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Port Houston Reports Solid Mid-Year Growth

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Records Largest Number of Container Lifts in its History

Port Houston moved 1.3 million container TEU (twenty-foot equivalent
units) through the first six months of 2018, a six percent increase from
2017, Executive Director Roger Guenther announced in his report to the
Port Commission of the Port of Houston Authority in its regular monthly
meeting held Tuesday.

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Container movement at Port Houston (Photo: Business Wire)

Container movement at Port Houston (Photo: Business Wire)

During the meeting, Guenther noted that Bayport Container Terminal
recorded the largest number of single-vessel container box lifts in Port
Houston's history, with more than 4,800 lifts performed during one
vessel operation. The historic performance involved a ship from one of
Port Houston's East Asian services (a 6,400 TEU-class vessel) that
regularly calls at the port.

"This vessel would not have called Port Houston facilities without the
expansion of the Panama Canal," Guenther said. "We were able to handle
this business due to the investments we have made in deepening and
widening the Bayport channel, as well as investments in the equipment
capable of handling this class of ship.

"This historic operational performance eclipsed the previous record by
650 moves on one ship," Guenther added. "This very productive rate was
due to the diligent efforts of Port Houston operations personnel, our
stevedoring partners, and the labor we rely on each day."

Port Houston operating revenues of $179 million set two monthly records
during the first half of 2018; a revenue record was set in March and
then was broken again in May, with revenue reaching more than $32
million. Guenther also reported that each sector of Port Houston's
business experienced revenue growth in the first six months, led by
volume increases in its container business.

During the meeting, Guenther stated that Port Houston's steel trade
continued to show strength, and in import pipe in particular; overall
steel cargo totaled 2.1 million tons, reflecting a growth of 21 percent
compared to the same period last year.

Guenther noted leadership's and staff's commitment to reinvest revenues
generated from Port Houston facilities in the continued development and
improvement of all its terminals, including Bayport, Barbours Cut, and
general cargo terminals. This commitment was further demonstrated by
staff recommendations on the meeting agenda for Port Commission approval
of more than $70 million in capital project awards and advertisements.
One particularly significant item later approved by the commission was a
$49 million construction contract to build Container Yard 7 at Bayport
Container Terminal.

During the meeting, Port Commission Chairman Janiece Longoria
congratulated Guenther for being recognized by the Houston Business
Journal
as one of Houston's "Most Admired CEO's". She noted that the
honor was particularly important because Port Houston employees
submitted the nomination for Guenther to be considered for the
recognition.

Chairman Longoria also recognized the Small Business & Maritime
Education Department for receipt of an Honorable Mention from National
Career Pathways, for its Port Houston Partners in Maritime Education
Program.

Further demonstrating Port Houston's commitment to investment and
improvement of its facilities, Guenther provided an update on the
arrival of three new neo-panamax cranes at the Bayport terminal. The
cranes will help meet current and projected growth in container volume
at the Bayport facility, and should improve vessel productivity and
truck turnaround times. The new cranes will be capable of handling
vessel widths of up to 22 containers across.

The three new cranes stand more than thirty-stories tall and have
journeyed upright aboard a vessel for more than three months to reach
Port Houston. The cranes are tentatively expected to arrive at the
Bayport Terminal with booms fully raised Monday, August 6.

Following the Houston Pilots Board meeting, the Port Commission
conducted a public Capital Planning Workshop.

There will be not be a regular meeting held in August. The next regular
Port Commission meeting is scheduled Sept. 25.

About the Port of Houston Authority

For more than 100 years, the Port of Houston Authority has owned and
operated the public wharves and terminals of the Port of Houston – the
nation's largest port for foreign waterborne tonnage and an essential
economic engine for the Houston region, the state of Texas, and the
nation.
It supports the creation of nearly 1.175 million jobs in
Texas and 2.7 million jobs nationwide, and economic activity totaling
almost $265 billion in Texas – 16 percent of Texas' total gross domestic
product –and more than $617 billion in economic impact across the
nation. For more information, visit the Port Authority website at:
www.portofhouston.com.

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