Port Bureau News

Spotlight on Dominique Renaud President - Houston Business Insurance Agency

Natural Gas From Byproduct to Breadwinner

Hydrofracturing

November 2011 www.txgulf.org

Front and Center! A Message from RADM James Watson

Increasing Law Enforcement Capabilities on the Channel The Houston Ship Channel Security District’s & Harris County Sheriff’s Office

Foundations of a Harbor Safety Committee

Port Bureau Staff Bill Diehl

Jeannie Angeli

David Cooley

Al Cusick

Cristina Gomez

Janette Molina

Patrick Seeba

Board of Directors *Tom Marian—Chairman

*Dennis Hansell—1st Vice Chair.

*Mike Drieu—2nd Vice Chair.

*John Taylor—Secretary /Treas.

*Robert H. Blades

*Alec Dreyer

*Charles H. Flournoy

*Capt. Steve Conway

*Capt. John G. Peterlin III

*Capt. Richard Russell

*Steve Stewart

*Nathan Wesely

Jim Black

Ken Burnett

Celeste Harris

Jason Hayley

Kevin Hickey

Guy W. Hitt

Charlie Jenkins

Shareen Larmond

Kathy Murray

Jerry Nagel

Vinny Pilegge

Nolan Richardson

Lloyd Schwing

Tim Studdert

Lawrence Waldron

Armando Waterland

Don Welch

*Denotes Executive Committee Mem-bers

GHPB Member Suderman and Young Towing Company assists the Iris Victoria as she arrives

Photo Credit: Captain Louis Vest, Houston Pilots Association

Photo Credit: Captain Lou Vest, Houston Pilots Assn.

Captain’s Corner 00

Last week, I attended a luncheon at the Houston Branch of the Dallas Federal Reserve Bank.

The speaker was the Head of the Delegation of the European Union (EU) to the United States, Am-

bassador João Vale de Almeida. He discussed how European leaders were hammering out a deal to

pull Greece back from the edge of default and provide a bigger buffer of cash for other vulnerable EU

countries. Ambassador Vale de Almeida reassured us that a solution would be worked out but he

added the caveat that getting 27 diverse countries to agree on anything, even something of such tre-

mendous importance, takes time.

For me, the discussion highlighted how interdependent our economies are and how global our marketplaces have

really become; here is a small economy, Greece, representing only 2% of the EU, having a tremendous impact on our own

economy here in the States. The U.S. stock market was very anxious about how the EU was going to address the financial

turmoil not only in Greece, but also in Portugal, Italy, Ireland, and Spain. When the EU reached an agreement late last week

on addressing the Greece debt situation the stock market jumped for joy, closing 3% higher that day.

Along the waterfront here in Houston, people are continuously watching the global economy as well. Were the

Greek banks to take a tumble, then lending in the EU

would tighten immediately and financing (the fuel of

capitalism) would dry up. Greek carriers and shippers

(without financing) would have to retreat to safe posi-

tions, and heavily financed ships and cargo might not

move.

Wall Street understands how global economies

can constrict ours, however most financial analysts do

not know of the silent market constrictor at work just

off our docks.

Our channels are silting in, there is no sense of

urgency by Congress to address the matter, and no concern is being expressed by investors. At the same time, the lack of

dredging in our channels threatens our global competitiveness and domestic job growth more than Greece’s debt. Almost

1/3 of our economy’s GDP is tied to foreign trade and 95% of that tonnage enters and leaves our country through our ports.

If financing is the fuel of capitalism and the global economy then ships are the lubricant.

Today, the Harbor Maintenance Trust Fund (HMTF) has a balance of approximately $6.1 billion yet this funding is

not being used to address the backlog of necessary maintenance dredging needed to sustain our vital infrastructure. Not

maintaining ports and harbors impairs regional and national

commerce and reduces our economic competitiveness.

