[A. CALL TO ORDER]
[00:00:03]
HERE, VICE CHAIR JEFF PATTERSON.
TRUSTEE SHEILA LIT STONE HERE.
WE HAVE ROGER REESE AND ANTHONY BROWN.
WOULD YOU PLEASE, UH, WE DO HAVE A FORM.
WOULD YOU PLEASE STAND FOR THE
ONE NATION UNDER GOD, INDIVISIBLE, WITH THE LIBERTY AND JUSTICE FOR ALL.
[A.4. Declaration Of Conflicts Of Interest By A Trustee]
OF CONFLICT OF INTEREST BY TRUSTEE.I DECLARE THAT I HAVE A CONFLICT WITH ITEM F 14 AND ITEM NUMBER SIX UNDER THE EXECUTIVE SESSION.
AND I WILL NOT BE PARTICIPATING IN THE DISCUSSION.
I'LL DECLARE A CONFLICT OF INTEREST FOR, UH, DISCUSSION ON, UH, EXECUTIVE SESSION NUMBER FOUR.
WE GOT THOSE COMING AND WILL NOT BE PARTICIPATING.
AND, UH, THEY'VE HAD A, A HARD JOURNEY HERE TODAY, UH, LAST NIGHT, UH, WITH THE FLIGHTS COMING IN.
[B. PRESENTATIONS AND ANNOUNCEMENTS]
HAVE A PRESENTATION AND ANNOUNCEMENT BY, UH, BA ON THE MASTER PLAN.SO I'D LIKE TO ASK HIM TO COME UP TO THE PODIUM.
AND YOU'VE HAD A, A DIFFICULT TRAVEL.
HE'S COMING AROUND THE, HE'S JUST COMING RIGHT AROUND.
WE TRIED TO INCREASE THE VOLUME OF CLOSE TWO AND THREE, AND SO WE ARE, WE'RE TRYING TO GET THAT ADJUSTED.
WE CAN HEAR YOU A LITTLE BETTER.
AND IT'S A PLEASURE TO BE WITH YOU AND HOPEFULLY THIS WILL BE A, A FUN PRESENTATION FOR EVERYBODY TO, UH, PARTICIPATE BECAUSE A LOT OF GOOD NEWS TO, TO SHARE AND, AND STRATEGIC PLANNING IS ALWAYS A LOT OF FUN.
UH, THE ONLY TRICK IS ONE OF THE PARTICIPANTS IS GONNA BE ONLINE, SO, WE'LL, WHEN WE SWITCH, UH, JEFF SWEENEY WILL BE, UH, DISCUSSED FROM MARTIN AS AS WE DISCUSSING, UH, THE CARGO SIDE OF THE, OF THE EQUATION.
SO, UM, LET'S SEE IF THIS WORKS.
SO I THINK THE STARTING POINT IS YOUR OWN DOCUMENTS, YOUR PURPOSE AND GOALS.
AND THE ONLY THING I WANNA SAY IN STRATEGIC PLANNING IS THAT THIS IS THE TIME TO BASE YOUR DECISIONS ON WHAT YOUR GOALS ARE, BUT ALSO THINK ABOUT WHAT'S CHANGING.
'CAUSE YOU'VE GOTTA STAY AHEAD OF IT.
AND ONE OF THE THINGS THAT ALWAYS, UH, AS AS WE HAVE DONE MANY OF THESE, THESE PROJECTS IS IN, IN LOOKING AT STRATEGIC PLANNING, WE HAVE TO LOOK AT A VERY BALANCED PLAN FOR EVERYTHING.
SO FIRST WE GOTTA LOOK AT ALL YOUR MARKETS.
WHAT IS WE, WE, WE CLOSE OUR EYES.
WHAT IS AVAILABLE FOR YOU ALL TO BE ABLE TO SERVE IN THE MARITIME COMMUNITY OR IN THE COMMUNITY ITSELF THAT THE PORT CAN FIT A NEED, WHETHER IT, CARGO, CRUISE, BULK, INDUSTRIAL TRANSPORTATION, ALL OF THE ASPECTS.
AND TODAY YOU'RE GONNA HEAR ABOUT THAT.
OUT OF THAT, WE COME UP WITH A LIST OF WHAT WOULD IT TAKE TO SERVE A LOT OF THOSE MARKETS.
AND YOU MIGHT SAY, I DON'T WANNA DO THAT ONE OR THIS ONE, BUT IT IS THAT CHOICE THAT YOU GO THROUGH THAT'S FUND.
'CAUSE AT THE END, THEN WE GOTTA MAKE SURE THAT WHATEVER WE COME UP CAN BE PAID FOR.
'CAUSE YOU'RE, YOU'RE AN ENTERPRISE THAT, UH, SELF-FUNDING.
AND THE GOAL OF THE PORT AT THE END IS TO BE A STRONG FINANCIAL ENTITY THAT SERVES THE COMMUNITY WELL.
AND WE'RE GONNA TALK ABOUT THAT TODAY AND FINALLY HOW IT ALL FITS IN THE COMMUNITY.
SO IT'S A CIRCLE THAT WE GO THROUGH.
AND MANY TIMES YOU GO AROUND IN, IN MANY WAYS BECAUSE AT THE ROOT OF THIS THING IS THAT PORTS ARE CHANGING.
SO WHAT WE'RE GONNA TALK ABOUT TODAY, UH, WE'RE GONNA GO THROUGH A SMALL PRESENTATIONAL, THERE'S SOME PROGRESS.
THEN WE'RE GONNA GO THROUGH THE MARKETS, THEN WE'RE GONNA GO THROUGH SOME OF THE, UH, FACILITIES.
THEN WE'RE GONNA GO TO FINANCIALS.
I THINK I, I CHANGED THE ORDER.
AND THEN WHAT ARE THE NEXT STEPS? SO IN STRATEGIC PLANNING, WHAT, WHAT'S A LOT OF FUN IS WHEN YOU LOOK THAT ABOUT PORTS AND THE ROLES THAT THEY'VE HAD AND PLAYED THROUGHOUT THEIR HISTORY EVERYWHERE.
GALVESTON BEING NOT DIFFERENT THAN ALMOST ANY PLACE THAT PORTS BASICALLY WERE THE BIRTHPLACE OF MANY CITIES.
AND THEY BECAME, AS A RESULT, CENTER OF TRANSPORTATION,
[00:05:01]
THE CENTER OF COMMERCE.UM, AND EVENTUALLY A PORT GETS SURROUNDED BY A CITY AND YOU END UP WITH THE CHALLENGES THAT THAT PRESENTS AS WELL AS THE MARKETS MOVE AWAY.
SO THE POINT BEING IS THAT IN A STRATEGIC TYPE OF PLANNING, IT'S IMPORTANT TO THINK ABOUT THE CHANGING LANDSCAPE BOTH IN THE MARKETPLACE AND IN THE COMMUNITY NEEDS.
WE TRY TO BASE THINGS THE WAY THEY USED TO BE DONE.
I DON'T THINK WE'RE GONNA GET ANYWHERE.
I'M GONNA MISS A LOT OF OPPORTUNITIES.
AND THAT'S SORT OF OUR GOAL HERE AS WE THINK ABOUT IT.
AND, YOU KNOW, IN GALVESTON, THERE'S BEEN A LOT OF, A LOT OF THINGS THAT HAVE CHANGED OVER THE YEARS.
AND THE ROLE OF THE PORT HAS CHANGED AND CONTINUES TO CHANGE FROM BEING A TRANSPORTATION PROVIDER, A COMMERCE PROVIDER, TOURISM PROVIDER, ECONOMIC DEVELOPMENT, CONNECTIVITY, COMMUNITY CENTER, ALL OF THESE THINGS ARE PLACES THAT THE PORT PLAYED.
AND THE, AND THE ROLE HAS CHANGED CLEARLY FROM THE BEGINNING WHEN IT WAS THE TRANSPORTATION PROVIDED.
AND THAT IS AS A RESULT OF THE FORCES THAT HAVE SHAPED THE DEVELOPMENT OF GALVESTON AND THE PORT OF GALVESTON IN THAT, IN THAT CORE MISSION.
SO I TOOK THE LIBERTY OF SAYING, JUST TRYING TO THINK HISTORICALLY, FROM THE FORMATION OF THE PORT IN THE 18 HUNDREDS, TO WHERE IT'S AT, SOME OF THE MAJOR FORCES THAT THAT HAVE COME INTO PLAY, AND WHAT THE ROLE HAS PORTED FROM THE FORMATIVE YEARS IN THE 18 HUNDREDS WHEN THE PORT WAS, IN FACT THE CENTER OF COMMERCE, THE CENTER OF TRANSPORTATION, THE CENTER OF CONDUCTIVITY, EVERYTHING HAD TO MOVE THROUGH HERE.
THEN THE RAILROAD CAME, AND NOW YOU GOT CONNECTIVITY IN A DIFFERENT WAY, AND YOU HAVE MOTOR MOBILISM IN A DIFFERENT WAY.
AND THINGS BEGAN TO MOVE DIFFERENTLY.
YOU HAD THE HURRICANE, YOU KNOW, THE MAJOR, THE MAJOR ASPECTS THAT HAVE CHANGED, AND THE ROLE THAT THE PORT PLAYED IN THAT DIRECTION.
AND YOU HAD TO START ALL OVER AGAIN.
THEN THE AIRPLANE CAME, AND NOW PEOPLE STARTED MOVING NOT BY RAIL SO MUCH, AND NOT BY PORTS SO MUCH, BY BY AIR.
SO WE LOSE THAT CONNECTIVITY RULE.
THEN THE CONTAINERS, WHICH CHANGED DRAMATICALLY, THE, THE, THE WHOLE LANDSCAPE OF THE PORT OF GALVESTON, IN PARTICULARLY AS THEY MOVED TO GALVESTON.
AND THE, AND THE INDUSTRY BECAME CONTAINERIZED.
SO, AND NOW WE'RE IN AN ERA OF THE CRUISE ERA, WHICH BASICALLY ALMOST BRINGS BACK THE CONNECTIVITY PART THAT YOU STARTED AND IS LOOKING AT IT IN A MORE HISTORIC CONTEXT.
OUR TAKEAWAY IS HOW DO WE, HOW DO WE CREATE A VISION OR LOOK AT VISIONS OF THINGS THAT IT COULD BE IN THE FUTURE, WHILE AT THE SAME TIME MAINTAINING THE ROOTS OF THE, OF THE TOWN THAT YOU WANT TO PRESERVE, UM, FOR, FOR YOUR CORE VALUES THAT YOU HAVE HERE.
SO, UM, WE WERE FORTUNATE ENOUGH THAT YOU HIRED US IN 2018 TO DO THE MASTER PLAN.
AND I THINK THE FIRST THING TO LOOK AT IS WHAT HAS CHANGED IN SEVEN YEARS.
UM, AND IT'S ALSO HOW WELL DID WE DO PROGNOSTICATING WHAT WE HAVE.
SO THIS IS THE MASTER PLAN FOR IN 2040, WHICH BASICALLY YOU HAVE EXECUTED FULLY, NOT NOT IN THE DETAILS ENOUGH, BUT YOU BUILT YOUR NEW TERMINAL, YOU'RE BUILDING YOUR SECOND TERMINAL, YOU REHAB THE OTHER TERMINALS, YOU'RE FIXING THE WATERFRONT, AND THERE'S OTHER STUFF IN THE CARGO AREA.
WE'RE FILLING IN THE SLIPS AND SO FORTH TO CREATE A BETTER CONTAINER, UH, BETTER CARGO YARD.
AND, AND YOU HAVE MOVED THROUGH IT.
SO YOU BASICALLY HAVE MOVED THROUGH A 20, 40 MASTER PLAN IN JUST A MATTER OF EIGHT OR NINE YEARS AS A RESULT.
HOWEVER, YOUR, YOUR BASIC FRAMEWORK OF THE PORT BEING ON THE EDGE OF THE CITY WHERE YOU HAD CARGO ON BOTH ENDS AND A COMMUNITY CENTER AND SORT OF IN THE CENTER AND THE CENTER AND THEN PELICAN ISLAND, UM, IN 2025, THE MAJOR CHANGE HAS BEEN ON THIS SIDE WHERE THE NEW CRUISE TERMINALS AND THE, UH, UH, THE RELOCATION, OR I'M SORRY, THE, THE CONVERSION OF THE FRUIT TERMINAL INTO THE NEW CRUISE TERMINAL.
SO THAT'S WHAT, THAT'S, THAT'S JUST ON A, ON A PHYSICAL SIDE, WHAT HAS CHANGED AND SO FORTH, AND THE, AND THE FILLING OF THE SLIPS DEGREE OF MORE LAND.
LET'S LOOK AT NOW THE FINANCIAL DASHBOARD.
I'M GONNA LOOK AT THE MARKETS.
SO THE, UM, IN 2018 WHEN WE STARTED THE PORT HAD GROSS REVENUES OF 43 MILLION.
UH, WE HAVE FORECASTED IT WAS GOING TO BE ABOUT 81 MILLION BY THIS TIME, AND YOU'VE HIT 79 MILLION LAST YEAR.
SO PROBABLY 98% I THINK IS PRETTY GOOD.
AND IT'S BASED ON THE FACT THAT WE BUILD VERY DETAILED FINANCIAL MODELS.
BUT WHAT YOU SHOULD BE VERY PROUD IS THE NET REVENUES WE HAD FORECASTED 24, AND YOU ACTUALLY HIT 29.
SO YOU, WE ARE DOING ON THE, ON THE PERFORMANCE SIDE, WHICH IS REALLY IMPORTANT ONE BECAUSE THAT'S WHAT YOU REINVEST INTO THE, INTO THE BUSINESS.
SO I THINK, YOU KNOW, PORT OF GALVESTON HAS HIT ITS MARKS.
AND I THINK THE, THE FORECASTING THAT WAS DONE, IT
[00:10:01]
WAS VERY VALID.A LOT OF IT HAS TO DO WITH, UH, THE COMMODITIES THAT YOU MOVE, CRUISE ALMOST 90, 92% OF WHAT WE THOUGHT WAS GONNA HAPPEN ABOUT SEVEN YEARS LATER.
CARS, YOU'RE WELL OVER THE, THE THREAT YOU'RE SETTING NEW SANDERSON.
AND, UH, YOU KNOW, FOR US, CARS IS A TRANSPORTATION MODE, BUT IT'S A MONEY, OBVIOUSLY PRODUCER FOR THE PORT AND THE NUMBER OF CRUISE GENERALS YOU HIT.
UH, LAST YEAR, WHAT WE THOUGHT YOU WERE GONNA HAVE, THE THREE TERMINALS CARGO'S A DIFFERENT PICTURE.
AND CARGO HAS PROVEN, UH, THE FACT THAT IT'S VERY VOLATILE BECAUSE YOU HAVE A SERIES OF PRODUCTS THAT JEFF WILL BE TALKING ABOUT JUST SWEENEY IN A MINUTE.
AND SOME WE'VE EXCEEDED, SOME HAVE FALLEN OFF, UH, THE MAP.
UM, AND SO WHAT IT DOES PROVE THE FACT THAT, THAT THERE IS A LOT OF VOLATILITY IN THE CARGO BUSINESS RE REFLECTING THE MARKETPLACE.
AND JEFF WILL GO THROUGH THAT.
SO WHAT WE WANNA DO IS TAKE EACH ONE OF THESE AND NOW GO THROUGH IT IN, IN, UH, MORE DETAIL.
AND JEFF, ARE YOU THERE? I'M HERE.
SO TELL ME WHEN TO CHANGE THE SLIDES AND YOU TAKE IT FROM HERE.
I APOLOGIZE THAT I COULDN'T BE THERE IN PERSON.
I WAS JUST GETTING BACK FROM A, A TRIP WITH MY DAUGHTER FOR HER GRADUATION.
WE JUST GOT BACK FROM SPAIN THE OTHER DAY, SO I COULDN'T SWING IT THAT I COULD GET DOWN THERE.
BUT I'M, I'M HAPPY THAT I CAN BE HERE, UH, VIRTUALLY WITH Y'ALL.
UH, SO AS LOUIS MENTIONED, WE, WE HAD HAD SOME CHANGES, UM, SINCE THE, UM, THE PREVIOUS STUDY, UH, THAT WE WORKED ON AND, AND WE WERE PART OF THE TEAM BACK IN 2018.
YOU KNOW, PRIMARILY WHEN YOU LOOK AT YOUR, YOUR CARGO COMPOSITION, UH, AND THIS IS GOING BACK TO 2009, UH, YOU, YOU COULD SEE IT'S, IT'S, IT'S DECLINED O OVER THE LAST FIVE YEARS, UH, PRIMARILY DUE TO THE LOSS OF THE, THE GRAIN AND THE LOSS OF THE FRUIT BUSINESS WITH DEL MONTE AND, AND A DM GOING AWAY.
UM, HOWEVER, WHEN YOU DO LOOK AT THAT, YOU CAN SEE THAT THERE HAVE BEEN SOME, SOME BRIGHT SPOTS IN TERMS OF, UH, UH, CARGOES RECOVERING, UH, NAMELY LIQUID BULK.
UH, AND WE'VE ALSO SEEN, UM, UH, ROW, ROW AND GENERAL CARGO, ALTHOUGH THEY'RE, UM, YOU KNOW, I WOULDN'T USE THE WORD UNSTABLE, BUT THEY DO FLUCTUATE, YOU KNOW, UH, UH, EBB AND FLOW, UH, THROUGH THE YEARS.
THEY'VE MAINTAINED, UH, UH, SOME, SOME STABILITY THERE.
OVER TIME, UM, FERTILIZER, UH, HAS GONE DOWN SOMEWHAT.
UH, SOME OF THAT HAS BEEN DUE TO, UH, THE, THE DRAFT, UH, NOT BEING MAINTAINED TO 40 FEET.
SOME OF THE SILTATION PROBLEMS WE'VE HAD SOME ISSUES, UH, WHICH HAVE REALLY IMPACTED THEIR THROUGHPUT AS WELL AS, UH, SOME OF LIQUID BULK ACTUALLY AS WELL, WHICH WE'LL TALK ABOUT IN A MINUTE.
ALTHOUGH THOSE NUMBERS HAVE GONE UP.
UM, WIND CARGO HAS KIND OF, UH, DIED DOWN SOMEWHAT, AND WE'LL TALK ABOUT WIND MORE AS WE, AS WE MOVE FORWARD AND, AND FUTURE PLANNING WHERE WIND IS GONNA BE.
UM, BUT OVERALL, A LOT OF THESE OTHER MARKETS HAVE, HAVE, HAVE, HAVE, HAVE, HAVE BEEN AROUND AND HAVE BEEN MAINTAINED DESPITE FLUCTUATIONS FROM YEAR OVER YEAR, YOU KNOW, UH, PEAKS AND, AND VALLEYS.
UH, IF YOU GO ON TO THE NEXT SLIDE, PLEASE, JUST, JUST LOOKING AT EACH OF YOUR EXISTING, UH, COMMODITIES THAT YOU HANDLE.
UH, LAST YEAR DID ABOUT 200,000 TONS.
UM, AND I MENTIONED IT DID PEAK BACK ABOUT 10 YEARS AGO IN 2015.
UM, WHEN YOU LOOK AT WHAT'S GOING ON THERE, THERE'S A, THERE'S A LOT OF, UM, INVESTMENT BEING PUT IN BY CHS.
UH, THEY'RE UPGRADING THEIR, THEIR RAIL LOADING, THEY'RE GONNA UPGRADE THEIR CONVEYOR.
THEY THINK THEY'RE PUTTING IN $26 MILLION, AND THAT'S GONNA ALLOW THEM, UH, A, A BETTER THROUGHPUT AT, AT, AT THE DOCKS.
AND ALSO IT'S GONNA HAVE THE ABILITY THAT THEY'RE HOPING TO ENTER INTO THE TRUCK MARKET.
'CAUSE EVERYTHING THEY DO RIGHT NOW IS SERVED BY RAIL.
THEY THINK THEY CAN GET INTO THE, INTO THE WEST TEXAS MARKET, UH, THAT SOME COMPETITORS ARE IN RIGHT NOW, WHICH SHOULD GIVE THEM A BOOST.
IN TERMS OF, IN TERMS OF TONNAGE, OBVIOUSLY THE BIGGEST ISSUE THERE HAS BEEN, UM, YOU KNOW, TRYING TO MAINTAIN THAT.
THE, THE DRAFT, UH, THEY'VE INDICATED IT'S BEEN AS LOW AS 36 FEET, WHICH OBVIOUSLY THEY CAN'T BRING THEIR, UH, YOU KNOW, UH, AS MUCH CARGO IN, UH, PER SHIP, UH, WHICH HAS LIMITED THEM.
UM, BUT OVER TIME, WHEN YOU LOOK AT THE, UH, THE, THE, THE INCREASED PRODUCTIVITY TO THEIR INVESTMENTS, UH, AND THEY'RE HOPING FOR A CAPACITY OF ABOUT 1.1 MILLION TONS.
AND I THINK OVER, YOU KNOW, OVER THE, THE MIDTERM IN THE NEXT FIVE TO 10 YEARS, THEY CAN PROBABLY REACH THAT, PROVIDED ALL THOSE, UM, UM, INVESTMENTS THEY MAKE, YOU KNOW, COME TO FRUITION AND, AND THEY CAN ENTER INTO THE TRUCK MARKET.
SO IT LOOKS, IT LOOKS LIKE A BRIGHT PICTURE THERE FOR, FOR THE, FOR FERTILIZER, UM, AUTO'S, UH, UH, THE VEHICLE PROCESSING CENTER OF A PURE 10, UM, THAT'S GROWN SOMEWHAT ABOUT 10%, UH,
[00:15:01]
PER YEAR SINCE 2019.UM, THE, IN, IN DISCUSSIONS WITH, WITH THEIR OPERATOR, IT LOOKS LIKE THEY'RE CAPPED AT ABOUT 40,000 UNITS THAT CAN MOVE THROUGH THEIR PROCESSING CENTER.
SO THAT'S ABOUT 80,000 TONS, UH, AS AN EQUIVALENT.
BUT LOOKING AT THAT, YOU KNOW, WE'LL EXPECT TO SEE THEM GROW SOMEWHAT, BUT WHEN THEY HIT THAT 40,000 UNIT MARK, THERE'S EITHER GONNA BE A DECISION TO BE MADE WHERE THEY INCREASE PROCESSING CAPACITY, UM, OR, UH, THEY'LL HAVE SOME SPACE CONSTRAINTS THERE, UH, UP AT PURE 10.
UM, BUT FOR THE NEAR TERM, THAT MARKET REMAINS TO, SEEMS TO REMAIN, TO BE, UH, UH, UH, STEADY, UH, LIQUID BULK.
UM, OVER ON, ON PELICAN ISLAND, THE PISTE OPERATION, UM, 2.2 MILLION TONS IN, IN 2024.
UM, IT'S DOWN, ITS PEAK WAS, UH, IN 2010, ABOUT 2.8 MILLION TONS.
AGAIN, THEY HAVE BEEN, UH, AFFECTED BY THE, THE DRAFT RESTRICTION FROM TIME TO TIME.
UM, BUT RIGHT NOW THEY'RE HANDLING BETWEEN TWO AND A HALF AND 3 MILLION BARRELS A MONTH.
IF THEY HAD A, A 40 FOOT DRAFT MAINTAINED, THEY BELIEVE THEY COULD DO ALMOST DOUBLE THAT TO FOUR AND A HALF TO 5 MILLION BARRELS A MONTH.
UH, THAT EQUATES TO ABOUT 5.8 MILLION TONS OVER TIME.
UM, AGAIN, UM, YOU KNOW, ASSUMING THAT THE, THE, THE, THE, THE CHANNEL IS MAINTAINED, UH, WE CAN SEE GROWTH IN THAT MARKET UP TO ABOUT 5.0 MILLION TONS.
SO, UH, RO UH, IN TERMS OF TONNAGE, DID ABOUT FOUR 50,000 TONS LAST YEAR.
AND LIKE I MENTIONED, YOU KNOW, I, I I SAY IT'S SPORADIC AND UNSTABLE.
I, I KNOW UNSTABLE IS THE RIGHT WORD.
I MEAN, WHEN YOU LOOK AT WHAT THEY'VE HANDLED, IT'S BEEN BETWEEN ABOUT 300,000 AND 500,000 TONS.
ALTHOUGH IT'S MOVED, UH, YOU KNOW, EBB AND FLOW OVER TIME.
UM, YOU KNOW, THE STRENGTH HERE, YOU KNOW, WE, WE DO VERY WELL, UM, HANDLING THE BIG UGLY STUFF.
YOU HAVE A GREAT TERMINAL OPERATOR, UH, A GREAT LABOR FORCE.
UM, WE'RE, WE'RE CLOSER TO THE SEA BUOY THAN, THAN, UM, YOU KNOW, HOUSTON.
AND REALLY WHEN, WITH, WITH THE DEVELOPMENT THAT'S GOING ON THERE WITH THE, WITH THE P 39 REPLACEMENT AND THE SLIP FILLS THAT ARE GOING ON, THERE'S REALLY A POTENTIAL TO, TO REALLY GO AFTER SOME OF THE UNDERSERVED, UM, RAILROAD MARKETS.
UM, ONE OF THE THINGS WE CAN DO, UH, AND, AND, AND LEWIS WILL TALK ABOUT THIS IN THE PLAN, IS BRING ON DOCK RAIL SPUR RIGHT ALONGSIDE WHERE THEY CAN DO DIRECT TRANSFER, UH, WITH SOME OF THE HEAVIER PIECES, UH, THAT, THAT MOVE OFF GO RIGHT FROM SHIP TO RAIL, UH, AS OPPOSED TO, YOU KNOW, STAGING THEM ON IN THE YARD.
UM, SO I THINK OVER TIME, WHEN YOU LOOK AT THIS, UH, THE UNDERSERVED MARKETS, ESPECIALLY IN NORTHERN EUROPE, UH, CENTRAL AMERICA, SOUTHEAST ASIA, UM, AND, YOU KNOW, AND TALKING WITH THE TERMINAL OPERATORS AND, AND THEIR PLAN IS TO GO AFTER THOSE MARKETS, YOU KNOW, UH, YOU CAN REALLY SEE, UH, A GROWTH IN, IN THE RAILROAD, UH, SECTOR.
UH, FURTHERMORE, YOU HAVE, UH, NYK INITIATED ITS FIRST CALL, I BELIEVE BACK IN APRIL OF THIS YEAR.
AND THERE'S ALSO POTENTIAL TO DETRACT OTHER NEW ACCOUNTS FROM, FROM REGIONAL COMPETITORS.
SO WHEN YOU LOOK AT THIS OVER TIME, LOOKING AT A HIGH FORECAST, THAT 444 50,000 TONS CAN MORE THAN DOUBLE TO ABOUT 920,000 TONS.
NOW, OBVIOUSLY WE'RE GONNA NEED THE SPACE AND, AND THE BIRTH CAPACITY TO HANDLE THAT.
UM, BUT I THINK RO IS ONE OF OUR STRONG, OUR STRONG MARKETS TO GO AFTER.
NOW, HAVING SAID THAT, I JUST READ THE JOURNAL OF COMMERCE THIS MORNING, AND THERE WAS A, A, AN ARTICLE IN THERE ABOUT ALDI WHERE SOME OF THE RAILROAD VESSELS ARE, UM, ARE BEING DOUBLE, UM, UH, PORT DOUBLE TAP FOR PORK FEES.
IF THEY COME AND SERVE A PORT ON THE ATLANTIC, AND THEY GO BACK INTO MEXICO AND THEN REENTER THE US SAY, INTO, INTO GALVESTON, THEY'RE GETTING CHARGED DOUBLE PORT FEES, UH, 'CAUSE THEY'RE CLASSIFIED AS A ROW ROW SHIP.
UM, THEY'RE TRYING TO GET THAT, UH, UH, YOU KNOW, UH, LOOKED AT FROM THE, FROM THE TRADE REPRESENTATION.
UM, BUT IF THEY, IF, IF THAT WOULD CONTINUE AND STICK, THAT COULD REALLY ADVERSELY AFFECT ROW ROW VESSELS COMING INTO, UH, INTO THE PORTS.
SO SOMETHING TO KEEP AN EYE ON.
UM, UH, GENERAL CARGO, UM, AGAIN, THAT'S BEEN, YOU KNOW, SPORADIC.
SOMETIMES YOU HANDLE 60,000 TONS, SOMETIMES IT'S 3000.
OVER THE LAST, UH, THREE TO FOUR YEARS, IT'S BEEN ABOUT 30,000 TONS.
UH, IT'S HAD SOME STABILITY, UM, IN, IN TERMS OF, UM, YOU KNOW, THE DEVELOPMENT THAT'S GOING ON DOWN IN THE SOUTHEAST OR SOUTHWEST MARKETS.
AND IN THE TEXAS MARKET, YOU GET A LOT OF COMPANIES THAT ARE, THAT ARE, ARE, ARE BUILDING, UH, UH, PLANTS AND FACILITIES.
SO THERE'S HUGE PIECES OF, UH, UH, WHETHER THEY'RE, THEY'RE CAPACITORS OR GENERATORS OR, UM, UH, HEATING AND COOLING UNITS, UH, A LOT OF THAT HEAVY STUFF COMING THROUGH THERE.
AND AGAIN, UH, WITH OUR LABOR POOL AND, AND, AND, AND THE STEVE IOR AND TERMINAL OPERATOR MANAGEMENT, THERE REALLY IS A, UM, A, A A VERY, VERY GOOD NICHE MARKET TO BE IN, UM, FUTURE INVESTMENT, UH, IN THE UNITED STATES, UH, YOU KNOW, WITH NEARSHORING AND RESHORING, UM, YOU KNOW, COULD ALSO BOOST THAT, UH, UH, FORECAST OVER THE NEXT 20 YEARS.
[00:20:01]
WE'RE ANTICIPATING A HIGH SCENARIO OF ABOUT 94,000 TONS, UM, YOU KNOW, AS A MARKET, UH, CAP FOR 20 YEARS.UM, WIND, WIND IS REALLY THE, THE, THE WILD CARD RIGHT NOW.
UM, YOU'VE HAD A LOT OF SUCCESS IN THE WIND MARKET.
UM, YOU KNOW, METRO HAS DONE A GREAT JOB.
YOU'VE SERVED A LOT OF MAJOR WIND MARKETS, UM, FOR MANY YEARS.
YOU KNOW, WE'VE HEARD THAT THOSE TAX, UH, INCENTIVES FOR WIND AND ALTERNATIVE ENERGY PROJECTS MAY GO AWAY.
WE, WE'VE DISCUSSED THAT FOR 15 YEARS, AND THEY ALWAYS SEEM TO, TO TO BEEN, UH, UM, YOU KNOW, UM, NOT SUNSET AND NOT POSTPONED POSTPONED, IN FACT.
UM, AND THEY'VE, THEY'VE CONTINUED WITH THE, THE, THE, THE CURRENT ADMINISTRATION AND THE, THE BIG BEAUTIFUL BILL.
UM, YOU KNOW, ONE OF THE ITEMS IN THERE IS TO REALLY, UM, PUT AN END TO THOSE, THOSE CREDITS OVER THE NEXT COUPLE YEARS.
UM, RIGHT NOW, THE, THE BLADES THAT ARE COMING THROUGH ARE GOING INTO THE SUN ZIA PROJECT IN NEW MEXICO AND ARIZONA, AND I THINK THAT HAS ABOUT ANOTHER YEAR AND A HALF TO TWO YEARS, UH, OF, OF STEADY, UM, YOU KNOW, IMPORTS TO GET THAT, UH, TO FINISH THAT PROJECT.
BUT AFTER THAT, WE MAY BE FACED WITH, UM, A DECLINE IN WIND ENERGY, YOU KNOW, DOWN TO ZERO.
UM, AND IF THAT'S THE CASE, YOU KNOW, WE NEED TO BACKFILL, UH, YOU KNOW, THOSE ACRES AND, AND, AND THAT CARGO, UM, YOU KNOW, WITH OTHER MARKETS, WHICH I'LL TALK ABOUT IN A MINUTE.
SO IT'S REALLY A WILD CARD RIGHT THERE.
UM, BUT WE'RE LOOKING AT THIS AS WIND GOING AWAY OVER THE, OVER THE MEDIUM TERM SHIP BUILDING REPAIR.
UM, I KNOW WE'VE, WE'VE, THERE'S BEEN DISCUSSIONS WITH GULF COPPER, UH, WITH, WITH A, A NEW, UM, UH, LEASE HOLDER COMING IN.
AND, YOU KNOW, UH, WE'RE VERY BULLISH ON THE SHIP REPAIR AND SHIP BUILDING, UM, MARKET RIGHT NOW.
UH, GIVEN THE FACT THAT THERE'S BIPARTISAN SUPPORT, UM, TO, TO BUILD, YOU KNOW, US, UH, UH, BUILD THE FLEET UP, THE DEPARTMENT OF DEFENSE FLEET, UM, I THINK REALLY, YOU KNOW, THAT'S A HUGE, HUGE OPPORTUNITY, UH, IF, IF THE NEW SHIP OWNER WOULD, WOULD COME IN THERE AND EVEN POTENTIALLY MAYBE EXPAND INTO THE, THE OTHER AREA, UH, THAT'S THERE ADJACENT.
UM, BUT I THINK THAT'S A HUGE, HUGE PLAY FOR, FOR PELICAN ISLAND RIGHT NOW.
SO IF YOU LOOK AT, UM, TAKING ALL THOSE PROJECTIONS, UH, WE DID A LOW SCENARIO, A MID SCENARIO, AND A HIGH SCENARIO.
THIS IS BASED OFF THE MID, UM, YOU CAN SEE THAT WE GO FROM ABOUT, YOU KNOW, TWO AND A HALF TO 3 MILLION TONS THAT WE'VE BEEN HANDLING OVER THE LAST FEW YEARS.
AND THEN WITH SOME NEW SERVICES IN RO UH, THE, THE, UH, UH, YOU KNOW, FERTILIZER BUSINESS PICKING UP WITH, WITH, WITH THEIR, UH, UM, INFRASTRUCTURE PLANS, THE POTENTIAL FOR THE, UM, UH, THE FUEL LIQUID BULK MARKET TO MOVE UP, UM, YOU KNOW, REALLY PUSHES US UP OVER THE FIVE AND A HALF MILLION MARK OVER THE NEXT 10 YEARS.
AND THEN OUR FORECASTS REALLY GO DOWN TO, YOU KNOW, 1% AND 0%, YOU KNOW, FLATTEN OUT OVER TIME.
BUT YOU CAN SEE WE'RE, WE'RE LOOKING AT POTENTIALLY ALMOST DOUBLING A CARGO, UH, TONNAGE OVER THE NEXT, UM, YOU KNOW, 10 TO 12 YEARS BY 20 33, 34.
AND YOU CAN SEE THERE TOO, BUT JUST, UH, SORRY, I, GO AHEAD.
IF YOU LOOK THERE, THE GREEN LINE AT THE TOP, THAT'S YOUR WIND CARGO.
WE DO HAVE THAT, YOU KNOW, UM, DECLINING.
UH, WE HAVE SOME WIND IN THERE IN THE MID SCENARIO, BUT REALLY THE MOST LIKELY SCENARIO IS ZERO.
UM, IT'S NOT MUCH IN TERMS OF TONNAGE, UH, WHEN YOU LOOK AT THE, THE GRAND SCHEME THERE, UH, IN TOTAL.
UM, BUT IT IS A HIGH VALUE CARGO, UH, WITH, WITH, WITH, WITH JOBS, UH, YOU KNOW, LABOR ASSOCIATED WITH IT, UH, THAT WE NEED TO BACKFILL, SORRY, NEXT TO THE LIGHT.
