1OO tons cement per hour.All equipment in excellent condition.Original cost - $2 50,000.Must sell- $90,000 Cash.

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Arecently published collection of Houstonfacts provides a refreshing perspective ofHouston as a major American city ingeneral and as a major international city

in particular.If information is indeed power, then everyone

from customs brokers to steamship agents woulddo well to arm themselves with Houston Facts, a12-page publication produced by the Greater HoustonPartnership (GHP). The GHP is an umbrellaorganization composed of the Greater Houston

TAKING STOCK IN NTERNATIONAL

HOUSTONby

Sammy ~ells

Alternate

Vice President.

Local 24

Intcrnational

Longshoremen’s

Association

Chamber of Commerce, Houston World TradeAssociation and the Houston Economic Develop-ment Council.

Houston Facts, which was compiled by the GHP’sresearch department, is packed with a variety ofhard marketing data on Houston which is currentas of March 1, 1989. Informational headings arefeatured for virtually every selling feature of Houston,including Agribusiness, Biotechnology, Climate, Cor-porate Economy, Education, Geography, Govern-ment, Income & Living Costs, Manufacturing, NaturalResources, Research & Development, Retail Trade,Space Science and Transportation.

INTERNATIONAL BUSINESSUnder the heading "International Business,"

Houston Facts sheds some very interesting and in-formative insights about Houston’s stature as a worldtrade center.

For example, Houston ranks third in the numberof foreign trade offices, fifth in foreign consulatesand sixth in international air passengers among U.S.cities. As the base of operations for the interna-tional energy industry, Houston is the headquartersfor many of America’s largest international engineer-ing and construction firms.

Some 623 firms with headquarters in 51 nationshave offices or branches in Houston, according toHouston Facts. Another 574 domestics firmsoperating in Houston have offices or branches in108 foreign countries. And there are 766 Houstonbusinesses or organizations engaged in some phaseof international business which have no foreign

branches or offices. If our math is correct, thesestatistics indicate that there are a total of 1,963domestic or foreign firms or organizations conduct-ing international business in the Houston area.

CENTER FOR INTERNATIONAL FINANCEHouston leads the south and southwestern region

of the United States in international financial in-volvement with some 53 foreign banks representedin the city. Fifteen Edge Act Corporations, whichare chartered to engage exclusively in internationalfinance and transactions, maintain operations inHouston. Ten of these are headquartered abroad.Meanwhile, full-service international departmentsare maintained by eight Houston banks.

Houston also leads the region in the number ofconsular corps offices. Fifty-three foreign govern-ments maintain consular offices here. Trade, invest-ment and tourism offices are maintained in Houstonby 28 foreign governments. Twenty-nine foreigncountries are actively represented here by chambersof commerce and trade associations.

Houston’s cultural profile further reflects the ci-ty’s international diversity. Fifteen percent of thecity’s 3,580,800 area residents are persons ofSpanish heritage while another two percent are Viet-namese, Chinese, Asian Indian, Filipino, Korean andJapanese.

FROM THE ALLEN BROTHERS TO TODAYHouston Facts is a valuable marketing resource

for both domestic and foreign firms and organiza-tions engaged in any manner of internationalbusiness activity in the Houston area.

Its 12 pages convey an impressive picture of acity founded only 153 years ago by two brothers,Augustus C. and John K. Allen. The Allen Brotherspaid just more than $1.40 per acre for 6,642 acresof land near the headwaters of Buffalo Bayou. Theychose the land for its proximity to the Gulf and,therefore, its potential as a marketing and distribu-tion center.

If only the Allen brothers could have seenHouston’s emergence as a major world trade center.

EDITOR’S NOTE: In addition to Houston Facts, theGreater Houston Partnership publishes a variety ofpublications and reports on the Houston region.Catalogues of Partnership publications are availablefrom the Greater Houston Partnership, 100 MilamBuilding, 25th Floor, Houston, Texas 77002. Thetelephone number is (713) 651-1313.

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