Since I began writing this column, the Greeks have an-

nounced plans to hold a referendum on whether or not the

terms of their bailout package are acceptable. The most chaotic

thing about the announcement is that they want the rest of Eu-

rope to wait two months before holding a vote. This got me

thinking about how analogous the situation is to our channels:

as they silt in and cargo stops flowing to and from the global

marketplace, threatening our economy, our national strategy

seems to be “Well … we’ll deal with it later, Kim’s getting a di-

vorce.” - B. Diehl, GHPB

A Message from RADM James Watson, USCG

It's time to step forward in the public's eyes. Our profession lies comfortably below the

radar in an era when it should be front and center again. Why should entertainers, athletes,

academics, doctors, and soldiers rank higher in public opinion than seafarers? Aren't we in an

era that values interdependence over isolation? Diversity over bigotry? Trade over stagnation?

Efficient technology? Environmental improvement? Fact-based safety, security and cleanliness?

I think many people would yearn for the adventure, experiences, and self-satisfaction of

being a maritime professional if they just knew more about it. Others would certainly have to

admit that a relatively few maritime professionals are critical for providing the necessities of life

for the rest of world's population.

We need more media attention and some modern day maritime heroes. Sometime in

the past the industry and profession seems to have gone underground. Except for the cruise

industry, which probably got a boost from the TV show Love Boat, the public has no exposure to

ships and seafaring.

I have no trouble finding maritime-based novels and adventure stories by the great au-

thors and playwrights of the 19th and early 20th century. The late 19th century public was fascinated by the technological and

standard of living changes occurring because of the maritime expertise of the day. Joseph Conrad, Herman Melville, Rudyard

Kipling, Arthur Conan Doyle, Jules Verne and Mark Twain were very popular writers who told sea stories.

There may be modern lessons learned from other professions. I attribute the public's opinion reversal for the military

profession partly to movies like Hunt for Red October and Top Gun. As a Coast Guard officer who is both military and maritime,

it has been remarkable to experience the military side glow brighter

while the maritime side has become relatively dimmer. I would

have thought just the opposite would happen when I entered the

service in 1974.

The maritime profession is on par with every other world-

class profession for technology, capitalization, interdisciplinary inte-

gration, and standards of professionalism. Plus there's still a good

deal of adventure and romance. Why not tout the story for all to

hear?

Rear Admiral James Watson is currently Director of Preven-

tion Policy for Marine Safety, Security and Stewardship, Coast Guard

Headquarters, Washington DC. Previous to this assignment he

served as Deputy Commander, USCG Atlantic Area, Chief of Staff of

the Seventh Coast Guard District in Miami FL and Chief, Office of

Budget and Programs, Coast Guard Headquarters.

Front and Center!

DoD photo by Petty Officer 2nd Class Luke Pinneo, U.S. Coast Guard.

Take the Guesswork Out of Your Business

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No single industry is responsible for as many Texas jobs and as much economic growth as oil and gas. Contributing 9.2

million jobs nationwide, $558 billion in personal income and 7.5% of the United States’ total value-added impact on the national

economy, the oil and gas industry reaches all fifty states, but perhaps none so much as Texas where it is responsible for over 1.7

million jobs and 24.2% of the state’s economy. Currently, developments such as the Eagle Ford and Barnett shale plays have cre-

ated the largest drilling boom in state history—Eagle Ford alone has more than 6 million acres of potential development which

could result in over 10 billion barrels of oil through over 20,000 wells. This growth and expansion can be seen up and down the

Houston Ship Channel as steel yards move pipe and tube in support of drilling operations.

But what about natural gas? Once considered a waste product to be burned off at an active oil field, now this versatile fuel

has become a marketplace staple, responsible for 2.8 million jobs and over $180 billion in wages annually. Since 2000, North

American LNG capacity has gone from 2.3 billion cubic feet per day to 22.7 billion—this number represents 35% of the United

States’ daily energy requirement.

What is Natural Gas?