SO IN DISCUSSING, YOU KNOW, UM, WIND GOES AWAY, UH, WE HAVE, YOU KNOW, 60 ACRES TO FILL, YOU KNOW, SAY ROW, ROW IS, IS TAKING SOME OF THAT, BUT, YOU KNOW, WHAT ARE THE OTHER MARKETS THAT WE CAN POTENTIALLY GET INTO MORE TRADITIONAL MARKETS? UM, AND THIS IS DISCUSSIONS WITH, UH, YOU KNOW, UH, TERMINAL OPERATORS.
UM, TRENDS WE'VE SEEN AT AIRPORTS, UH, WHAT WE THINK OF THE HOT MARKETS RIGHT NOW, REALLY A LOT OF LUMBER, UM, STEEL, YOU KNOW, WHEN YOU LOOK AT THE, THE, THE AUTO MANUFACTURING AND STAMPING, YOU LOOK AT A LOT OF, UM, EVS THAT LOOK TO BE COMING DOWN IN, INTO THE SOUTHWEST MARKET.
ELECTRIC VEHICLES, UH, AND ALSO AUTOMATED VEHICLES, UH, AND FABRICATION THAT GOES ALONG WITH THAT.
UM, ALUMINUM, YOU KNOW, THE, THE ALUMINUM CONTENT IN, IN AUTOS IS, IS CONTINUALLY, UM, INCREASING.
UH, SO WE SEE SOME, SOME POTENTIAL THERE.
NON FERRIS METALS, UM, COPPERS, ZINCS, UH, YOU KNOW, SEMI-PRECIOUS METALS THAT COME FROM, UH, ASIA AND ALSO FROM SOUTH AMERICA ARE REALLY PICKING UP IN THE GULF, UH, AS THEY GO
[00:25:01]
INTO BATTERIES AND, AND, AND, YOU KNOW, EV MANUFACTURING AND SO FORTH.AND THEN ALSO, UM, YOU KNOW, SPECIALTY BULKS THAT MAY COME IN IN A, IN A BULK SHIP OR MAYBE SUPER SACKED.
UM, BUT THESE ARE, YOU KNOW, SOME RARE EARTH MINERALS.
UM, YOU KNOW, THERE'S, THERE'S, THERE'S SILICAS UH, TITANIUM OXIDE.
UM, SOME OF THIS GOES INTO, INTO THE, THE AUTO MANUFACTURING.
SOME OF IT GOES INTO RESINS AND INTO, UH, UM, UH, 3D PRINTING OPERATIONS.
BUT YOU CAN SEE THESE ARE THE KEY MARKETS AND, YOU KNOW, SOME OF THE NEEDS, SOME OF 'EM DO REQUIRE COVERED STORAGE TO KEEP CERTAIN ITEMS, YOU KNOW, UH, UH, AWAY FROM THE ELEMENTS AND SO FORTH.
AND THE POTENTIAL VOLUME I HAVE THERE IS REALLY BASED OFF OF, YOU KNOW, HIGH SCENARIO, UM, YOU KNOW, GETTING ONE OR TWO SERVICES IN BASED ON WHAT WE KNOW IS IN TERMS OF, UH, NUMBER OF CALLS, YOU KNOW, PER YEAR ON AVERAGE, A NUMBER OF TONS PER SHIP, UH, AND GETTING THESE ACCOUNTS.
SO YOU'RE LOOKING AT SOME SIGNIFICANT POTENTIAL VOLUME.
IF YOU GO TO THE NEXT SLIDE, I THINK I HAVE A, A CHART HERE, WHICH SHOWS LOOKING AT THE MID CASE SCENARIO, SO SCALING SOME OF THOSE NUMBERS BACK, BUT YOU LOOK, THERE'S AN OPPORTUNITY HERE IN THOSE CARGOES OF FOUR 50,000 TONS, UM, OR SO OVER THE, OVER THE NEXT 10 YEARS.
THE OTHER THING IS, WHEN YOU LOOK AT SOME OF THESE CARGOES, THESE ARE TRADITIONAL, UM, LABOR INTENSIVE CARGOES THAT OBVIOUSLY HELP OUR, OUR LABOR POOL, UH, OUR, OUR UNION, OUR ILA AND SO FORTH, AND KEEPING THOSE JOBS ON THE DOCKS.
UM, NOT TO SAY THAT WE'LL GET ALL OF THESE OPPORTUNITIES, THIS IS JUST THE, THE, THE GAMUT OF WHAT WE CAN POTENTIALLY GET.
AND SOME OF THESE, YOU MAY GET 250,000 TONS OF ONE COMMODITY AND NONE OF THE OTHER.
IT JUST KINDA GIVES US AN IDEA OF WHAT WE CAN POTENTIALLY SEE THERE TO BACKFILL, UM, IN THE NEAR TERM IF FOR IN, IN, IN, IN LIEU OF THE LOSS OF LOSS OF WIND.
SO NOW COMBINING THE, THE, THE CURRENT CARGO FORECAST WITH THE POTENTIAL NEW COM OPPORTUNITIES, WHICH ARE IN THE BLUE THERE AT THE TOP, YOU CAN SEE WE'RE APPROACHING THE 6 MILLION, UH, UH, TONS PER YEAR, UM, UNDER THE MID SCENARIO.
SO WIND GOES AWAY AND WE PICK UP THOSE ALTERNATIVE CARGOES.
UM, AGAIN, IMPORTANT TO SAY, SOME OF THOSE MIGHT NOT ALL THOSE OPPORTUNITIES MAY BE CONVERTED, BUT IT'S JUST, UH, THE, THE, THE MID CASE HIGH, UH, MID SCENARIO POTENTIAL THAT WE CAN SEE.
SO, UM, JUST TO HAVE A QUICK DISCUSSION ON CONTAINERS, UM, YOU KNOW, WE HAD THE, THE CONTAINER OPERATIONS WHEN DEL MONTE WAS HERE AND THEY WANTED TO MOVE TO, TO CONTAINER VESSELS AND, AND, AND, YOU KNOW, THEY WENT AWAY.
BUT, UM, WE, WE DID EXAMINE THIS MARKET.
AND, YOU KNOW, IN, IN, IN SHORT, YOU KNOW, GALVESTON IS NOT WELL POSITIONED TO HANDLE MAJOR CONTAINER OPERATIONS.
UM, YOU HAVE THE 800 POUND GORILLA, YOU KNOW, JUST UP THE CHANNEL.
HOUSTON, THEY'VE BEEN GROWING AT OVER 7% PER YEAR OVER THE PAST DECADE.
UH, THEY HANDLED 4.2 MILLION TUS LAST YEAR.
THE CAPACITY THAT THEY HAVE AT THEIR TERMINALS, THEIR, THEIR TWO PRIMARY CONTAINER TERMINALS, BAYPORT AND BARBER'S CUT IS OVER 7 MILLION TEU WITH SOME ENHANCEMENTS THEY CAN MAKE.
SO THEY CAN HANDLE MUCH MORE MARKET.
IN ADDITION TO THAT, THERE ARE SOME, UH, PRIVATE, UH, FACILITIES THAT ARE LOOKING TO DEVELOP, WHICH COULD BE ANOTHER THREE TO 4 MILLION T SO YOU'RE TALKING 10 MILLION TUS HANDLED JUST TO THE NORTH OF US, AND THEY HIT A LOT OF THE SAME MARKETS.
WE DON'T HAVE A, WE DON'T HAVE A DISTINCT MARKET ADVANTAGE.
WE'RE SERVING THE SAME, UM, UH, DISTRIBUTION AREAS, UH, WHERE THE DISTRIBUTION CENTERS ARE LOCATED.
WE'RE HITTING THE SAME, YOU KNOW, CONSUMPTION POINTS.
SO IT'S VERY DIFFICULT TO DIFFERENTIATE OURSELVES.
AND THE ISSUE IS WHEN YOU REALLY LOOK AT, YOU KNOW, YOU, YOU'D THINK, OKAY, PELICAN ISLAND MIGHT BE AN OPPORTUNITY FOR THIS WITH, WITHOUT A TIMELINE OF, OF BRIDGE CONSTRUCTION TO GET TRUCKS OVER THERE, YOU KNOW, TRUCK ACCESS, ACCESSIBLE BRIDGE, AND THEN EVEN FURTHERMORE RAIL, YOU KNOW, RAIL ACCESSIBILITY BY A RAIL BRIDGE.
THERE'S, IT'S, IT'S JUST VERY DIFFICULT TO THINK THAT WE'LL BE ABLE TO COMPETE IN THAT MARKET.
AND IF YOU LOOK AT, SAY, JUST TAKING THE A HUNDRED ACRES THAT WE HAVE OVER THERE, UM, AND WE FIGURE ABOUT 5,000 TDU AN ACRE, YOU TAKE AWAY, YOU KNOW, 20% FOR, FOR A GATE AND, YOU KNOW, UH, UH, APRON, YOU'RE LEFT WITH 80 ACRES, YOU'RE TALKING 350 TO FOUR 50,000 TUS WOULD BE A CAPACITY OVER THERE.
UM, YOU CAN SEE HOW THAT PALES IN COMPARISON TO THE 10 MILLION PLUS CAPACITY WE'RE TALKING ABOUT, UH, UP ON THE HOUSTON SHIP CHANNEL.
SO, UM, YOU KNOW, WE DID OUR DUE DILIGENCE ON THIS, UH, AND THERE IN THE, IN THE DETAILED REPORT, THERE'S MORE BEHIND THIS.
BUT, YOU KNOW, WE DON'T THINK THIS IS A MARKET TO, TO, TO GO AFTER, UH, OR, OR, OR BE INVOLVED IN RIGHT NOW.
UM, WE THINK THE, THE BREAK BULK MARKETS THAT WE TALKED ABOUT JUST, YOU KNOW,
[00:30:01]
PREVIOUSLY ARE, ARE WHERE WE SHOULD BE FOCUSED.UM, SO THEN WE LOOKED AT, UM, YOU KNOW, HOW MUCH ACREAGE ARE WE GONNA NEED OVER TIME? AND WHEN YOU LOOK AT THE GROWTH IN, IN, IN THE ROW ROW AND SO FORTH, UM, WE'RE LOOKING, YOU KNOW, BETWEEN 140 TO 160 ACRES, ASSUMING WIND, YOU KNOW, STICKS AROUND.
SO THAT'S OUR PROPERTY, UH, THE, THE, THE WHA'S PROPERTY, BUT ALSO THE, UM, THE UP TRIANGLE THAT'S THERE, UH, AND SOME OF THE OTHER, UM, PROPERTY THAT, UH, METRO HAD SIGNED A LEASE WITH TO, TO HANDLE THIS, TO STAGE THE, UM, THE WIND BLADES.
UH, SO ABOUT 140 TO 160 ACRES.
IF YOU, IF YOU GO TO THE NEXT SLIDE, UM, LOOKING AT WIND GOES AWAY, WE BACKFILL THAT WITH THE BLUE, UH, THE, THE, THE, UM, BREAK BULK OPPORTUNITIES, SLIGHTLY LESS ABOUT 120 ACRES OR SO, UH, WOULD BE, WOULD BE NEEDED.
UM, AND THAT MIGHT BE A LITTLE LIGHT, MAYBE IT'S 120 TO ONE 30.
UM, BUT WE'RE, WE'RE, WE'RE IN THAT, IN THAT BALLPARK.
AND I THINK THE NEXT SLIDE COMPARES THE TWO OF THOSE.
UM, YOU KNOW, WE'RE, WE'RE SOMEWHERE IN THIS, YOU KNOW, A HUNDRED AND 140, 160 ACRES NEEDED FOR CARGO OPERATIONS DOWN AT THE WEST END TO HANDLE THE GROWTH IN RAILROAD AND, AND THE OTHER OPPORTUNITIES, UM, LOOKING AT THE, UH, THE BIRTH DEMAND, UM, WE HAVE A SCENARIO HERE WHERE WIND CONTINUES AND WHERE WIND IS REPLACED.
THEY PRETTY MUCH MIRROR EACH OTHER, BUT WE NEED THREE BIRTHS.
YOU KNOW, WE NEED THE TWO BIRTHS THAT ARE GONNA, THEY'LL, THEY'LL FACE ALONG THE, THE RECONSTRUCTED PIERS, AND THEN THE ONE BIRTH.
NOW THAT'S, THAT'S WHERE THE, WHERE THE, UM, UM, I DON'T KNOW THE NUMBER OFF THE TOP OF MY HEAD.
I'M LOOKING AT A MAP, UH, WHERE THE, WHERE THE, UH, WIND CARGO IS HANDLED, UH, NOW.
AND THIS IS, THIS IS THE BIRTH FOR THE GENERAL CARGO.
AND, AND, UM, AND RO THIS DOES NOT INCLUDE THE, UH, THE FERTILIZER DOCK, WHICH IS, WHICH IS THEIR OWN, THEIR OWN THEIR OWN DOCK THERE.
UM, JUST, JUST TO GET BACK VERY QUICKLY, JUST TO PELICAN ISLAND, YOU KNOW, IT, IT'S THERE, THERE'S AN OPPORTUNITY OVER THERE.
YOU KNOW, WE HAVE THE ACREAGE, YOU KNOW, WE HAVE A POTENTIAL NOW WITH, WITH, UM, THE SHIPYARD OWNER OR, YOU KNOW, SHIPYARD, UH, LESSOR.
UM, AND, YOU KNOW, THE, THE, THE, THE, THE CONSTRAINTS REMAIN THE SAME WITHOUT RAIL AND WITHOUT TRUCK.
IT'S VERY DIFFICULT TO HANDLE ANY TYPE OF TRADITIONAL CARGO OVER THERE, WHETHER IT'S AUTOS, ROW, ROW, CONTAINERS, BRAKE, BULK, YOU KNOW, ANYTHING.
THE, THE WAY IT WORKS NOW IS WITH PISTE IS EVERYTHING IS FLOATED IN AND FLOATED OUT, RIGHT? UM, SAME CAN BE WITH THE, WITH, WITH THE, UM, UM, SHIPYARD OPERATIONS WHERE SLAB CAN BE FLOATED IN DEPENDING ON WHAT KIND OF, YOU KNOW, ARE THEY BUILDING HOLES? ARE THEY BUILDING TOP SECTIONS? WHATEVER THEY'RE DOING, THEY CAN FLOAT THOSE PIECES IN ON BARGE, UH, MANUFACTURE THE PIECES THEY NEED.
AND THEN, YOU KNOW, THE, THE, THE, THE FINAL PRODUCT.
AND THEN IT CAN BE FLOATED BACK OUT, UH, FOR FURTHER, YOU KNOW, UH, AS A, AS A HULL OR FOR FURTHER, UM, UM, ASSEMBLY ELSEWHERE.
UM, SO REALLY IT, IT, IT COMES DOWN TO LOOK AT REEVALUATING THIS AGAIN OVER TIME WHEN WE HAVE A TIMELINE OF OF, OF BRIDGE CONSTRUCTION AND WILL IT BE TRUCK AND RAIL, OR JUST TRUCK? UM, WE NEED TO, WE NEED TO HAVE THOSE NEEDS KIND OF, KIND OF FIGURED OUT BEFORE WE CAN LOOK, UH, AT OTHER OPPORTUNITIES THERE.
AND THE NEXT SLIDE, I, I THINK I KIND OF TALKED IS, IS KIND OF REHASH OF THAT.
UM, SO, UM, LOOKING NEAR TERM WITH NO NEW BRIDGE OR RAIL ON THE LEFT HAND SIDE, SHIP BUILDING AND SHIP REPAIR, AGAIN, THAT'S HIGH ECONOMIC IMPACT, JOB CREATION.
UM, IT ALIGNS WITH, UH, THE, THE TRUMP ADMINISTRATION FOCUS AND ALSO THE, UH, UH, THE, THE DOD AND AND, AND THE BIPARTISAN SUPPORT FOR THE SHIPBUILDING OPERATIONS.
UH, THERE'S ALSO FEDERAL GRANTS AVAILABLE AND SO FORTH.
AND ALSO LNG FUELING, I MEAN, I KNOW WE'VE, THERE, THERE HAVE BEEN SOME DISCUSSIONS ABOUT FUELING OVER THERE.
AGAIN, THAT COULD BE FLOAT, FLOAT IN, FLOAT OUT, UM, YOU KNOW, BY BARGE, AND THEN GO AND SERVICE THE, THE GROWING MARKET OF, OF TUGS AND BARGES AND OTHER VESSELS THAT ARE NOW GETTING INTO THE LNG UH, UH, POWER, UH, WHICH IS A GROWING MARKET.
WE DID A WHOLE BUNCH OF ANALYSIS ON THAT IN THE, IN THE FULL REPORT.
SO THOSE ARE TWO REAL PRIME SECTORS RIGHT NOW THAT YOU CAN GET IN, UM, WITHOUT HAVING A RAIL OR TRUCK BRIDGE.
UM, AND AGAIN, THERE'S A LOT OF PRIVATE INVESTMENT OPPORTUNITIES.
THERE'S DEI IF YOU GO BACK ONE SECOND, YEAH, ONE, THERE YOU GO ON THE RIGHT HAND SIDE.
LONG TERM, ASSUMING THERE'S TRUCK AND RAIL, YOU CAN GET INTO THE TRADITIONAL TYPES OF METHANOL, ETHANE, FERTILIZER PRODUCTION, PIPE MANUFACTURING, RESINS, PLASTICS, ALL THAT OTHER STUFF THAT WE'VE SEEN
[00:35:01]
GO ON AT, YOU KNOW, LAKE CHARLES AND CORPUS CHRISTI AND HOUSTON, ALL THOSE DEVELOPMENTS.YOU KNOW, YOU CAN REALLY GET INTO THAT OVER THERE IF THERE'S TRUCK AND RAIL OPERATIONS.
SO THIS IS JUST A SUMMARY, UM, IN ALL WE'RE GONNA NEED ABOUT 150 ACRES FOR GENERAL CARGO, UH, DOWN THERE IN THE WEST END.
AND REALLY IT'S GONNA BE, YOU KNOW, WE NEED FLEXIBILITY TO ADAPT FOR SHIFTS IN DEMAND.
LIKE I SAID, WE HAVE FIVE OR SIX COMMODITIES THAT ARE THERE THAT REQUIRE SOME REQUIRE WAREHOUSING, SOME REQUIRE, UH, YOU KNOW, ON DOCK RAIL.
SOME REQUIRE OTHER, YOU KNOW, SPECIAL HANDLING.
WE NEED TO HAVE FLEXIBILITY FOR, FOR, FOR THAT, THOSE CONFIGURATIONS.
UH, THE NEW RAIL ACCESS, THE ON DOCK RAIL, I MENTIONED THAT.
I KNOW LEWIS WILL TALK ABOUT THAT IN A LITTLE BIT.
UH, CONSOLIDATION OF EXISTING RAIL YARDS.
WE HAVE SOME PROPERTY THERE THAT HAS, UH, YOU KNOW, WE HAVE, UH, SOME, SOME TRACKAGE, I MEAN, IF SOMEONE'S PULLED UP, BUT THERE'S STILL SOME EXISTING CONSOLIDATING THAT TO GIVE US MORE SPACE.
UM, WAREHOUSING, WE DON'T HAVE ANY WAREHOUSE SPACE, EVEN FOR SHORT TERM OPPORTUNITIES RIGHT NOW AS THEY'RE BEING USED, UH, FOR, UM, UH, UM, MAINTENANCE, YOU KNOW, AND, AND, AND, AND, UM, UH, PAR UH, PARTS AND, AND VEHICLES AND SO FORTH FOR, FOR THE TERMINAL OPERATOR.
BUT HAVING SOME CLEAR SPAN WAREHOUSING WHERE WE COULD HANDLE, UM, YOU KNOW, IN A PINCH, SOME, SOME PLYWOOD OR SOME LUMBER THAT WOULD NEED TO HAVE, UH, UH, COVERED STORAGE WOULD BE, WOULD BE, WOULD BE NICE.
AND THEN ALSO HAVING FLEXIBLE BER TO SERVE OTHER PORT NEEDS WHERE WE CAN HAVE CARGO CREWS AND SO FORTH, ESPECIALLY TO THE EAST OF THE PEER CONSTRUCT, THE RECONSTRUCTION THAT WE'RE GOING THROUGH.
SO I'M AVAILABLE NOW IF YOU WANNA DO QUESTIONS NOW, UH, LOUIS, OR YOU JUST WAIT TILL THE END OR, BUT I'M, I'M AVAILABLE HERE.
I'LL BE HERE FOR THE WHOLE PRESENTATION AND, UH, I'M GONNA GO CRUISE NOW, ANSWER ANYTHING YOU NEED.
UM, YOU TALKED ABOUT FLOAT IN AND FLOAT OUT BUSINESS BUSINESSES THAT ARE THERE AND POTENTIALLY WILL GO THERE.
AND SO THE NEED FOR RAIL OR TRUCKS ISN'T AS SIGNIFICANT, BUT WITH THAT KIND OF BUSINESS THAT'S GONNA BE THERE AND PRODUCING ICEBREAKERS OR WHATEVER THE SUPPLIERS AND THE MATERIALS THAT ARE NEEDED FOR THAT WILL BE TRUCKED IN, WON'T THEY? THAT'S WHAT HE'S TALKING ABOUT.
YEAH, I BUT TO BUILD THAT EVERYTHING, KEVIN.
OKAY, WELL, THE CONVERSATION, YEAH, THERE MAY, THERE MAY BE, NEED SOME TRUCK OVER THERE, BUT I MEAN, HOPE, HOPEFULLY THE NEED, YOU KNOW, THE, THEY COULD BRING IN, IF IT'S BIG SLAB, YOU KNOW, UM, 3000 TONS SLABS, THEY CAN FLIP THEM RIGHT IN, YOU KNOW, AND THEN, AND THEN FLIP THE HOLES OUT.
BUT THERE MAY BE SOME PIECES THAT THEY DO NEED TO BRING IN BY, BY TRUCK OR THAT WOULD COME IN BY TRUCK AND SOMEHOW NEED TO GET OVER THERE, UM, YOU KNOW, IN, IN THE NEAR TERM.
AND THEN I HAVE A QUESTION FOR JACK.
ROGER, HOW MANY ACRES DO WE HAVE IN THE WEST END RIGHT? AT ONE 50? WELL, GO AHEAD.
I MEAN, HE'S, WE ARE IN, WE'RE IN, EVERY GUN IS ONE 50, RIGHT? CORRECT.
WHEN WE FINISH, WE CURRENTLY HAVE, UH, ABOUT 65 ACRES, UH, 24 AND A HALF OF THAT IS, UH, LEASED FROM A CLASS ONE RAILROAD.
UM, WITH THE ADDITION OF, UH, THE DEMOLITION FROM A DM, UH, THE RAIL FROM A DM AND THE TWO SLIP FILLS WILL BE CLOSE TO 96 ACRES ON THE WEST END JUST FOR THOSE LOCATIONS.
AND DOES THAT INCLUDE THE SURFACE PARKING LOTS WE'VE CREATED ON THE WEST END? NO, WE COULD RECAPTURE THAT IF WE BUILD PARKING DECKS.
WELL, IF WE CAN GET ACROSS THE HARBOR SITE AND YOU, AND LIKE YOU SAID, YOU COULD RECAPTURE THE VIP PARKING THAT YOU HAVE IN FRONT OF, UH, CRUISE TERMINAL, UM, 28, UM, IF YOU GO VERTICAL, UM, AND THAT'S, YOU KNOW, I I'M NOT SURE EXACTLY HOW MAYBE, UH,
AND JEFF, CORRECT ME IF I'M WRONG, UM, BUT I THINK THAT'S WHAT THE PLAN IS, IS HERE'S EVERYTHING WE'VE GOT.
AND IF WE, I'M ASSUMING IF WE WERE TAKING INTO ACCOUNT, YOU KNOW, GOOD PIECE OF THIS.
NOW RAIL IS, IS THE UNKNOWN, RIGHT? I MEAN, THE RAIL IS WHAT, WHO'S GONNA OPERATE RAIL AND TO WHAT, UH, VOLUMES WE CAN BRING BACK IN WITH THAT.
THAT'S WHY I THINK SOME OF THE PLANS TALK ABOUT TRYING TO BRING RAIL.
AND WE'VE TALKED ABOUT THIS FOR A LONG TIME, ABOUT HOW WE BRING RAIL OUT HERE, GIVES US THE CAPABILITIES.
I MEAN, YOU CAN MOVE CONTAINERS THAT WAY.
[00:40:01]
TALKING ABOUT, AND I DO, WE HAVE AN HOUR, WE HAVE THE DRAWINGS HAVE, I THINK THAT MIGHT ANSWER THE QUESTION.THE AUTO UH, OPERATION DOWN HERE, IT'S A VERY SMALL SLIVER OF WHAT WE DO.
RIGHT? WHAT'S THAT, ROGER? I THOUGHT SMALL SLIVER THERE DOESN'T BELONG TO US.
IS THERE ANY CRUISE SHIP OPERATION ACTIVITY POTENTIAL FOR THAT SITE? THIS ONE WHERE THE, WHERE THE AUTO, UH, IS, WE DON'T OWN ANY OF THIS THAT'S OWNED BY A FOUNDATION TOWN.
I MEAN, YOU KNOW, THAT, AND I THINK, EXCUSE ME, UM, LEWIS WILL GET INTO THE POTENTIAL AND WHAT THAT WOULD LOOK LIKE.
BUT RIGHT HERE, THIS IS ALL CITY VISTA.
AND THEN THE FINAL QUESTION, OVER THE COURSE OF THE LAST COUPLE YEARS, WE HAD TALKED ABOUT AS A DM GOES AND WE DO OUR IMPROVEMENTS THAT WE MIGHT DO AN RFP WITH STEVE DO TO SEE IF SOME OF THE BUREAU PLAYERS WOULD BE WILLING TO, OR DO THE RFP, WHERE WE CAN SEE WHAT THEY PROPOSE AND WHAT INVESTMENTS, ET CETERA THEY MIGHT BE WILLING TO MAKE, IF ANY.
IS THAT STILL SOMETHING WE'RE CONSIDERING? YEAH, I MEAN, WHAT WE'VE DONE HERE IS, IS TRYING TO GET, AS WE'VE TALKED ABOUT BEFORE, TRYING TO GET DOWN THE ROAD FURTHER ON OUR CONSTRUCTION, RIGHT? RIGHT.
SO THAT WE'RE REALLY ACTUALLY DEALING FROM POSITION OF STRENGTH WHERE WE'RE NOT LOOKING FOR INVESTMENT.
I MEAN, WE'RE STILL GONNA HAVE THAT, THAT ONE SLIP OUT THERE THAT WE, YOU KNOW, WE'RE LOOKING AT GRANTS AND STUFF TO, TO, TO FINISH THIS OFF.
AND WE STILL HAVE SOME ISSUES WITH PHIL HERE THAT WE'RE NOT IN THOSE GRANTS.
RFP IS STILL KIND OF ON THE DRAWING BOARD.
AT THE RIGHT TIME WE WOULD HAVE TO DO THAT.
AND WE, AND WE, AND BECAUSE OF WHAT'S GOING ON AND THE CONVERSATIONS WE'RE HAVING AND BRETT'S HAVING, UM, YOU KNOW, WE KNOW WHO THE PLAYERS ARE THAT ARE INTERESTED, RIGHT.
SO THEY'LL ALL BE INVOLVED IN THAT PROCESS.
I JUST WANTED TO KNOW ABOUT THE ACREAGE.
THE DEL MONTE BANKRUPTCY, THE CORPORATE BANKRUPTCY, HOW'S THAT AFFECTING CARGO OPERATION IN DIFFERENT COURT? AND ARE THERE OTHERS THAT COULD BE IMPACTED? YEAH, I, YOU KNOW, UM, WE LOOKED INTO THAT AND I, I THINK 'CAUSE WE HAVE, UH, SOME GOOD RELATIONSHIPS WITH, UM, UH, TERMINALS ON THE DELAWARE RIVER WHERE THEY, THEY BRING A LOT INTO, INTO PHILADELPHIA AND WILMINGTON AND, AND NEW JERSEY.
AND I THINK THAT, UM, FROM WHAT I HEARD IS THAT WAS THE CANNING SIDE THAT GOT, THAT WAS IN THE, IN THE, UH, IN THE BANKRUPTCY.
AND THEY DON'T THINK THAT THE, THE FRESH SIDE AND THE IMPORTS IS GONNA BE AFFECTED THAT MUCH.
UH, MAY, UH, QUESTION YOU TALKED ABOUT WHEN POSSIBLY GOING AWAY, NOT HAVING A GOOD FUTURE HERE, UH, AND WE TALKED ABOUT THOSE NEW CARGO, UH, UH, OPPORTUNITIES.
WHAT DO WE NEED TO DO TO PRIME THE PUMP ON THAT? DO WE NEED TO START MAKING ANY POSITIVE MOVEMENTS ALONG THOSE LINES AT THIS POINT RATHER THAN WAITING TO SEE WHAT HAPPENS? I THINK I'LL LET JEFF ANSWER THAT ONE.
I, I THINK, I MEAN, I THINK REALLY IT'S, IT'S, IT'S TALKING WITH YOUR TERMINAL OPERATORS, ESPECIALLY METRO, YOU KNOW, METRO DOES A LOT OF, UM, UM, OTHER TRADITIONAL CARGOES LIKE STEEL AND LUMBER AT OTHER PORTS.
AND I THINK THEY'RE KIND OF LOOKING AT THIS LIKE, YOU KNOW, UH, THEY, THEY MADE A DECISION YEARS AGO TO GET INTO THE WIND MARKET AND, AND DOWN HERE IN GALVESTON AND IT WAS SUCCESSFUL AND, AND, AND JUST A MATTER OF TIME TILL, YOU KNOW, POTENTIALLY IT RAN OUT, THERE'S ALWAYS THAT RISK.
BUT I KNOW, UH, IN DISCUSSIONS WITH THEM, UH, YOU KNOW, THEY'D BE LOOKING RIGHT AWAY, UH, TO, TO TO GET INTO OTHER MARKETS.
AND MAYBE IT'S A CONVERSATION WITH THEM.
AND I KNOW, YOU KNOW, BRETT AND ROGER HAVE A GREAT RELATIONSHIP, UM, SEEING IF THERE, IF, YOU KNOW, WAREHOUSE CAPACITY MIGHT BE AN ISSUE RIGHT OFF THE BAT.
IF THERE'S A CARGO THEY WANNA GO AFTER THESE WAREHOUSE SPACE, YOU KNOW, THAT WE DON'T HAVE, UH, AVAILABLE, THAT MIGHT BE SOMETHING TO LOOK AT.
BUT I THINK THAT THAT'S, YOU KNOW, UH, AN OPTION.
AND LIKE YOU MENTIONED, YOU KNOW, THERE'S OTHER OP OPERATORS OUT THERE, YOU KNOW, UM, THERE, THERE'S, UH, A LOT OF, UH, STEVE OIL COMPANIES THAT, THAT SPECIALIZE IN THOSE TYPES OF CARGOES.
UM, THAT MIGHT HAVE A, AN INFLUENCE TO BRING THOSE IN AS WELL.
SO, UM, I JUST THINK KEEPING ABREAST OF WHAT, WHAT THEIR THOUGHTS ARE FROM METRO'S SIDE, UH, WOULD BE, WOULD BE THE FIRST STEP.
UH, AND THEN ANY TYPE OF, UM, YOU KNOW, IF THEY SEE SOME POTENTIAL AND THERE'S SOME INFRASTRUCTURE NEEDS THAT NEED TO BE MET, I WOULD SAY, UH, TRY AND WORK OUT A DEAL THERE JUST FOR NEAR TERM AND THEN, AND SUPPLEMENT THAT WE, WE ARE SEEING AN INCREASE IN INQUIRIES FROM OTHER STEVE DO THAT AREN'T HERE, THAT ARE INTERESTED IN WHAT WE HAVE GOING ON.
[00:45:01]
THEY SEE THIS PROGRESS IN, IN THE ACREAGE, YOU KNOW, INCREASE.I MEAN, I THINK AS, AS JIM MENTIONED TOO, THE AN RFP PROCESS IS GONNA GIVE US A LOSS.
WHAT WE, THE CURRENT CONVERSATIONS WE'RE HAVING IS THERE IS ALTERNATIVE CARGO, THERE IS LIFE AFTER WIND.
AND, AND IT MAYBE IT COVERED AND I WROTE DOWN COVERED STORIES BECAUSE IT'S JUST SOMETHING THAT WE SHOULD MAYBE LOOK INTO, UH, TO DEVELOP.
I MEAN, I, I AT BREAK BULK HAD CONVERSATIONS WITH SOME PEOPLE THAT WERE INTERESTED IN, IN THAT KIND OF, UH, UH, EVEN EVEN BACK INTO, UH, YOU KNOW, REFRIGERATED STORAGE AGAIN, UM, WHEN THOSE KIND OF THINGS.
BUT, UH, I MEAN, I, RIGHT NOW UNTIL I, I THINK UNTIL WE HAVE OPERATIONAL, UH, DOCKS, WHICH WE'RE GONNA HAVE SOME NICE ONES OUT THERE, YOU KNOW, I MEAN, AND, AND YOU KNOW, OVER 2100 FEET ACROSS THE END THERE, YOU KNOW, WE'LL SEE, WE'RE GONNA SEE THE INCREASE IN IT.
I MEAN, BRETT'S SEEING IT NOW.
I MEAN, THEY'RE, THEY'RE TALKING, I WAS LOOKING AT BRETT WHEN THEY WERE TALKING ABOUT THE DEPTH OF 40 FEET DURING THIS LAST, UH, PRESENTATION.
WE MIGHT BE GETTING THERE SOON, I GUESS WITH THE NEW DREDGING THAT WE'VE GOT COMING.
BUT, YEAH, SO A A COUPLE THINGS REALLY QUICK.
THE WIND USUALLY OPERATES IN ABOUT 22 ACRES THAT WOULD EASILY, EASILY BE ABSORBED BY, UH, THE RAILROAD OPERATORS THAT WE CURRENTLY HAVE.
AND I'M WORKING ON TWO STEVE DOOR LICENSES.
I'LL BE BRINGING ONE NEXT MONTH TO YOU, UH, TO BRING IN EVEN MORE.
YOU HAVE, BE CAREFUL WHEN YOU'RE TALKING ABOUT BULK COMMODITIES, UH, BECAUSE, UH, NUMBER ONE, YOU HAVE TO MOVE MILLIONS AND MILLIONS AND MILLIONS OF TONS TO GENERATE ANY SIGNIFICANT REVENUE.
SO THAT'S GONNA REDUCE THE SIZE OF PROPERTY THAT YOU ACTUALLY CAN OPERATE ON.
UM, AND IT'S GOING TO REALLY, IT DOESN'T BRING A LOT OF UNION LABOR JOBS.
IT JUST DOESN'T, IT'S NOT A GOOD BALANCE ON THAT.
UH, I'M CONFIDENT THAT RAILROAD WILL EASILY ABSORB ALL THE ACREAGE I HAVE ON THE WEST END.
UH, WE JUST GOT TO NYK WHO SHOWED UP ON, ON IN APRIL.
UM, THEY'RE LOOKING FOR SPACE.
WE HAVE SEVERAL OF THE RAILROAD OPERATORS THAT WILL COMPLETELY FILL THAT UP.
AND THAT IS A GREAT BALANCE OF JOBS AND REVENUE TO THE WORK.
'CAUSE IF YOU ARE RELYING ON BULK COMMODITIES, YOU NEED THAT DEPTH OF WATER, YOU NEED IT IN A FEDERAL HARBOR AND YOU NEED IT ALONGSIDE THE DOCKS.
UM, AS YOU CAN SEE, THAT'S WHAT HINDERED STI.
IT HINDERED, UH, CHS OF COURSE, YOU KNOW WHAT IT DID TO A DM.
WE GOTTA BE CAREFUL ON HOW THAT IS.
