PORT OF GALVESTON PORT DIRECTOR’S REPORT August 28, 2018

AT A GLANCE for July 2018 vs. 2017 YTD Cargo The Port was up 53% in total cargo tonnage The Port was up 167% in lay vessel port calls The Port was up 8% in total vessel calls The Port was up 70% in grain tonnage The Port was up 40% in liquid bulk tonnage The Port was up 22% in containerized cargo The Port was up 219% in general cargo. The Port was down 4% in total RORO cargo

AT A GLANCE Lay dockage

Cargo statistics Total Tonnage Up – 46.8%

CRUISE STATISTICS passenger Movements Total cruise passengers up 9.6% Parking revenues up 9.9%

SHIP CALLS TOTAL SHIP CALLS UP – 25.0%

Financial Summary

Financial- Revenues

YTD Revenues

Year to Date Expenses

Year To Date Expenses

Financial – A/R Aging

Current CASH Position

The strand Customer Seating RFP Public Art

Current Status - RFPs RFP/RFQ Status ERP Evaluation Committee reviewing proposals Security Service “Parking Deck” Solicitation process still open Financial Advisor Continuing evaluation process

Project Cost - Submitted Upcoming Grant Proposals Grant status 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. CMP Environmental & Sustainability Study $181,962 Rejected 5. U.S. DoT (ATCMTD) Harborside Drive & 25th Street Intersection and Elevated Pedestrian Walkway Pending 6. (CRISI) Intermodal & Railway Corridor Improvement Study $305,540 7. (BUILD) On-Dock Rail $25M 8. FEMA (PSGP) Maritime Domaine Awareness $697,125 Awarded Upcoming Grant Proposals September 17, 2018 Consolidated Rail Infrastructure and Safety Improvements (CRISI) Rolling Texas Emissions Reduction Plan (TERP) Art Grant January 31, 2019 Pre-Disaster Mitigation / Flood Mitigation Assistance

SECURITY UPDATES Port Police staff are working with Port staff to begin automated parking in Port parking lots. Port Police staff has met with City of Galveston Transportation Inspectors to draft language to add to the Port Tariff to include Transportation Network Companies (TNCs). The Port Police Department continues to downsize and restructure its Police Force. Alternate shift configurations are being considered to help reduce overtime usage. Security Guards are being added to supplement the Port Police Department. Port Police staff is preparing for the TCOLE Trainers’ conference in Corpus Christi in October. The Port Police Department is preparing for the arrival of Carnival Vista in September and the Lone Star Bike Rally in November.

Projects UPDATES Old Port Industrial Project – Rider 48 The contract has been fully executed by both parties. TXDOT Grant Option has been selected for the execution of this project. A meeting with TXDOT took place on 08/22/2018 to discuss the Houston District standards applicable for Grant projects. A kick-off meeting with BGE was scheduled for the last week of August.

Dredging Project UPDATE Port of Galveston Annual Maintenance Dredging for 2018 The dredging volume for 2018 is estimated at 147,000 CY The largest single area to be dredged is the turning circle No. 1 with 50,000 CY of excess material. Dredging will be conducted by Callan Marine starting the first week of September 2018, under the 5-year contract executed in January 2017. The priority areas to be dredged are the turning circle No. 1 and CT1, in anticipation of the Carnival Vista arrival on September 28th. Prior to start dredging improvement works are underway to reinforce the East wall of the Port’s dredged material placement area in Pelican Island.

Project UPDATES Walkway Crossover to Cruise Terminal One Improvements Conceptual sketches of options to provide public access and improve circulation were received from the Project Consultant and are being reviewed by Port staff. Once a preferred option is selected it will be designed to full detail. An inspection of the steel column support at the SMPG revealed advanced corrosion. Design is underway to provide a new safe and durable support.

Project UPDATES CT2 Wharf Expansion and Mooring Improvements Phase 1B The precast concrete fender panels were installed at the wharf water face. Wharf and panel contact surfaces are out-of-plumb and require on-site repair. Repair methodology and materials are being discussed with Contractor.

EVENTS August 2 Maritime Campers ImPORTant Day August 31 Employee Lunch and Learn