Natural gas—a fossil fuel, but not to be

confused with petroleum—has been lit and used

as a heat source for thousands of years, back to

the ancient Greeks, Persians, and Chinese. In the

United States, natural gas’s first commercial use

was using coal gas for streetlamps in Baltimore in

1816, and since then it has grown to account for

24.7% of the United States’ energy supply and

32.9% of our energy production. Natural gas is

considered a clean fuel as it emits less carbon di-

oxide per unit of energy than other fossil fuels.

At its core, natural gas is mostly (70%-

90%) methane—a tasteless, odorless and colorless

gas created when plant and animal compounds

decay over thousands of years. As a safety meas-

Natural Gas From Byproduct to Breadwinner

No single industry is responsible for as many Texas jobs and as much economic growth as oil and gas. Contributing 9.2

million jobs nationwide, $558 billion in personal income and 7.5% of the United States’ total value-added impact on the national

economy, the oil and gas industry reaches all fifty states, but perhaps none so much as Texas where it is responsible for over 1.7

million jobs and 24.2% of the state’s economy. Currently, developments such as the Eagle Ford and Barnett shale plays have cre-

ated the largest drilling boom in state history—Eagle Ford alone has more than 6 million acres of potential development which

could result in over 10 billion barrels of oil through over 20,000 wells. This growth and expansion can be seen up and down the

Houston Ship Channel as steel yards move pipe and tube in support of drilling operations.

But what about natural gas? Once considered a waste product to be burned off at an active oil field, now this versatile fuel

has become a marketplace staple, responsible for 2.8 million jobs and over $180 billion in wages annually. Since 2000, North

American LNG capacity has gone from 2.3 billion cubic feet per day to 22.7 billion—this number represents 35% of the United

States’ daily energy requirement.

What is Natural Gas?

Natural gas—a fossil fuel, but not to be

confused with petroleum—has been lit and used

as a heat source for thousands of years, back to

the ancient Greeks, Persians, and Chinese. In the

United States, natural gas’s first commercial use

was using coal gas for streetlamps in Baltimore in

1816, and since then it has grown to account for

24.7% of the United States’ energy supply and

32.9% of our energy production. Natural gas is

considered a clean fuel as it emits less carbon di-

oxide per unit of energy than other fossil fuels.

At its core, natural gas is mostly (70%-

90%) methane—a tasteless, odorless and colorless

gas created when plant and animal compounds

decay over thousands of years. As a safety meas-

ure, most natural gas that consumers

use is mixed with trace amounts of me-

thyl mercaptan—one of the main chem-

icals responsible for bad breath—so that

leaks can be easily detected. Natural

gas entering the production steam con-

tains a mixture of gases including ap-

proximately 20% ethane, propane, bu-

tane and a small amount of other gases

like carbon dioxide, nitrogen, and oxy-

gen, this mixture of hydrocarbons is ex-

tremely combustible and when burned,

gives off fewer emissions than other

fossil fuels such as crude oil or refined

products such as gasoline.

Currently, average projections of the global natural gas supply show approximately 16,200 trillion cubic feet of natural

gas—150 times annual consumption—of which, 9,000 can be, with current technology, harvested at an export price of $4/

Million BTUs. For reference, the exports natural gas price has been between $4.52-$4.88 in 2011. Because of natural gas’s

low viscosity and high compressibility, it can be recovered in great supply from conventional reservoirs , and even from un-

conventional reservoirs which, in the US alone, represent 400-

800 trillion cubic feet . Global unconventional gas supplies have

not been thoroughly investigated yet, as with abundant supplies

from conventional sources (associated/non-associated gas

fields), there has been little need to fully study potential

sources. Even in the United States, according to the Massachu-

setts Institute of Technology, “estimates of remaining *natural

gas+ resources have continued to grow over time—with an ac-

celerating trend in recent years”.

Originally traded primarily in long-term contracts, the

1978 Natural Gas Policy Act and subsequent regulations re-

moved barriers to interstate gas sales, price caps and gas stor-

age limitations creating a nationwide market.