UH, SO YOU'RE ABSOLUTELY RIGHT ABOUT THE DEPTH.
UH, CURRENTLY WE'RE LOOKING GOOD.
I THINK WE'RE DRAFT RESTRICTED TO 44 FEET RIGHT NOW.
WE'RE PRETTY GOOD ON THE DEPTH AT THE MOMENT BECAUSE WE RIGHT NOW WE HAVE A LOT OF FUNDS AND CAPABILITIES TO MAINTAIN THAT DEPTH.
THE FEDERAL FUNDS TO MAINTAIN THAT DEPTH.
IS IT GONNA BE THAT IN FIVE YEARS, SEVEN YEARS? AND THAT'S MY QUESTION WITH THE REPORT.
IS IT WORTH GOING AFTER THOSE BIG ONES THAT NEED THAT DEPTH? BECAUSE THEY, THEY'RE SMART ENOUGH TO KNOW THAT IF WE'RE NOT CONSISTENT WITH IT, THAT THEY DON'T NEED TO MAKE THAT INVESTMENT HERE.
I WOULD IMAGINE THAT'S A VERY GOOD POINT.
IS THAT 45 FEET, IS THAT IN THE CHANNEL OR IS THAT UP AGAINST THE DOCKS THAT IS IN THE FEDERAL HARBOR? YEAH, THE ONLY BIRTH THAT WE CURRENTLY CAN DO 45 FEET AT RIGHT NOW IS THE OLD GRAIN DOCK.
UH, NOW THAT CHANGES WHEN WE GET THE ROUGHLY 1250, 1300 FOOT, UH, P 39 40, WE'LL BE ABLE TO GO MUCH DEEPER.
SOMEBODY ELSE HAVE A QUESTION? WELL, JEFF, THANK YOU AND I THINK WE CAN MOVE ON.
SO I'LL MOVE OVER HERE BECAUSE I'M TALKING TO YOUR BACK.
SO TALKING ABOUT YOUR BIGGEST COMMODITY NOW IS CRUISE, AND WE TREAT CRUISE AS A COMMODITY, AS PEOPLE, BUT IT'S A COMMODITY THAT YOU'RE MOVING AND SO FORTH.
AND WE WANT TO TELL YOU WHAT'S HAPPENING IN THE INDUSTRY.
SO YOU, THAT WAS REALLY GOOD UP OF SHUT OF THE INDUSTRY.
SO PHENOMENAL SUCCESS STORY THAT YOU'VE HAD HERE.
YOU KNOW, YOU SAT AT THE MILLION, MILLION, 2,000,003 FOR MANY, MANY YEARS AND THEN IT WENT UP.
YOU'RE LITERALLY AT CLOSE TO 4 MILLION PASSENGERS, UH, AND, UH, AND YOUR NUMBER OF CALLS HAVE BEEN GROWING.
YOU'RE GETTING A 6.9% RATE OF GROWTH SINCE 2012.
UH, YOUR BUSINESS IS PREDOMINANTLY RIGHT NOW DIVIDED BETWEEN TWO COMPANIES, A CARNIVAL CORPORATION AND ROYAL CARIBBEAN.
BUT YOU CAN BEGIN TO SEE THE ORANGE, WHICH IS MSC GREEN, WHICH IS NCL.
YOU'RE BEGINNING TO SEE THAT THIS, THIS INDUSTRY IS VERY BASIC.
THEY'RE LIKE MCDONALD'S AND BURGER KING.
A MCDONALD GOES IN THE CORNER AND MAKE SOME MONEY.
THERE'S GONNA BE A BURGER KING ON THE OTHER SIDE.
THERE IS, YOU KNOW, SOMEBODY DESCRIBED IT AS THE ELEPHANTS IN A, IN A, IN A CIRCUS.
AND JUST GRAB THE, THE TAIL WITH THE, WITH THE TRUNK AND FOLLOW EACH OTHER.
SO WHERE ARE YOU AT? SO, UH, IN TERMS OF,
[00:50:01]
IF WE TREAT THE WHOLE CARIBBEAN AS A MARKET, YOU'RE THE FOURTH LARGEST IN THE CARIBBEAN, MIAMI, CANAVERAL, AND EVER GLAD.AND YOU, YOU'LL NOTICE THAT NO, YOU'RE, UH, YOU'RE, WHEN YOU LOOK AT JUST THE, WHAT WE WOULD CALL THE WESTERN REGION, SO YOU'RE NOT SERVING NECESSARILY OUT TO THE, TO THE, TO UH, TO THE LESSER
YOU'RE THE NUMBER ONE IN THE WESTERN REGION BY A LONG SHOT.
SO, UM, AND I THINK YOU'LL UNDERSTAND THAT THE TAMPA'S GOT AN ISSUE.
IT'S GOT THE SUNSHINE SKYWAY BRIDGE THAT ONLY ALLOWS SHIPS TO LIKE 155 FEET OF HEIGHT OR 65 THAT KILLS 90% OF TRAFFIC.
AND NEW ORLEANS HAS A LONG, LONG, LONG CHANNEL THAT THEY GOTTA GO THROUGH AND CRUISE SHIPS DON'T LIKE THAT.
SO, UM, THE OTHER THING IS THAT IT'S DEVELOPED.
GALVESTON WAS ALWAYS LIKE A SEVEN DAY CRUISE EVERY SATURDAY AND SO FORTH, CRUISE LINES HAVE BEGUN TO EXPERIMENT WITH A LOT OF OTHERS.
AND NOW YOU'RE GETTING A WHOLE MIXTURE OF STUFF FIVE, FOUR BEING THE NEXT PREDOMINANT WHERE THEY PACKAGE IT UP IN A WEEK, 5, 5, 4, 4, 5 FOURS.
SO THEY'RE ABLE TO TAKE A SEVEN DAY PRODUCT AND CREATE IN TWO WEEKS.
THEY CREATE THREE PRODUCTS OUT OF IT.
WHAT'S SORT OF INTERESTING, AND THIS WILL RELATE LATER ON IN A MINUTE, WHEN YOU SEE THE DISCREPANCY THAT YOU DON'T HAVE MUCH ON THE THREE AND FOUR DAY, WHICH IS THE PREDOMINANT SIDE OF THE EAST OF THE FLORIDA PORTS, BECAUSE THEY CAN GET THE THREE DAYS TO, TO A PORT CALL HERE, A THREE DAY, THREE DAY, YOU, YOU CAN'T GET THE CO MAIL BACK.
SO, SO YOU'RE, THAT, THAT IS ONE OF THE ISSUES.
SO YOUR SEASONALITY, EVERYBODY SAYS, WELL, YOU KNOW, WE GOTTA GET SEASONALITY, EVERY PORT OF SEASONALITY, EVERY PORT OF SEASONALITY.
NOT BECAUSE YOU'RE LOSING SHIFTS, 'CAUSE YOU'RE GAINING SHIFTS IN THE, IN THE WINTERTIME, IN THE SUMMERTIME, I'M SORRY, IN THE, IN THE, IN THE WINTERTIME WHEN THEY HAVE TO LEAVE ALASKA IN THE NORTH.
SO YOU GET THIS, BUT YOU ARE PRETTY BALANCED BECAUSE YOUR PEAK SEASON IS, UH, 57% AND YOUR OFF PEAK IS 43%.
SO COMPARE THIS WITH MIAMI THAT IS 61 TO 39, OR OF COURSE SEATTLE.
AND I'M, TO GIVE YOU THE, THE WORST EXAMPLE, IT'S ALL SEASONAL SO THAT THOSE ARE THE SHIPS THAT CREATE THE SEASONALITY FOR EVERYBODY ELSE, AND WHETHER IT'S NORTHERN EUROPE AND SO FORTH.
BUT AS A COMPARABLE WITH THE OTHER MAJOR PORTS, YOU DO A PRETTY GOOD IN SEASONALITY, UH, ON DAILY FLUCTUATION.
THIS IS WHERE I WAS SAYING THAT IF YOU HAD A THREE, FOUR DAY PACKAGE, MONDAY AND FRIDAY WOULD BE REALLY HIGH, BUT YOUR FIVE, FIVE FOURS MAKING UP WITH THIS LESS 5, 5 4 THAN THREE AND FOUR DAY.
SO YOU'RE BASICALLY, 61% OF YOUR CALLS ARE ON WEEKENDS, 38% OR WEEKLY, UH, AS COMPARED TO MIAMI.
EVERYBODY USED TO BE JUST SATURDAY, SUNDAY, THEN, THEN EVERYBODY STARTED ADDING STUFF.
AND YOU CAN SEE IN SEATTLE WHERE IT'S REALLY A MARKET CONSTRAINT THAT THEY NEED TO USE BIRTHS, UH, THERE, YOU KNOW, ALMOST 50 50 BETWEEN A WEEK AND A WEEK.
SO THERE'S SOME CAPACITY THERE TO ABSORB CAPACITY DURING THE WEEK.
UH, BUT IT'S DRIVEN BY, UH, THIS LACK OF PORT NEARBY.
WHAT DOES IT LOOK FOR THE FUTURE? SO THIS IS THE INDUSTRY WORLDWIDE.
IT IS EVERYTHING IN THE, IN THE WORLD BY CRUISE SHIPS, BY NUMBER OF PASSENGERS, 4.9% GROWTH.
UH, YOU CAN SEE THE V-SHAPED RECOVERY AFTER COVID, AND NOW WE'RE BACK UP EXACTLY WHAT WE THOUGHT WE WERE GONNA BE BECAUSE THE SHIPS THAT WERE SCRAPPED DURING COVID WERE GONNA BE SCRAPPED IN THOSE THREE OR FOUR YEARS.
SO THERE WASN'T, THE END PLAY IS THE SAME.
UM, THE RECOVERY BY REGION IS REALLY IMPORTANT.
THE CARIBBEAN, AND, AND I SOLICIT YOU IN THE CARIBBEAN, YOU CAN SEE WHERE THE GROWTH HAS TAKEN PLACE.
WHEREAS THERE'S MANY OTHER AREAS BECAUSE OF POLITICAL ISSUES OR RESTRICTIONS THAT HAVE NOT COME BACK, PARTICULARLY ASIA PACIFIC WHERE EVERYBODY THOUGHT THAT CHINA WAS GONNA GROW A LOT.
SO AS THIS CAPACITY COMES IN, IT'S COMING PREDOMINANTLY TO NORTH AMERICA AND IN WHICH WE'RE THE BENEFICIARY.
UM, THE GLOBAL SHIP DELIVERIES, TWO THINGS TO NOTICE, THESE ARE THE WITHDRAWALS AND TOP IS THE, UH, UH, ORDERS.
UM, THEY'RE GOING BACK UP AGAIN, YOU KNOW, DESPITE, YOU KNOW, MASSIVE DEBT AND SO FORTH, THEY'RE GOING BACK UP BECAUSE THAT'S THE ONLY WAY THEY COULD GROW.
AND YOU CAN SEE THAT THE WITHDRAWALS, THEY, THEY, THEY FLUSHED THEM ALL OUT IN 2022.
SO YOU'RE BASICALLY GETTING ALMOST A TWO, UH, A TWO BANG GROWTH BECAUSE THEY'RE BRINGING MORE SHIPS AND THOSE SHIPS ARE BIGGER.
SO JUST BECAUSE IT WAS ONE SHIFT.
SO ON AVERAGE, WHEN WE DO OUR FORECASTING GOING FORWARD, WE SAY, WHAT IS SHIP CAPACITY USED TO BE SIX TO EIGHT PER YEAR.
NOW WE'RE UP TO AN AVERAGE ABOUT 12 PER YEAR OF SHIPS.
SO WE KNOW THAT'S A FINITE NUMBER, THAT'S HOW MUCH IT CAN PUT OUT.
SO THEN IT'S A QUESTION OF HOW BIG ARE THE SHIPS AND WHERE AND WHAT KIND OF ITINERARY DO THEY HAVE?
[00:55:01]
THE CARIBBEAN AND THE GULF RECEIVE OVER HALF OF THOSE SHIPS.SO, UH, THE EVERYTHING IS, EVERYTHING THAT'S BEEN HAPPENING FOR THE LAST FIVE YEARS AND CONTINUES IS IT'S GROWTH IS OCCURRING IN NORTH AMERICA AND IT'S COMING HERE.
ALL THE SHIPS ARE BEING DEDICATED HERE.
AVERAGE SHY SHIP, THE BIGGER ONES ARE COMING HERE THAN THE REST OF THE, THAN THE REST OF THE, THE MARKET.
SO THE AVERAGE IS IN THE 3000.
BUT YOU KNOW, THEY'RE BUILDING AN 8,000 PASSENGER, THEY'RE BUILDING SEVERAL 8,000 PASSENGER SHIPS.
AND DON'T BE SURPRISED IF YOU HEAR A 10,000 PASSENGER SHIPS.
UH, SO THE INDUSTRY TOTALITY, VERY SIMPLE.
I THINK ALL OF YOU PROBABLY UNDERSTAND IT VERY WELL.
THEY BARELY HAVE PENETRATED PEOPLE THAT TAKE VACATIONS.
NOW, NOT EVERYBODY MY OWN, I TAKE A CRUISE, BUT THERE'S ONLY ABOUT 2% OF THE, OF THE LOAD HAS TAKEN A CRUISE VACATION.
YOU CAN COUNT THAT THAT 50% IS REPEAT CLIENTELE TO GROW.
THEY DON'T, THEY DON'T HAVE TO GO AND FIND THAT THEY GO TWO TO FOUR.
UM, AND THEIR VALUE PROPOSITION STAYS THE SAME.
THAT'S WHY THEY'RE SO TOUGH IN NEGOTIATING DEALS BECAUSE THEY WANT TO KEEP IT AS CHEAP AS POSSIBLE.
SO IT IS 25 TO 30% CHEAPER TO TAKE A CRUISE, GOING AND VISITING A RESORT AND SO FORTH.
THOSE THREE THINGS REALLY ARE THE DRIVING FORCE WITHIN.
WHAT IT THAT'S DRIVEN NOW LATELY IS THAT THESE NEW SHIPS ARE NOW, YOU CAN SEE THEM, YOU KNOW, THE NEW, NEW PRODUCTS, NEW IDEAS, NEW UH, THINGS TO ATTRACT PEOPLE.
SO IT'S A SUPPLY CONSTRAINED INDUSTRY.
AND THEY'RE THE NEW AND LARGER VESSELS ORDERED.
AND WHAT THAT MEANS, THEY'RE FULL, THEY'RE, AND THEY GROW FULL EVERY YEAR.
SO WHEN YOU LOOK AT NOW YOUR, YOUR, UH, SPHERE, THE PORTS THAT YOU'RE IN, YOU ARE GROWING THE FASTEST COMPARED TO YOURSELF.
104% GROWTH VERSUS MIAMI OR CANAVERAL, OR EVER GLAD YOU CAN SEE VERY LITTLE.
SO IT IS NOT, UH, IT IS NOT OUT OF THE QUESTION THAT IN A YEAR YOU'LL BE THE THIRD LARGEST FOUR AND CREWS IN THE WORLD.
NOW WHAT ARE THE, WHAT IS EVERYBODY ELSE DOING TO COMPETE LIKE YOU? THEY'VE BEEN BUILDING FACILITY BECAUSE THESE SHIPS ARE SO DARN BIG.
YOU CAN SEE WHAT MIAMI HAS DONE.
IT IS A WHOLE LITANY OF OVER A BILLION SOMETHING CRUISE TERMINALS.
CANAVERAL BUILD ABOUT HALF, HALF A BILLION BUILDING ANOTHER ONE, AGLS, A SMALLER AMOUNT.
TAMPA IS JUST UPGRADING STUFF.
THAT'S REALLY NOT MUCH YOU CAN DO.
AND THEN YOU BUILD YOUR OWN TERMINALS.
THE 11 6 8, THAT'S THE NUMBER OF TERMINALS THAT THOSE PORTS HAVE OPERATING TODAY AT EACH FACILITY.
UH, WHICH THEN YIELDS WHAT TO ME IS ONE OF THE MOST IMPORTANT METRIC FOR YOU IS HOW MANY PERSONS PER TERMINAL DO YOU MOVE, OR PER, PER, THAT'S A CRITICAL THING.
YOU CAN SEE THAT AT THE END OF THE SCALE, YOU GOT PEOPLE MOVING ABOUT HALF A MILLION PASSENGERS PER TERMINAL WHILE YOU'RE MOVING TWICE THAT.
SO ONLY CANAVERAL IS AHEAD OF YOU RIGHT NOW.
UM, BUT THE KEY IS TO GET THAT NUMBER UP SO YOU BUILD LESS FACILITIES, MOVE MORE PEOPLE THROUGH THEM, BETTER, BETTER YEARS FOR, FOR THE 40.
SO WHAT ARE THE TWO BIG FACTORS FOR GROWTH? NUMBER ONE IS THE OPPORTUNITY IS BASED ON THE FACT YOU HAVE ACCESS TO THE LARGEST DRIVE MARKET OF ALL THE PORTS AND YOUR YEAR ROUND PORT.
AND YOU HAVE ACCESS TO A BUNCH OF DIFFERENT ITINERARIES IN THE TRADITIONAL SOUTH FLORIDA PORT.
SO YOU'VE GOT A BUNCH OF STUFF AND, AND YOUR LIMITED NUMBER OF COMPETITOR HOME PORTS, UH, THAT, AS I SAY, THEY HAVE, THEY HAVE MAJOR ISSUES THAT YOU CAN'T.
SO THE GROWTH, THE GROWTH HAS TO OCCUR HERE.
WHAT'S THE CHALLENGE? THE LACK OF DESTINATIONS.
THAT'S ALWAYS BEEN THE CASE, BUT THAT'S A SELF-DRIVING THING.
SO FIRST OF ALL, LOOK AT THE DRIVE MARKET.
SO IF YOU LOOK AT THE DRIVE MARKET FOR, UH, GALVESTON, YOU HAVE 46 MILLION PEOPLE THAT CAN DRIVE WITHIN 500 MILES FROM HERE.
UH, CANAVERAL IS 46, BUT 46, HALF OF THAT IS SOUTH OF THEM.
THERE'S MIAMI'S, THERE'S ALL THE MIAMI STUFF.
SO BASICALLY IF YOU SAY, OKAY, MIAMI'S TAKING CARE OF MIAMI, YOU'RE BASICALLY TAKING THREE PORTS, MIAMI CANAL, EVERGLADES, COMPETING FOR THAT SAME SPACE, THREE PORTS WITH 11, FIVE AND EIGHT.
SO 20 SOME ODD TERMINALS, AND YOU'RE COMPETING FOR THIS SAME MARKET WITH YOUR FOUR TERMINALS THAT YOU WILL HAVE SO GREAT OPPORTUNITY.
THAT'S WHY THEY ALL WANT TO COME HERE.
AND THAT'S WHY THEY, PEOPLE ARE NOT HERE SAYING, WAIT A MINUTE, ROYAL
NOW, THE ISSUE HAS ALWAYS BEEN WHERE DO YOU GO FROM HERE? AND YOU, BECAUSE OF THE REPEAT CLIENTELE, YOU REALLY NEED A LOT MORE.
AND THIS IS WHERE THE WESTERN SIDE HAS FAILED A LOT.
A LOT HAS TO DO WITH GEOGRAPHY
[01:00:01]
AND DEPTH AND THINGS LIKE THAT.AND AROUND CANCUN, THE WATER'S VERY SHALLOW AND SO FORTH.
UM, BUT YOU CAN SEE WHAT THE MAJOR PORTS ARE.
COZUMEL COST MAY COST, MAYA WAS JUST BOUGHT BY ROYAL CARIBBEAN.
UM, GRAND CAYMAN HAS DECIDED THEY'RE NOT GONNA BUILD A PIER.
SO THERE, THERE'S CHALLENGES THERE.
UH, THE YELLOW ONES ARE THE ONES THAT ARE, UH, UNDERGOING SOME MAJOR EXPANSION RIGHT NOW.
SO LET ME SHOW YOU THAT THIS IS NOT A UNCOMMON PROBLEM TO ALL THE PORTS.
WHEN, WHEN THE CRUISES STARTED IN, IN SOUTH FLORIDA, THIS WAS THE DESTINATION PICTURE.
THEY WERE ALL ORGANIC, EXISTING PORTS THAT HAD CITIES AROUND THEM, ALL OF 'EM.
UH, SOME YOU COULD GET IN EASIER THAN OTHERS.
SO EVERY ITINERARY WAS GOING TO THIS.
AND YOU SAY, OKAY, HOW MANY TIMES IF YOU, IF I GOT PEOPLE GOING, HOW MANY TIMES ON A SEVEN DAY CRUISE DO YOU WANNA GO TO ST SIX DESTINATIONS? SO VERY QUICKLY, SOME ONE SMART PERSON IN ONE OF THE CRUISE LINE SAYS, WHY DON'T WE DO THESE ODD ISLANDS, WHICH WERE NO MORE THAN THE BEACH DESTINATIONS.
AND ALL OF A SUDDEN THEY TOOK THE 11 AND ADDED 16 PRIVATE ISLAND DESTINATIONS.
BUT THESE ARE JUST BEACH TOWNS.
THEY WERE NOTHING TO DO OTHER THAN A HAMBURGER AND HOTDOG.
AND THEY NEVER SAW IT AS A PROFIT CENTER.
THEY SAW IT AS AN EXPENSE CENTER.
LITERALLY, NO, THEY DIDN'T WANNA INVEST THE MONEY 'CAUSE THEY'RE NOT MAKING ANY MONEY OUT OF IT.
THIS IS WHAT IT LOOKS LIKE TODAY SINCE THAT 12 NEW MEGA DESTINATION, WHICH ARE DIFFERENT.
AND HERE'S WHAT HAPPENS WHEN YOU DO THE PROFIT CENTER.
SO THIS IS THE BEACH ISLAND OF COCOA, WHICH IS ROYAL CARIBBEAN.
BEFORE THEY MADE THE INVESTMENT, COCO K BECAME PERFECT DAY.
AND EVERYBODY SAYS, WHO'S GONNA GO TO A WATER PARK IN THE MIDDLE OF THE OCEAN? IT SORT OF, YOU, YOU GO BY, IT'S RIDICULOUS.
YOU CAN SEE ALL THESE THINGS
IT IS THEIR MOST SUCCESSFUL PRODUCT THAT THEY EVER HAD.
SO THE PROJECT IN COS MILL IS GONNA BE RCIS PERFECT DAY FOR THIS SIDE OF THE EQUATION.
THEY'RE BUILDING ANOTHER PERFECT DAY IN THE PACIFIC, AND THEY'RE BUILDING THIS KIND OF PRODUCT, IS WHAT THEY'RE GOING FOR.
UH, SO LOOK AT WHAT USED TO BE.
THESE ISLANDS WOULD MOVE PROBABLY ABOUT FOUR OR 500,000 PEOPLE.
THE BLUE ONE CELEBRATION OPENED THIS SATURDAY.
THAT'S THE PROJECTION OF CELEBRATE.
AND WE KNOW THAT BECAUSE WE KNOW THE SCHEDULE ALREADY, ALL THE SHIPS THAT THEY'RE PUSHING IN THERE, AND THEY WENT FOR, WE DESIGNED IT, IT WENT FOR TWO BIRTHS, NOW IT'S GONNA FOUR BIRTHS, IT WAS DESIGNED FOR TWO ONLY.
THEY'RE BUILDING THE FOUR, THE ADDITIONAL TWO BIRTHS, AND THEY'RE GONNA PUSH 4 MILLION PEOPLE THROUGH THAT IN A MATTER OF TWO, THREE YEARS, INCLUDING, I'LL SHOW YOU A MINUTE, BUT, SO LOOK AT WHERE THE CRUISE LINES ARE TAKING THEIR, THEIR, THEIR PEOPLE.
SO THIS IS COCO COCAINE, ONLY COCOA AND ROYAL CARIBBEAN.
90 84% OF SAVINGS FROM MIAMI GO TO COCO CA.
91 FROM CANAL WILL GO TOOKE 74 FOR AIRPLANE.
SO THEY'VE SOLVED THE PROBLEM THEMSELVES AND THEY SOLVED IT PROFITABLY.
AND OF COURSE, THIS IS THE ONE THAT OPENED ON SATURDAY AND THEY'VE ALREADY ANNOUNCED GALVESTON.
AND PEOPLE FROM HERE WILL GO TO CELEBRATION.
THAT'S A PROBABLY OVER $500 MILLION PROJECT.
IT IT'S AN INCREDIBLE PROJECT.
SO, UM, WHERE I CAN ALSO TELL YOU IS THAT THIS IS THE MOST ACTIVE AREA FOR LOOKING FOR PORCH RIGHT NOW.
CAN'T TELL YOU WHERE AND ALL THAT STUFF BECAUSE THEY'RE ALL, YOU KNOW, VERY COM.
BUT THE ISSUE THERE IS VERY SHALLOW WATER ALONG HERE, BUT INCREDIBLE DESTINATIONS THAT YOU GOT JUNGLE AND ALL KINDS OF STUFF.
SO, AND IN OUR OPINION, THE LACK OF DESTINATIONS IS A SELF, IT WOULD BE SELF CURED BY THE INDUSTRY.
UM, SO HOW DO WE DO THE FORECAST GETTING INTO IT? SO WE DO TWO WAYS, A REAL TRADITIONAL FORECAST AND THAT WE KNOW WHAT THE GLOBAL, HOW MUCH THE REGION'S GONNA GET, HOW MUCH IS GALVESTON, HOW MUCH IS THE DEMAND IS.
AND THIS IS WHAT THE CRUISE FORECAST THAT WE'RE SEEING NOW.
I'M SHOWING THE DARK BLACK LINES.
THAT'S FROM THE LENGTH FROM THE LAST MASTER PLAN THAT THERE WAS NO COVID.
AND WE WERE PICKING UP, WE END UP IN THE SAME SPOT AS YOU PICK UP.
BUT THE INDUSTRY IS BASICALLY GONNA DOUBLE IN SIZE OVER THE NEXT 20 YEARS FROM 34 MILLION PASSENGERS TO 71 TO 6 61 TO 74.
FROM THAT, THE REGIONAL FORECAST IS BETTER.
WE THINK IT'S GONNA TRIPLE THAT.
THIS MARKET IS GONNA TRIPLE IN TERMS OF VOLUME.
UH, AND THIS IS OUR PREVIOUS FORECAST.
YOU'RE ALREADY EXCEEDING THIS FORECAST AND THAT'S WHY YOU'RE GETTING ALL THE, ALL THE BUSINESS.
[01:05:01]
MARKET CAPTURE FORECAST AND IT SHOWS YOU AND YOU'VE BEEN HITTING THE HIGH NUMBERS.OKAY? SO YOU SEE THE OLD FORECAST AND OUR NEW FORECAST, YOU'RE GONNA BE BETWEEN 7.7 AND 10.7 MILLION PASSENGERS IN 20.
IF YOU WANT 'EM, THAT'S WHAT'S GONNA COME HERE.
NOW, THIS IS A MARKET THEORETICAL STUFF, WHICH GIVES US A REALLY GOOD VIEW AT THE END.
BUT THIS IS THE COMPETITIVE MARKET.
WHAT HAPPENS THEN? AND THEN WE DO A SEPARATE FORECAST, WHICH IS DEPLOYMENT.
THIS IS WHERE, OKAY, THIS PERSON WENT THERE, I'M GONNA PUT ANOTHER SHIP, WHICH HAS HAPPENED.
SO THIS IS, WE THINK FOR THE SHORT TERM, THIS IS MUCH MORE ACCURATE.
AND THEN THE, THEN THEY END UP MEETING.
BUT YOU CAN SEE ON ALL OF THEM, WE END UP CLOSE TO 10 MILLION PASSENGERS.
SO WHAT DOES THAT MEAN IN BIRTH DEMAND? WELL, WE HAVE HIGH, MEDIUM AND LOWS.
AND THEN WE STARTED PLAYING WITH THE DEPLOYMENT.
CAN WE USE THE TERMINAL MORE EFFECTIVELY? SO IF WE DO IT WITH A MID FORECAST, YOU'RE AT FOUR, YOU'LL NEED A FIFTH TERMINAL NOW 28 AND A SIXTH TERMINAL IN 35.
BEAR IN MIND WHAT WE'RE SAYING.
THIS IS FOR PLANNING PURPOSES.
YOU'RE NOT BUILDING THIS AT ALL.
YOU'LL MAKE THAT DECISION SOMEWHERE AROUND HERE THAT, THAT THAT'S WHAT YOU DO.
AND IF IT MOVES BACK, YOU MOVE BACK.
IF IT MOVES FORWARD, YOU MAKE THE DECISION.
THEN IF WE HAVE THE HIGH FORECAST, THEN YOU NEED A SEVENTH TERMINAL IN 2039, THAT'S THE 11 MILLION PASSENGER FORECAST.
AND THEN IF YOU TAKE THAT MID HIGH FORECAST AND SAY, I'M GONNA DO MORE WEEKDAY, THEN YOU GO BACK TO THE SIXTH.
SO FOR US, THE THIS, FROM A PLANNING POINT OF VIEW, A STRATEGY POINT OF VIEW IS YOU WILL SOMEDAY NEED A SEVENTH, WHETHER IT'S BACK HERE OR FURTHER OUT, BECAUSE THE WORLD DOESN'T STOP IN 2045.
UM, AND THAT'S PROBABLY THE SWEET SPOT.
IT SHOULD BASICALLY FROM DOWN ON ON, YOU CAN SQUEEZE IT, BUT YOU NEED THE FIFTH AND THE SIXTH FOR SURE.
AND THEN IT'S THE SEVENTH TO MEET THAT MARKET.
UH, SO WHAT DOES THAT DO FOR YOUR EFFICIENCY? SO THIS IS ON THE HIGH MID FORECAST.
WHEN YOU BUILD UP TO SIX, YOU'RE GETTING TO ABOUT A MILLION AND A HALF.
IT DROPS DOWN, YOU END UP TRYING TO GET TO THE MILLION AND A HALF ON THE HIGH, YOU'RE BUILDING SEVEN TERMINALS BASICALLY STAYING ABOUT THAT SAME SPOT.
AND IF YOU CAN GET MORE DEPLOYMENT, YOU GET EVEN HIGHER UTILIZATION SCREEN TO GIVE YOU AN IDEA OF WHERE YOU ARE TODAY VERSUS WHERE YOU WILL BE IN 2045, DEPENDING VERSUS WHERE EVERYBODY ELSE IS TODAY.
YOU WOULD BE EXCEEDING THESE FOLKS.
AND THESE FOLKS ARE NOT, MIAMI'S NOT GONNA GO MUCH, MUCH BECAUSE THEY BUILT TOO MANY TERMINALS.
AND IT DEPENDS AT THE PACE THAT CANAVERAL, UH, WILL, WILL, WILL FIT.
SO YOU'RE GONNA GO FROM 1.1 TO 1.5, 1.6 MILLION PASSENGERS PER TERMINAL, WHICH SHOULD MAKE IT A VERY VIABLE FINANCIAL PRODUCT FOR THE PORT, FOR THE COMMUNITY.
SO IT'S A, IT IN MANY WAYS, THIS IS SORT OF A, A COMMUNITY CHANGING THING BECAUSE YOU KNOW, 1 MILLION, OKAY, 4 MILLION IS A LOT 10 MILLION PEOPLE.
IT'S NOW YOU'RE, YOU'RE YOU'RE BASICALLY SAYING, OKAY, HOW DOES THE COMMUNITY NOW PARTICIPATE IN THIS ENTIRE THING? SO WE THINK YOU COULD BE THERE BY 2045, YOU WERE, YOU'RE ON TRACK TO BE THE THIRD LARGEST
WE, WE KNOW THE 26TH DEPLOYMENTS ALREADY FOR EVERYBODY.
SO, UM, NOW THE QUEST KEY WILL BE, AND THIS GOES BACK TO DESIGN, CAN WE MAKE BIRTHS THAT YOU CAN USE FOR BOTH CARGO AND CREWS? AND WE CAN, I THINK RIGHT NOW YOU'RE WORKING WITH BIRTHS THAT ARE VERY CONSTRAINED.
ONE THE OLDER TERMINALS THAT ARE ATTACHED TO, YOU KNOW, THE WATER.
SO KEEP THAT IN MIND AS WE GO FORWARD.
THEN WE'RE GONNA TALK ABOUT COMMUNITY AND THEN WE'RE GONNA GET INTO ACTUALLY SHOWING YOU THE DRAWINGS.
SO ANY QUESTIONS ON CREWS? LOT OF INFO? YEAH, WELL WE WANTED TO DUMP WITH A LOT OF STUFF ON YOU SO THAT YOU HAVE A REALLY GOOD BACKGROUND.
YOU GO ABOUT, I MEAN, GOING FROM THREE OR FOUR TO FIVE, SIX OR SEVEN, THAT'S A, TO ME A SIGNIFICANT JUMP.
HOW DO YOU GAUGE WHETHER THE COMMUNITY WANTS THAT? SO SOMETIMES BETTER.
I WONDER THAT WILL WRESTLE THROUGHOUT THIS PROCESS BECAUSE IN SOME COMMUNITIES THEY, THEY HONOR SOME COMMUNITIES.
I THINK A LOT OF IT HAS TO DO WITH PLANNING.
THE COMMUNITIES HAVE NOT PLANNED, HAVE ALLOWED THIS THING TO OCCUR ORGANICALLY.
ALL OF A SUDDEN, OH, LET'S BUILD ANOTHER TERM.
THOSE ARE THE ONES THAT GET INTO TROUBLE.
THE ONES THAT PLANNED FOR IT, I THINK.
[01:10:01]
GONNA SHOW YOU SOME IDEAS THAT CAN COME OUT OF HERE.HOW DO YOU MAXIMIZE ECONOMIC BENEFIT? KEEP THE TRAFFIC AND THOSE ISSUES OUT OF THE COMMUNITY.
IF WE CAN DO THAT, THEN I THINK WE GOT AN ANSWER.
THEN IF YOU SAY, YOU KNOW, VENICE, YOU KNOW, LET'S BRING, YOU KNOW, ALL THESE SHIPS AND THEY DON'T WANT IT, BUT IT'S, IT'S A BIGGER ISSUE FOR THEM.
BUT SO I I THINK THAT'S A POLICY ISSUE THAT YOU ALL HAVE TO WRESTLE WITH A LOT AND, UH, WE'VE SEEN IT IN OTHER PLACES.
DO YOU HAVE ANY TERMINALS ANYWHERE THAT YOU'VE WORKED WITH WHERE THEY LITERALLY DON'T PARK WITHIN SIGHT OF THE TERMINAL? YES.
WE'RE GONNA SHOW YOU SOME IDEAS HERE, SOME IN A MINUTE.
BUT YOU HAVE A VERY UNIQUE SITUATION ON THE PARKING BECAUSE YOU HAVE THE HIGHEST RATIO OF PARKING.
'CAUSE MOST PEOPLE ARE NOT FLYING IN, THEY'RE SO BE PAUL IS GONNA TALK ABOUT COMMUNITY AND COMMERCIAL OPPORTUNITIES.
UM, AND IT COMES FROM OUR BELIEF THAT AT SOME POINT AS PORTS EVOLVE AND CHANGE, YOU'RE GONNA END UP WITH THESE PROPERTIES THAT REALLY YOU CAN SAY, DO I NEED THIS FOR MARITIME USE? AND THE ANSWER IS NO.
THERE'S NO WAY YOU'RE EVER GOING TO NEED THAT FOR MARITIME USE.
SO THEN IN PARTICULAR IN A CASE WHERE THE CITY AND THE, AND THE AND THE PORT ARE TOGETHER, WHAT OPPORTUNITIES EXIST THAT WE COULD TAKE ADVANTAGE FROM PLANNING THAT WOULD SUPPORT BETTER ECONOMIC DEVELOPMENT, BETTER COMMUNITY INTERFACE, WALKING PARKS, OPEN SPACE, ALL THAT THING.
