Port Matters May 2022 Issue

Vol. 6, No. 12 May 2022

Using innovative and sustainable recycling processes, ISL was able to recycle 97 percent of the materials removed from the MT Wolverine at its yard at the Port of Brownsville.

ISL Completes First EU Ship Recycling Project

in the United States

Recycler EMR Group announced on April 25 the completion of the first European Union ship recycled in the United States by International Shipbreaking Ltd (ISL).

The project follows a $30 million investment in new equipment and processes at ISL’s site at the Port of Brownsville to meet the requirements of the rigorous EU Ship Recycling Regulation (EU SSR).

The MT Wolverine is a 158-meter-long chemical tanker with a carrying capacity of 16,000 tons. Prior to being decommissioned, she was sailing under the flag of Norway. Using innovative and sustainable recycling processes, ISL was able to recycle 97 percent of the materials removed from the MT Wolverine.

ISL’s investment will help reduce the number of end-of-life vessels that are broken up, in rudimentary and often very unsafe conditions, on the beaches of South Asia. As of 2018, over 90 percent of merchant vessels were disposed this way.

Growing to New Depths

Editor’s Note: This article is featured in the latest edition of the Port of Brownsville Directory. Click HERE to view directory or to request a copy.

Arguably, the most valuable asset of any port is the depth of its channel.

The depth of a port’s channel can be compared to the length of an airport’s runway. The longer the runway, the bigger the planes. The deeper the channel, the bigger the ships.

For example, with just one more inch of draft – or depth – a ship can carry 770,000 additional bushels of wheat valued at more than $60,000.

Through the Brazos Island Harbor Channel Improvement Project (BIH), the Port of Brownsville plans to deepen its channel from 42 feet to 52 feet – 10 feet deeper!

With that much additional draft, the cost savings for shipping goods across the Earth’s oceans reach an economy of scale far greater than those of the one-inch example. Which also means, more jobs to handle more cargo at the Port of Brownsville.

Courtesy of Keppel AmFELS

The Port of Brownsville has been home to Keppel AmFELS since 1990, bringing thousands of jobs and opportunities to the Rio Grande Valley.

Keppel AmFELS Designated Texas Enterprise Zone

The Governor’s Office of Economic Development and Tourism on March 21, announced the approval of a Texas Enterprise Zone project designation for an application submitted on behalf of Keppel AmFELS, Inc. by the City of Brownsville.

The capital investment project is estimated to result in a $27.6 million net benefit (after-tax abatement) for the city. The announcement noted that Keppel AmFELS would enable the retention of 500 jobs in Brownsville, ultimately impacting economic development within the region.

"We are pleased to be designated as a Texas Enterprise Zone project. As one of the largest employers in Brownsville, we are proud to support job creation and retention in partnership with the state of Texas," said Mohamed Sahlan Bin Salleh, President of Keppel AmFELS. "Keppel AmFELS is also currently undertaking several Jones Act-compliant projects, including in the offshore wind sector, and we work with an ecosystem of American suppliers, further supporting the growth of the domestic industry."

NextDecade Announces SPA Agreements

NextDecade Corporation announced May 2, the execution of a 15-year sale and purchase agreement (SPA) with ENGIE S.A. for the supply of liquefied natural gas (LNG) from NextDecade’s Rio Grande LNG (RLNG) export project planned at the Port of Brownsville.

Under the SPA, ENGIE will purchase 1.75 million metric tons per annum (MTPA) of LNG on a free-on-board basis. The LNG supply will be from the first two trains of Rio Grande LNG, with the first train expected to start commercial operations as early as 2026.

Additionally, on April 6, NextDecade announced the execution of a 20-year SPA with ENN LNG, a wholly-owned subsidiary of ENN Natural Gas Co., Ltd., for the supply of LNG from NextDecade’s RGLNG.

Under the SPA, ENN LNG will purchase 1.5 MTPA of LNG indexed to Henry Hub on a free-on-board basis.

ICYMI Watch: State of the Port Keynote Address

2022 State of the Port Address - Keynote Address Featuring Dr. M. Ray Perryman

Watch one of the state's top economists, Dr. M. Ray Perryman, provide an economic forecast for the Rio Grande Valley and the Port of Brownsville's role in connecting international trade to the region. Dr. Perryman was the keynote speaker at the annual State of the Port event held March 24, at the Rancho Viejo Convention Center in Rancho Viejo, TX.

BROWNSVILLE NAVIGATION DISTRICT COMMISSIONERS

Chairman

Vice Chairman

Secretary

Commissioner

Commissioner