This has resulted in a developing spot-market

for natural gas much the same way that oil is

traded. The United States exports natural gas

to Japan, China, Mexico and others, and natu-

ral gas has been mentioned by the president

as a core method to reducing American de-

pendence on foreign oil reserves. In remarks

last year, the president noted that “We have

terrific natural gas resources in this country:

are we doing everything we can to develop

them?”

So Where is Natural Gas Used?

In the United States, natural gas is

generally split into three with 1/3rd of re-

sources used for industrial purposes,

1/3rd of resources used for electrical

power, and the rest is used as a heating

source for residential use, plants, pipe-

lines, and commercial facilities. Over

530 natural gas processing facilities re-

move sulfur, carbon dioxide and water

to produce gas with only trace contami-

nants, free of particulate solids that can

be transported via pipeline. Discussions

to widen the usage of natural gas to

venues such as long-haul trucks are

slow because of the higher startup

costs and operational issues—with a

storage temperature of –162 degrees C,

natural gas trucks “are not currently a viable solution” according to the American Trucking Association. A range of liquid

fuels can be produced from natural gas such as ethanol, diesel, methanol, and gasoline, however so far, only the conversion

to methanol has been implemented on a wide scale—the process to convert gas to diesel or gasoline, for example, is ex-

tremely expensive and with increased emissions from the converted fuel, it is not a commercial practability.

Since natural gas use fluctuates throughout the year, storage to meet this seasonal demand is available in under-

ground storage facilities—mostly in Michigan, Illinois, Pennsylvania, and Texas. For transport and distribution, the United

States maintains a large pipeline network and natural gas can be moved by ship in a liquid form before being re-gasified for

commercial use.

Map Courtesy of the US DOE

Energy Information Administration

US Natural Gas Pipeline System

Natural Gas can

be found in a wide variety

of places such as:

Associated Gas Fields:

As natural gas

and oil are produced in

similar manners (long-

term anaerobic decay of

plant/animal remains),

often natural gas fields

are found in the same

places that oil is found.

Here, the gas rises until it

hits impermeable materi-

al where crews drill

through and allow the gas

to flow up a pipeline.

Non-Associated Gas Fields:

The exact conditions for creating oil

vs natural gas are slightly different—natural

gas typically forms from sediments buried

deeper and at higher temperature than oil, .

This can lead to natural gas fields that are

not associated with a corresponding oil field.

Coalbed Methane:

Historically an irritation and safety

hazard to coal miners, methane contained

within a coalbed used to be vented to the

atmosphere to avoid incidents such as the

1907 Monongah Mine Disaster in West Vir-

ginia which killed over 350 workers.

Now, the methane is extracted and

sent to processing facilities to be

sold as natural gas.

Shale Gas:

Soft, finely ground, layered

shale generally does not allow

enough fluid flow to simply drill and

extract the gas, so sources of shale

gas generally are brittle enough to

maintain open fractures (though the

fracturing process introduces mate-

rial that amplifies these natural

tendencies).

Natural Gas Sources

Tight Sand Gas:

This source of natural gas is a tight formation of generally impermeable rock or non-porous material such as sand-

stone or limestone. Extracting from a tight sand formation is more difficult than conventional drilling and techniques such as

fracturing or acidizing are required.

What are Shale Plays and Why do they Matter?

Shale is not particularly permeable and its multilayer composition means that extracting gas is not as simple as con-

ventional drilling so for years shale plays were ignored for economic factors. Starting in the late 1980’s, the Mitchell Energy

Corporation began experimenting with large-scale shale developments using a technique first commercially used in 1948 by

Halliburton: hydraulic fracturing (or “fracking”).

Fracking (see next page for de-

tails) is not without controversy and has

come under intense public scrutiny at the

same time that it has allowed shale gas to

explode to 14% of US natural gas supply

after being negligible for many years.

Proponents note that the fracturing does

not affect granite and other surface rocks

and only crumble the brittle shale trap-

ping natural gas. Recently, the EPA an-

nounced that it would begin regulating

the fracking procedure to ensure that

treatment facilities properly remove

chemicals from fracking wastewater be-

fore processing and reusing the water or

releasing it to local processing plants.