AND THAT'S WHAT THEN WE ASK PAUL TO SAY, WHAT ARE THE OPPORTUNITIES RIGHT NOW? AND THEN, LET'S SEE, HE'S GONNA GIVE YOU THE NUMBERS THEN WE'RE GONNA GO TO YEAH.
AND, AND, AND, AND WITH THAT, I MEAN, WHAT YOU'RE, WHAT YOU'RE GONNA SEE, AND UM, AND LEWIS, THANKS LEWIS IS IS GONNA, IS GONNA SHOW YOU AND WE'LL GET EQUIPMENT COMES NICE MEET YOU.
BUT LOUIS IS GONNA SHOW YOU THE PLAN, WHAT THIS MIGHT LOOK LIKE.
THE REALITY IS ONE OF THE GREAT THING THAT'S GOING ON HERE, UH, WITH THIS MUCH OF WHAT YOU'RE DRIVING IN TERMS OF OPPORTUNITY IS NOT ALL GONNA GET ACCOMMODATED ON THE FOREFRONT.
THE THE REALITY IS, IS THAT IS THAT YOU'RE CREATING OPPORTUNITY FOR OTHER PROPERTY OWNERS, INVESTORS, UM, EMPLOYMENT OPPORTUNITIES THROUGHOUT THE, THROUGHOUT THE COMMUNITY, THROUGHOUT THE CITY.
UM, AND SO IT ISN'T ALL CONSOLIDATED HERE.
AND WE'LL STILL SEE THAT IN A MINUTE.
AND FOR, FOR ONE EXAMPLE, WE VERY CLOSELY IN RETAIL BY 2040, WE THINK THAT THERE'S ANOTHER 600,000 SQUARE FEET OF RETAIL DEMAND JUST BECAUSE OF CREWS, PASSENGERS AND CREW DEMAND THEMSELVES.
BUT IF WE PUT 600,000 SQUARE FEET IN THE CONTEXT, THAT'S ON A LARGE SCALE, JUST TO USE THIS AS A, AS A BENCHMARK.
THAT IS, THAT'S TWO, UM, UH, TWO SUPER WALMART SUPERCENTERS PLUS A VERY LARGE HEB, RIGHT? SO, UM, UM, THAT'S HOW MUCH DEMAND WE BELIEVE BASED UPON THE NUMBERS AND WHAT WE'VE SEEN IN, IN OTHER, OTHER PORTS AND WHAT EXPENDITURE HAS BEEN BY CRUISE PASSENGERS OF WHAT ACTUALLY CAN, CAN BE, CAN BE, UM, ABSORBED IN, IN THIS MARKET.
UM, AND THAT INCLUDES EVERYTHING EVEN FROM GROCERY TO, UH, TO SOFT GOODS.
THAT'S, UH, EIGHT BUCK'S IF YOU WANT
YEAH, THE BIG 5,000 SQUARE WORTH BUCK.
SO ON, ON THE, ON THE HOTEL SIDE, UM, ON THE HOTEL SIDE, THERE'S, THERE'S ALSO TREMENDOUS AMOUNT OF OF HOTEL DEMAND AS, AS WELL.
UH, WE THINK SEVERAL THOUSAND THOUSAND ROOMS IN THE BROADER MARKET.
NOW TO DATE, MUCH OF THAT HAS BEEN, SOME OF IT'S BEEN ON THE ISLAND.
YOU'VE ALSO SEEN DEMAND DRIVEN BY, UM, IN THE, IN THE COUNTY OVERALL OFF, OFF ISLAND ON AS WELL IN TERMS OF HOTEL.
BUT, BUT WHAT WE'VE SEEN IN OTHER PORTS IS A REAL UNDERSTANDING THAT THERE IS, THAT THERE ARE PEOPLE THAT WANT TO STAY VERY CLOSE TO THE PORT, THE PORT ITSELF, UM, AND PARTICULARLY, UM, ON BOARD PROPERTY AND IMMEDIATELY ACROSS THE STREET.
AND SO WE THINK IN THE, IN THE MIDTERM, EVEN IN SHORT TERM MIDTERM, THE NEXT FIVE TO SEVEN YEARS, THERE'S DEMAND FOR TWO LIMITED SERVICE HOTELS, UM, IN A HYATT, HYATT PLACE OR FOR THAT MATTER, BUILDING GARDEN IN AND ONE FULL SERVICE HOTEL, ABOUT 200 ROOMS, PLUS OR MINUS 2, 250 ROOMS RIGHT IN THE HEART OF THE PORT.
UM, THE BIG ADVANTAGE OF THAT IS YOU ACTUALLY GET A PREMIUM IN TERMS OF RATE BY BEING SO CLOSE INTO THE, INTO THE PORT BECAUSE PEOPLE WILL PAY EXTRA TO BE IMMEDIATELY ACROSS THE STREET.
AND YOU'LL SEE IN A MINUTE WITH, WITH LEWIS HOW THAT, HOW WE REFLECTING THAT, HOW WE'RE REFLECTING THAT WITHIN THE, WITHIN THE CONTEXT OF, UM, FROM A, FROM A MASTER PLANNING PERSPECTIVE AND HOW IT RELATES TO THE TERMINAL AND AS IMPORTANTLY HOW IT RELATES TO HARVARD HARBORSIDE DRIVE AND, AND
[01:15:01]
THE CITY, CITY MORE OR THE, THE HISTORIC DISTRICT AND THE STRAND BROADLY THE THE OFFICE MARKET.WE LOOKED AT THE OFFICE MARKET AND WE, WE DID A LOT OF DETAIL AND WE CERTAINLY WENT THROUGH WITH, WITH YOUR ALL STAFF AND ROGER AND OTHERS.
UM, BE MUCH MORE DETAIL IN HERE.
BUT JUST, JUST TO SUMMARIZE IT, THE, THE OFFICE MARKET IS VERY THIN.
THE, THE REALITY IS THERE'S NOT A LOT OF OFFICE DEMAND IN THE, IN THE CITY OVERALL.
UM, WE DON'T SEE A LOT OF GROWTH IN TERMS OF OFFICE DEMAND, BUT GROWTH, UH, PRIMARILY IN TERMS OF EMPLOYMENT IS, IS OBVIOUSLY MEDICAL, UH, SOME EDUCATION.
UM, AND, AND THE PORT ITSELF, IT'S NOT DRIVING A LOT OF OFFICE IN THE, IN THE FUTURE.
AND SO OUR RECOMMENDATION IS TO BE VERY, VERY CAUTIOUS IF YOU HAVE THOUGHTS ABOUT DEVELOPING ANY OFFICE OFFICE OPPORTUNITY THAT'S BEYOND YOUR OWN, YOUR OWN PERSONAL NEEDS IN TERMS OF, IN TERMS OF AFFORD.
UM, BUT ONE, ONE AREA THAT THAT MAY BE MAYBE SOME, SOME OPPORTUNITY IS ACTUALLY MULTIFAMILY, UH, RENTAL, MULTIFAMILY RENTAL HAS BEEN ABSORBED PRETTY WELL, BUT THERE'S A FAIR AMOUNT OF VACANCY IN THE, IN THE MARKET ALSO.
UH, BUT WHAT WE'VE SEEN IS NEWER PRODUCT HAS DONE VERY WELL IN THE CITY.
UM, CERTAINLY IT'S A YACHT CLUB, UH, THAT HAS DONE THAT, THAT PROJECT IS DOING, DOING QUITE WELL ORIENTED TOWARDS, TOWARDS THE MEDICAL WORKERS THAT HAPPEN TO BE OUT THERE AT THREE O'CLOCK IN THE AFTERNOON ON A SHIFT CHANGE.
AND WE SEE PEOPLE WALKING FROM, FROM THE MEDICAL CENTER, UH, TO THE, TO THE YACHT YACHT HARBOR AND, UH, TO, TO, 'CAUSE THEY'RE, THEY'RE LIVING EFFECTIVELY IMMEDIATELY ACROSS THE STREET, BUT A MUCH NICER ENVIRONMENT CURRENTLY EXISTS ANYWHERE, ANYWHERE OTHER, UH, OTHERWISE.
BUT MY, MY, UH, MY COUSIN ACTUALLY WAS, WAS AT THIS HOSPITAL AND DID HIS, HIS FELLOWSHIPS AND ALSO DIDN'T REALLY HAVE A, A CLOSE PLACE TO LIVE, BUT HE WOULD'VE BEEN A PERFECT CADDY, UM, WHEN HE WAS HERE, UM, FOR SOME OF THAT, SOME OF THAT MULTIFAMILY, MULTIFAMILY RENTAL.
SO WE, WE ACTUALLY THINK THAT THERE'S ABOUT 250, UM, TO 300 UNITS BY 2028, UH, FAIRLY IN THE NEAR TERM TO BY 20, 20 30 THAT COULD BE ABSORBED.
YOU HAVE TO BE VERY CAREFUL ON PORT PROPERTY BECAUSE THE CONFLICTS BETWEEN RESIDENTIAL AND, AND PORT ACTIVITIES, THE LIGHTS, THE SOUNDS, UH, OTHER, OTHER OTHER CONSIDERATIONS.
BUT AGAIN, YOU'LL, YOU'RE ABOUT TO FIND THAT REFLECTED IN THE, IN THE MASTER PLAN AS WELL.
SO SOME, SOME, SOME KEY RECOMMENDATIONS THAT, THAT WE'RE, WE'RE MAKING AS PART OF THE PLAN AND ALSO WITHIN THE CONFINES OF WHAT WE, WHAT WE RECOMMENDED TO DNA AS PART, AS PART OF THIS AS WELL.
ONE THING THAT YOU HAVE NOT DONE MUCH, MUCH OF IS TO DO A PASSENGER SURVEY.
THIS WHOLE NOTION OF, OF AN ONGOING PASSENGER SURVEY, THE WHOLE NOTION OF, OF TELLING THE STORY BOTH TO THE COMMUNITY BUT ALSO TO INVESTORS AND OTHERS, IS ACTUALLY HOW MUCH DEMAND IS OUT THERE BEING DRIVEN BY, UH, BY YOUR PASSENGERS.
UM, AND THE ONLY WAY YOU DO THAT IS YOU GO OUT AND YOU DO DO A SURVEY.
NOW, IN, IN THE PAST IT USED TO BE VERY DIFFICULT.
YOU HAVE TO HAVE SOMEBODY OUT IN THE TERMINAL KIND OF DOING A SURVEY ON THE TERMINAL TODAY, YOU'RE HANDING OUT A QR CODE, UH, WITH A, AN OPPORTUNITY TO, YOU KNOW, BE ENTERED INTO SOME, SOME LOTTERY FOR A, UH, FOR A FUTURE, FUTURE CRUISE.
I MEAN, YOU GET A GREAT RESPONSE.
AND SO IT'S A MUCH EASIER PROCESS TO DO IT ON AN ONGOING BASIS.
WE'VE ACTUALLY PROVIDED, UH, STAFF WITH, UH, WITH A SAMPLE SURVEY THAT'S VERY SPECIFIC TO, TO, UH, GALVESTON.
AND, YOU KNOW, WE THINK IT'S A VERY IMPORTANT THING TO DO ON A REGULAR BASIS AND IT REALLY IS VERY IMPORTANT TO BE ABLE TO TELL EVEN THE GALVESTON COMMUNITY ITSELF, JUST HOW IMPORTANT PASSENGER EXPENDITURE IS, HOW MUCH PEOPLE ARE ACTUALLY EXPENDING IN THE, IN THE AREA WITHIN THE COMMUNITY AS AS WELL.
SO IT'S, IT'S SOMETHING, YOU KNOW, WE, WE CERTAINLY RECOMMEND FROM A RESEARCH PERSPECTIVE GOING FORWARD, UH, BEING ABLE TO, TO ATTRACT INVESTORS, BUT ALSO FROM A COMMUNITY INVESTMENT AND HELPING, HELPING PEOPLE UNDERSTAND HOW IMPORTANT THIS IS IMPORTANT AND, AND THE CRUISE IS TO, TO THE BROADER COMMUNITY.
UM, RETAIL, YOU KNOW, WE THINK THIS IS SOMETHING OBVIOUSLY AS WE SAID, VERY STRONG DEMAND.
ONE OF THE, ONE OF THE CHALLENGES IS A HARBOR SIDE DRIVE IS THE FLOOD ELEVATION, UH, AS, AS, AS YOU CAN SEE, RIGHT? I MEAN, YOU HAVE, YOU HAVE STARBUCKS THAT'S AT EIGHT FEET IN THE EIGHT FEET OF THE AIR, UH, JIMMY JOHN'S OTHERS.
UM, THE REALITY IS THAT YOU'VE GOTTA FIND A WAY, ESPECIALLY ON THE PORT SIDE TO THE EXTENT THAT THERE'S RETAIL, TO BE ABLE TO BRING THAT BACK DOWN TO THE STREET.
AND THAT'S ONE OF THE KIND OF THE CORE CHALLENGES FROM A PLANNING PERSPECTIVE.
BUT NEVERTHELESS, STRONG RETAIL OPPORTUNITY HOTEL, UM, AS I SAID, ONE TO TWO LIMITED SERVICE HOTELS BEFORE, UH, CERTAINLY A FULL SERVICE HOTEL.
AND THAT PLANNING NEEDS TO START NOW, EVEN, EVEN IF IT'S GONNA HAPPEN, UM, IN THE NEXT, THE NEXT SEVERAL, SEVERAL YEARS.
AND FINALLY, UM, IF THERE'S NOT MULTIFAMILY RENTAL ON THE, ON THE PORT PROPERTY ITSELF, CERTAINLY WE BELIEVE THAT THERE'S ENOUGH DEMAND FOR SEVERAL OTHER, OTHER, UM, UNITS TO BE DEVELOPED.
A FAIR AMOUNT OF UNITS TO BE DEVELOPED WITHIN THE HISTORIC DISTRICT AND ADJACENT TO THE HISTORIC DISTRICT, JUST FROM A, FROM A COMMUNITY DEVELOPMENT PERSPECTIVE.
THEY'LL STRENGTHEN KIND OF THE, THE NATURE OF, OF THE, OF THE PLACE.
UM, BUT ALSO, UH, ARE GONNA BE,
[01:20:01]
ARE GONNA BE BENEFIT, WILL BENEFIT FROM IMPROVEMENTS TO PARKS, OPEN SPACE, AND OBVIOUSLY RECRUITS THE HOMICIDE DRIVE AS WELL.UH, IT'LL BE FOR, FOR A BETTER PLACE.
SO THOSE COULD I, UH, ASK A QUESTION? SURE.
THAT'S A STAGGERING FIGURE OF RETAIL SQUARE FOOTAGE PROJECTED TO BE NEEDED.
BUT DO Y'ALL ARTICULATE SOME STRATEGIES ON HOW TO GET THE PASSENGERS, UH, TO CROSS THE STREET AND GET OVER TO THE, UH, EXISTING RETAIL? WE THREE SLIDES,
AND YOU'LL SEE IT, IT IS MUCH EASIER TO SHOW IT IN IN PLAN.
SO YEAH, IT GOES DOWN TO WE'VE TAKEN ALL THIS INFORMATION.
NOW SOME WE TURN AWAY, SOME PUT TOGETHER, BUT WE SAID, OKAY, WE NEED THIS MUCH FOR THIS, WE NEED THIS MUCH FOR THIS, WE NEED THIS.
AND HOW DOES IT LOOK LIKE? THAT'S WHAT WE'RE SHOWING YOU AT THE END.
YOU WANNA SAY, NO, I DON'T WANT THAT.
THAT'S, THAT'S WHAT WE'RE HERE FOR.
BUT WE THINK IT MAKE THE USE TO MAKE SENSE IN THAT IT'S BALANCE.
AND AT THE END, I'M GONNA SHOW YOU FINANCIAL, JUST SORT OF A ROUGH FINANCIAL, CAN YOU PAY FOR ANY OF THIS STUFF? SO ALTERNATIVE.
SO WE TOOK ALL THAT, THREE CARGO BIRDS, A HUNDRED FIFTY EIGHT, ONE SIXTY ACRES, PELICAN ISLAND, WHICH WOULD BE A GENERAL CARGO.
AND WHERE YOU IN PELICAN ISLAND, EVENTUALLY YOU'LL HAVE A BRIDGE AND EVENTUALLY, HOPEFULLY YOU'LL HAVE RAIL.
SO A LOT OF THE STUFF YOU WORK OUT ON THE WEST END, IF THAT'S BEING SUCCESSFUL, YOU CAN MOVE OVER THERE AND GROW OVER THERE.
YOU CAN TAKE THE CAR FACILITY, MOVE IT OVER THERE, UH, YOU KNOW, IT'S ISOLATED.
SO THERE'S A LOT OF THINGS THAT WE CAN DO THERE.
THE SHIPBUILDING CRUISES AND THE CRUISE IS BASICALLY LONG TERM VISION, BUT YOU'RE ONLY EXECUTING ONE AT A TIME.
AND THE COMMERCIAL OPPORTUNITIES THAT, THAT, THAT PAUL, SO SHOWING TO YOU IN THE EAST SECTOR, WEST SECTOR, AND PELICAN ISLAND.
SO LET'S TALK FIRST WHERE ALL THE ACTION HAS BEEN FOR THE LAST FEW YEARS.
AND RIGHT NOW THE, THE CONCEPT AS THEY'VE BEEN DRAWN IS WE'RE DELIVERING A CRUISE TERMINAL.
NOW, WE WANTED TO THINK THAT ONE OF THE BIGGEST THINGS IS HOW DO YOU MARRY THIS TO THE CITY? HOW DO YOU MAKE THIS MAKE ANY SENSE? SO THE FIRST THING IS WE NEEDED TO LOOK AT HOW DO YOU BIRTH SHIPS THERE? HOW CAN YOU GET A A BIRTH IN THERE WHATSOEVER? WE LOOKED AT A BUNCH OF CONFIGURATIONS, ALLEGATIONS, ET CETERA.
AND BASICALLY AT THE END OF THE DAY IS IF WE CAN GET IT ALL ALONGSIDE IS THE BEST AND SO FORTH WITHOUT HAVING TO GO INTO A SLIP CONFIGURATION.
WE GOT THE TEXAS IN THERE NOW.
SO WE, WE'VE BEEN WORKING WITH THAT AND BASED ON THAT WE SAID, OKAY, THIS IS THE TERMINAL I SEE YOU'VE GOT GOING HERE.
UH, WHY ADD ANOTHER TERMINAL? SO WE HAVE CRUISING, PARKING, AND THEN YOU BEGIN TO CREATE WATERFRONT PARK AND YOU'LL SEE IT IN DEVELOPMENT OPPORTUNITIES ACROSS THE WAY.
SO WHEN WE TAKE THE ALL THE PIECES AWAY, AND THIS IS, UH, AN ART ALMOST IS AN, IS A VERY INTELLIGENT PERSON THAT DRAWS THIS.
SO THE RELATIONSHIPS ARE RIGHT, THE SIZE OF THE BUILDINGS ARE RIGHT, BUT THIS IS SOMETHING THAT YOU COULD DO.
AND THE CONCEPT HAS TO DO WITH WE TAKE ALL THIS GROUND PARKING, CONCENTRATE IT BACK INTO A STRUCTURE.
IT'S A BIG STRUCTURE SO WE CAN KEEP IT LOW.
YOU CAN BUILD A NEW TERMINAL THERE AND CREATE A NEW, THE SAME TERMINAL LOOP.
UH, KEEP CONCENTRATING THE TRAFFIC TO GET IT OUT THIS WAY AND THEN CONNECTING THE CITY THIS WAY.
SO I'M GONNA BLOW THAT UP TO SHOW YOU WHAT, SORRY, NOT FAR AWAY.
OKAY, SO HERE'S A BLOW UP OF, OF THIS AREA.
THIS IS AN EXAMPLE OF THE AREA.
SO THE IDEA BEING THAT WE WANT TO MAKE THIS A CITY PORT PROMENADE AND THAT PEOPLE CAN GO UP TO THE WATERS.
IF WE JUST LEAVE THE TEXAS THERE ISOLATED BETWEEN A TERMINAL MOBILITY, IT'LL, IT'S GONNA DIE.
THERE'S, SO IT'S GONNA NEED HELP.
WELL, THE BEST WAY TO BUILD HELP IS TO BUILD A WATERFRONT PARK THAT LINES THESE ENTIRE FRONT AND THEN CONNECTED WITH, UM, WITH PEDESTRIANIZATION THAT GOES ACROSS THE KEY IS THAT TAKING THIS PLOT AND CONNECTING IT BACK TO THE CITY, AND IN THIS CASE WE'RE SHOWING A PARK IN THAT LOCATION.
SO NOW IT ALLOWS PASSENGERS ALL TO CIRCULATE FROM THIS AREA AND COME INTO THE CITY DIRECTLY THROUGH PROPER DESIGN AND AND ACTIVITY.
SO THIS COULD BE, UH, A PRETTY UNIQUE, UH, PARK FACILITY THERE.
AND THEN ALL THE WATERFRONT ALONG THE TEXAS IS OPEN PUBLIC, UH, WATERFRONT.
SO THERE'LL BE SECURITY FENCES AND SO FORTH TO PUT IN.
BUT IT'S DONE IN A VERY, UH, IN A WELL MANNERED WAY THAT IT WON'T, IT'LL FEEL RIGHT.
THERE'S A LOT OF EXAMPLES TO DOING THAT AROUND THE WORLD.
UM, WE'RE SHOWING IN THIS ONE A PARK THEN A HOTEL DEVELOPMENT
[01:25:01]
IN THAT CORNER, UM, UP HERE.UH, AND THEN THESE COULD BE RESIDENTIAL PRODUCT PRODUCTS IN, IN ONE CAPACITY OR ANOTHER, WHICH WE DIDN'T GET INTO TOO MUCH.
MAYBE YOU COULD SHAPE THOSE THINGS IN A BUNCH OF DIFFERENT WAYS.
UH, SO, UM, SO THIS BEGINS TO GIVE YOU A SENSE OF HOW THE, A PORT CAN BE TURNED INTO A PUBLIC OPEN SPACE AND STRATEGICALLY PLACING IT SO THAT YOU'RE GONNA HAVE PUBLIC ACCESS OVER HERE.
YOU'RE GONNA HAVE PUBLIC ACCESS.
ALL OF THIS WILL BE CONNECTING BACK INTO THE PUBLIC ACCESS POINT OF VIEW ALL ALONG THE EDGE.
AND THEN THROUGHOUT FROM THE TERMINALS ITSELF, OUT TO A POINT THAT WE CAN GET EVERYBODY ACROSS THE STREET, NOT NECESSARILY THROUGH JUST WALKWAYS, BUT CREATING AN OPEN SPACE THAT WILL BE GOOD.
AND WE GET PEOPLE ACROSS THE STREET, YOU'LL SEE THE TEXT
SO HOW DO YOU CONNECT? ARE THOSE YELLOW LINES THAT BOTTOM? WHAT IS THAT? THAT'S JUST A NARROW SAYING CONNECTING TO THE CITY.
SO WE'RE GETTING PEOPLE AS OF NOW THAT I'M GETTING PEOPLE TO THIS EDGE, BECAUSE THAT'S THE PROPERTY LINE THAT YOU HAVE.
THIS WILL BE, HAVE TO BE IN CONJUNCTION WITH THE CITY.
HOW YOU MAKE THAT FINAL CONNECTION TO GET TO THE STRANDS RIGHT THERE WHERE THE TWO YELLOW LINES ARE.
BUT WE HAVE A HEAVY RAIN AT PUMP STATION.
THE WATER YOU CAN CAN'T GET THROUGH THERE WITH A CAR.
SO OUR UNDERSTANDING IS THAT THERE'S GONNA BE A PUMP STATION PUT IN HERE, WATER, WHETHER IT'S HERE OR HERE.
WE CAN FIT, WE CAN FIT THAT IN EASILY.
THE HARBOR SIDE ITSELF, THE ROAD, IT'LL OUTFLOW INTO, UH, PIER 15.
IF YOU GO DOWN THERE, RIGHT DOWN AND LOOK AT WHAT UM, S PUMP IS DEVELOPING AT 16, YOU CAN SEE THE OUTLINE OF WHERE THE PUMP STATION GOES.
I MEAN THERE'S, THE GROUND IS STILL, UH, NOT PAVED OR ANYTHING.
YOU CAN SEE THE OUTLINE THAT YOU GUYS PROPOSED TO PAY IN THE LOCATION OF IT.
COULD YOU GIMME A, A GUESSTIMATION ON ON HOW MANY UH, VEHICLES? THAT THAT BIG ONE? YEAH, I THINK WE'VE DRAWN OVER 4,000.
IT'S A BIG, THIS A BIG FLOOR PLATE.
NOW BEAR MIND THIS, WE COULD MAKE IT SMALLER UNDERSTAND AND BIGGER, TALLER AND SO FORTH.
BUT THAT, THAT WE WANTED TO HAVE SAYING LET'S GET RID OF AS MUCH SURFACE PARKING AS YOU CAN TO GIVE YOU GREEN SPACE AND, AND PUT IT INTO A GARAGE THAT'S ACTUALLY BETTER FOR THE CAR BECAUSE GET THE SHADE.
WELL SAME THING WE'VE LEARNED IS GET PEOPLE OFF HARBORSIDE DIE ONTO THE PROPERTY AND THEN THEY DON'T LEAVE.
SO THEN THEY MINIMIZE TRAFFIC, THE TRAFFIC TO MINIMIZE.
WE, WE'VE GOTTA MAKE THIS AN ATTRACTIVE CONNECTION BACK TO THE CITY.
OTHERWISE PEOPLE WILL STAY HERE AND WE'LL JUST SO THAT THAT'S WHAT WE'RE TRYING TO DO.
AND WHETHER THIS BELONGS A LITTLE MORE HERE OR THERE, UM, THERE A LOT OF PLANNING THAT NEEDS TO GO ON.
I I I'M, I'M GUESSING YOU COULD SH I'M TRYING TO REMEMBER WHAT THAT IS, BUT I'M GUESSING YOU COULD SHIFT THAT A LITTLE BIT WEST.
SO YOU COULD GET PEOPLE COMING IN.
I I THINK THE LEFTMOST YELLOW ONE IS 16TH STREET.
IF YOU COULD GET 'EM AT LEAST UP TO 20TH, THEY'LL HIT DOWNTOWN.
THERE IS SOME, I THINK THERE IS SOME PRIVATE PROPERTY IN THERE.
THE, THE INTERNAL LOAD KEEPS HOUSE WAS RIGHT THERE.
THE INTERNAL LOAD KEEPS HOUSE BETWEEN THE TWO YELLOW THAT EXPANDING THAT.
AND GIVE A BETTER FLOWS AND BETTER INTERSECTIONS.
YOU'LL SEE ON THE OTHER SIDE IS WE WANNA GET THE TRAFFIC OUT OF THE CITY WITHOUT GOING THROUGH THE CITY.
SO WHERE YOU WOULD GO IN AT 33RD? IS THAT WHAT YOU'RE THINKING? UM, SO RIGHT NOW THERE IS A LOT OF TRAFFIC THAT STILL GOES HERE.
WE HAVE TO FIGURE OUT THIS CONNECTION HERE A LITTLE BIT MORE, RIGHT? BUT THE IDEA IS BY HAVING AN INTERNAL ROAD, WHICH IS WHAT YOU'RE TRYING TO DO RIGHT NOW WITH THIS, WITH THE SYSTEM SO THAT EVERYBODY DOESN'T GO THROUGH, YOU KNOW, THE OTHER OUT OPTION, UH, YOU KNOW, YOU KNOW, YOU CAN DO LIKE THEY DID IN NEW YORK IS THINK ONE OF THESE STREETS OR A COUPLE OF 'EM AND YOU MAKE 'EM THROUGH STREETS.
SO IT'S NOT A FOUR WAY STOP, IT'S ONLY AS A DIRECTIONAL AND YOU GET EVERYBODY OUT QUICKLY.
YOU ONLY NEED ONE OR TWO OF THOSE STREETS LIKE THAT.
UH, SO THERE'S A BUNCH OF DIFFERENT LIKE STRATEGIES THAT WE CAN COME UP WITH TO IMPROVE TRAFFIC, ALIGN IT WITH A STRATEGY OF THIS SORT.
LIKE I SAID, I OCCUR HERE, HERE, HERE.
IT, THE CONCEPT THAT WE'RE TRYING TO, BECAUSE THIS, THIS ONE CAN'T BE DRAWN IN THE BACK.
I LIKE THE CONVERSATIONS WE'RE HAVING WITH THE HOUSTON, UM, ENGINEER OF
[01:30:01]
UM, 'CAUSE HE IS COGNIZANT OF THIS AND I THINK HE'S SUPPORTIVE OF WHAT'S GOING ON HERE.SO I THINK THAT THERE, WHAT WHAT UM, UM, LEWIS IS TALKING ABOUT IS, YOU KNOW, IN CONJUNCTION WITH THEIR ASSISTANCE, WE CAN GET THESE PEOPLE OUT HERE.
LOOK JUST LIKE WHAT YOU GUYS ARE DOING ON 61ST, YOU KNOW, IT'S A NONSTOP RIGHT? WHICH YOU GET ON 61ST.
YOU'RE NOT GONNA STOP BEFORE YOU GET ON 45, RIGHT? AND I THINK THIS IS SOMETHING SIMILAR THAT WE SEE THE OTHER APP LIKE THAT.
BUT ALSO THE THING IS TO BREAK THIS CONCEPT THAT YOUR VIEW OF THE PARKING HORIZON ON EITHER END.
SO HAVE THE SPACE FOR GREEN, THAT SPACE IN THE FRONT SO THAT IT ALL BEGINS TO READ NOW AS A GREEN SPACE WITH THE WATER INSERTING ITSELF HERE AND HERE AND IT WILL ATTRACT YOU.
SO WHETHER OR NOT THIS IS A PAVILION FOR THE TEXAS, YOU KNOW, THAT SELL THE TICKETS THERE AND SO FORTH, YOU KNOW, WHAT, WHAT IS IT THAT GOES THERE? BUT IT'S A SPACE DEDICATED TO DOING THAT.
YOU KNOW, THE TEXAS IS IN A PRIME SPOT UP
HE I THINK, I THINK YOU PLAY WITH THAT.
YOU PLAY WITH SOME OF THE ARCHITECTURE, YOU PLAY WITH SOME OF THE FLOWS AND LITTLE BY LITTLE YOU BEGIN TO SOLVE THOUGH YOU BASICALLY HAVE, YOU KNOW, SOMETHING THAT WORKS FOR, FOR ALL OF EVERYBODY, A MECHANISM OR A THOUGHT ABOUT PEDESTRIANS WILL BE CROSSING THAT INTERNAL ROADWAY MANAGE.
SO OBVIOUSLY WE HAVE A FEW CROSSINGS HERE THAT WE'VE GOTTA GET SOME PEOPLE TO ACROSS AND NOW WE'LL JUST BE WITH WITH MAIN CROSSWALKS OR SOME, YOU KNOW, LIGHTS AND SO FORTH.
THIS ONE WE JUST HAVE TO BE CAREFUL BECAUSE, WELL THIS ONE'S ONLY OPERATING WHEN THERE'S A LOT OF, YOU KNOW, TRAFFIC HERE.
BUT YOU KNOW, IF YOU GO, IF YOU GO TO THE CHRISTIAN MALL, YOU GO IN THE AFTERNOON, VERY LITTLE TRAFFIC PEOPLE ARE THERE.
THE TRAFFIC WE GET RID OF IN THE MORNING.
BUT THIS WITH THE AMOUNT OF OF SECURITY AND EVERYTHING THAT WE, WE SHOULD BE ABLE TO MANAGE THIS CORRECTLY.
IF NOT WE BRING IT BRING, TRY TO BRING IT AROUND DIFFERENT WAY.
BUT WE WERE TRYING TO, WE WERE TRYING TO MAKE IT SO OBVIOUS THAT IF YOU'RE IN THIS TERMINAL, THIS TERMINAL, THIS IS PULLING YOU, I WANT TO GO OVER HERE WHERE THE TEXAS IS AND THEN I'M GONNA GO INTO THE TOWN.
'CAUSE HERE I'M COMING THROUGH AND UH, THAT, THAT SEEMS TO BE A VERY LOGICAL PROGRESSION OF CREATING YEAH.
THE GREENING OF THE, OF THE PORT.
BUT IT DOES KIND OF SAY THAT, YOU KNOW, WE DIDN'T NECESSARILY START OUT WITH THE TEXAS THERE, BUT HAVING IT THERE NOW THAT REALLY DOES KIND OF ALL YEAH.
I DON'T THINK WE HAVE A CHOICE NOW WHAT'S THE, THE 18 THING? I LOVE IT WHEN A PLAN COMES TOGETHER, RIGHT? ALL BETTER.
I DON'T THINK YOU HAVE A CHOICE.
I DON'T THINK IT JUST, IT FITS VERY WELL.
TAKE CREDIT FOR, WE DID PLAN THE LAND BANKING, RIGHT, RIGHT.
THAT THESE LOTS COULD EVENTUALLY WOULD COME, COULD JUST LAND BANK.
RIGHT? AND NOW AND NOW THE SOME REASON FOR THAT.
WELL NO, I LIKE THE WAY THAT REALLY STARTS TO DEVELOP INTO SOMETHING REALLY COOL.
IF YOU LIKE THE PIECES, YOU KNOW, THE NEXT STEP IS THAT, OKAY, THIS IS THIS, WE CAN GET TO, I'M WITH THE CITY AND SO FORTH AND THEN REFINE IT UNTIL SOMETHING THAT BEGINS AND THEN WE CREATE A COUPLE OF THREE DS SO THAT PEOPLE CAN BE, IT'S EXCITING.
I MEAN I THINK IT'S ALL GOING IN THE RIGHT DIRECTION.
WELL, ONE THING WE'RE NOT ADDRESSING ALSO IS THIS GRAY AREA OUT HERE THAT'S FOR PROFIT.
YEAH, WE WERE GONNA DRAW IT, BUT IT WAS THAT ROGER SAID THIS AREA OVER HERE, WE'RE GONNA START DRAWING BECAUSE WE GOT, WE GOT IN, YEAH, WE HAD ONE HOUR SLEEP LAST NIGHT.
AND, AND IT IS, YOU KNOW, THAT P THE PIER 16 TERMINAL, SINCE WE OWN IT, WE CAN MOVE DIFFERENT TYPE OF CRUISE LINES IN AND OUT OF THERE.
WE'VE GOT GOT THAT FLEXIBILITY.
I THINK IN THE FUTURE, AS YOU DEVELOP YOUR TERMINALS, YOU'LL HAVE THAT OPPORTUNITY, WHETHER IT'S A, IS A PORT CONTROL CONTROL TERMINAL OR IS, YOU KNOW, THE OTHER ONE, THE, THE, IF ANYBODY'S BEEN TO VANCOUVER, UM, THE CRUISE TRAVEL IN VANCOUVER IS IN CANADA PLACE.
AND THAT'S A COMBINATION OF CONVENTION CENTER WITH HAVE PACIFIC HOTEL AND THE CRUISE TOWN, ALL THAT.
WHEN YOU GO TO THE CRUISE HOTEL, TO THE HOTEL THERE, IT'S A REALLY EXPENSIVE HOTEL, WHICH THE NUMBER ONE CLIENT THAT THEY ROLL OUT AND SO FORTH.
SO THIS COULD BE A PRETTY UNIQUE OPPORTUNITY TO HAVE SOME INCREDIBLE VERY, YOU KNOW, BESPOKE HOTELS THERE THAT FIT THE GAL GALVESTON ARCHITECTURE, THE GALVESTON
[01:35:01]
FIELD, UM, WHERE PEOPLE CAN WAKE UP IN THE MORNING.AND IF YOU DO THAT, THIS IS HOW YOU BEGIN TO EXPAND THE ECONOMIC EMPIRE PASSENGERS THAT THEY CAN GET HERE THE DAY BEFORE AND THEY CAN HAVE A GOOD TIME, SPEND SOME MONEY AND THEN THEY'LL GET ON.
