Organization of American States, CIP Presented by: Tom Kornegay Executive Director Port of Houston Authority 1

PHA /Port of Houston PHA HSC sponsor Public wharves 15% total tonnage Consumer goods Port of Houston 53-mile channel 6 th largest port 85% total tonnage Petrochemical industry 2

Port Commissioners Jim Edmonds, chairman Kase Lawal, vice chairman Steve Phelps Jim Fonteno Jimmy Burke Cheryl Thompson-Draper Janiece Longoria 3

Economic Impact 287,000 Texas jobs $11 billion in revenue $649 million in state and local tax revenue 22 million state population 66 percent live in major metropolitan areas 4

Key Cargo Tonnage Port of Houston: Total ’03 port tonnage – 190 million tons Half was petroleum 5 PHA: 77% increase in steel Trend continues to 1Q 2006

Record Year $120 million revenue 12% increase 1.24 million TEUs 8.4% increase 6

Barbours Cut Terminal 9.4 million tons Jan-Sept ’04 15% increase over 2003 Terminal at capacity 7

Bayport Container and Cruise Terminal June 2004 groundbreaking 39,000 new jobs $1.6 billion state economic impact Most modern terminal 8

Bayport Container and Cruise Terminal year building plan Phase I contracts awarded Ultimate 1,045-acre facility 7 ship berths 3 cruise berths 378-acre container yard 9

Bayport Container and Cruise Terminal Triple PHA container capacity 64 % Gulf Coast containers 94 % Texas coast containers 10

Latin America Markets: Brazil Argentina Chile Venezuela Peru Colombia 11

Ocean Carriers P&O Nedlloyd Seaboard Crowley Maersk-Sealand 12

South American Goods Steel Coffee Ceramic tiles Wind turbine equipment Forest products 13

American Market Consumer market growing Commodities move over Houston’s docks Increasing retail opportunities 14

Wal-Mart 2 million square foot distribution center planned near HSC Additional 2 million square feet potential 15

Environmental Awareness ISO compliant Environmental Management System Results: –75 % reduction in absorbent disposal –Eliminate oily rag disposal 16

Port Security $16.7 million security grant funding Security partners cooperation Elected official briefings 17

Port Security Partner with cities along HSC Partner with Harris County for radio equipment and training 18

Port Coordination Center $4.35 million facility Advanced communication systems, data sharing equipment Communication command center for partners 19

Maritime Transportation Security Act Port authority prepared in advance of July 1, 2004, deadline Comprehensive security plans submitted to US Coast Guard 20

Conclusion Building on strengths of existing relationship Cultivating new relationships Capitalizing on market opportunities Focusing on environmental stewardship 21