Natural Gas is, in many ways, the

answer to some American fossil fuel

questions. As a cleaner, domestic and

efficient energy source it is sure to occupy

American public debate for years to

come.—P. Seeba, GHPB

Hydrofracturing Why “Fracking” is Entering Your Vocabulary

Hydrofracturing is a method used to increase the productivity of oil and natural gas wells. By injecting a mixing fluid—slurry com-posed of water, sand and other chemicals at ex-tremely high pressure (5,000-7,000 psi) - into the well, the engineers create a long-fracture sand-pack which interacts with natural fracture patterns in the layered shale which creates a path directly to the wellbore. Basically, the pres-sure of the water overburdens the shale creating fissures. Then, as the fracture grows away from the well, the slurry holds open the fissures.

When a well is first fractured, the fluid injected can be much more acidic than later op-erations—the increased acidity dissolves and fractures the shale so that proppants can more easily create fissures and stabilize to hold them open, allowing the oil/gas to flow out.

Proppants

Porous materials that stop newly created fissures and frac-

tures from closing, Proppants can be sand, coated sand, specially de-

veloped ceramics, or a blend of the three. Though ceramic proppants

such as sintered bauxite have higher cost, they may be able to sustain

higher production rates by because of their uniform shape and size.

The more spherical each particle the more efficient they function as a

conduit for hydrocarbons to move from reservoir to wellbore.

The Houston Ship Channel Security District’s 2011 Capital Improvement Projects encompass a wide range of equip-

ment from cameras to cars, an extensive data network, and both water and landside sheriff’s patrols especially focused on

Houston Ship Channel Security District member facilities.

Perhaps the most visible addition to our regional law enforcement arsenal is the new

Harris County Sheriff’s Office Marine Unit boat which can be found most days patrolling the ship

channel on missions ranging from escort to recovery. The new boat allows the Harris County

Sheriff’s Office to patrol longer in rougher waters with enhanced boarding capabilities and

greater ease in deploying existing law enforcement assets already available to the department.

With a 33 ft. aluminum hull (10 ft beam), the SPE-LE special purpose craft is equipped

with a host of equipment designed to give her advanced capabilities and expanded functionali-

ty. An extreme duty reinforced collar with rip-stop reinforcement will not lose buoyancy ring-

ing the boat’s deep-vee rigid monohull frame, which is constructed of marine grade aluminum

and welded using MIG or TIG seals. Non-skid material installed on the deck areas ensure that law enforcement personnel will

be able to maintain footing while on the outer decks while the cabin provides shock-absorbent seating for four crew mem-

bers. In addition to the seats, by utilizing other surfaces, the vessel can hold up to fourteen passengers and crew during

emergency operations, allowing her to assist during

channel incidents.

The Houston Ship Channel Security District and Harris County Sheriff’s Department

Increasing Law Enforcement Capabilities on the Channel

With 81 attendees, the Harbor Safety Committee Scoping Meeting was held at the Houston Pilots’ office in Deer Park

on Friday October 28th, 2011. Tom Marian opened the Meeting with a short history of the Houston-Galveston Navigation

Safety Advisory Committee (HOGANSAC) and some of its successes such as deepening and widening efforts, mooring line

initiatives, and the development of the Port Coordination Team. Tom then discussed the role of a non-Federal Advisory

Committee Act (FACA) Harbor Safety Committee (HSC) like the other 82 US HSC’s. He said they have accomplished much

without being restricted by some of the rules such the advanced posting of meeting announcements in the federal register,

an agenda that has to be approved ahead of time by DHS, and that meetings cannot be held at a single company’s confer-

ence center, etc. He finished by noting that under these restrictions, HOGANSAC has met only five times in the past three

years.