THIS IS, THIS IS WHAT'S HAPPENED IN MIAMI.
EVERYBODY HAD THE SAME OBJECTION, BUT THE CREW, THEY JUST GOT ON THE ISLAND AND THEY LEAVE.
AND THIS WENT ON FOR YEARS AND YEARS.
AND NOW THE NUMBER ONE HOTEL BUYER IN MIAMI IS A CRUISE BUSINESS.
GIVE 'EM A REASON TO COME AND STAY SO THAT, THAT COULD BE PRETTY UNIQUE LITTLE PROPERTY THERE.
AND UM, YOU KNOW, THERE'S, UH, SO IT'S ONE OF THOSE THAT WE, WE'LL TALK ABOUT OPPORTUNITIES, BUT, UM, PORTS IN THE DIVERSIFICATION LEASE A LOT OF LAND THAT THEY'RE NEVER GONNA USE FOR MARITIME.
AND THEN THAT GIVES YOU REVENUE, WHICH ALLOWS YOU TO THEN MAKE THE MARITIME MORE COMPETITIVE.
SO THESE ARE, IF ALL OF A SUDDEN YOU GO TO SOMEBODY THAT YOU'RE GONNA HAVE IN THAT TERMINAL, POTENTIALLY 3 MILLION PEOPLE A YEAR GOING BY, YOU GOT FIRST DIB ON IT, IT MAKES GOOD OPPORTUNITY.
OKAY, SO LET'S MOVE A LITTLE BIT TO THE WEST SECTOR.
THE WEST SECTOR IS THE MOST COMPLEX, BUT NONE OF THE EASIEST BECAUSE THAT ONE IS ALREADY BUILT OUT.
AND, UH, WE STARTED PLAYING WITH A COUPLE OF OPTIONS AND THIS FIRST JUST IDEAS.
THE IDEA WAS THAT WE WANTED TO KEEP THE TERMINALS AS COMPACT AS WE CAN TOWARDS TERMINAL TWO, TERMINAL ONE.
AND MORE IMPORTANTLY, WE WANTED TO KEEP THE CIRCULATION ALL INTERNALIZED AT THE PORT.
SO OUR, OUR OUR CIRCULATION IS IN AND OUT HERE AND OUT.
SO, UM, WE FELT THAT THESE SERIES OF ALTERNATIVES STARTED TO MAKE SENSE.
THIS IS IN, IN ONE IN WHICH YOU KEEP TERMINAL TWO AND THEN YOU HAVE A CAR PARK TUCKED IN AND THEN INSTEAD OF A SINGLE TERMINAL, IT'S A TERMINAL THAT YOU BUILD HALF OF IT AND YOU BUILD THE OTHER HALF THAT WAY YOU HAVE ONE C, VP ONE, YOU KNOW, ALL.
SO IT'S, IT'S LIKE TRYING TO GO TO AN AIRPORT AND EVERY GATE HAS A CUSTOMER BOARD PROTECTION, DOESN'T MAKE ANY SENSE, AND THEN SOME PARKING GARAGE.
SO WE, WE WENT THROUGH THAT NOW RECOGNIZING THAT T TWO NEEDS A LOT OF WORK STILL BECAUSE OF CBP.
SO DOES IT MAKE SENSE TO CREATE A T TWO, A T SIX AND THEN T SEVEN.
SO MOVE IT OVER SO THAT WE CAN THEN INTERNALIZE SOME PARKING, GET IT THE PARKING BACK IN HERE.
SO YOU GOT T ONE YOU PARKED AND SO FORTH.
AND THEN TALKING WITH ROGER IS HOW CAN WE MAKE IT EVEN MORE? AND THEN WE TUCKED IT IN THIS WAY.
NOW WE'RE GETTING SOME ANGLES HERE AND SO FORTH THAT, THAT WE'VE GOTTA PLAY WITH.
BUT THE WHOLE GAMUT OF THIS IS THAT YOU GOT THREE TERMINALS, ONE COMMON, UM, CVP FACILITY, YOU GOT THE TWO.
SO YOU BASICALLY ON THIS ONE YOU WOULD BUILD UP TO HERE, THAT T TWO REPLACEMENT AND T SIX CVP GO IN THE MIDDLE.
UH, THE CONCOURSE REALLY IS EXTENDED THROUGH THE CONCOURSE IS A HUNDRED FEET BACK AND THAT'S THE KEY TO BE ABLE TO DO CARGO.
SO ONCE YOU HAVE A HUNDRED FEET, YOU CAN RUN ANYTHING YOU WANT BACK THERE AND DO IT PARTICULARLY AS YOU GO THIS WAY.
CIRCULATION IS PRETTY STRAIGHTFORWARD.
PEOPLE ARRIVE TO THIS COMPLEX AND THEY'LL EITHER THEY'RE GONNA COME IN OR THEY GO OUT OR THEY'RE GOING TO GO IN THE GARAGE.
IF YOU'RE COMING OUT OF THE GARAGE AND YOU GO BACK OUT.
SO THE, THERE'S NO NEED FOR ANYBODY HERE TO GO BEYOND THIS POINT FROM A TRAFFIC POINT OF VIEW.
WE'RE CONTROLLING, YOU KNOW, A HUGE CHUNK OF THE TRAFFIC AND THEN WE'RE BRINGING THE REST OF THIS TRAFFIC OUT THIS WAY.
UM, THE GARAGES COULD BE THIS HUGE GARAGE IS PROBABLY, WE DON'T NEED THAT MUCH, BUT WE'RE SHOWING IT 4,000 GARAGES THERE.
IN THIS CASE WE SAID, OH WE GOT A LITTLE TRIANGLE HERE AND MAYBE THAT'S A PERFECT PLACE FOR YOUR CONSOLIDATED OFFICES SO YOU CAN PUT YOUR MAINTENANCE IN YOUR OFFICES AND SO FORTH FOR THE PORT.
AND THAT WOULD BE A GREAT TRANSITION INTO THIS SPACE, WHICH IS ALL INDUSTRIAL GOING, GOING BACK OUT, UM, THE IDEA OF THREE TERMINALS IN ONE, THAT'S WHAT MIAMI JUST DID WITH AA AND TRIPLE A.
UH, WE HAVE DONE IT IN OTHER PLACES IN SINGAPORE, HONG KONG.
WE'VE GOT THREE IN ONE JUST LIKE US LINEAR BUILDING.
THE AERIAL OF HIGHTECH IS A BEAUTIFUL BUILDING AND IT'S PART OF THIS URBAN WHOLE REDEVELOPMENT, UH, IN TERMS OF THE, THE, UH, C-H-C-H-S-C-H-S.
NOW THAT'S THEIR LEASE, BUT THEY REALLY ONLY USED THE RAIL UP TO HERE.
SO THAT, THAT'S THE ONLY EFFECT THAT WE WOULD HAVE ON IT.
BUT WE DON'T NEED THIS FOR WHAT, WE DON'T NEED THAT IN UNTIL 20.
IF, IF WE, IF WE DO NEED IT, REMEMBER I WOULD SAY YOU COULD DO
[01:40:01]
IT WITH SIX, IF WE SWITCH AROUND, SEVEN WOULD BE IN THE 20, LATE 2030.BUT JUST THAT, JUST LOOK AT THAT, THAT THREE TERMINALS IN ONE THAT'S NOT MUCH BIGGER THAN THE EXISTING TERMINAL.
NO, THEY, THEY ARE, EACH ONE COLLECTIVELY IS 'CAUSE IT'S TWO FULL TWO STORIES.
YEAH, IT'S, IT'S THE SIZE OF WHAT YOU HAVE THERE.
SO RIGHT NOW THE GOAL IS, 'CAUSE WHEN YOU LOOK AT 'EM, THEY, THEY WANNA MAKE MORE EFFICIENT, GIVE PEOPLE IN AND OUT, LESS SEEING AREA, WHICH IS WHAT YOU WANT.
SO PEOPLE, SO WE TRYING TO GET IT NOW TO ABOUT 160,000 EACH.
BUT WHEN YOU COMBINE IT, A HUGE CHUNK OF THAT CBP.
SO YOU DROP THAT OUT SO YOU BEGIN TO DROP LIKE 20% OF THE BOL SPACE.
THE FOOTPRINT IS NOT MUCH BIGGER THAN WHAT WE'VE GOT 28 RIGHT NOW.
SO THEY'RE REALLY NOT, IT'S THREE TERMINALS, BUT IT'S MUCH MORE COMPACT THAN WHAT WE'VE GOT OUT THERE NOW.
SO THEN THE KEY IS, UM, WITH THE BIRTHS, IF YOU EVER GET TO THE SEVENTH TERMINALS HERE, BUT THEN THAT TERMINAL, UH, COULD SERVE BOTH CREWS, THEN THE CARGO OVER HERE OR IT'S ALL CARGO ALL THE WAY OVER THERE.
SO YOU GET, UH, WHAT THOSE ARE 750 FOOT SHIPS THAT WE'RE SHOWING THERE.
SO YOU CAN SEE THEY'RE, THEY'RE HANDLED QUITE, QUITE, UH, QUITE EASILY THERE.
UM, SO THE IDEA IS THE FLEX SPACE THAT THAT REALLY IS.
SO WHAT WE HEARD FROM, FROM JEFF AND THEIR ANALYSIS IS GIVE US A VERY ALL PURPOSE TERMINAL THAT WE CAN RESTRUCTURE DEPENDING WIND'S, THERE WIND'S NOT THERE, THIS TYPE OF CARGO AND SO FORTH.
SO WHAT WE'VE DONE IS MOVED THE RAIL TO THE BOTTOM AND CONSOLIDATE IT ALL HERE THAT WE LEFT THAT THERE PROBABLY WON'T HAVE THAT MUCH USE LATER.
AND UN DOCK RAIL, WHICH IS CRITICAL SPACE FOR FUTURE WAREHOUSES, FOR ALL THE DRY STORAGE LUMBER AND SO FORTH.
AND THEN YOU BASICALLY HAVE 143 ACRE YARD, UH, THAT IS AVAILABLE TO SERVE THOSE NEEDS THAT, UH, THAT HE'S IDENTIFIED.
AND BEYOND THAT, THEN WE MOVE TO PELICAN ISLAND.
SO THE BIRTH SEQUENCE WOULD BE SOMETHING ALONG THE LINES OF TERMINAL FIVE AND THEN TERMINAL SIX.
AND THEN TERMINAL SEVEN WOULD COME IN.
IS THIS BEYOND 2040? SO WE'RE TALKING A LONG TIME AWAY.
IT MIGHT HAPPEN, BUT AT LEAST YOU HAVE THAT FLEXIBILITY TO DEAL AND IT GIVES YOU THAT FLEXIBILITY THEN TO HAVE CARGO ALL THE WAY ALONG.
IN MANY WAYS, WE'RE DOING WHAT A LOT OF THE OLD, THE OLD PORT USED TO BE HEAVY ON SLIP CONFIGURATION BECAUSE YOUR RATIO OF BIRTH TO AREA WAS TOTALLY DIFFERENT.
SO NOW THE RA, YOU NEED A LOT MORE LAND PER BIRTH AND THIS SORT OF BALANCES IT OUT.
SO THE IDEA OF CLOSING THE SLIPS OVER TIME IS, IS VERY VALID FROM ANY, ANY KIND OF EFFICIENCY AND USE, UH, FOR CREWS, FOR CARGO ON PELICAN ISLAND.
SO SHIPYARD AND GENERAL CARGO TERMINAL AND, AND FOR NEW BILLS, MAINTENANCE AND SO FORTH.
SO WE STARTED LOOKING AT ALL THE US SHIPYARDS, WHAT WHAT IS IT THAT FITS THERE? AND OF COURSE THERE'S A, THERE'S SOMEBODY THAT'S ALREADY IN DISCUSSIONS TO TAKE OVER THAT LEASE.
UM, AND WE LOOKED AT THEIR FACILITY.
YOU CAN SEE THAT WHEN YOU LOOK AT 'EM, THEY RANGE IN ALL KINDS OF SIZES AND SO FORTH.
A LOT OF THEM ARE SITTING IN THE 16 TO 90 ACRES.
HOW MANY SLIPWAYS DO THEY HAVE AND HOW MANY THE LENGTH OF THE SHIPS THAT THEY DO.
SO WHAT WE DID, JUST TO GIVE YOU A A SENSE OF SCALE, SO THIS IS THE BIGGEST ONE, THIS IS NOT US, THIS IS NEWPORT NEWS.
THIS IS, THEY BUILT AIRCRAFT NUCLEAR CARRIERS THERE.
SO THIS IS NOT WHAT WE WANT TO BE, WE DID THIS FOR SEVERAL OTHERS, BUT HERE'S RE THE GUYS THAT ARE TAKING OUT, THAT'S THEIR FACILITY IN QUEBEC.
SO WE, AND THAT'S BETWEEN 90 TO 110 ACRES DEPENDING ON HOW YOU COUNT IT.
'CAUSE IT'S SUCH AN ODD CONFIGURATION.
THE IN, IN TERMS OF WHAT THEY HAVE, THEY HAVE TWO SLIPWAYS AND THEY CAN HANDLE UP TO 1200 SHIPS.
SO, UM, YOU KNOW, THE POTENTIAL FACILITY THEY CAN, WHICH THEY, WHICH IS WHAT THEY NEED.
AND THIS IS A LAYOUT THAT WE DID WITHOUT TALKING TO ANYBODY, BUT BASICALLY YOU'RE GONNA HAVE THE SLIPWAYS AND THE MAIN, UH, TWO MAJOR HANGERS BEHIND WHERE THE, WHERE THE SHIPS ARE, ARE BUILT IN THE DRY AND THEN DROPPED DOWN.
UM, SO IT'S THAT FACILITY AS IT IS, IT'S PRETTY MUCH THE SIZE, A LITTLE BIT SMALLER THAN WHAT THEY HAVE.
YOU HAVE THE EXPANSION CAPABILITY THERE AND THEN WE GOT
[01:45:01]
THE 96 ACRE FACILITY WITH UH, 2600, 2500 FEET OF ADDITIONAL BER THAT WE CAN DO.AND THAT BASED ON WHAT HAPPENS WITH THE CAR, WITH THE BRIDGE THAT WILL BECOME EITHER OVERFLOW CARGO OR NEW CARGOES THAT CAN GO OVER THERE.
UM, SO FROM OUR PERSPECTIVE, THE KEY THING IS CAN THE CHANNEL HANDLE THIS? BECAUSE NOW YOU'RE GONNA BE BRINGING A LOT MORE TRAFFIC THROUGH.
SO THIS IS, UM, YOUR EXISTING CHANNEL AND YOU HAVE, UM, THE TWO TURNING BASINS THAT ARE OCCURRING HERE.
THERE IS A DYNAMIC THAT WILL CHANGE WHEN YOU BRING IN SIX OR SEVEN SHIPS INSTEAD OF THREE OR FOUR BECAUSE THEY HAVE TO COME IN 20, 30 MINUTES APART, SO FORTH.
AND WE'VE TAKEN THAT INTO, INTO OUR COUNT AND THE MODELING AND WHERE DO THEY, WHERE DOES IT GO? SO ONE THING THAT WE, THAT WE NEED TO DO IS THAT WE DON'T HAVE TO TOUCH THE CHANNEL.
THE CHANNEL IS PLENTY BIG FOR WHAT WE HAVE AND WE'RE NOT GONNA INTRUDE INTO THE CHANNEL ON EITHER SIDE.
THE ONLY THING THAT'S NEEDED IS AN ADJUSTMENT ON THE MAIN TURNING BASIN AT THE, AT THE FRONT AND OVER TIME, IT WOULD BE WONDERFUL IF THIS REALLY TAKES OFF THAT THIS, THIS CREATES A FINAL TURNING BASIN OVER HERE, BUT WE DON'T NEED IT.
UM, UH, AND YOU CAN OPERATE WITH THESE TWO FOR NOW.
SO THE, THE, THE TURNING BASIN QUESTION ON THE TURNING BASIN, IS THERE A PROBLEM WITH JUST HAVING THE CRUISE SHIPS BACK IN? NO.
THE ANSWER IS THERE ISN'T, BUT THE ANSWER IS WHAT THE CAPTAINS ALWAYS SAY OR THE PILOTS TELL YOU.
SO THE RULE OF THUMB THAT MOST PEOPLE SAY YOU DON'T WANT A SHIP BACKING IN MORE THAN A SHIP LENGTH.
BUT YOU GO TO, YOU GO TO LOS ANGELES, THEY BACK IN TWO MILES.
SO, UM, THE FACT THAT RIGHT NOW YOU'LL BE BACKING IN, THERE'S ALSO NOT A PROBLEM THAT THEY TURN ALONGSIDE HERE BECAUSE IF THEY'RE HERE THEY COULD USE THAT ADDITIONAL FOOTAGE TO DO.
AND THEY DO THAT IN MIAMI FOR EXAMPLE.
THAT'S WHAT THEY DO ON THIS TURNING BASIN.
ALL WE HAVE TO DO IS SLIDE IT OVER.
WE WILL HAVE TO BE VERY CAREFUL ON THIS TWO CORNERS, BUT IT'S NOT A LOT OF DREDGING.
UM, WE GIVE THAT IN TERMS OF THE CHANNEL, WE CAN STILL MAINTAIN A 750 FOOT CHANNEL.
IT VARIES BECAUSE IT, AND WE HAVE 300 FOOT CLEARANCE ON EITHER SIDE, WHICH GIVES YOU PLENTY OF ROOM FOR VESSELS TO BE TIED UP AND VESSELS TO BE SERVICED ON EITHER SIDE.
SO I THINK WE'RE IN GREAT SHAPE FROM A NAVIGATION POINT OF VIEW.
EVEN WHEN YOU PUT THE GENERAL CARGO TERMINAL AND YOU HAVE, YOU'RE GONNA HAVE CARGO SHIPS, UH, DOCKING ALONG THOSE SIDE.
UH, SO, UH, ON WEEKENDS WHEN CRUISES HAVE ARRIVE, THERE HAS TO BE A WELL-REHEARSED DANCE BETWEEN THE PILOTS AND THE SHIFTS AND SO FORTH.
AND THAT'S WHAT HAPPENS IN A LOT OF THESE OTHER PORTS.
EVER GLAZED MIAMI AND NOW CANAL, A SINGLE CHANNEL CAN'T HANDLE THAT.
UM, SO THE OTHER THING IS IN THE EVENING IT'S A COMMUNITY EVENT.
SO IF WE BUILD A PARK THERE WHERE PEOPLE CAN GO SEE ALL THE SHIPS GO BY IT, IT REALLY HAS BECOME A REALLY QUITE A, A BEAUTIFUL THING ON TRAFFIC.
THE KEY THAT WE'RE TRYING TO REACH IS THAT THIS TRAFFIC, ALL OF THIS TRAFFIC, NOW WE TAKE ALL OF THAT AND GOES OUT DIRECTLY OUT.
AND I THINK WE CAN DO THAT WITH THIS LAYOUT BECAUSE WE'RE INTERNALIZING OUR ROADWAY SYSTEM AND THEN WE HAVE TO WORRY ABOUT THE CONNECTION HERE AND MANAGING THAT, THAT ONE FLOW OVER THROUGH THE CITY.
ALTHOUGH THERE, YOU KNOW, THERE'S, ONCE WE DO A MORE TRAFFIC MODELING, I THINK WE'LL FIND THAT.
I DON'T, I DON'T THINK WE'LL HAVE AN ISSUE THERE.
SO THERE'S MORE PERCEPTION THAN ISSUE.
SO JUST TO GIVE YOU A SENSE, WE HAVE NOT DONE THE DETAILED PLANNING, BUT WE SAID ARE WE DREAMING TOO BIG AND SO FORTH.
SO WHAT WE WANT TO DO IS JUST DO SOME QUICK BACK OF THE ENVELOPE, BUT PRETTY ACCURATE.
WE KNOW WHAT, WE TAKE THOSE COMMODITIES, WE KNOW WHAT THE TARIFFS ARE, WHAT WHAT DOES YOUR TOP LINE LOOK LIKE AND SO FORTH.
SO THE IDEA WILL BE AS A MASTER, AS A STRATEGIC PLAN IS THAT YOU GROW THE TOP LINE BUT YOU GROW THE COMMODITIES AT THE SAME TIME.
SO YOU CAN GROW THE TOP LINE BY JUST KEEP RAISING TARIFFS UP.
THE COMMODITY BECOMES INEXPENSIVE, YOU'RE NOT COMPETITIVE, BUILD NECESSARY RESERVES.
OUT OF ALL THIS, TO BE A FINANCIALLY STABLE INSTITUTION, THAT'S KEY.
A LOT OF PORTS DON'T HAVE THAT ON OUR FUND FOR, FOR REPAIR AND REPLACEMENT, AND NOW THEY'RE PAYING IT OUTTA CASH.
UM, AND SINCE ALL YOUR STUFF IS KIND OF NEW NOW AS YOU'RE BUILDING IT, YOU SHOULD BE ABLE TO DO IT.
SO JUST TO GIVE YOU A SENSE, WE HAVE NOT ADDED ANYTHING NEW HERE.
SO THIS, WE RAN JUST WITH THE CARGO AND THE CREWS AND, AND A FEW OTHER INCOME, BUT WE, AND PARKING, WE
[01:50:01]
DID NOT ADD REAL ESTATE OR ANYTHING AT THIS POINT, BUT YOU'RE LOOKING AT THE POOR GROWING FROM, IT'S ABOUT 70 MILLION OR SO THAT YOU'RE DOING TO, UH, CLOSE TO 350 MILLION IN THE 20 YEAR PERIOD.THE OTHER THING IS WHERE IS IT COMING FROM? AND THIS IS JUST AN AREA FOR DISCUSSION.
YOU, IT'S CRUISE AND PARKING, OBVIOUSLY 70% CARGO IS BECOMING A SMALLER IDEAL THAT YOU WANT A HIGHLY DIVERSIFIED INCOME STREAM.
AND THAT WOULD BE A STRATEGY FOR THE REAL ESTATE THAT IT CAN BEGIN TO ADD TO THAT INCOME STREAM.
UM, SO, UM, TO GIVE YOU A COMPARISON OF WHERE YOU STAND, SO, UM, ALL PORTS ARE ALL ALL OVER THE PLACE.
SO YOU'RE BASICALLY, YOU GOT 20% OF YOUR INCOME'S CARGO, 31% IS CRUISE, 33% PARKING AND THE REAL ESTATE AND SO FORTH.
WHEN YOU GO TO A PLACE LIKE SOUTH CAROLINA, THE PORT AUTHORITY, 96% CARGO AND LITERALLY NOTHING, THEY JUST HAVE BIG TERMINALS AND THAT'S IT.
SO YOU KNOW, YOU GO SELL BONDS AND THAT'S ONE OF THE QUICK QUESTIONS.
YOU GOT THE OTHER SIDE, THEN YOU GO TO A SAN DIEGO OR A SAN FRANCISCO WHERE THE PORT IS REALLY NOT A PORT, IT'S A REAL ESTATE ASSET.
THEY TAKE IN ALL THOSE ASSETS AROUND THE THERE OR SO FORTH, AND THEY RENT IT OUT TO HOTELS AND THEY HAVE VERY LITTLE TRAFFIC.
SO AT SOME POINT IN TIME IT SAYS YOU DON'T NEED A PORT, YOU BASICALLY NEED A REAL ESTATE AGENCY PORT EVER.
GLAZER IS THE MOST DIVERSIFIED OF ALL BECAUSE THEY HAVE OIL AND SO FORTH.
AND THEN YOU HAVE HERE MIAMI AND CANAVERAL.
SO CANAL'S WAY, UH, REPRESENTATIVE BY CREW AND VERY LITTLE ON CREW.
SO YOU KNOW, YOU'RE, YOU'RE, YOU GOT MORE TO WORK WITH.
BUT IDEALLY OVER TIME, ONE OF THE THINGS TO LOOK AT IS IF I PUT THAT PROPERTY INTO HOTEL, WHAT WILL IT, WHAT DO IT PAY FOR US? AND HOW MUCH INCREASE? THE OTHER THAT IS REALLY IMPRESSIVE IS WHAT YOU'VE DONE WITH OPERATING EFFICIENCY.
WE LOOK AT IT IMMEDIATELY WHEN WE, WHAT PERCENTAGE OF YOUR GROSS REVENUES FALL TO THE BOTTOM LINE? SO THIS IS WHAT PERCENTAGE IS EXPENSES AND YOU'VE BEEN ABLE TO DRIVE IT DOWN FROM LITERALLY 80% TO 47%.
THAT MEANS 43 CENTS ARE GOING INTO THE PROFIT.
IT'S FALLING TO THE BOTTOM LINE.
SO IDEALLY THE BETTER, HERE'S WHAT, HERE'S WHERE YOU, WHERE YOU ARE COMPARED TO OTHER PORTS.
SO GIVING YOU SOME MIAMI, ACTUALLY THEY MUST HAVE DONE SOMETHING BECAUSE THEY WEREN'T THAT HIGH, THEY WEREN'T THAT LOW, BUT THEY'RE 51%.
CANAVERAL IS THE ONLY ONE THAT'S BETTER THAN YOU AT 38% RIGHT NOW, BUT NOT FAR.
BUT LOOK AT PORT EVERGLADES, SAN DIEGO, SAN FRANCISCO, SOUTH CAROLINA.
THEY, THEY'RE DROPPING VERY LITTLE TO THE BOTTOM LINE.
SO ANYTIME THEY HAVE A CAPITAL EXPENSE, THEY GOTTA FIGURE OUT ANY REVENUE SOURCE.
SO ON A GROWTH PORT, IF YOU'RE ABLE TO MAINTAIN THIS OR EVEN IMPROVE ON IT OVER TIME, THAT'S WHAT YOUR NET REVENUES WOULD LOOK LIKE.
WE TOOK THE GROSS AND JUST RAN THAT NUMBER, AND YOU WOULD BE PUSHING TO THE BOTTOM LINE OVER $150 MILLION IN A FEW YEARS, AND THEN YOU PUT INFLATION IN THERE, IT'S GONNA BE A SIGNIFICANTLY HIGHER NUMBER.
SO GIVE THE CITY MORE MONEY, MAYBE 50,000 FOR THE SCHOOL.
SO WHAT IT'S TELLING ME IS THAT YOU HAVE ROOM TO DREAM ABOUT WHAT YOU CAN DO, BUT THE IDEAL IS THAT, THAT YOU'RE ABLE TO USE THAT MONEY TO GENERATE MORE MONEY SO THAT YOU CAN DO MORE MONEY.
IF YOU BLOW IT ALL IN NON-REVENUE STUFF, THEN, THEN YOU WON'T BE ABLE TO GROW IT.
ONE LESS PAY FOR POLICE OFFICERS.
I THINK I'VE BEEN TALKING LONG ENOUGH.
SO NEXT STEPS AND ACTION ITEMS. SO WHAT WE WANT, WE'RE DOING THE PRESENTATION TODAY, WE WANTED TO HEAR YOUR THOUGHTS, THEN COME BACK, HAVE A PUBLIC COMMENT PERIOD, AND THEN COME BACK AND THEN YOU TELL US HOW THIS FITS IN CITY COUNCIL BOARD, ALL THIS STUFF, AND THEN FINALIZE THE PLAN AND, AND THEN A FINAL BOARD PRESENTATION AS QUICKLY AS WE CAN.
THE, THE, THE CORE WORK IS DONE AND NOW IT'S A MATTER OF CHOICES THAT PUT THAT THERE, TAKE THAT THERE, AND THEN WE CAN RUN THE WHOLE MODEL BACK AND FORTH.
SO THAT'S SORT OF THE, THE GAME PLAN THAT, THAT WE SEE IN TERMS OF SCHEDULE.
YOU COVERED, YOU COVERED, YOU COVERED TOO.
ARE WE GONNA, UH, BE ABLE TO HAVE A COPY OF THIS PRESENTATION? I, ONE OF THE THINGS I, I WAS IMPRESSED WITH THE, I DIDN'T REALIZE WE WERE MORE D DIVERSIFIED THAN MOST PORTS IN, UH, WHERE YOU'RE LOOKING AT WHAT'S PRODUCING YOUR REVENUE.
SO IT'S, UH, THAT'S GOOD BECAUSE IF YOU LOSE ONE BY, YOU KNOW, IF YOU HAVE ANOTHER COVID THING, YOU'VE GOT, WE'VE GOT MORE DIVERSITY THAN MOST BOARD DO.
[01:55:01]
WE GET THAT ELECTRONICALLY AND THEN PUT IT ON OUR SITE WHERE THE PUBLIC HAS ACCESS TO IT? THAT'S THE NEXT STEP.I'D LIKE MORE TIME TO LOOK AT IT.
WE COVERED A LOT TODAY, SO YOU DID DID GOOD.
AND THEN ACTUALLY YOU'RE GONNA BE HERE.
UM, IF SOMEBODY WANTS TO SET SOME TIME WITH HIM TODAY AND TOMORROW YEP.
EARLY IN THE MORNING, ROGER, THERE WAS ONE OF THE, THE SLIDES THAT HAD THE CARGO DOWN TO 10%, THE HIGHER IT WOULD, UH, COMPARED TO WHAT WE ARE NOW, WHAT ARE WE, WHAT WAS THE IT WAS 10% THAT THEN, BUT WHAT IS IT NOW? THE CARGO? YEAH.
WELL, IT WAS PERCENTAGE OF REVENUES.
THE CARGO PERCENTAGE GOES DOWN BECAUSE THE REVENUE I REVENUE GO UP.
THE CARGO GOING DOWN, CORRECT? YEAH.
WELL, THIS IS, THIS IS, UH, FOR, THIS IS 24.
SO 25 EXCEPT FOR ONE THAT IS NO, NO, THIS, THIS ONE WAY BEFORE THAT ONE.
I THINK IT WAS, I THINK IT THERE PROJECTING OUT.
SO I'M JUST CURIOUS WHAT THAT, BECAUSE REMEMBER, WE HAVEN'T PUT ANY NEW STUFF HERE.
I JUST TOOK WHAT, YOU KNOW, JEFF SENT ME AND WE PUT IT IN THERE.
BUT IF WE START GETTING INTO WHY DON'T WE DO HERE ANOTHER REVENUE? SO THAT'S WHERE THEN LEASE WILL BE GETTING SO 15% NOW.
WE DON'T HAVE THE BIG, THE ADDITIONAL GROWTH IN CARGO THAT JEFF PUT YET IN THE MODEL BECAUSE WE, THE MODELS WOULD COME TOGETHER AND JUST ACTUAL YEAH.
WELL IF WE EXTRACTED IT GOING FORWARD BASED ON JUST CREWS.
AND, BUT PART OF THAT IS BECAUSE, YOU KNOW, IF, IF YOU TRULY GROW THE SEVEN TERMINALS, YOU, YOUR, UH, PARKING AND PASSENGER REVENUE IS GONNA GROW SIGNIFICANTLY.
SO IT IT'S GONNA MAKE EVERYTHING ELSE SMALL.
MY, MY, MY, I WAS ACTUALLY LOOKING FOR ACTUAL NUMBERS, WHAT THE 10% NUMBER WOULD BE AND WHAT OUR 15% YEAH, WE HAVE THE ACTUAL NUMBER, YOU KNOW, WE GOT THE ELECTRONIC VERSION.
IT'LL BE, WHAT WE'VE ALWAYS SAID IS LEVERAGING THE CRUISE BUSINESS TO BUILD THE CAR.
WE'VE BEEN DOING THAT AND, AND I THINK CONTINUE TO DO THAT.
BUT, YOU KNOW, THE BOTTOM LINE IS, IS WHEN YOU START GETTING, YOU KNOW, UM, HUNDRED, 5,000 20 MILLION GROSS REVENUES, AND OBVIOUSLY YOU'RE STARTING A NET.
IF WE CAN KEEP THESE, WE WORK REAL HARD TO KEEP THESE GROSS PROFIT WHERE THEY, I MEAN, MY, MY GOAL IS ALWAYS TO BE AT LEAST 50%.
VERY FEW, VERY FEW PORTS OPERATE ON THEIR 50%.
MARY CAN TRY AND GET A QUESTION.
WELL, I JUST, I JUST WANTED TO REITERATE, WE HAVE A JOINT MEETING WITH THE WARS BOARD AUGUST 27TH.
AND THIS WILL BE A GREAT PRESENTATION.
AND, UM, IT SHOWS, UH, ROGER, HOW WELL YOU'VE BEEN DOING AFTER THIS FORM IS JUST, I MEAN, THE 27TH IS WHAT, A MONTH, A MONTH AWAY.
GUESS YOU, YOU'RE GONNA START THE PUBLIC MEETINGS IN AUGUST.
IS THERE A NEED TO GET MORE INFORM, MEAN? OBVIOUSLY THIS IS PUBLIC INFORMATION SO CITY COUNCIL CAN SEE IT, BUT IS THERE A NEED TO GET MORE INFORMATION TO INFORMATION TO CITY COUNCIL ON THIS PRIOR TO THE 27TH? OR IS THAT, IS THAT TIMELY ENOUGH? I THINK THE KEY IS IT'LL COME TO COUNCIL WHERE YOU HAVEN'T FINALIZED THE PRESENTATION.
AND SO AS LONG AS YOU GET THAT WHERE COUNCIL HAS INPUT INPUT, YEAH.
AS THAT CAN BE, IT'S NOT, NOT JUST HERE THE ANSWER.
HERE'S IN SOME WAY, THAT'S WHAT COUNCIL, YOU'RE NOT TO DEFINE.
JIM, YOU HAVE A QUESTION? YEAH, JUST A LITTLE MORE DEFINITION ON WHEN YOU SAY PUBLIC OUTREACH OPEN HOUSE, WHAT DOES THAT MEAN AND HOW DO WE DO IT? SO THAT'S BEING DISCUSSED WITH THE STAFF RIGHT NOW.
AND LAST TIME IT WAS, UH, I THINK IN ONE OF THE TERMINALS, AND WE WERE ALL THERE AND WE SORT OF MAKING PRESENTATION WAS PRETTY LONG, IS WE HAD A STATION THAT, IT WAS A CREW STATION, THEN A CARGO STATION, A DEVELOPMENT STATION, AND THEN SOMETHING HOW IT COMES TOGETHER.
AND PEOPLE COULD VISIT AND THEN HAVE DISCUSSIONS AND COMMENT CARDS.
HOW DOES THE PUBLIC FIND OUT ABOUT IT? I'M SURE THAT WE ADVERTISE THE PORT IS GONNA TAKE CARE OF THAT PART.
WE'LL TAKE OUT, WE'LL TAKE OUT AN AD IN THE DAILY NEWS.
WE DID THIS, WHAT WE DID LAST TIME, AND THEN WE DID, WE USED 28 AND WE SET UP STATIONS AND THEN THERE WAS A REPRESENTATIVE AT EACH ONE OF THOSE STATIONS SHOULD ASK.
MY ONLY CAVEAT WOULD BE IF WE WANT THE CHAMBER THERE, THEN WE NEED TO SEND AN EMAIL OR NOTATION THAT THEY CAN SPREAD.
CAN WE HAVE A PRETTY EFFECTIVE SOCIAL MEDIA OUTREACH THAT WE CAN GET THAT MESSAGE
[02:00:01]
OUT? AND IF, IF YOU WANT TO UTILIZE THE CITY'S UH, UH, PUBLIC INFORMATION OFFICER, WE CAN GET THAT OUT AS MANY CHANNELS AS POSSIBLE.I JUST, JUST WANT TO TRY TO PREVENT THAT SAYS WE DIDN'T KNOW ABOUT, DIDN'T KNOW ABOUT, WE WANT COME ALL GROUPS THAT WE THINK NEED TO BE OR COULD BE REPRESENTED.
