PORT OF GALVESTON PORT DIRECTOR’S REPORT September 25, 2018

AT A GLANCE for AUGUST 2018 vs. 2017 Year to date Cargo The Port was up 44.8% in total cargo tonnage The Port was up 64.9% in lay vessel port calls The Port was up 26.2% in total vessel calls The Port was up 115.3% in grain tonnage The Port was up 38.0% in liquid bulk tonnage The Port was up 15.7% in containerized cargo The Port was up 37.0% in total RORO cargo

AT A GLANCE Lay dockage

Cargo statistics Total Tonnage Up – 44.8%

SHIP CALLS TOTAL SHIP CALLS UP – 27.8%

CRUISE STATISTICS passenger Movements Total cruise passengers up 12.6% Parking revenues up 13.4%

CRUISE STATISTICS passenger Movements Total cruise passengers up 11.89% Parking revenues up 12.59%

Financial Summary

Financial- Revenues

YTD Revenues

Year to Date Expenses

Year To Date Expenses

Financial – A/R Aging

Current CASH Position

Current Status - RFPs RFP/RFQ Status ERP Selection made – Today’s Agenda Security Service Evaluation Committee reviewing proposals (5) Financial Advisor Continuing evaluation process Parking Deck 11 proposals in – Evaluation Committee Reviewing West End Priority FEMA Projects Advertise 9/30

Rolling Grants for Year-end Grant status Rolling Grants for Year-end Texas Emissions Reduction Plan No. Agency Project Scope Project Cost - Submitted Status 1. TxDot Pier 37 Repairs $9.2M Phase II Submitted 2. Refurbish Old Port Industrial Road $2.7M 3. Fill Slip 38/39 $24.9M 4. U.S. DoT (ATCMTD) Harborside Drive & 25th Street Intersection and Elevated Pedestrian Walkway Pending 5. (CRISI) Intermodal & Railway Corridor Improvement Study $305,540 6. (BUILD) On-Dock Rail $25M 7. FEMA (PSGP) Maritime Domaine Awareness $697,125 Awarded 8. West End Intermodal $12M

Dredged material placement area A new inner levee was built at the Dredged Material Placement Area in Pelican Island This levee replaces part of the original East wall levee which was in advanced deteriorated conditions and was prone to failure. This repair allows the placement of 200,000 CY of dredged material in one cycle eliminating the risk of a slope failure and its consequences.

Dredging Project UPDATE Dredging started on August 08th at turning circle No. 1 Turning Circle No. 1 was completed on September 13th CT1 was completed on September 18th

Cruise terminal 3 parking and utilities RCCL will develop the terminal building project over 10 AC on the North side of Pier 10 POG will develop the parking and utilities over 15 AC on the South side Prequalification of POG’s Consultant is near completion POG has discussed with the City of Galveston their recent approach to resolve flooding issues along Harborside Drive. This approach is based on pumping stations estimated at $40 million each and a completion schedule of 4 years if funding is secured. The Port is consider other approaches with a shorter schedule.

Pelican island development The Pelican Island Development includes two berths and upland site development over an estimated area of 86 AC. This development will support vehicle and refrigerated cargo import operations. A proposal has been received from a Port’s Consultant for permitting this project. POG is developing a Conceptual design for the permitting process.

Old port industrial east The initial phase involving gathering and transfer of relevant information and agreeing in fundamental design parameters has been completed. The topographic survey and the geotechnical field work has been impaired by the rain during the first half of September. Interaction with Galveston Rail and BNSF has taken place to clarify interfaces. Work on the 30% design deliverables already started.

Walkway to ct1 improvements Current work is a conceptual analysis of options to improve circulation. Two options were developed for a ramp at the SMPG and five for the CT1 building. The ramp options at the CT1 building include one inside and four outside of it.

Walkway to ct1 improvements Two options were considered for circulation inside CT1 to segregate passengers from the public and prevent the latter from entering into the passengers only areas. A column at the SMPG end of the walkway will be replaced by a new one due to advanced corrosion.

SECURITY UPDATES The Port Police Department celebrated 106 years of service to the Port of Galveston September 12th. Port Police are planning to go to twelve-hour shifts for all patrol personnel. This will be implemented very soon. Police and Operations staff are evaluating Security Guard companies who may be utilized to take over the security at the gates and traffic details at the cruise terminals. Police staff are working with the Port’s Construction and Maintenance personnel to add additional directional signs at and around the cruise terminals. This is an on-going project with more changes to come. Police staff will be working with the Port’s Operations Division to implement a program for registering TNC’s (ride-share) drivers and vehicles.

EVENTS Aug. 31 Employee Lunch and Learn Sept. 17 TAMUG Sea Aggies Tour