USCG Captain of the Port, Captain James Whitehead gave a current brief on the state of HOGANSAC from his

meeting about FACAs, reporting that some of the progress of HOGANSAC issue resolution was delayed by a comprehensive

review of all FACAs, ordered by the Secretary of DHS. He stated that there are no current members of HOGANSAC as all

terms end after two years and the new membership slate, which was submitted more than two years ago, has yet to be ap-

proved. He also talked about other restrictive issues associated with FACA committees such as that any time any two mem-

bers meet to talk about HOGANSAC matters, the Coast Guard has to be informed in writing, and all subcommittee meetings

have to be public.

CAPT Whitehead had discussed these issues with RADM Nash, who as the District 8 Commander is the official HO-

GANSAC sponsor, and the Admiral said that developing a parallel organization in a HSC format would be acceptable. HO-

GANSAC has congressional authorization through 2020, however the charter needs to be renewed in December 2011. Sector

Houston-Galveston Waterways Management Branch Chief Michael Zidik has submitted the paperwork for charter reauthori-

zation. Captain Whitehead noted, regarding membership, that DHS did not approve three individuals to fill HOGANSAC posi-

tions (Interest Groups Utilizing Port Facilities, Labor Organizations, and Shipowners, Stevedores, Shipping Organizations

Domiciled in Texas) so the Coast Guard will have to resolicit for the three positions to fill the HOGANSAC slate.

Bill Diehl gave an example of FACA advantages – that a FACA (like HOGANSAC) could be used by the local community

to go directly to DHS instead of moving up the chain from the USCG Sector, District, Area, then HQ. He also pointed out that

it wasn’t a tool that was used particularly often and that DHS’s primary focus is on security instead of safety issues.

Tava Foret, the immediate past-chair of HOGANSAC spoke about how the organization had become low-speed high-

drag with the restrictions placed on it, and to provide the HSC perspective, former Captain of the Port from Port Arthur, J.J.

Plunkett talked about the Southeast Texas Waterways Advisory Council (SETWAC). J.J. pointed out that the HSC was estab-

Houston—Galveston—Texas City—Freeport

Foundations of a Harbor Safety Committee

lished in accordance with Coast Guard Naviga-

tion and Inspection Circular (NVIC) 1-00, select-

ed members, set an agenda, and was able to

operate fluidly and efficiently to address region-

al navigation issues.

Over the next hour, several other indi-

viduals spoke during a question and answer ses-

sion and a discussion ensued to determine

whether we as a community should form a Har-

bor Safety Committee. The consensus was that

we should do so while continuing to move for-

ward repopulating HOGANSAC. One advantage

of standing up a new HSC committee was that

positions such as Port Freeport or commercial

fishing representation could be added.

As discussion ended with a vote, the

group decided to move forward with creating a

local Harbor Safety Committee, and in the coming week, draft charters would be emailed around so that people could make

corrections, comments and edits before calling a charter workshop in mid-November. After reviewing the charter, another

public interest meeting will be held in January 2012 to vote on the charter and individuals to fill HSC positions. Captain White-

head told the group that he would continue going forward with the necessary HOGANSAC paperwork to keep our regional op-