IF THEY DON'T SHOW UP, THAT'S THEIR DAMN PROBLEM.
NO, I AGREE WITH DR. BROWN THOUGH, THAT, THAT THEIR, THEIR, UH, SOCIAL MEDIA OUTREACH IS REALLY IMPROVING THE LAST, MY SOCIAL MEDIA IS LOSING ITS VOICE.
SO WE OUGHT TO USE THEM WHEN WE GET CLOSER TO BY ALL MEANS.
AND IF THE PAPER HERE IS TON NEWS HERE, THEY'RE WATCHING IT.
EVERY WORD YOU SAY, I KNOW THAT.
WATCHING YOUR FACIAL EXPRESSION.
IT'S A PERFECT, WELL, THIS WAS A GREAT PRESENTATION AND GREAT WORK.
ROGER LEWIS SAYS, I'M LIKE VAN WHITE.
THEY JUST PUT ME UP THERE AND SAYS, HARD.
I REALLY, AND I REALLY LIKED THE WAY, AND WE'VE TALKED ABOUT IT.
WE'VE BEEN TALKING ABOUT IT, HOW, UM, YOU KNOW, THE INTERCONNECTION WITH THE CITY, THE PARK AREA.
I MEAN THAT THAT'S, YOU KNOW, WE TALKED ABOUT WHERE, YOU KNOW, WHERE WE HAD TO A LOT OF WORK TO DO TO FILL SLIPS AND BASIC REPAIR NEEDS ON 25.
BUT NOW WE'RE GETTING TO THAT POINT WHERE WE, WE'VE GOT SOME REAL OPPORTUNITIES TO DO SOME, SOME, YOU KNOW, I'LL SAY NICE TO DO THINGS, BUT THINGS WHERE WE CAN START SPECIAL, SPECIAL, YOU KNOW, INTERCONNECTING WATERWAYS AND ALL THAT STUFF.
THAT'S BEEN KIND OF THE VISION, YOU KNOW, THE HALLUCINATION STUFF IN THE PAST.
WE, I THINK WE, WE'VE GOT REAL OPPORTUNITIES TO MAKE THAT SOMETHING REAL NOW.
AND IT'S JUST FIGURING OUT HOW TO GET FROM HERE.
WELL, I THINK IT DOES INCORPORATE THE BATTLESHIP.
LAST PLAN ALSO INCORPORATES A LOT OF THE STAFF REPORT MEANING AND MAKING THE PORT AN ATTRACTIVE PLACE TO VISIT.
YEAH, WE, WE PICKED UP ON THAT.
YOU KNOW, SO THE DRAWINGS LATER ARE BEING MODIFIED TO, THERE'S BEEN A LOT OF WORK, BUT I THINK NOW IT'S TO THE POINT WHERE WE CAN ACTUALLY START MAKING SOME OF THAT REAL.
YOU KNOW, WHAT IT DOES ALSO IS, I DON'T KNOW WHERE WE'RE HEADING WITH THE FINAL PELICAN ISLAND BRIDGE, BUT IT SHOWS THE NEED FOR RAIL OVER THERE.
AND WE'VE GOT TO, YOU KNOW, WE DON'T KNOW WHERE THIS BRIDGE IS RIGHT NOW.
WE'VE DONE OUR PART AT THE CITY, HGAC MAY STEP FORWARD, BUT THIS COULD TAKE A CHANGE HERE.
AND IF IT DOES, WE NEED TO PUT RAIL.
SEEMS TO MAKE, FIGURE IT ALMOST THAT RAIL WITH A LAND BRIDGE AND STRAIGHT BRIDGE
WELL, YOU NEED TO TALK TO A AND M SO YOU GET YOUR APPROVAL.
YOU WON'T HAVE TO DO MAINTENANCE TO DO THAT.
YEAH, THERE'S A LOT OF OPPORTUNITY.
MAKES A LOT OF SENSE TO, I KNOW IT ALL TAKES TIME, BUT IT'D BE WORTH THE TIME OUT TO DO THAT TERM.
OH GOSH, REALLY? BECAUSE IT REALLY UNLOCKS, WE HAD AG ENGINEERS ON THE FRONT END.
THAT'S WHY WE GOT WHAT WE GOT.
SO WE, YEAH, A GREAT, GREAT PRESENTATION.
AND, UH, WE LOOK FORWARD TO ALL THE PUBLIC WORK FOR THE NEXT TWO MONTHS FOR SURE.
[C.1 MINUTES]
TO THE, UH, GENERAL BUSINESS ITEMS UNDER SECTION C.FIRST UP ARE THE MINUTES OF THE JUNE MEETING THEY'VE BEEN DISTRIBUTED.
DO I HAVE A MOTION? MOTION BY SHEILA? I'LL SECOND.
SO ARE THERE ANY ADDITIONS, CORRECTIONS, DELETIONS? ANY DISCUSSION? ALL IN FAVOR OF THE MINUTES.
RAISE YOUR HAND UNANIMOUSLY APPROVE.
[C.2 COMMENTS FROM THE PUBLIC]
COMMENTS FROM PUBLIC.FIRST UP IS CHARLOTTE ROAR ON FOURTH ISSUE WITH Y'ALL.
HEY, WELL THAT WAS QUITE A PRESENTATION.
UM, I'M GOING TO SPEAK FROM A PERSPECTIVE OF A RESIDENT IN THE EAST END HISTORIC DISTRICT AND SOMEONE WHO LIVES CLOSE TO UTD AND USED TO WALK TO WORK FROM HERE.
WHAT I SAW WAS A GREAT PRESENTATION.
I JUST ALWAYS BOIL EVERYTHING DOWN TO MONEY AND THE IMPACT ON RESIDENTS.
WE HAVE JUST BEEN FIGHTING WITH THE CITY OVER EXTENSION OF A PARK IN THE EAST END.
AND THEY WILL SAY, NO, GIMME THAT $25,000.
I'M GONNA GET A HERE OR THOSE, UH, HOUSES THAT I WOULD PREFER TO BUILD.
AND THE PROBLEM WITH THAT IS, IF $25,000 MAKES SUCH A BIG DIFFERENCE TO THE CITY'S BUDGET, JUST THINK
[02:05:01]
WHAT ALL THESE EXTRA TOURISTS ARE GOING TO DO TO GALVESTON.AND SO BEFORE YOU JUST GO OFF AND START BUILDING MORE HOTELS, WHEN WE ALREADY HAVE A HOTEL THAT'S NOT FULLY OPERATIONAL WITH THE NICE AMENITIES SINCE THE 1980S, I JUST WANT YOU TO THINK ABOUT THE MONEY, WHERE THE MONEY WILL COME FROM AND THE IMPACT ON THE CITY'S BUDGET.
BECAUSE THAT'S THE PORT'S PRIMARY CONCERN, OR SHOULD BE, IS HOW DO WE IMPACT THE CITY.
AND SO I HOPE THEY, UH, THE VA GROUP DOES GO OUT TO THE CITY AND TALK ABOUT THAT BECAUSE I CAN'T IMAGINE LIVING HERE WITH 11 MILLION MORE TOURISTS AND THE PROPERTY TAX INCREASE THAT WOULD HAVE TO OCCUR FROM THAT.
SO I KNOW YOU TALKED ABOUT FOLLOWING THE MASTER PLAN, BUT YOU DIDN'T REALLY FOLLOW THE MASTER PLAN.
SO YOU DON'T KNOW THE IMPACT ON TRAFFIC WITH THE FOURTH TERMINAL.
AND YOU ACTUALLY HAVE THE FIRST TERMINAL YOU DIDN'T MENTION, WHICH IS, UH, PIER 21.
THAT WAS THE FIRST CRUISE TERMINAL IN GALVESTON.
AND IT'S STILL NOT FUNCTIONAL AS A CRUISE TERMINAL BECAUSE IT WAS NOT BUILT CORRECTLY.
AND WHEN I LOOK AT THE NEW TERMINALS, I'M SO IMPRESSED WITH ROYAL CARIBBEAN TERMINAL.
OF COURSE, I DON'T LIKE THE GROUND PARKING, BUT YOU LOOK AT THE NEW TERMINAL AND IT LOOKS LIKE A REDONE CARGO DOCK IS WHAT IT LOOKS LIKE.
I THINK THE FIRST ONE THAT BA DID THE FIRST DRAWING WAS ABSOLUTELY GORGEOUS.
AND I BELIEVE YOU SHOULD HAVE WAITED, BUILT YOUR RESERVES UP, AND THEN GO OUT AND DO ANOTHER CRUISE TERMINAL THAT'S PASSED.
GOT RID OF DEL MONTE AND THE POTENTIAL OF CONTAINERS.
AND I WOULD ALSO ASK THAT YOU LOOK AT THE POTENTIAL OF CONTAINERS AND THAT YOU TRY AND PURSUE IT.
IF YOU DON'T SPEND MONEY IN THE CARGO AREA, YOU CAN'T GET CARGO.
AND YOU FIRED ALL THE PEOPLE THAT WERE WORKING ON THE CARGO ASPECT AND YOU ONLY HAVE CRUISE JOBS LEFT.
AND SO FROM MY PERSPECTIVE, I HOPE YOU ACTUALLY LOOK AT THE COST TO THE CITY AND TO THE PUBLIC THAT LIVES HERE.
I WANTED TO SAY THAT FIRST OF ALL, I CAME UP TO SPEAK ABOUT THE, THE NEW WEBSITE ITSELF.
I THINK THINK ALL OF Y'ALL, IF YOU'VE HAD A CHANCE TO LOOK AT IT, IT'S NOT WORKING CORRECTLY.
AND I THINK Y'ALL SHOULD GET THAT UP AND RUNNING AS SOON AS POSSIBLE WHERE YOU CAN GET THE HISTORY AND STUFF LIKE THAT.
SECOND OF ALL, I I, UNLESS I FIND A FOUNTAIN IN THE YOUTH, I I'M NOT GONNA BE HERE WHEN ALL THIS IS DONE AT 2045, SO I'M NOT GONNA WORRY ABOUT THAT.
BUT CHARLOTTE CAN BLAME HERSELF FOR THE ISSUES THAT SHE'S BROUGHT APART TODAY BECAUSE IN 1997 WHEN SHE WAS VICE CHAIR OF THIS BOARD, WE DIDN'T HAVE ANY CRUISE SHIPS.
AND IT'S A GREAT THING THAT WE HAVE CRUISE SHIPS.
AND IT'S A GREAT THING THAT WE HAVE, IT'S A GREAT THING.
WE HAVE CRUISE SHIPS TODAY, BUT I, I DON'T, I THINK WHAT HER PROBLEM IS, SHE NEVER COULD HAVE POSSIBLY THOUGHT OF THAT.
WE'RE GONNA BE WHERE WE ARE TODAY.
AND IT COULD ACTUALLY BE A HINDRANCE TO THE ENTIRE COMMUNITY TO BUILD TOO MANY CRUISE SHIPS.
PUT TOO MANY EGGS IN ONE BASKET.
BUT I MET LEWIS, I KNOW THAT HE DOES A FINE JOB.
HE DOES THIS ALL OVER THE WORLD.
IT IS A PLEASURE TO MEET HIM AND WORK WITH HIM.
UM, THE ONE THING ON THE CARGO SIDE THOUGH IS THAT I THINK IT'S INCORRECT AS GRIMALDI DOESN'T CALL HERE.
SO WE DON'T HAVE TO WORRY ABOUT THEM.
I'VE BEEN TRYING TO GET GRIMALDI INTO OUR PORT FOR THE LAST 20 YEARS.
THEY CAME BRIEFLY FOR A LITTLE WHILE, 15 YEARS AGO, AND I WAS ALL EXCITED.
'CAUSE THEY ALSO UNLOAD CONTAINERS AND LOAD CONTAINERS ON THE DECK OF THEIR VESSELS.
SO I DON'T THINK WE HAVE TO WORRY ABOUT THAT PROBLEM OF THEM COMING IN AND GETTING DOUBLE TAXED.
UM, I JUST MADE SOME NOTES HERE, BUT I, I REALLY THINK IT IS A GOOD TIME.
BUT I THINK YOU NEED TO, TO LOOK AT IT.
AND I LIKE, I LIKE THE IDEA OF THE PUBLIC MEETINGS AND DECIDE ON WHERE WE'RE GONNA GO.
BUT I, I JUST, I FEEL LIKE CHARLOTTE DOES.
I'VE LIVED IN THE SAME BLOCK FOR 70 YEARS.
AND, YOU KNOW, YOU GOTTA THINK ABOUT THIS IS A COMMUNITY.
THIS, THIS ISN'T A, A TOURIST TOWN.
GALVESTON HAS GENERATIONS OF PEOPLE, NOT ONLY MY FAMILY, BUT LOTS OF FAMILIES THAT LIVE HERE IN, IN THE INFLUX OF 10 MILLION PEOPLE IS A, IS A BIG STRESS.
AND AGAIN, NOBODY KNOWS THE FUTURE, BUT PUTTING ALL YOUR EGGS IN THAT BASKET IN 2045, I THINK IS
[02:10:01]
A, IS A MISTAKE.I THINK YOU HAVE TO STAY DIVERSIFIED.
NEXT UP JOSHUA OWENS GULF COPPER LEASE.
I'D REALLY LIKE TO COME BACK IN A FEW YEARS AND SEE AN ICEBREAKER BEING BUILT OVER THERE IN ABOUT 1500 EMPLOYEES WORKING AND MAKING SIX FIGURES.
SO FOR THE GEDP, THE GS AND ECONOMIC DEVELOPMENT PARTNERSHIPS, REALLY HOPING THAT YOU WELCOME DAVEY IN AND GULF COPPER, UH, GETS THE LEASE SIGNED OVER FOR DAVEY, AND, UH, WE'D LIKE TO SEE THOSE JOBS COME TO GALVESTON.
NEXT UP IS TONY GREGORY, OPERATING AGREEMENT, BATTLESHIP, TEXAS.
OKAY, THAT'S IT FOR COMMENTS FROM YOUR PUBLIC.
NEXT UP IS THE COURT DIRECTOR.
IF I, IF I COULD MAKE A COMMENT THAT JUST FOR ROGER, YOU GET STARTED, RIGHT? UH, WHEN WE SAY 10 MILLION PEOPLE, THAT'S, THAT'S, THAT'S PASSENGER MOVEMENTS, RIGHT? SO REALLY IT'S 5 MILLION INDIVIDUALS, RIGHT? SO MAYBE, YOU KNOW, FOR THE GALS DAILY NEWS AND OTHERS OF THE PUBLIC FOR CLARIFYING, MAYBE FOR CHARLOTTE DID TOO.
THAT THAT 10 MILLION IS PASSENGER MOVEMENT.
SO IT'S REALLY, YOU'RE TALKING ABOUT, WE, WE CURRENTLY HAVE ABOUT 1.8 MILLION PEOPLE.
SO, AND WE'RE TALKING ABOUT 1.8 TO 5 MILLION.
IT WOULD BE 5 MILLION TOTAL PEOPLE.
JIM, JUST FOR CLARITY, WANNA STEP BACK FOR A MINUTE ON THE OUTREACH, IT'D BE HELPFUL IF ROGER WOULD'VE ANGIE EMAIL ALL THE CITY COUNCIL.
THEY'RE PERSONALLY INVITED TO IT.
OH, THAT WAY THEY CAN GET A HEADS UP IF THEY WANT TO FOR THE 27TH, BUT THEIR INPUT IS DEFINITELY WARRANTED AND WELCOMED.
WITHOUT THAT WOULD, OKAY, ROGER, THE COURT DIRECTOR BOARD SUGGESTING YOU.
I DIDN'T HEAR WHAT HE SAID, BUT, OH, WE'RE SUGGESTING IF, UH, IF IT MEETS WITH THE BOARD'S APPROVAL TO MOVE THE COURT DIRECTOR'S REPORT AFTER THE EXECUTIVE SESSION.
SO IS THAT OKAY? IS THAT OKAY WITH EVERYBODY? ANYBODY OBJECT TO THAT? WE'VE LOST THE AUDIO PROBABLY THAT WAY YOU, WE DON'T WANT HAVE TO QUOTE, RUSH THROUGH IT LIKE HE HAS TO RUSH THROUGH.
[D. RECESS INTO EXECUTIVE SESSION]
WITH THAT, I'M GONNA ANNOUNCE THAT WE'RE GONNA RECESS INTO EXECUTIVE SESSION PURSUANT TO GOVERNMENT CODE, UH, SECTION 5 5 7 CONSULTATION, SECTION 5 5 0 7 2, REAL ESTATE SECTION 5 5 1 0 7 4.PERSONNEL SECTION 5 5 1 0 8 7.
ECONOMIC DEVELOPMENT NEGOTIATIONS AT 1:04 PM OKAY, WE'RE GONNA RECONVENE IN OPEN SESSION AT 2:17 PM ITEM E ONE, DISCUSS AND CONSIDER ACTION, IF ANY ON SPECIFIC MATTERS DISCUSSED IN EXECUTIVE SESSION, WHICH WAS LISTED ON THE AGENDA IN SUFFICIENT DETAIL TO PROVIDE NOTICE TO THE PUBLIC AS REQUIRED BY THE TEXAS OPEN MEETINGS ACT.
[C.3 PORT DIRECTOR'S REPORT]
WE'LL, WE'LL BACKTRACK TO ITEM C3, THE PORT DIRECTOR'S REPORT.ALRIGHT, WE'LL TRY TO GET THROUGH THIS PRETTY QUICKLY.
I KNOW IT'S LATE IN THE AFTERNOON.
UM, THERE'S THE CARGO NUMBERS THAT WE SHOW EVERY, EVERY, UM, EVERY MEETING.
UM, YOU CAN SEE THE OTHER NUMBERS, UH, HERE AGAIN, UH, HERE'S THE TONNAGE NUMBERS ON THOSE.
UH, WE'RE ABOUT HALF A MILLION, UH, TONS BELOW WHERE WE WERE LAST YEAR, BUT WE'VE ALSO HAD THE CONVERSATIONS ABOUT WHAT, WHAT'S, WHAT'S DRIVING THAT.
UM, HERE'S THE, THE CRUISE NUMBERS.
UM, I MEAN, IT'S, IT'S LOOKING LIKE WE'RE GONNA HAVE ANOTHER RECORD YEAR HERE.
WE ARE SITTING AT ABOUT, UM, 1,000,008 OR NOT, OR REALLY 900,000 PASSENGERS AND, YOU KNOW, GETTING CLOSE TO A MILLION.
AND IF YOU REMEMBER, UH, THE LAST TWO YEARS WHEN WE'VE HIT A MILLION, WE WERE IN, INTO THE MONTH OF DECEMBER BEFORE THAT HAPPENED.
SO YOU, YOU GOTTA BELIEVE WE'RE, WE'RE PRETTY GOOD.
UH, UM, PRETTY GOOD UPWARD TREND ON THAT.
HERE'S THE SHIP SHIPS NUMBERS.
UM, I THINK THIS IS COINCIDES WITH WHAT WE'VE BEEN TALKING ABOUT, THE CARGO AND THE AVAILABILITY OF DOCKS AND ALL THOSE KIND OF THINGS.
SO THAT, UH, HERE'S, HERE'S A PICTURE OF THE WIND AGAIN.
BRETT, YOU WANNA TALK JUST BRIEFLY? I MEAN, IT IS WHAT IT IS, BUT IT IS, WE'RE ON PACE TO MATCH WHAT WE DID LAST YEAR.
IF YOU RECALL, WE DID HAVE DEL MONTE.
THAT WAS AN OPERATION, UH, FOR THE FIRST, UH, FIVE OR SIX MONTHS OF 2024.
SO WE ARE STILL ON PAR, UH, TO DO WHAT WE DID LAST YEAR.
UM, WE'RE STILL MOVING CARGO AND OF COURSE, UH, THE CREW.
SO WE'RE STILL PROVIDING A LOT OF HOURS FOR THE, FOR THE UNION AND NOW WITHOUT DEL MONTE.
[02:15:01]
YEP.EVEN WITHOUT DEL MONTE THIS YEAR, WE'RE KEEPING GOOD PACE.
WE'VE ALREADY TALKED ABOUT THOSE, UH, THIS MORNING DURING THE FINANCE COMMITTEE MEETING.
UM, I'LL JUST KIND OF, UH, BRIEFLY GO THROUGH THOSE.
UH, NOTHING HAS REALLY CHANGED OTHER, YOU KNOW, FROM THE LAST ONE OTHER THAN, UM, YOU KNOW, WE'RE HAVING DISCUSSIONS AND WE'RE LOOKING AT DIFFERENT, UM, UM, AREAS TO COVER FOR THE, THE GRANT PROGRAMS THIS YEAR.
UM, AND SO WE'LL KEEP EVERYBODY POSTED ON THAT.
UM, WE ARE TALKING ABOUT WHERE WE'RE GONNA GO WITH THE PORT INFRASTRUCTURE DEVELOPMENT GRANT, UM, WHICH IS, UM, COMING UP.
UH, WE GOT 400,000 LAST YEAR, WHICH WAS FOR, FOR, UH, UH, SOME STUDY WORK ON THE WEST END.
AND SO WE'RE LOOKING AT TRYING TO DETERMINE RIGHT NOW WHERE WE WANT TO GO WITH THIS.
I MEAN, I, I, I'M INCLINED TO CONTINUE, UM, THE, UH, THE WEST END CONSTRUCTION, UM, WITH THIS GRANT.
SO I, AND IF ANYBODY HAS ANY DIFFERENT IDEAS, OBVIOUSLY, UM, WE CAN TALK ABOUT THAT.
I THINK THIS IS COMING UP IN SEPTEMBER, SO WE HAVE SOME TIME.
UH, WE'VE BEEN TALKING WITH, UH, OUR, WITH OUR GROUP IN WASHINGTON, UM, ABOUT, UH, NEW LEGISLATION AND AREAS THAT THERE'S POTENTIAL, UM, FUNDS AVAILABLE.
SO THOSE, THIS IS A WORK IN PROGRESS HERE.
HERE'S THE GRANTS THAT WE'RE WORKING RIGHT NOW.
UM, WE STILL HAVE NOT SEEN, UM, THE SECURITY GRANTS ARE, YOU KNOW, THEY'RE, THEY'RE KIND OF UP IN THE AIR.
UM, YOU KNOW, AND HERE'S THE LAST THREE YEARS WITH THE GRANTS THAT WE'VE BEEN WORKING ON AS WELL AS WHERE WE ARE ON THE OTHER GRANTS.
WE WE'RE GETTING READY TO LET CONTRACTS FOR, UM, THE WEST END, UH, HGAC, WHICH IS THE, THE STUDY OF THE, THE, THE OVERHEAD HIGHWAY AS WELL AS THE SURFACE, UM, INTERNAL ROAD.
SO WE, WE WILL BE LOOKING, LETTING THOSE OUT THROUGH THE RV PROCESS.
UH, BICENTENNIAL UPDATE IS, IS LOOKING REALLY GOOD FOR THE, FOR THE, UH, FOR THE BICENTENNIAL.
UM, YOU KNOW, WE'RE GETTING READY TO COME OUT WITH, UH, GETTING READY TO SELL, UM, THE TABLES NOW, WHICH IS THE NEXT STEP, UM, WHICH WILL ALL FALL ALL THE TABLE SALES.
WE'LL ALL FALL TO THE BOTTOM LINE FOR THE, FOR THE, FOR THE, UH, SCHOLARSHIPS.
JUST, UH, HERE'S THE BUDGET, UH, DETAIL ON WHERE WE ARE, WHERE WE'RE SITTING RIGHT NOW, AND WHAT WE'RE A COUPLE OF PROJECTION PROJECTED REVENUES AND WHAT WE THINK WE'RE GONNA GET OFF OF.
UH, GALA SEAT SOLD, WHICH IS BASICALLY TABLES.
UM, SO, YOU KNOW, WE'RE, UH, YOU KNOW, UH, LOOKING, IT'S LOOKING PRETTY GOOD.
I'M, I'M EXCITED ABOUT HOW THAT'S GOING.
UM, PREPOSITION CONTRACTS, I THINK THIS WAS JUST A, A A, AN UPDATE JUST TO MAKE SURE EVERYONE UNDERSTANDS WHERE, WHERE WE'RE LOOKING FOR, WHAT WE'RE LOOKING FOR IN CASE OF EMERGENCY, UH, PROCUREMENT.
UM, THE MOST OF THE THINGS THAT WE'RE LOOKING AT, WE, UM, WE'RE GONNA TRY TO GO OUT NEXT MONTH ON A SALARY SURVEY.
UM, AND THEN, UH, SOME, UH, YOU CAN SEE UP THERE WHERE WE ARE REVIEWING QUALIFICATIONS ON SOME, UH, TERMINAL 28 IMPROVEMENTS.
OBVIOUSLY, WE'VE GOTTA FIGURE OUT WHAT THAT'S GONNA BE AND HOW THAT, HOW THAT FITS INTO THE PLAN.
UH, WE DO HAVE AN OBLIGATION WITH THE CVP AT SOME POINT IN TIME TO UPGRADE THAT, AND WE'RE HAVING THE ONGOING CONVERSATIONS WITH THEM.
UM, THE SAFETY COMMITTEE, UH, YOU CAN SEE, UH, MIKE BANNO, I THINK THIS IS THE SECOND MONTH IN A ROW, HE'S WON IT, FOUND SOME BOOK, YOU CALL IT.
THE VAN AWARD FOUND A HOLE THAT IT WAS UNCOVERED, UH, WAS, WAS OPEN.
AND SO HE GETS THE $25 YEAR CERTIFICATE.
UM, I TALKED TO JULIO THE OTHER DAY.
I MEAN, WE CONTINUE TO SET RECORDS EVEN THROUGH THE SUMMER MONTHS, UM, FROM PARKING.
AND THIS IS JUST A, IT REALLY IS JUST A, IS A TRIBUTE TO THE, THE FACT THAT WE'RE MOVING CLOSER.
UM, NOT TO MENTION THAT JULIO'S GOT A GREAT TEAM, BUT, UH, WE'RE MOVING CLOSER TO THE TERMINAL, TO THE TERMINALS WITH ALL OF OUR PARKING.
AND YOU CAN SEE THAT'S, THAT'S PAYING OFF, UH, BIG TIME FOR US.
UH, WE HAVE ANOTHER, UH, ANOTHER LOCATION, ANOTHER APPLICATION.
SO YOU'LL HAVE FOUR TRADE ZONE 36 IS, UH, ALIVE AND WELL.
UH, AS YOU KNOW, IT'S GETTING VERY POPULAR IN SEVERAL QUERIES FOR ENTITIES AND IN EVEN A COUPLE CITIES HERE IN GALVESTON COUNTY.
UM, AND, UH, OF COURSE WE HAVE A, UH, IN ITEM TODAY FOR AN OPERATING AGREEMENT.
AND THAT'S, THAT'S AN, UM, CHEMO, RIGHT? CORRECT.
UM, JUST, UH, QUICKLY, I, JOHN'S GONNA GIVE US A QUICK UPDATE.
THERE'S A COUPLE OF SNAPSHOTS JUST TO KIND OF GIVE EVERYBODY AN, UH, AN OUTLOOK ON WHERE WE ARE WITH THE GIS PROGRAM.
[02:20:01]
TAKE IT AWAY, JOHN.LONG STORY SHORT, THESE ARE BASICALLY MAPS WITH DATABASES ATTACHED.
WE'RE USING THEM FOR MULTITUDE OF THINGS RIGHT NOW.
THESE TWO UP HERE RELATE TO OUR UTILITY MAPS THAT WE'VE BEEN TRYING TO PUT TOGETHER.
BASICALLY FIND EVERYTHING THAT YOU'RE GONNA FIND DIGGING HOLES AROUND HERE.
THAT ONE OVER THERE SPECIFICALLY IS OUR DRAINAGE WATER LINES, THINGS LIKE THAT.
THE DASHBOARDS, HELPING VISUALIZE THEM A LITTLE BETTER.
UH, OTHER THINGS WE'VE BEEN DOING WITH THEM ARE, WE'RE CURRENTLY WORKING ON A C AND M WORK TRACKING ONE FOR LANDSCAPING IRRIGATION.
DONE A COUPLE OF THINGS WITH PARKING ANALYTICS, WHICH I BELIEVE IS ON THE NEXT SLIDE.
WE'VE ALSO GOT THE ONE ON THE TOP RIGHT THERE IS TRACKING OUR LEASE AREAS, CONDITIONS UP AND THINGS LIKE THAT.
SO, LONG STORY SHORT, IT'S GOOD FOR ANALYTICS, IT'S GOOD FOR VISUALIZING DATA.
YOU COULD USE IT FOR COMMUNITY OUTREACH IF YOU WANT IT PRESENTING TO INVESTORS, BOARD PRESENTATION, ET CETERA, ET CETERA.
SO IT'S ABOUT WHAT WE'RE WORKING ON.
AND WHAT'S YOUR TOTAL PROJECT? WHAT'S THE SIGNIFICANCE OF THAT 24? THAT RIGHT THERE IS HOW MANY CAPITAL PROJECTS WE HAVE RIGHT NOW FOR THAT SPECIFIC NUMBER.
I PRETTY MUCH DIGITIZED WHAT WE HAD FROM OUR CAPITAL PROJECT.
WHAT'S THE SOFTWARE YOU USING? UH, THIS IS RGIS THROUGH ESRI.
ANY OTHER QUESTION? UH, YEAH, THE BLUE MAP ON THE LEFT WAS ACTUALLY SOMETHING THAT WE, THAT WAS FOR VA RIGHT? AND WE'RE TRYING TO FIGURE OUT WHERE ALL OF OUR CUSTOMERS WERE COMING FROM FOR PARKING.
THEY PRETTY MUCH WANTED TO KNOW WHERE WE WERE GETTING THE MOST CUSTOMERS, BOTH BY STATE AND THEN BY AREA IN TEXAS.
WE BROKE IT DOWN TO THE ZIP CODES.
THE DARKER THEY ARE, THE MORE CUSTOMERS YOU HAD BOOK IN PARKING WITH US COUNTRY'S A LOT MORE THAN I EXPECTED.
YEAH, I MEAN, 70% OF OUR, OUR PARKERS ARE COMING FROM HOUSTON, DALLAS, UH, AUSTIN AND, UM, SAN ANTONIO AREAS.
YEAH, SO WE GOT, THAT WAS FUNDING PARTICULAR BECAUSE WE HAD SOME MASSIVE SKEW TOWARDS TEXAS.
WE HAD LIKE 273,000, I WANNA SAY, OUT OF SOMETHING LIKE 300 AND 380,000 DATA POINTS.
MOST OF THEM WERE FROM TEXAS, SO THAT'S WHY WE HAD TO BREAK IT DOWN TO ZIP CODE JUST FOR TEXAS, BUT PREDOMINANTLY ARKANSAS, OKLAHOMA, LOUISIANA, AND TEXAS FOR THE TOP FOUR.
SO THIS IS ACTUALLY DATE DATA FROM OUR PARKING PEOPLE THAT HAVE PARKED WITH.
SO YOU HAVE TO ANALYZE EXCEL IN THERE AND IT POPULATES.
I'M JUST CURIOUS, IS THERE SOMETHING I COULD LOOK AT FOR OTHER STATES UP LIKE OKLAHOMA AND HEADING NORTH? WE COULD DO THE SAME AS WE DID FOR TEXAS WITH THE OTHER STATES BECAUSE ALL THIS NEEDS IS A ZIP CODE ATTACHED AND OUR SPREADSHEET SHOWS THOSE.
WE DO HAVE A LARGER MAP THAT SHOWS ALL THE STATES THEMSELVES.
WELL, THERE'S THE POINT WHEN THAT BIG CARNIVAL DID, JUBILEE CAME IN AND I ASKED THE GUY FROM CARNIVAL, I SAID, ARE YOU SEEING MORE PEOPLE FROM THE STATES COMING UP? HE JUST LOOKED AT ME AND SAID, IT'S ALL TEXAS.
I'M JUST CURIOUS TO SEE WHAT, WELL, IF YOU REMEMBER THE MAP THAT, THAT LEWIS SAID VA HAS UP THERE, MAP THAT CLUSTER MAP UP THERE.
RIGHT? THAT'S PRETTY ACCURATE.
JEFF, HIS FIRST APPEARANCE TODAY.
SO LOOK AT OUR BACKFLOW PREVENTERS HAVE USED INSTALLED AT PIER 41.
SO THIS IS THE LAST THING WE GOTTA DO ON THIS PROJECT TO CLOSE IT OUT.
AND WE'LL STILL HAVE THE SAVINGS WE TALKED ABOUT THERE ON THAT BOTTOM LINE 5 61.
WE STILL DON'T EXPECT SPENDING ANY OF THAT.
THIS IS THE LAST PIECE THAT NEEDS TO BE PAID ON PIER 41.
UM, CG 25 WALKWAY IMPROVEMENTS.
UH, RIGHT NOW WE'RE STILL WORKING ON WHAT WE ARE ARE ANTICIPATING DOING WITH, UH, THE, UH, REMOVING SCOPE OR, OR MAYBE, UH, CHANGING, UH, SUBSTITUTIONS.
REALLY, REALLY, IT COMES DOWN TO, TO A COUPLE OF MAIN THINGS.
THE LARGE, UH, PROPOSITIONS FOR REMOVING COSTS FROM THE PROJECT CAME AT THE COST OF REMOVING VERTICAL CIRCULATION.
AND SO WE WERE STEERING AWAY FROM THOSE AND WE WERE FOCUSING MORE ON LIMITING THE CIVIL SCOPE AROUND THE, THE PROJECT AND, AND POSSIBLY SELF-PERFORMING SOME OF, UH, THE, LIKE, THE REROUTE OF THE, THE TERMINAL ROAD THAT WE COULD DO OURSELVES.
AND THAT WAY IT WOULD ALSO HELP WITH THE SEQUENCING OF THE PROJECT AND THE CONTRACT WOULD BE ON SITE A LITTLE BIT LESS, UH, OF TIME.
THE OTHER THING WE'RE TOYING WITH, AND I DON'T KNOW EXACTLY HOW, HOW, UH, WE'LL GO IS YOU CAN START PLAYING WITH THE LOOK AND MAKE IT A PLAN OR LOOK, BUT, UH, I I'M NOT SURE THAT THE VALUE IS THERE IN MOVING STUFF FROM AESTHETICS AND, AND GAINING A LITTLE BIT.
BUT, BUT THAT'S KIND OF WHAT WE'RE EVALUATING RIGHT NOW.
[02:25:02]
UH, WAR ROAD 23RD TO 20TH STREET.
UH, BEN HAD A, A PROJECT MEETING TO KICK THIS OFF, UH, LAST FRIDAY.
AND, UH, THEY'RE WORKING ON GETTING A NOTICE TO PROCEED OUT, UM, TO, TO DO THIS, UH, WORK.
IT LOOKS LIKE RIGHT NOW, THE THE, THEY'RE GONNA START WORK, UM, THIS, UH, FALL ON THE WESTERN SECTION OF THIS BETWEEN 22ND AND 23RD STREET.
AND THEN THEY'LL WORK THEIR WAY, UM, EAST, UH, AS THEY GO WITH THE PROJECT.
THEY'RE STARTING PLAN RIGHT NOW, SO, UM, EVERYTHING'S LOOKING GOOD THAT RIGHT NOW.
IS THAT ABOUT A YEAR LONG OR SO DURATION? YEAH, I THINK IT'S THE INITIAL SCHEDULE.
I MEAN, I THINK THERE'VE BEEN PRICE.
THEY, I I, I CAN'T REMEMBER EXACTLY THE, THE NUMBER OF DAYS, BUT, BUT THEY'RE SHOWING A MORE AGGRESSIVE SCHEDULE THAN THAT, THAN THE CONTRACT.
SO, SO I THINK RIGHT NOW THEY'RE LOOKING AT, UM, SOMEWHERE AROUND NINE MONTHS.
I REMEMBER WHAT I SAW RECENTLY BECAUSE THAT WOULD BE FAIRLY, IT'S FAIRLY DISRUPTIVE FOR THE CORRECT, AND, AND THAT'S, THAT'S ONE OF THE THINGS, UM, BEN, UH, AND HIS TEAM HAVE BEEN REALLY SUCCESSFUL ON THE WEST END, THAT RUSH OF PROJECTS WE JUST DID, AND THAT FOCUSED AROUND WEEKLY COORDINATION.
AND SO BEN'S UM, PLANNING ON BRINGING THAT SAME TOOL OVER TO THIS AREA, GIVEN THAT WE HAVE A LARGE NUMBER OF STAKEHOLDERS IN A GEOGRAPHICALLY CONDENSED AREA.
AND SO, BUT, BUT ABSOLUTELY LOT, LOTS OF MOVING PARTS.
UM, THE A DM GRAIN TOWER DEMOLITION RIGHT NOW, I MEAN, THINGS ARE STILL MOVING.
THEY MOBILIZE THE SEMI CRUSHER, UM, BECAUSE THEY JUST COULDN'T QUITE KEEP UP WITH, UH, CRUSHING THE STUFF THEY'RE TEARING DOWN.
UM, RIGHT NOW IT'S, IT'S JUST KIND OF A MATTER OF WHEN, YOU KNOW, THEY'RE, THEY'RE A LITTLE BEHIND THEIR SCHEDULE.
UM, BUT WE'RE TRYING TO SEE IF THEY CAN RECOVER ANY OF THAT.
BUT, BUT RIGHT NOW IT'S LOOKING LIKE IT'S GONNA PROBABLY SLIP INTO, UH, AUGUST TO, TO GET THIS, UH, PROJECT COMPLETED.
BUT I MEAN, OVERALL, I MEAN, WE GET PRETTY GOOD QUALITY.
UH, CRUSH OUT OF IT AS WELL IS JUST GETTING RID OF THE GRAIN ELEVATOR AND, AND, UH, WE'RE ALREADY ABLE TO USE THAT CRUSH OUT HERE IN FRONT OF
WE CAN USE SOME OF THE BASE WORK.
SO, UH, THIS IS THE SLIP FILL PROJECT ON THE EAST END, 38 39.
UH, THIS IS A LOOK AT ONE OF THE CONCRETE PLACEMENTS WE HAVE ON THE BOLLARD AND FENDER, UH, PILE CAP LOCATIONS.
SO, SO THERE'S FIVE OF THESE LOCATIONS WHERE THEY HAVE TO HAVE A THICKENED DEC CAP.
AND THIS IS WHERE ALL THE MOORING FORCES ARE, ARE DISTRIBUTED ON THESE POINTS.
SO, UM, THAT PROJECT IS STILL MOVING, UH, ALONG THE, THERE ARE SOME ISSUES WITH HIGH TIDE AND THESE, UH, FORM WORK THAT ACTUALLY EXTENDED DOWN INTO THE WATER.
SO THEY HAD TO WAIT FOR LOW TIDE TO DO THE WORK.
AND SO THAT'S SLOWED THEM DOWN A LITTLE BIT.
BUT WE'RE STILL, UM, PLANNING ON, UH, BEGINNING THE OF SLIP FILL PROBABLY TOWARDS THE END OF AUGUST.
UM, WE'RE STILL COORDINATING THAT.
AND THEN THIS IS THE OTHER SLIP FILL PROJECT, AND THEN THEY'RE KIND OF CLOSEUP PICTURE OTHER THAN THE AERIALS WE'VE BEEN SHARING.
THIS IS THE TIE IN POINT ON THE PIER 41.
THIS IS THE WESTERN TERMINUS OF THAT PROJECT.
AND SO THIS WAS SOME OF THE P DEMOLITION THAT HAD TO HAPPEN.
THIS WAS A, UH, BEFORE THIS WAS CUT OUT, THIS WAS A PILE SUPPORTED APRON THAT YOU JUST LOOKED AT.
IT, IT LOOKED LIKE A, UM, SLAB ON GRADE OR SOMETHING FROM THE TOP.
SO THIS IS ACTUALLY REVEALING THAT STRUCTURE UNDERNEATH AND, AND HOW THEY HAD TO, UM, DECONSTRUCT IT TO BRING THE NEW CLOSURE WALL THROUGH THAT GAP YOU SEE AND TIE INTO THE, BASICALLY THE FACE OF THE WALL THAT'S RIGHT.
KIND OF AT THE FEET OF THE PERSON THAT TOOK THIS PICTURE.
IS THAT NEW ON THE LEFT AND RIGHT? NO, THAT, THAT, THAT'S EXISTING.
I MEAN, THAT, THAT APPEARS ACTUALLY DECENT, DECENT SHAPE STILL.
AND THE OLD PORT INDUSTRIAL ROAD, UH, 33RD TO 41ST, WE'VE GOT THE HUNDRED PERCENT DRAWING PACKAGE REALLY RIGHT NOW WE'RE WORKING ON TRYING TO GET A BETTER TIMELINE.
THE CENTER POINT ON POWER POLE LOCATION, THERE'S QUITE A FEW POWER POLES THERE BETWEEN 37TH STREET AND 41ST STREET THAT WE NEED TO MAKE SURE WE HAVE A SCHEDULE AND WHEN THAT'S GOING TO GET MOVED OUT OF THE WAY OF THE PROJECT.
UM, IT'S, THE THING WE DON'T WANNA DO IS BID OUT A PROJECT AND BE WAITING ON CENTER POINT OF THE CONTRACTOR ON THE PAYROLL.
SO, UM, THAT'S WHY YOU SEE RIGHT NOW THAT MID 2026 FOR, UM, THE BID DATE.
BUT, BUT THAT'LL MOVE FORWARD AS WE, UM, OR, OR MOVE TO THE LEFT AS WE LEARN A LITTLE BIT MORE ABOUT THE CENTER POINT, UH, SCHEDULE.
AND THEN TERMINAL 16, UH, THE DEVELOPMENT, UH, DESIGN WORK RIGHT NOW, UM, BA IS, UH, PLANNING ON COMING OUT.
THEY HAVE A CONSULTANT COMING OUT TO TAKE A LOOK AT THAT LOW R VALUE ON THAT WHARF SLAB.
UH, LATER THIS MONTH WE'LL WORK BACK ANYTHING MORE ON THAT.
AND THEN WE DO HAVE TODAY A FIFTH AMENDMENT FOR SOME ADDITIONAL CONSTRUCTION SUPPORT, UH, ON THIS PROJECT.
WHAT'S A LOW ARM BACK? OUR VALUE, OUR VALUE HAS TO DEAL WITH INSULATION.
IN THIS CASE, WE'RE DEALING WITH AN EXISTING CONCRETE SLAB THAT WAS ABOUT THIS THICK.
AND SO IN ORDER TO HAVE THE REQUIRED R VALUE FOR THE BUILDING ENVELOPE, WE'LL HAVE TO DO SOMETHING TO MAYBE
[02:30:01]
ADD SOME INSULATION TO IT OR, OR MAYBE, MAYBE IT ACTUALLY HAS ENOUGH.BUT WE'RE, WE'RE THINKING IT PROBABLY DOES NOT HAVE ENOUGH R VALUE JUST GIVEN THE, THE, BECAUSE EVERY MATERIAL, YOU KNOW, CONDUCTIVITY, IT TRANSMITS THERMAL ENERGY THROUGH IT AT DIFFERENT RATES.
AND THAT'S WHAT THE R VALUE IS.
WELL, YOU REMEMBER THAT IN SCHOOL DOES WES.
SO THAT THERE'S POTENTIAL THAT IT COULD, UM, YOU KNOW, HAVE MOISTURE ON TOP OF THE THINGS BECAUSE OF THAT IN, ESPECIALLY DURING THE WINTER MONTHS.
SO WE'RE, WE'RE CHECKING THAT OUT.
SEE, I MEAN, FROM MY STANDPOINT, WE'RE GONNA GET THIS INFORMATION AND WE'LL SEE HOW IT WORKS FOR THE FIRST SEASON IF WE GET, UM, AND THEN THE CONSTRUCTION MANAGER AT RISK, UH, GOOD AERIAL PROJECT, AERIAL, I MEAN, SOME OF THE SIGNIFICANT THINGS YOU'LL SEE IS THAT WE'RE STARTING, WE'RE GONNA BE MOVING ALL OF THE PLANTS AND THEY'VE STARTED PUTTING IN SOME OF THE SOFT SCAPING AROUND SOME OF THE WESTERN LOTS.
AND YOU'LL JUST SEE MORE AND MORE OF THAT AS WE CONTINUE THROUGH, UM, THE END OF THE PROJECT.
UH, THE INSIDE IS, AND I, I APOLOGIZE FOR NOT SHARING INSIDE PICTURES, WHICH THE INSIDE IS PRETTY GOOD NOW AS WELL AS YOU CAN REALLY, REALLY SEE IT COMING TOGETHER.
AND THE, UH, THE CONCOURSE, THERE'S STILL THAT THEY JUST RECEIVED SOME OF THE SLIDERS AND, UH, GLASS ON ON, AND SO THEY'RE WORKING ON GETTING THOSE FINAL FRAMES IN SO THEY CAN START INSTALLING SLIDERS.
UH, LOTS OF WORK STILL COMING TOGETHER.
BUT, UM, IT'S JEFF, WHAT'S THAT TRIANGLE? THAT'S JUST, YEAH, THAT TRIANGLE.
THAT'S LOOKS LIKE IT'S NOT PAVED OR ANYTHING.
THAT'S JUST WEST OF THE WHOLE COMPLEX THERE.
UH, LIKE AT THE BOTTOM LEFT CORNER, BOTTOM RIGHT.
SO THIS IS, THIS IS THAT, UH, THIS IS A PARKING LOT THAT'S STILL, THIS IS THEM GRADING IT.
THEY'VE PAVED THIS AND THIS AND THIS.
OKAY, SO IT'S JUST NOT CAUGHT UP WITH THE PAVING YET.
AND THIS IS, ROGER MENTIONED IT EARLIER, BUT YOU SEE THERE'S LIKE A LITTLE TRAPEZOID SHAPE HERE.
THIS IS THAT PUMP STATION LOCATION.
AND SO THEY'RE USING IT RIGHT NOW FOR CONSTRUCTION STAGING 'CAUSE THEY'RE NOT GONNA PAVE IT.
BUT LIKELY WHAT WE'LL DO IS AFTER, UH, TOWARDS THE END OF THE PROJECT, WE'LL MOVE IN LAYER OF ASPHALT DOWN, UTILIZE IT UNTIL PUMP PROJECT MONEY PUMP STATION.
IS THAT FEMA, FEMA, FEMA FUNDS? I'M NOT SURE FEMA FUNDS ARE INVOLVED.
THE CRUISE TERMINAL PASSENGER BOARDING BRIDGE, UM, ERECTION IS HAPPENING RIGHT NOW IN, UH, BARCELONA.
THEY'VE GOT ONE OF THE MACHINES ERECTED ALREADY AND THEY'RE, UH, THIS WEEK ERECTING THE SECOND ONE.
UM, WE'VE GOT OUR A HUNDRED PERCENT VISIT SCHEDULED FOR THE FIRST WEEK IN SEPTEMBER, UM, TO GO CHECK THE PROGRESS.
AND THEN IT'S GONNA BE GETTING ON A VESSEL IMMEDIATELY AFTER THAT AND SHIPPING OUT THE WINDOW FOR DELIVERY IS BETWEEN THE FIRST, UH, FIRST WEEK IN OCTOBER AND, UM, MID OCTOBER.
SO, UM, ONE THING I, WE SHOULD PROBABLY BRING UP HERE, AND I DON'T, I DON'T HAVE AN ANSWER ON IT YET, I'VE REACHED OUT TO, TO OUR GUYS IN WASHINGTON, IS, IS THERE GOING TO BE A TARIFF ON THIS? BECAUSE, YOU KNOW, THIS IS COMING FROM SPAIN.
UM, YOU KNOW, SO IF YOU THINK ABOUT IT, THAT 10% TARIFF WOULD BE 700,000 BUCKS.
SO WE, YOU KNOW, THIS WOULD BE OUR FIRST REAL EFFECT IF THAT HAPPENS.
SO I'M TRYING TO FIND OUT, UH, 30%, YOU KNOW, I GUESS IT'S AUGUST ONE AND WE'RE JUST, WE'RE JUST HOPING FOR A PUSHBACK OF A COUPLE OF MONTHS OR SO, SO WE CAN GET SLIDE IN THE BACK DOOR WITHOUT HAVING WAY TO WORK OUT A PAYMENT IN ADVANCE OR A PAYMENT.
WELL, AND I'VE REACHED OUT TO, TO RICK AND ADAM UP THERE TO SEE IF THEY CAN, IF THEY CAN MAKE SOME INQUIRIES ABOUT WHAT, IF ANYTHING, YEAH.
AND THEN THE PEER PROJECT, UH, YOU CAN TAKE A LOOK AT SOME OF THE, THE, THE WORK YOU'RE DOING ON THOSE, UH, MOORING DOLPHIN PLATFORMS ON THE LEFT PICTURE, YOU'VE GOT THE TWO COMPLETED OR THE TWO CAST ONES, THE STUFF THAT SET THE BOLLARDS, UH, ON THEM.
AND THEN YOU'VE GOT ON THE, UH, THE RIGHT BOTTOM PICTURE.
THEY'RE WORKING DOWN THE EAST, UH, THE WEST INDIAN FACILITY, UH, RIGHT NEAR PEER TO PEER, UH, 18.
THE FENDERS, I BELIEVE THEY JUST, UH, HAVE ARRIVED IN THE AREA.
I DON'T, I DON'T KNOW IF THEY'RE IN HOUSTON OR ON SITE YET, BUT THEY'RE, THEY'RE GETTING CLOSE.
AND SO THINGS ARE LOOKING GOOD.
WE'RE, WE'RE STILL WORKING THROUGH A COUPLE OF DETAILS WITH RESPECT TO WATER STATIONS ON THIS, AND THAT'S ONE OF THE THINGS NOT, UM, SUPER CRITICAL PATH AT THIS POINT, BUT WE'LL WORK OUT SOME DETAILS THERE.
[02:35:01]
AND THIS PROJECT I, UH, IS REALLY, UH, SUBSTANTIALLY COMPLETED.UH, WE, WE DID RELEASE THAT FINAL PAYMENT IN JULY.
UM, WE HAVE, UH, NOTICED THAT ONE OF THE TURNING BOGIES HAS BEEN, UM, ACTING UP.
AND SO WE'RE GONNA HAVE, UH, A DELTA COME UP AND TAKE A LOOK AT THAT KIND OF REPORT BACK ON WHAT, IF ANYTHING WE GOTTA DO, WE'LL HAVE TO DO SOMETHING TO HELP PREPARE THAT TURNING BOGEY.
BUT, BUT THAT'S KIND OF, TAKE THE SLIDE DOWN.
YEAH, NO, I, I THINK I, I, I SLIPPED, SLIPPED BY ME 'CAUSE AND THEN, UH, GET RID OF THAT 881 WORK ORDERS DATE.
UM, KIND OF SEE THE DISPERSION THERE BETWEEN THE DIFFERENT CATEGORIES AND A LOT OF WORK'S BEEN GOING ON ON, UH, BETWEEN P 28 AND, UH, THE WORKOUT IN FRONT OF THE TERMINAL.
YOU, YOU SEE HERE, NEXT SLIDE RIGHT HERE.
UM, THERE'S SOME, SOME WORK ON SOME OF THE PASSIVE BOARDING BRIDGES, THE, UH, FIXTURES AND RESTROOMS. UM, AND THEN, UH, JUST KIND OF SOME ELIMINATING SOME TRIPPING HAZARDS WITH THE CRUISE TERMINALS IN THE RIGHT PICTURE.
AND THEN THE NEXT SLIDE, WE'VE GOT SOME OF THE PIER 28, UH, REPAIR WORK GOING ON, ON THAT PIER DURING THE, THE, UH, JOINT THAT'S OPENING UP AND KIND OF, UH, RE REINFORCING IT BACK TO THE EXISTING STRUCTURES.
ARE WE DOING THAT INTERNALLY THAT, THAT WE'RE DOING INTERNALLY? WE, WE HAD SOME PAST ENGINEERING GUIDANCE ON THAT, SO WE WENT AHEAD AND MOVE FORWARD WITH THAT.
THERE'S ANOTHER AREA THAT WE'VE GOTTA, UM, LOOK, GET SOME ENGINEERING ASSISTANTS TO KIND OF MOVE FORWARD WITH THIS PAYROLL.
UM, AND THEN, UH, THEY'RE, THEY'RE NOT ALL ENGINEERING INTERNS.
WE'VE GOT FOUR INTERNS RIGHT NOW.
TWO OF THEM ARE ENGINEERING, TWO OF THEM ARE KIND OF GENERAL BUSINESS INTERNS, BUT IT'S BEEN A REAL PLEASURE GETTING TO LEARN, UH, LEARN A LITTLE BIT MORE ABOUT THEM AND KIND OF TEACH THEM ABOUT THE COURT.
SO WE'VE PICKED BACK UP THE P 41 AERATION PROJECT FOR THAT SLIP.
AND SO THAT'S ONE OF THE THINGS WE'RE WORKING AMONG A LOT OF OTHER THINGS.
I THINK, UH, THIS, THIS YEAR WE'VE DONE A REALLY GOOD JOB AS STAFF JUST KIND OF PREPPING FOR AND THIS INTERNSHIP.
SO THEY'RE, I THINK THEY'RE GETTING A LOT OUT OF IT THIS YEAR.
SO THEY LOOK FORWARD TO MEETING Y'ALL, UH, LATER TOWARDS THE END OF THE SUMMER.
AND YOU'VE GOT THE VARIATION PACKAGE ON THIS AGENDA.
AND THIS WAS THE, THIS WAS THE PACKAGE THAT THE LAST INTERNS, THIS WAS THEIR PROJECT, RIGHT? YEAH.
AND THEN, SO NOW WE'RE FOLLOWING UP WITH THAT PROJECT AND GETTING, YOU KNOW, GETTING SOME VARIATION 'CAUSE THE WIRES WAS TURNED STAGNANT, YOU KNOW, INSIDE THESE SLIPS.
UM, HERE'S YOUR STATISTICS REPORT.
UM, OFFICER CALLS BY, YOU KNOW, PERMITS, UH, JUST A FEW PICTURES HERE, TRYING TO MOVE FORWARD HERE ON, UH, HAD SOME AERIALS TAKEN FROM THE OTHER SIDE OF PELICAN ISLAND.
UM, NOT, NOT THAT, YOU KNOW, SUMMERTIME SLOWED DOWN A LITTLE BIT.
UH, YOU KNOW, WE HAD SOME, WE'VE HAD SEVERAL, UM, UH, MEETINGS WITH BA AND THE REAL ESTATE COMMITTEES AND, AND, UH, WE HAD A, AN, UH, APPRECIATION LUNCHEON, UM, BY AN ANONYMOUS DONOR WHO WANTED TO, UH, BUY LUNCH FOR CNM.
AND THEN, UM, WE MET WITH THE PORT OF CITY OF TEXAS CITY TALKING ABOUT THE WEST END AND, AND POTENTIALLY WHAT WHAT COULD, UM, YOU KNOW, THEY'RE OWNED BY UNIVERS U UP AND WE HAD SOME CONVERSATIONS ON WHAT COULD THEY BRING IN HERE FROM A BULK STANDPOINT.
UM, 'CAUSE THEY, ALL THEY DO IS LIQUID BULK UP THERE.
AND SO THERE'S OTHER THINGS THAT THEY HANDLE AND THEY WERE JUST TRYING TO TALK, WE'RE WE'RE HAVING CONVERSATIONS ABOUT WITH DOES IT MAKE SENSE FOR THEM TO START BRINGING SOME OF THAT STUFF DOWN HERE? UM, AND THEN VISIT GALVESTON.
UH, WE DID A COURT TOUR THOUGH OF THEM.
UM, AND THEN I'M DOING, UH, LATER ON, I THINK IT'S TOMORROW I'M DOING WEST GULF MARITIME ASSOCIATION SPEAKING TO THAT GROUP.
AND THEN, UH, YOU KNOW, WE HAVE, YOU HAVE THE INVITATION HERE FOR, IN YOUR PACKET FOR THE EMPLOYEE APPRECIATION DAY.
UM, WE HAD THREE SPONSORS STEP UP, UH, TO SHARE THE COST ON THAT.
THAT'S ALWAYS, THAT'S ALWAYS GOOD.
AND HERE'S THE, THE LUNCHEON WE GAVE FOR CNM.
AND THESE ARE PURPOSE AND GOALS THAT WERE PART OF, UH, VA'S PRESENTATION.
[F.1 Discuss And Consider Portfolio Performance Analysis Report, Summary Of Investment Performance Report And Investment Detail Of The Galveston Wharves Pension Plan Period Ending June 30, 2025, And Discuss And Consider Percentage Changes In The Fund Mix That May Be Necessary To Increase Investment Results - Mark Murchison ]
I GUESS LET'S MOVE INTO THE BUSINESS ITEMS. ITEM NUMBER F1, DISCUSS AND CONSIDER PORTFOLIO PERFORMANCE, DISCUSSING CONSIDER CHANGES AND THE MINUTES THAT MAY BE NECESSARY TO INCREASE INVESTMENT RESULTS.MARK, WELL, WE HAD THE PRESENTATION ABOUT PROSPECT THIS MORNING.
[02:40:01]
I BELIEVE HE ANSWERED ALL THE QUESTIONS Y'ALL HAD AT THAT TIME.AND THIS IS JUST ACKNOWLEDGING THAT WE, WE HAVE HAD THE PRESENTATION AND Y'ALL WANT TO MAKE NO CHANGES TO THE INVESTMENT MIX.
MADAM CHAIRMAN, YOU WANT TO MAKE THAT MOTION? YES.
UM, WE APPROVED IT AT THE FINANCE COMMITTEE THIS MORNING AND I'D LIKE TO MAKE A MOTION THAT WE APPROVE IT.
ANY FURTHER DISCUSSION? HAD A GOOD REPORT THIS MORNING.
HEARING NO DISCUSSION SO LONG AGO.
[F.2 Consider and Accept CFO Report - Consent Agenda - Mark Murchison ]
NUMBER TWO.CONSIDER AND ACCEPT CFO REPORT, CONSENT, AGENDA AND CHAIRMAN TO MAKE THAT MOTION.
UM, AGAIN, ALL OF THESE ITEMS WERE DISCUSSED AS PART OF THE CONSENT AGENDA AND WE APPROVE THEM IN FINANCE.
AND SO I OFFER A MOTION FOR APPROVAL TO THE BOARD.
[F.3 Discuss and Consider Approval of True ups for the 2024 Incentive Compensation Plan for Employees Post-Audit. Trustee Yarbrough and Trustee Lidstone.]
F THREE DISCUSSED AND CONSIDER APPROVAL OF THE TRUE OP FOR THE 2024 INCENTIVE COMPENSATION PLAN FOR EMPLOYEES.WE, UH, DISCUSSED THIS THIS MORNING IN FINANCE AND, UH, AGREED TO TAKE THIS TO THE FULL BOARD AFTER WE APPROVED IT, UH, FOR THE BOARD.
DO I HAVE A SECOND? SECOND, JIM.
SO ANY DISCUSSION? ALL FAVOR, RAISE YOUR RIGHT HAND THAT MOTION.
[F.4 Discuss and Consider a Draft Budget Amendment Policy - Trustee Yarbrough and Trustee Lidstone.]
F FOUR, DISCUSS AND CONSIDER DRAFT BUDGET POLICY.JIM, MR. CHAIRMAN, I'D, I'D MAKE A MOTION THAT WE DEFER THIS AND THE STAFF WILL BRING BACK GRANT POLICY.
UH, JEFF, ANY DISCUSSION? ALL IN FAVOR OF THE PERMIT RAISE HAND THAT MOTION CARRIED UNANIMOUSLY DISCUSS AND
[F.5 Discuss and Consider Development and Implementation of a Policy Regarding Cash Reserves for the Port of Galveston. Trustee Lidstone and Trustee Yarbrough. ]
CONSIDER DEVELOPMENT AND IATION OF THE POLICY FOR CASH RESERVES FOR THE COURT OF JIM.WE HAD HEALTHY DISCUSSION DURING OUR FINANCE COMMITTEE MEETING.
THERE IS NO DRAFT POLICY YET THAT WILL BE FORTHCOMING AT A FUTURE AGENDA.
UH, JEFF, ANY DISCUSSION? DEFERRAL, RAISE YOUR RIGHT HAND MOTION.
[F.6 Discuss and Consider for Approval the Changes to the Financial Summary Reports from the June Meeting. Trustee Yarbrough and Trustee Lidstone. ]
AND CONSIDER FOR APPROVAL THE CHANGES TO THE FINANCIAL PAYMENT REPORT FROM VIRGINIA MEETING.I MAKE A MOTION THAT WE WOULD APPROVE THE, UH, INFORMATION THAT MARK PROVIDED LAST MONTH THAT JUST INDICATES AND MEMORIALIZES THE CHANGES WE'VE MADE TO REQUEST FOR OUR COURT REPORT.
GOT A MOTION? DO I HAVE A SECOND? OKAY.
UH, ANY DISCUSSION? ALL IN FAVOR, RAISE YOUR RIGHT HAND.
THAT MOTION CARRIES UNANIMOUSLY.
[F.7 Discuss and Consider Changes to the Bylaws of the Board of Trustees of the Galveston Wharves. Trustee Yarbrough and Trustee Lidstone.]
F SEVEN, DISCUSS AND CONSIDER CHANGES FOR THE BYLAWS OF THE BOARD OF TRUSTEES OF THEJIM, UH, MR. CHAIRMAN, I BRING THIS UP.
UH, OBVIOUSLY WE HAVE THOSE PROPOSED CHANGES IN TODAY, SO I'M NOT REQUESTING ANY ACTION.
BUT EXPERIENCE DICTATES TO ME THAT IF WE HAVE AN AFTERMATH OF A DECLARED DISASTER, AND WHEN I USE THE WORD DECLARED DISASTER, I'M THINKING THE MAYOR OF THE COUNTY JUDGE AND THE GOVERNOR DON'T CARE WHAT HAPPENS AT THE FEDERAL LEVEL.
IF WE HAVE ONE OF THOSE DISASTERS HERE, IT'S THE LAST THING ON STAFF'S MIND IS TO GET A POSTED MEETING AND HAVE A BOARD MEETING.
SO I WOULD BE PROPOSING THAT WE DO SOMETHING SIMILAR TO THE CITY OR WE AUTHORIZE THE CHAIRMAN AND IN HIS ABSENCE, THE VICE CHAIRMAN, TO BE ABLE TO COMMIT THE BOARD TO CONTRACTS AND DECISIONS THAT WOULD NORMALLY REQUIRE BOARD ACTION.
THAT WE GIVE YOU THOSE OFFICERS.
THE AUTHORITY FOR WHAT THE STATE LAW SAYS IS SEVEN, I THINK SEVEN DAYS.
WITHIN THAT SEVEN DAYS, THEY HAVE AUTHORITY TO COMMIT THE PORT.
AFTER THAT THEIR AUTHORITY CEASES UNLESS THE BOARD RE-UPS THEIR AUTHORITY WITH THE PROVISO THAT ANY ACTIONS THAT THE CHAIRMAN OR VICE CHAIRMAN OF HIS ABSENCE TAKE COMES BACK TO THE BOARD NOT TO APPROVE IT.
'CAUSE YOU HAVE THE AUTHORITY TO APPROVE IT, BUT TO JUST WHAT I WOULD CALL RECEIVE AND FILE IT.
THAT WAY WE KNOW THE PUBLIC KNOWS THESE DECISIONS WERE MADE OUTSIDE OUR NORMAL REALM.
DO WE HAVE, AND I WOULD ASK THAT STAFF, BRING THAT BACK AND ATTORNEY BRING THAT BACK.
WE CAN MEMORIALIZE IT AS PART OF OUR BYLAWS.
SO THAT'S BASICALLY DEFERRING IT TO THE, TO THE NEXT MEETING UNTIL WE CAN ACTUALLY GET SOMETHING IN WRITING.
[02:45:01]
SECOND.WE CAN JUST I DO HAVE A QUESTION ABOUT THAT.
CAN WE DISCUSS IT AT THAT MEETING THEN? OKAY.
A QUESTION, DISCUSS IT THROUGH.
MY QUESTION WOULD BE, WOULD THAT BE IN LIEU OF BEING ABLE TO GET A, A STAFF MEETING TOGETHER? LIKE IF YOU CAN'T GET US TOGETHER, I WOULD THINK WE'D GIVE 'EM THAT AUTHORITY AND THEN IF WE CAN GET A MEETING TOGETHER, THEN WE DON'T NEED TO DO IT.
BUT WE HAVE IT IN PLACE JUST IN CASE WE CAN'T, CAN'T GET A MEETING.
THAT'S THAT'S WHAT I WAS WONDERING.
THERE'S GONNA BE DECISIONS MADE, UM, RIGHT THEN WHEN IT HAPPENS, RIGHT? YEAH.
REALITY IS, IS YEAH, YOU, THEY'RE GONNA NEED SOMEBODY TO BE ABLE TO MAKE A DECISION AND COMMIT, COMMIT THE PORT, WHICH WOULD NORMALLY THE BOARD TO DO.
BUT RIGHT NOW WE'RE NOT VOTING TO NO, I GET THAT.
THAT'S THE RATIONALE BEHIND IT.
UNDER EMERGENCY SITUATION, DO WE HAVE THE RIGHT TO CALL ME WITHOUT THE 72 MONTH? 70? OUR, I WOULD IMAGINE CERTAIN IDENTIFIED EMERGENCIES, YOU CAN DO IT ON ONE HOUR NOTICE.
YOU ALSO PROVIDE IT TO THE MEDIA.
YOU, AND AGAIN, ALONG THE SAME LINE, IT DON'T MAKE NEEDS NECESSARILY BE PART OF THE POLICY, BUT IF WE HAVE ONE OF THESE EVENTS, MORE THAN LIKELY WE'RE NOT GONNA BE ABLE TO MEET IN THIS LOCATION.
I'M NOT WALKING EIGHT FLAGS AND STEPS FIRST ELEVATOR, SECOND ELEVATOR'S DOWN.
WE JUST NEED TO BE THINKING THAT CITY HALLS OUR NEXT SPOT.
COMMISSIONER'S, COURTS, OUR NEXT SPOT DON'T HAVE TO BE IN WRITING, BUT WE JUST NEED TO HAVE IT PLANNED OUT THAT THAT'S WHERE WE'RE GONNA MEET IF WE NEED TO.
DO WE HAVE A MOTION A SECOND, ANDY? YES.
YEAH, WE'LL HAVE THIS BACK AT THE AUGUST MEETING.
ANY OTHER DISCUSSIONS? ONE MORE YES.
I THINK THAT'S A GOOD TOOL FOR US TO EXAMPLE, ROGER GOT, UH, I CAN'T THINK OF THE WORD.
YOU, WE, WE WORKSHOP A COUPLE WEEKS AGO.
THAT WOULD'VE BEEN A PERFECT THING TO PUT ON THE RECEIVING FILE AGENDA.
WE'RE NOT APPROVING IT, BUT IT'S A WAY FOR ROGER TO DISTRIBUTE, GET IT OUT IN THE PUBLIC THAT WE PUT IT ON OUR AGENDA SO IT GETS ALL THE PUBLIC AND WE JUST USE THE RECEIVING FILE TO PASS INFORMATION OUT TO EVERYBODY AT ONE TIME AS A GOOD VEHICLE.
ANY OTHER DISCUSSION? ALL IN FAVOR OF BREAK YOUR RIGHT HAND.
THAT MOTION CARRIES UNANIMOUSLY.
[F.8 Discuss Board Calendar for Future Board Members - Approve Calendar Each Year When the Budget is Approved. Trustee Yarbrough and Trustee Lidstone.]
WHICH, LET'S TRACK HERE.DISCUSS BOARD CALENDAR FOR FUTURE BOARD MEETINGS.
UM, WE'VE BEEN TALKING ABOUT DOING THIS FOR A WHILE AND THE STAFF HAS VERY NICELY PUT TOGETHER A PROTOTYPE FOR US TO START POPULATING AND, UM, VERY SATISFIED.
SO YOU WANT, UH, DO WE WANT TO MAKE MOTION? YEAH, IT JUST SAYS DISCUSS.
SO I THINK THAT'S WHAT WE, WE'VE JUST DONE.
ALL NEED TO ADD TO IT AND THINK THROUGH IT.
EVERY TIME SOMETHING COMES UP, IT'S NOT ONLY YOUR FEEDBACK TO BE HELPFUL.
[F.9 Discuss and Consider for Approval, the Foreign-Trade Zone Operating Agreement Between the Board of Trustees of the Galveston Wharves and American Cruise-Aid Logistics, Inc. for a Three-Year Primary Term, Effective August 1, 2025 - Brett Milutin.]
F NINE.DISCUSSING APPROVAL OF FOREIGN TRADE ON OPERATING AGREEMENT BETWEEN THE TRUSTEES AT THE
TODAY I BRING TO YOU FOR APPROVAL FOR CONSIDERING APPROVAL, UH, FOR TRADES OWN, UH, UH, OPERATED AGREEMENT, UH, BETWEEN THE COURT AND THE AMERICAN CRUISE AID LOGISTICS.
UH, THIS IS FOR PRIMARY, UH, PRIMARILY FOR GENERAL WAREHOUSING.
UM, LIKELY TO BE EXPANDED NEXT YEAR.
UM, CURRENTLY THEIR MAJOR CUSTOMER IS ACTUALLY ONE OF OUR MAJOR CRUISE LINES, AND IT'S BASICALLY RIGHT NOW FOR STORING THE EQUIPMENT AND REPAIR PARTS.
DO WE HAVE A MOTION SUB MOVED.
SECOND S ANY DISCUSSION? MAKING AN EFFORT FOR Y'ALL TO FINISH THE MEETING A LITTLE QUICKER.
[F.10 Discuss and Consider Approval of the Fourth Guaranteed Maximum Price (GMP) proposal for Additional Scope of Work for the Cruise Terminal 16 Development Prepared by Hensel Phelps as part of the Construction Manager-at-Risk Contract at a Cost Not to Exceed $2,781,557.00. Jeffrey Thomas]
F 10.DISCUSS AND CONSIDER APPROVAL GUARANTEED ADDITIONAL PREPARED BY CONSTRUCTION MANAGER.
CONTRACT A COST NOT TO EXCEED 2,000,007 80 1005 57.
UM, GMP FOUR, WHICH WE HAVE FOR YOU TODAY, ADDS, UH, SOME ADDITIONAL SCOPE OF WORK TO THE CRUISE TERMINAL, UH, 16 DEVELOPMENT PROJECT, WHICH ADD SOME ADDITIONAL
[02:50:01]
FUNCTIONALITY AND JUST, UH, UH, FEATURES THAT WERE NOT INCLUDED IN THE ORIGINAL SCOPE OF WORK WITH PROJECT.UM, TO DATE, YOU KNOW, THERE WAS A LIST, UH, THAT BRIEFING THAT OF ITEMS THAT WERE NOT INCLUDED IN THE, THE THIRD GMP JUST DUE TO, YOU KNOW, THE DESIGN WAS STILL EARLY AT THAT TIME AND WE KNEW WE WERE GONNA GO TO WORK SOME OF IT IN, UM, AND SO WE WERE ABLE TO WORK, UM, MOST OF THAT LIST IN, UH, WE'VE STILL GOT A COUPLE ITEMS THAT WE WOULD STILL LIKE TO FIT WITHIN THE PROJECT, WHICH INCLUDES THE, UH, THE, THE LARGE VIDEO WALLS IN THE LOBBY AND THE VIP AREA.