tions open. -P. Seeba, GHPB

Former Port Arthur Captain of the Port CAPT J.J. Plunkett, USCG (Ret.) describes

SETWAC functionality during the Q&A session

(top-left): Maria Echeverry, President of the GHCA presides

over the seminar featuring Carlos de Aldecoa Bueno, Presi-

dent, Maximus Coffee Group, Guy Burdett, President, InterA-

merica Coffee Corporation, and Mike Mulloy, Owner, House

of Coffee Beans. (top-right): The panel discussion continues

as 120+ attendees enjoy their lunch. (upper-right): Bill Ginder,

the Caldwell Companies and Robert Sakowitz, Hazak (mid-

upper-right): David Halbert, Houston Mooring Company, Bo

Cook, Cargoways Logistics, CA Rousser, The Rousser Compa-

nies, and Kevin Hickey, Houston Fuel Oil Terminal Company

(mid-lower-right): Bill Diehl, GHPB and Fr. Rivers Patout, HISC

(lower-right): Bill Banta, Centerpoint Energy, Mike Mulloy,

and Guy Burdett (bottom-right): Augustine Karuga, San Jacin-

to College asks a question during the Q&A session. (bottom-

middle): Maria Echeverry presents the 2011 Visionary Award

to State Senator Mario Gallegos. (bottom-mid-left): Keith Ad-

kins, Fontana Coffee (bottom-left) Guy Burdett and Mike

Mulloy (lower-left): Blandine Thompson, Nova Sarl and Ricar-

do Arias Port of Houston Authority. (mid-lower-left): Augus-

tine Karuga and Carmen Perez, Livingston International (mid-

upper-left): Steve Stewart, Gulf Winds International, Roy

Zermeno, AT&T, and Juan Alejandro, Denver Harbor Senior

Citizens (upper-left): Ed Foster, the Mundy Companies, and

Cecil Gray, PISD. (middle) Mike Mulloy fields a question from

the audience.

Port Watch

Three quarters behind us and one to go before we see a better year economically. Nev-

er mind the anti-wealth rallies, the stubborn unemployment rate and the deficit gloom and

doom, for next year’s projected GDP growth in the United States will be 50% higher than this

year’s. I suppose that makes sense when one juxtaposes September’s vessel arrival numbers

for the Port of Houston which registered a modest 2% increase over August. On the other

hand, total vessel arrivals in Texas ports were over 4% off – a rather odd situation since the

latter half of September kicks off the holiday season inventory influx. Arguably, cautious retail-

ers can translate into last-minute ordering by regional bosses. Consequently, the double digit

decreases in the bulk of the larger ports in September may be offset by more robust October

maritime commerce into the State. So let’s dig a bit and see what hand we have been dealt.

The good news is that year to date every port – with the exception of Freeport – con-

tinues to outperform 2010. Texas City led this month’s pack with a 10.5% month-to-month in-

crease. That’s where the silver lining ended as further to the east in Sabine traffic was not as

robust with a 12% monthly decrease. Shifting to the west, things were even less heartening as Galveston dropped 29%,

Freeport was off 23% and Corpus Christi dipped nearly 16% for the month. Corpus Christi did retain its overall percentage

lead as it remains 11.6% higher than last year.

Houston’s vessel specifics portray a rather interesting mix of results. While general cargo and container ships were

down 6% and 5.5% respectively, bulk vessels and car carriers were up 16% and 25% respectively. Flattening demand and

languid crude pricing most likely contributed to the 3% drop in tankers but LPG movements rebounded from the previous

month’s decrease with a 6% increase over the August to September period. Yet, when all those numbers are set aside,

there is one that is screaming for attention – CHEMICAL TANKERS! After four consecutive months of rather anemic num-

bers (i.e., 61 to 69), it crushed the competition with a 46% monthly increase. Just how strong was this number? It eclipsed

its previous best month of the year by 25%. An aberration? To some degree, given the fact that there have only been two

rather strong months this year (i.e., March & April); however, the combination of a weak dollar and desire to stockpile

manufacturing components appears to justify the triple-digit-arrival number.

Has this shed any additional light on how the year

will end? It’s hard to tell so let’s throw in two additional data

points: Houston Ship Channel tow movements and private

dock activity. The former number was off 3% for the month

but the latter put up all the gains in Houston for the month

with a 2.5% increase. Granted, the majority of the private ter-

minals did not experience any monthly increase vis-à-vis ves-

sel arrivals. Translation – there are some signs of growth out

there but a tepid September does not make for a robust Oc-

tober. All in all, it could have been better and - if 2012 is fore-

casted to produce a 2.7% GDP increase - it should have been

better. No matter, the holiday season will soon be upon us

and we can all look forward to a better year.

Tom Marian—Buffalo Marine Service It Could/Should be Better, but At Least It Is Not Worse

Spotlight on Dominique Renaud President—Houston Business Insurance Agency

“Insurance is about details—a lot of details.”