UM, THE, THE BUILD OUT OF THE PEDESTRIAN BRIDGE, WHICH HAS, HAS BEEN ERECTED.
UM, AND ALSO SOME SECURITY AND ENHANCEMENTS TO THE PARKING GARAGE RIGHT NOW AS IT SITS IN THE SCOPE THAT YOU CAN DRIVE INTO THE PARKING LOT AND WALK IN AT VARIOUS AREAS.
WE WORKED WITH VA TO DEVELOP A PACKAGE WITH THAT PUTS ROLL DOWN GATES THAT ARE AUTOMATICALLY TIED INTO THE PARK SYSTEM.
AND ALSO THEN WHAT HAPPENS IS A A A PARKER, THAT COULD BE FOR ANYTHING IT, SO THIS BASICALLY ALLOWS US TO, UM, HAVE PUBLIC PARKING IN THERE, BUT NOT SACRIFICE SECURITY BECAUSE A PARKER THAT DRIVES UP TO THE MACHINE WILL PULL A TICKET.
UM, THEY WILL THEN USE THAT TICKET AS A CREDENTIAL TO REENTER THE GARAGE AFTER THEY'RE DONE DOING WHATEVER THEY'RE GONNA DO.
SO, SO THERE IS A LAYER OF SECURITY, UM, THAT'S IN, IN THERE.
ON A CRUISE DAY, THIS WOULD LIKELY THE SYSTEM WOULD, UH, BE JUST DEFAULT OPEN BECAUSE OF THE AMOUNT OF TRAFFIC.
BUT ON NON CRUISE DAYS, THE SYSTEM WOULD ALLOW, UH, JULIO'S TEAM TO MANAGE THE PARKING THERE WITHOUT HAVING A PHYSICAL PRESENCE AT THE SITE.
THEY'D BE ABLE TO MANAGE IT THROUGH THE CUSTOMER SERVICES PORTALS.
UM, AND THEN THERE'S THE LAST ITEM INCLUDED HERE, WHERE SOME, UH, CAME OUT ON A LATER DESIGN REVISION.
AND THERE WERE MODIFICATIONS TO, UH, THE, UH, SOME OF THE, THE STRUCTURE AT THE, UH, VERTICAL COURSE, CONCOURSE SOME WATER LINE ADJUSTMENTS, EXPANSION, BOTH JOINT DETAILS AND, UM, THE, THE, THE SURFACE OF THE CONCRETE UNDERNEATH ALL THE, THE VERANDAS NEEDED TO HAVE KIND OF A UNIFORM APPEARANCE.
SO WE ADDED SOME ADDITIONAL OR, OR WOULD WANT TO ADD IT, SOME SCOPE TO KIND OF JUST CLEAN ALL THAT UP AND MAKE IT LOOK UNIFORM.
AND SO ALL THAT SAID, UH, WE'VE, THE SUBCONTRACT COSTS IN THIS GMP ARE 2.4, UM, BILLION DOLLARS.
AND THE, THE TOTAL COST IS, UH, $2.7 MILLION TO, TO INCLUDING ALL THE INDIRECT COSTS ASSOCIATED WITH THE CMER AGREEMENT TO, TO PERFORM THIS WORK.
DO WE HAVE A MOTION? SO MOVED.
ANY DISCUSSION? JUST TO COMMENT THIS, THIS IS FUNDED OUT OF THE DEBT.
PROCEEDS AND INTEREST AND INTEREST, WHICH HAS TO BE SPENT ON INTEREST, WHICH HAS TO BE SPENT ON THE PROJECT.
THESE ARE THINGS WE WANT TO DO.
NO, THAT WAS, I WAS CURIOUS ABOUT THE SOURCE, BUT I WAS POINTED OUT IN THERE.
[F.11 Consider and Approve Fifth Amendment to Professional Services Agreement Between the Board of Trustees of the Galveston Wharves and Bermello Ajamil & Partners, Inc. for Additional Engineering and Architecture Services for the Cruise Terminal 16 Development at an Amount Not to Exceed $136,060. - Jeffrey Thomas. ]
F 11 DISCUSSED AND PROFESSIONAL SERVICES AGREEMENT FOR ADDITIONAL EXCEED.UM, VA'S FIFTH AMENDMENT, UH, LOOKS AT ADDING ADDITIONAL, UH, CONSTRUCTION SUPPORT, UH, TO THEIR CONTRACT AND PRIMARILY WITH THREE MAIN OF THEIR SUB CONSULTANTS.
THEY SPENT SOME TIME WORKING ON, UM, SOME UNFORESEEN CONDITIONS AT THE SITE, INCLUDING STORMWATER OUTFALL THAT HAD TO BE CHANGED.
UH, SANITARY SEWER THAT HAD TO BE, UH, UH, RELOCATED BECAUSE IT WAS JUST NOT WHERE, WHERE IT WAS SHOWN ON OUR DRAWINGS.
AND ALSO THEY HAD TO REGRADE A, A DECENT AMOUNT OF THE SITE DUE TO, UH, AN EXISTING SLAB THAT WAS FOUND KIND OF UNDERNEATH SOME OF THE DEL MONTE IMPROVEMENTS INSIDE THE WAREHOUSE.
SO, UM, ALL IN ALL, THAT $25,000 JUST ALLOWS ADDITIONAL WORK TO BE DONE WITH THAT.
UH, CONSTRUCTION SUPPORT BUDGET, UH, BLISS NITRATE, UH, INC.
OR BNI, THEY ARE THE STRUCTURAL ENGINEERS FOR THE PROJECT, AND AS YOU CAN IMAGINE ON THIS PROJECT, THEY'VE SPENT A WHOLE LOT MORE TIME GIVEN THE FACT THAT IT WAS AN EXISTING BUILDING.
THINGS ARE NOT ALWAYS AS THEY SEEM, AND SO, UH, GOOD VALUE WITH B AND I BEING, UH, SPENDING THE ADDITIONAL TIME ON THE SITE.
BUT WE STILL NEED THEM TO, UH, STAY ON THE SITE, UH, ON AN AS NEEDED BASIS THROUGH THE END OF THE PROJECT.
UH, AND THEY'RE ALSO THE WINDSTORM INSPECTOR FOR THE PROJECT.
UM, SO $106,000, 600 FOR THEM.
AND THEN THE BOSCH GROUP, UM, THEY HAVE, UH, A SMALLER SCOPE, BUT I THINK IT'S VERY VALUABLE.
THEY, THEY, BOSCH GROUP DOES IS, UM, AS THERE'S KIND OF CHANGES TO SCOPE OF WORK, THEY REVIEW THE SUB, UM, CONTRACTORS PRICING THAT COMES IN TO CHANGE THAT SCOPE AND MAKE SURE THAT WE'RE, UM, STAYING IN A, A LEVEL OF REASONABLENESS, UM, GIVEN, UH, JUST KIND OF THE, THE DYNAMICS OF, OF THE PROJECT.
[02:55:01]
THIS $5,000 IS GOOD VALUE AS WELL.SO ALTOGETHER WHAT THAT WOULD BE IS, UH, A, A NET INCREASE TO THE VA CONTRACT OF $136,060, WHICH TOTALS, UH, WOULD TOTAL 8.4 6 6 8 0 1, UM, DOLLARS, WHICH IS ABOUT, UH, 5.6% OF THE TOTAL PROJECT COST OVERALL MOTION.
I'LL, I'LL SECOND, UH, FURTHER DISCUSSION.
ALL IN FAVOR? MOTION CARRIED UNANIMOUSLY.
[F.12 Discuss and Consider Date and Agenda for Board/Leadership Retreat to Set Goals for 2026. Trustee Lidstone and Trustee Yarbrough. ]
F 12.DISCUSS AND CONSIDER DATE AGENDA FOR BOARD LEADERSHIP OF 2026.
SHE, UH, I THINK JIM WAS OUT, SO, YEAH.
UM, WE TALKED ABOUT THIS LAST MONTH, UM, BUT YOU WERE OUT AND SO WE DEFERRED IT TILL OH, AFTER, AFTER.
UM, WE DEFERRED IT UNTIL YOU COULD GET BACK JUST TO DISCUSS, UM, WHETHER OR NOT WE WANNA DO THIS, IF WE THINK THERE'LL BE A VALUE AND WHEN WE CAN DO IT.
UH, ANY DISCUSSION? I THINK IT'S A, I I THINK IT'S SOMETHING WE SHOULD DO.
I I I DON'T KNOW WHAT DATE TO OFFER FOR IT, BUT PROBABLY SOMETIME BEFORE BUDGET.
IT'S, IT'S A GOOD, I MEAN, WE, WE TALKED ABOUT IT.
YOU WEREN'T HERE BIG, BUT IT'S, YOU KNOW, I, I KNOW WHEN I FIRST CAME ON THE BOARD, I THOUGHT, WELL, THERE'S AN OPPORTUNITY JUST IN THE WORLD I GREW UP IN TO HAVE A, YOU KNOW, SOME KIND OF GOAL SETTING SESSION BETWEEN, YOU KNOW, US AS, YOU KNOW, THE BOARD LEADERSHIP AND STAFF TO KIND OF GET, YOU KNOW, TRY TO, IT'S KIND OF A BRAINSTORMING, YOU KNOW, GET THE MEETING OF THE MINDS KIND OF THING.
AND I KNOW WE DID A LITTLE, WE'VE DONE A LITTLE BIT OF THAT OVER THE YEARS, BUT I THINK THERE'S AN OPPORTUNITY WHAT YOU'RE PROPOSING TO KIND OF FORMALIZE THAT.
JUST GET SOME TIME ASIDE WHERE WE CAN JUST, YOU KNOW, KIND OF STEP BACK AND REFRESH AND KIND OF DUMP WHAT, WHAT ARE THE PRIORITIES? WHAT DO THE BOARD SEE AS THE PRIORITIES? WHAT DOES STAFF SEE AS THINGS TO BE DONE? IT'S JUST, I THINK IT'S A GOOD, IT HAS TO BE A POSTED MEETING, I'M SURE.
AND THERE'S DIFFERENT, I MEAN, YOU CAN DO IT, YOU KNOW, YOU CAN OFF SITE, SO RIGHT.
YOU CAN DO IT, YOU KNOW, YOU CAN HAVE A FACILITATOR, YOU CAN DO IT.
THERE'S DIFFERENT, THERE'S DIFFERENT WAYS TO DO IT.
YOU CAN GO TO VEGAS, HAVE TO BE APPROVED BY THE BOARD INTERNATIONAL.
AND I THINK ESPECIALLY IN LIGHT OF THE VA REPORT, IT COULD REALLY GIVE US SOME TIME SORT OF.
SO DO WE, ANGIE, WANT ANGIE TO COME TAKE A POLL OF DAYS OF THE BOARD? YEAH.
WHEN DO WE THINK, YEAH, I GUESS WHEN DO WE THINK WOULD BE A GOOD, YEAH, SO SEPTEMBER-ISH BEFORE SEPTEMBER OR SOMETHING IN THERE? PROBABLY BEFORE THE, OUR ANNUAL MEETING IS LATE THIRD WEEKEND.
THIRD WEEK IN SEPTEMBER, RIGHT.
ANGIE, A QUESTION? WELL, NO, THE ANNUAL MEETING IS IN SEPTEMBER.
DO YOU WANT IT BEFORE THE ANNUAL MEETING OR AFTER THE NEW BOARD MEMBERS? DO WE? PROBABLY AFTER.
WE'LL, WE'LL APPOINT THE, UH, NEW BOARD MEMBERS AUGUST 28TH.
WE, WELL, WE HAVE A, WE HAVE A ONE BOARD MEMBERS I THINKS NOT GONNA RE OKAY.
SO WE HAVE REAPP APPOINTMENTS IN APPOINT AUGUST, AUGUST 28TH.
IT WOULD BE GOOD TO GET THE NEW BOARD MEMBERS.
TELL THEY THEY'RE GONNA BE SO THEY CHECK.
WELL, LET'S, UH, I, I DO LIKE THE IDEA AND I THINK HE SHOULD DO IT, BUT WHY DON'T WE, WHY DON'T WE WAIT AND SEE, GET THE NEW BOARD, WHOEVER THEY ARE APPOINTED AND DOVETAIL AND HAVE IT TOWARDS THE END OF SEPTEMBER.
I GUESS I GET SWORN IN AT THE SEPTEMBER MEETING MEETING.
WELL, WE WILL APPOINT 'EM AUGUST 28TH.
THEY'LL GET SWORN IN AT YOUR MEETING.
AT THE SEPTEMBER MEETING? YES, AT THE SEPTEMBER.
YEAH, RIGHT AFTER THE SEPTEMBER MEETING.
AND THERE'S A CALENDAR RIGHT HERE CALLED LOCATION.
BUT CRAIG'S QUESTION WAS, YOU KNOW, ARE WE THINKING, IS THIS A HALF A DAY, A FULL DAY? WHAT ARE WE, I MEAN, YOU CAN, AND YOU CAN DO A NUMBER OF WAYS TO DO THIS.
DEDICATED AT LEAST HALF A DAY.
HALF A DAY IS PROBABLY GOOD AWAY FROM HERE.
UH, ANGIE, CHECK THAT RIGHTS ACCOUNT THE FIRST TWO WEEKS OF OCTOBER.
YEAH, WE CAN FIND A DATE THAT WORKS.
WELL, WE CAN MAINTAIN THAT 47% EFFICIENCY RATIO.
[03:00:01]
SO I GUESS NO ACTION TODAY, SHEILA, BUT WE'LL LOOK DOING IT THE FIRST TWO WEEKS OF OCTOBER DID, THANK YOU ADAM.[F.13 Discuss and Consider Approval of Proposed Operating Agreement with the Battleship Texas Foundation. Tony Brown]
F 13 DISCUSSED CONSIDER APPROVAL OF PROPOSED OPERATING AGREEMENT WITH THE SHIP TEXAS FOUNDATIONS.YEAH, I'M HAPPY TO BE ABLE APPLICATIONS, I'M HAPPY TO BE ABLE TO, UH, BRING TO THE BOARD A PROPOSED OPERATING AGREEMENT FOR THE BATTLESHIP TEXAS.
I'D LIKE TO GIVE CREDIT TO MY FELLOW BATTLESHIP TEXAS, UH, AD HOC MEMBERS, DR. BROWN, MR. MOORE.
UM, ALSO, UH, TONY WAS VERY INSTRUMENTAL.
ROGER AND I, I'D BE REMISS TO, TO NOT MENTION SUSAN MO, WHO, UH, CAREFULLY TOOK
HERE'S WHAT YOU GUYS REALLY SAID.
UM, BUT I THINK I, I FEEL, YOU KNOW, WE TALKED ABOUT IT A LITTLE BIT IN EXECUTIVE SESSION TOO, BUT THIS IS, I FEEL LIKE WE REALLY GOT TO A GOOD SPOT WITH THIS AND, AND PROBABLY HAVING TO REGROUP IN OCTOBER MAY HAVE BEEN THE BEST THING THAT HAPPENED TO US BECAUSE WE KIND OF STEPPED BACK AND, AND KIND OF REOPENED THE DISCUSSION ON LOCATION.
WE, WE DECIDED ON, UH, PIER 15, WHICH I THINK IS A BETTER LOCATION FOR MULTIPLE REASONS.
AND I THINK AS WE SAW WITH BA, THAT IT REALLY PROVIDES NOW KIND OF A ANCHOR POINT AND A, A GOOD REASON TO FURTHER DEVELOP THAT FOR PEDESTRIAN PUBLIC KIND OF ACCESS AND TRAFFIC.
SO I THINK WE, I THINK WE'VE GOT A GOOD AGREEMENT THAT I THINK PROTECTS THE PORT, WHICH I THINK IS ONE THING THAT WAS VERY, UM, OF COURSE THAT'S PART OF OUR RESPONSIBILITIES IS TO PROTECT THE PORT.
I MEAN, WE ALL, I THINK, FEEL THIS IS A GOOD DEAL FOR GALVESTON TO HAVE THE SHIP, BUT THEN WE HAVE TO BE COGNIZANT.
THIS IS AN OPERATING PORT AND WE HAVE TO PROTECT THAT.
SO I THINK WITH SOME OF THE THINGS WE HAVE AROUND THE, THE BORING DESIGN FOR 160 MILE AN HOUR WIND AND, AND, UM, 19 FOOT STORM SURGE, AND WE GOT A GOOD PROTECTION FOR THE PORT.
I THINK WE CAME TO A GOOD AGREEMENT ON THE INSURANCE REQUIREMENTS WITH A GOOD BASIS FROM RESOLVE.
WHO WAS YOUR SALVAGE COMPANY AND OUR, OUR INSURANCE CONSULTANT, UH, I THINK WE'VE GOT A, IT'S A 30 YEAR AGREEMENT OR 10 YEAR INITIAL TERM WITH TWO RENEWAL TERMS. AND I THINK WE'VE GOT SOME GOOD LANGUAGE AROUND THE, UH, RENEWAL TERMS AROUND MAKING SURE THE STRUCTURAL INTEGRITY OF THE SHIP AND THE FINANCIAL INTEGRITY OF THE BATTLESHIP TEXAS FOUNDATION.
SO AGAIN, THAT KIND OF PROTECTS PORT AND THE FROM, UH, AND MAKING SURE WE'VE GOT A GOOD BASIS THERE.
UM, AND I THINK, AGAIN, IT FITS INTO THE MASTER PLAN AS FAR AS THE, UH, LOCATION.
AND I THINK, I THINK OVERALL, I THINK WE GOT TO A GOOD WIN-WIN FOR THE, FOR THE PORT, FOR THE COMMUNITY.
AND I THINK FOR THE BATTLESHIP TEXAS FOUNDATION, I THINK FEELS GOOD ABOUT, I MEAN, I, I DON'T THINK EVERY, ANYBODY GOT EVERYTHING OF WHAT THEY WANTED, BUT I THINK AT THE END OF THE DAY, WE HAVE A, A GOOD AGREEMENT.
UH, AND I GUESS THERE'S 17 CONDITION PRECEDENTS THAT HAVE TO BE MET.
SO THERE'S A LOT OF WORK TO DO, BUT I THINK THIS GIVES US A GOOD BASIS TO GO FORWARD.
SO WITH ALL THAT, I WOULD RECOMMEND THAT THE BOARD APPROVE THE OPERATING AGREEMENT AS PRESENTED IN THE BOARD.
I'M GONNA TAKE THAT AS A MOTION.
I WOULD BE MORE THAN HAPPY TO MAKE THE MOTION THAT WE MAY, WE APPROVE THE, UH, OPERATING TECH OPERATING HAD ALL THE DISCUSSION ON THAT.
I LEARNED FROM, I LEARNED FROM MR. YARBOROUGH ABOUT CHAIRMAN.
I COULD, I JUST WANNA AGAIN, ECHO, ECHO COMMENDATION OF THE COMMITTEE AND MODEL FOR A CHAIRMAN OF THE COMMITTEE.
THIS COMMITTEE AND THE CHAIRMAN AND THE ENTIRE COMMITTEE DID A LOT OF HEAVY LIFTING.
HAS DID OUR ATTORNEYS AND OUR STAFF ROGER, RIGHT.
SO IT WOULD, IT TRULY WAS A TEAM EFFORT.
SO IT WAS, AND IT ALL CAME IN TOGETHER.
AND IT WAS NICE TO SEE THAT BATTLESHIP RIGHT THERE IN THE MIDDLE OF THE PRESENTATION FROM VA TODAY AND HOW IT ALL WORKED OUT.
SO I THINK IT'S WHERE SHE, SHE'S WHERE SHE'S MEANT TO, SHE'S MEANT TO BE, WHICH IS WHAT YOU HAD SAID.
SHE'LL END UP WHERE SHE'S MEANT TO BE.
AND WHAT I APPRECIATED, THERE WAS NO YELLING OR S SCREAMING
THERE WAS SOME GNASHING OF TEETH, BUT, BUT YOU'RE RIGHT.
WE GOT THERE AT THE, NOT, NOT YET.
I'LL JUST SAY I WAS BATTLESHIP TEXAS FOUNDATION MADE A PRESENTATION TO THE ROTARY CLUB.
AND SO I WAS ASKED, WHERE'S SHE GOING TO GO? AND MY STANDARD LINE IS SHE'S GONNA GO WHERE SHE'S GOING TO GO.
IF YOU THINK OF ALL THE, THE KS AND ALL THE, ALL THE OPPOSITION TO PLACES AND WITH THAT LOCATION BEING, IT JUST WORKED OUT.
ANY FURTHER DISCUSSION? ALL IN FAVOR RAISE.
TRAVIS, YOU GUYS, AND TONY AND YOU GUYS WERE, WERE GOOD PARTNERS TO WORK THROUGH THAT AGAIN.
[03:05:01]
WORK ON AMENDMENT TO IT.AND NOW WE'VE GOTTA WORK ON SOME
NOW WE'VE GOT THE SHORE AMENDMENT TODAY.
[F.14 Discuss and Consider Approval of Lessor’s Consent to Assignment and Assumption of Lease Agreement from Gulf Copper & Manufacturing Corporation to Maritime, Defense and Industrial Financing Corporation. Tony Brown ]
F 14.TONY, HAVE A DECLARED CONFLICT ON THIS.
DO I NEED TO LEAVE THE ROOM OR CAN I JUST READ IT AND NOT NOT, WHY DON'T YOU JUST TURN IT OVER TO THE VICE CHAIR? HE'S GONNA MAKE DELIBER.
YOU DID SUCH A GOOD CHALLENGE.
I DIDN'T LEAVE THE EXECUTIVE SESSION AND DID NOT PARTICIPATE IN ANY DISCUSSION PREVIOUSLY.
I'LL TAKE OF, ALRIGHT, SO DISCUSS AND CONSIDER APPROVAL OF LEASER CONSENT TO ASSIGNMENT ASSUMPTION OF LEASE AGREEMENT FROM GULF COPPER MANUFACTURING CORPORATION TO MARITIME DEFENSE AND INDUSTRIAL FINANCING CORPORATION.
TONY, UM, AT THIS TIME, STAFF IS ASKING THAT THIS BE DEFERRED NOT BECAUSE OF THE CONCERNS ABOUT THE ULTIMATE ASSIGNMENT, IT'S JUST THAT, UH, THE PROPOSED AS ANDEE, THEY'RE STILL ORGANIZ ORGANIZING THEMSELVES IN TERMS OF CORPORATE STRUCTURE.
AND WE'D JUST LIKE TO WAIT UNTIL THEY GET THAT FIRM DONE SO WE KNOW WHICH PARTS ARE, MAKE A MOTION TO DEFER WILL WITH A MOTION.
SECOND, UH, RICHARD WITH A SECOND.
ANY FURTHER DISCUSSION? ALL IN FAVOR, RAISE YOUR RIGHT HAND.
I I ABSTAIN WITH MR. CHAIRMAN PEARSON.
[F.15 Discuss and Consider Approval of proposed Consent Agreement and Final Order in USEPA Docket No. RCRA-06-2024-1007. Tony Brown ]
DISCUSS AND CONSIDER APPROVAL OF PROPOSED CONSENT AGREEMENT AND FINAL ORDER.US EPA, A DOCKET NUMBER
THREE LOOK MOTIONS, UH, MAYOR BROWN.
SECOND, ANY DISCUSSION? DON'T ANYTHING JUST, UH, WE BRIEFED, UH, UH, BOARD REPEATEDLY ABOUT THIS MATTER, BUT TODAY IN THE EXECUTIVE SESSION ON THIS FINAL DEAL AND RECOMMEND APPROVAL.
ALL IN FAVOR? RAISE YOUR RIGHT HAND.
THAT MOTION CARRIES UNANIMOUSLY.
[F.16 Discuss and Consider Board Attendance to the American Association of Port Authorities (AAPA) Annual Conference in Quebec City, Canada. Rodger Rees ]
F 16, DISCUSS AND CONSIDER BOARD ATTENDANCE TO THE AMERICAN ASSOCIATION OF FOUR AUTHORITIES ANNUAL CONFERENCE IN QUEBEC CITY, CANADA.WELL SINCE, YOU KNOW, WE HAD AN ANNUAL MEETING WITH THE A PA AND WE HAVE BUDGET, UH, I THINK TWO POSITIONS FOR ATTENDING, FOR BOARD MEMBERS TO ATTEND.
SO WE JUST, WE'RE PUTTING IT ON THE TABLE FOR, UH, SOMEONE TO, WANTS TO GO TO THAT MEETING TO, UH, COORDINATE THAT WITH ANGIE AND, UH, DECIDE WHO WANTS TO GO.
I DON'T THINK WE'RE ASKING FOR IT RIGHT NOW, BUT COULD HAVE YOUR RETREATMENT PLEASE.
WE'RE ASKING FOR THE BOARD TO APPROVE THOSE.
SO DON'T DO A RETREAT ON THE SIXTH AND THE, DON'T DO A RETREAT ON THE SIXTH AND THE EIGHTH, BUT IT'S TYPICAL.
IT'S A VERY GOOD EDUCATIONAL EXPERIENCE.
CONNECT YOU WITH OTHERS, YOUR PEERS.
MAKE A MOTION TO, FOR A MOTION, MAKE A MOTION TO APPROVE SENDING TWO OF THOSE, TWO OF THIS CONFERENCE.
I HAD THREE HANDS AT ONE TIME.
ANY OTHER, ANY DISCUSSION? I GUESS WHO, WHO NORMALLY GOES FROM STAFF RIGHT HERE? USUALLY, USUALLY ME.
THE DOWN, THE DOWNSIDE OF IT IS, IS I'M ON TWO PANELS.
SO YOU'D HAVE TO LISTEN TO THAT.
[F.17 Discuss and Consider Future Agenda Items for the August 26, 2025, Board Meetings. ]
ITEM NUMBER F 17 DISCUSSED AND CONSIDER FUTURE AGENDA ITEMS. THE 26TH BOARD.ANYTHING SPECIAL RIGHT HERE? OKAY.
I GUESS WE ARE, WE PUT HERE THAT WE DEFER, WE'VE ALREADY, YEAH, WE'VE ALREADY DEFERRED BOTH DISCUSS COMMENTS
[G. COMMENTS FROM THE BOARD OF TRUSTEES]
FROM THE BOARD OF TRUSTEES.WHAT DOES ONE SAY ABOUT TODAY'S MEETING? UM, LOTS OF GOOD THINGS GOING ON THE VA UH, PRESENTATION WAS, UH, INSPIRING.
AND ALSO, UM, JUST EXCELLENT PULLING ALL OF THE DISPARATE PIECES TOGETHER TO LOOK AT THE, UM, AND SO JUST CONGRATULATIONS ON THAT.
AND YOU, WE RETREAT AND FIGURE OUT WHERE WE'RE GO NEXT AND WHERE WE'RE GONNA GET THE MONEY.
AND, UM, THANKS AS ALWAYS TO THE STAFF WHO WILL KEEP THIS PLACE GOING ALONG WITH THEIR FEARLESS LEADER,
[03:10:01]
ROGER.OKAY, JEFF? YEAH, WE JUST LIKE TO SAY THE MASTER PLAN WAS REALLY EXCITING TO SEE AND AS I, ME KINDA MENTIONED TO ROGERS, WE GOING TO LUNCH THERE, YOU KNOW, THE FIRST MASTER PLAN WAS, THERE WAS A LOT OF REALLY GOOD STUFF ON THERE, BUT THERE WAS SOME PARTS OF IT THAT WERE JUST MORE KIND OF PLACEHOLDERS BECAUSE WE JUST DIDN'T KNOW WHERE SOME THINGS COULD GO.
THIS ONE, WE'RE ACTUALLY NOW KIND OF FILLING IN THOSE GAPS OF SOME OF THE, WHAT SOME OF THAT DEVELOPMENT MIGHT LOOK LIKE, SOME OF THAT PUBLIC ACCESS, AND OF COURSE THE, YOU KNOW, THE BATTLESHIP TEXAS LOCATION AND ALL, HOW THAT ALL COMES TOGETHER AND, AND SOME, SOME REALLY GOOD NUMBERS ON CARGO AND CREW.
SO IT, IT WAS REALLY EXCITING, REALLY.
I, I THINK IT'S A VERY ACTIONABLE, YOU KNOW, THERE, THERE'S CHOICES AND THINGS WE GOTTA DECIDE, BUT I THINK FOR FUTURE BOARDS, UH, AND, AND ROGER AND STAFF, THERE'S SOME REALLY COOL THINGS YOU CAN KIND OF SEE HOW THE FUTURE CAN, CAN PLAY OUT FOR THIS, UH, FOR THE, THIS PORT.
AND I, I GUESS THE OTHER COMMENT THERE WOULD BE, YOU KNOW, BA PRESENTED IT, BUT A LOT OF THE WORK AND EFFORT CAME FROM YOU AND YOUR STAFF, SO YOU GUYS REALLY, I KNOW, DID A LOT OF WORK, REALLY BROUGHT THE DATA TO MAKE THE PRESENTATION.
SO THAT WAS REALLY GOOD TO SEE.
AND I GUESS I, I'D BE REMISS TO SAY I'M, I'M VERY PLEASED TO SEE THE BATTLE, THE AGREEMENT WITH BATTLESHIP TEXAS COME TOGETHER AND THAT GET DONE AND REALLY PUTS THE BALL NOW IN Y'ALL'S COURT TO MOVE EVERYTHING FORWARD AND REALLY LOOK FORWARD TO, TO HAVING THAT ATTRACTION HERE SOMETIME THIRD, FOURTH QUARTER NEXT YEAR.
JEFF HAN JEFF, UH, COVERS MOST EVERYTHING.
AND, AND, UH, I, I WOULD, I, I ALSO THOUGH THOUGHT THE, UH, PRESENTATION WAS VERY, UH, INSIGHTFUL.
IT MAKES US SEE THAT WE'RE NOT BLOWING ON MONEY, ON, ON STUFF, AND THEY'RE REALLY DOING A GOOD JOB.
AND, UM, I, I WAS PARTICULARLY INTERESTED IN THE, UH, SOME OF THE OBVIOUS ATTEMPTS TO GET CONNECTIVITY WITH TOWN, WITH THE TOWN.
AND I HOPE TO FOLLOW UP ON THAT AND GET
UM, I WANNA START WITH THE DA, UH, PRESENTATION WAS VERY GOOD AND WOULD LIKE THE PUBLIC TO KNOW THAT THERE'S STILL GONNA BE LOTS OF OPPORTUNITY TO OR INPUT, AND I THINK THOSE ARE GONNA BE GREAT.
THEY'VE BEEN VERY RECEPTIVE TO INPUT FROM WHAT I CAN SEE, AND I'M SURE THEY'LL BE RECEPTIVE TO THE PUBLIC'S INPUT.
UM, ALSO ONE OUR HEARTS GO OUT TO THE HILL COUNTRY VICTIMS WITH THE FLOODING THAT HAPPENED SINCE OUR LAST MEETING.
UM, IT'S, IT'S A TRAGEDY THAT THERE HAS BEEN SOME LOCAL CONNECTIONS TO IT TOO.
AND ALSO A FRIEND OF OURS, UH, WHO'S SERVED ON THIS BOARD, UH, HIS SON IS IN, IN NOT SO SUCH GOOD HEALTH AND, AND NEEDS OUR PRAYERS AT THIS MOMENT TOO.
SO OUR PRAYERS GO OUT TO THAT HAPPENING.
MAYOR, UH, FIRST OF ALL, CONGRATULATIONS TO THE, UH, USS TEXAS FOUNDATION.
UH, UH, WE HAVE AN AGREEMENT NOW AND THIS HAS BEEN, UH, AND UH, GONNA BE GOOD FOR NOT ONLY THE USS TEXAS GROUP, UH, FOR, BUT ALSO THE COMMUNITY IS WELL, WE'RE VERY HAPPY TO HAVE THEM HERE.
UH, I WANT TO THANK JEFF PATTERSON.
JEFF DID A GREAT JOB WITH THE COMMITTEE THAT MOVED FORWARD ON THIS AND WITH ROGER'S INPUT AND OTHER STAFF MEMBERS AND TONY'S.
UH, WE WORKED OUT, I THINK, VERY EQUITABLE ARRANGEMENT WITH THE USS GROUP.
THIS VA PRESENTATION TODAY WAS INSPIRING.
IT WAS INSPIRING FOR MANY REASONS.
I THINK TWO THINGS COME TO MIND.
ONE IS IT SHOWS THAT WE'VE JUST SCRATCHED THE SURFACE OF THE POTENTIAL FOR THIS PORT.
AND SO IT'S MOVING FORWARD AND WE'RE MOVING FORWARD IN AN ORGANIZED FASHION.
UH, WHERE WE'RE FOLLOWING PLANS, WE FOLLOWED OUR PAST MASTER PLAN AND NOW WE HAVE A NEW ONE.
AND IT SHOWED SECONDLY UP FROM THE LAST MASTER PLAN IN 20 18 19 UP TO TODAY HOW WE'VE PROGRESSED, BUT DONE THAT IN A VERY FINANCIALLY SOLVENT WAY AND MAINTAINING OUR STABILITY FINANCIALLY.
THAT IS A, A COMPLIMENT TO ROGER AND TO THE STAFF HERE.
I KNOW THAT THE CITY AND THE COMMUNITY IS FOR THAT.
IT'S, SHE'S WHERE SHE'S SUPPOSED TO BE, WHERE SHE WAS MEANT TO BE.
SHE GONNA BE, THE BA PRESENTATION WAS PHENOMENAL.
WE'RE GOING TO STILL HAVE A LOT OF INPUT FROM, UM, FROM THE PUBLIC
[03:15:01]
AND FROM THE CITY COUNCIL.I CAN'T, I'M REALLY EXCITED ABOUT OUR JOINT MEETING IN AUGUST BECAUSE ON THE 27TH, I BELIEVE IT IS YES, THAT THIS PRESENTATION AND WE ARE GOING TO INVITE THE CITY COUNCIL TO BE PART OF THE PUBLIC COMMENT PERIOD, BUT TO GET THEIR INPUT.
AND WE'RE NOT GONNA ADOPT THIS UNTIL SEPTEMBER.
LOOKING FORWARD TO OUR RETREAT.
IT'S ALL, EVERYTHING'S COMING TOGETHER, RIGHT? KIND OF LIKE WE'RE ALL PULLING IN THE SAME DIRECTION.
SO THAT'S REALLY, REALLY GOOD THAT WE'RE DOING THAT.
SO VERY, IT WAS A RATHER LONG MEETING TODAY, BUT VERY PRODUCTIVE.
[H. SET DATE OF NEXT BOARD MEETING, TIME, AND LOCATION]
WITH THAT, WE'RE GOING ADJOURN.WE'RE GOING SET THE NEXT MEETING TO BE, UH, THE BOARD TO BE TUESDAY, AUGUST 26TH, 2025.
AFTER THE, IS THERE ANY FURTHER BUSINESS? ROGER, I JUST WANNA SAY, UH, IT'S ONE THING.
UM, I'D LIKE TO THANK YOU FOR YOUR LEADERSHIP.
I THINK YOU'VE DONE A REALLY GOOD JOB SINCE YOU'VE BECOME CHAIRMAN AND IT SHOWS AND, AND HOW WE'VE EXECUTED THINGS OUT HERE.
WE KNOW HE'S GETTING A BRIDGE, MATE.
HE'S GETTING CHANGED THE NAME OF THE BRIDGE.
WELL, WITH THAT, THANK YOU VERY MUCH ON ACTUALLY, SO WE'RE GONNA ADJOURN THIS MEETING AT.