“Imagine you are going to see a new prospect and they want you to take over their insur-ance. The first thing you must do is build a history—understand all policies they’ve had, determine the coverage periods of these policies, identify the dates and outcomes of all claims. There’s a lot of pa-perwork, and it gets tricky. You have several policies, including general liability, property, automobile, workers compensation, errors and omissions, and other specialized industry specific forms that may apply, all of which must be seamlessly integrated to assure a sound program with no gaps and no re-dundancies. Over time, you learn how to maneuver through this process, and if you’re a well orga-nized, logical person, you can master this process. But to really succeed in the insurance business you must make two sales: one to the client and one to the underwriter. If you can’t sell your ideas to the underwriter, you won’t have anything to offer the prospect. Therefore, you need to be very social and good at working with people. You must be able to qualify a risk and present it to underwriters in a way that makes them feel as though you have collaborated rather than negotiated. And as trite as it sounds, insurance, like all businesses, all comes down to effective communications and relationships built upon trust.”

Dominique Renaud was born and raised near Cannes, France. His father was in the military and from that Dominique learned the importance of being organized and detail oriented. With his brother, Dominique ran two successful retail clothing stores in the Netherlands before he emigrated to the United States in 1987. His commitment to detail has served him well. Since moving to the US, he has accumulated a vast knowledge base and many valuable business relationships through his 20+ years of property and casualty insurance experience. He holds licenses to handle Property, Casualty and Life insurance and has attained highly regarded certifications as a Certified Workers Compensation Adviser, Certified Marine Insurance Profession-al, and a Life Underwriter Training Council Fellow. Most important, in a business in which your word is your bond, Dominique has earned the most valuable honor of all: a sterling reputation for being a man who always does the right thing and can always be trusted.

“At the end of the day, I have two clients for each policy—the insured client for whom I have to get the best deal and the best options, and the underwriter to whom I must disclose complete and accurate information. My ability to successfully serve both masters well and do what is best for all is a result of my ongoing commitment to uphold my reputation as someone whose word can be trusted.”

Dominique began his insurance career with Farmers Insurance and worked with their group of companies until 2007, as a Gold Card Agent—the highest designation Farmers has for a commercial agent. Dominique prides himself on his ability to maintain low loss ratios for his insurance company partners which obviously benefits his clients as well. He has been able to achieve these excellent outcomes by continuously educating himself on the specialized and unique issues associated with contractors, businesses and industrial focuses. “I try to do my job right—for the long-term benefit of both underwriter and client.”

“When I go see a prospective client, the first thing I want to do is learn as much as I can about their company. After I understand their organization and their corporate goals, I explain the detailed process I go through to best serve their needs. If it appears that they are satisfied with their current insurance program, I acknowledge that fact and let them know that I am al-ways a resource they can call upon at any time if they feel a need exists. If we mutually agree that there is room for improve-ment, I specifically delineate the steps we must take to achieve mutually agreed upon goals. My responsibility to the client is to make sure all the detail work is taken care of by doing the paperwork, reading all the documentation, presenting it and answer-ing questions and concerns.”

In his free time, Dominique enjoys spending time with his family, including his ten year old son Emmanuel and his wife Anna who works with him at Houston Business Insurance Agency. He is a former kick-boxer who enjoys most sports, especially Chelsea and the Real of Madrid soccer matches.

Houston Business Insurance Agency provides over fifty years of experience in the prop-erty and casualty insurance industry enabling them to shop the market for an insurance compa-ny best suited to your business needs. HBIA is a member of the K&S Group, an alliance of inde-pendently owned agencies generating over $285 million in annual premiums. With a core ser-vice goal of handling your business as a priority and creating a long-term relationship with cus-tomers, HBIA is dedicated to service throughout the life of your policy. With experience in the maritime, contracting, temporary staffing, landscaping, healthcare, restaurant, legal, technolo-gy, grocery, gas-station, and auto repair/maintenance industries, HBIA is able to provide special-ized service tailored to fit your company’s needs.

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