January 1982

IIII m Ii i1,: e |

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IIHESSA stands for Hellenic EAL Services S.A.Hellenic has been shipping from the U.S.A. to theAfrican trades for decades. They know the U.S. andthey know Africa.

EAL’s people have been in the Europe/West Africatrade for 15 years. They know exactly what it takes tomake things like berthing, handling, documentation,

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A NEW FORCEIN WEST AFRICA.Freight forwarder compensation 21,/2°/o. HESSAFor bookings and information, call your freightforwarder or Hellenic American Agencies.New York: (212) 482-2440New Orleans: (504) 581-2825Houston: (713) 683-8571Overseas: EAL Services S.A.

2 Port of Houston Magazine

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Port CommissionersAnd Staff

FENTRESS BRACEWELL, ChairmanW.D. H ADEN, 11, CommissionerMRS. MARCELLA D. PERRY. Commi~.sionerJOHN H. GARRETT, CommissionerHOWARD J. MIDDLETON, Commty.sioner

RICHARD P. LEACH, Executive DirectorJ.R. CURTIS, Director of Port Operations

TED WALTERS, Manager of Marine DepartmentW.D. DUNNAHOE, Manager of Port OperationsTurning BasinCAPT, R.G. EGAN. Manager oJ Port Operations,

Barbours Cut and Bayport TerminalsW.E. GREER, Manager, Grain t:/evator

LESLIE J. SANDERFER. Manager, Bulk MaterialsHandling PlantA. MONROE BEAN, Manager, Storage g’are&;uw~

A.J.M. VAN DE VEN, Maintenance SuperintendentLouis F. BROWN. J R., Manager, Sa/etv and InsuranceCLAUDE BARTH, Manager, Securttv

C.A. ROUSSE R, J R,, Director ~f Trade DevelopmentBASIl, J. FINN. General Sales ManagerLEON UTTERBACK, Eastern Sales ManagerJACK WOJEWNIK. Asst. Eastern Sales ManagerDAVID W. SIMPSON, Western Sales Manager

ARMANDO S. WATERLAND. InternationalSales ManagerEDWARD L. HORN, Communications ManagerDON ZULLO, Public Relations Manager

NORMAN E. HUENI, Directorq/l’ngineering

TOM KORNEGAY, Chief Engineer

F. WII.LIAM COLBURN, Director c~f4dmim.strationLINDA REESE, ControllerALTON B. LANDRY, Personnel Manager

C.G. SEAMAN, Manager oj Real kstateBETTY GARRETT, Manager ¢~f Pur¢’hastnt~ALGENITA SCOTT DAVIS, Counsel

JOE SCROGGINS, JR., Director of Planning

M ICHAE L SCO R C IO, Director o~ Conlmunit vRelations

JOE F. FLACK, County Auditor

EXECUTIVE OFFICES1519 Capitol Avenue, Houston, Texas 77002

P.O. Box 2562, Houston, Texas 77001Telephone: (713) 225-0671

TWX: 9102881-5787

TERMINAL OFFICESTurning Basin: (713) 672-8221

Barbours Cut: (713) 470-1800

NEW YORK OFFICE60 Eost 42nd, Street, New York 10165

Telephone: (212) 867-2780

~~ Official Publication

Port of Houston

~sf ~Authority

Volume 26 Number 1 January 1982

IN THIS ISSUE

Along The Amazon~The ships of Frota Amazonicasteam far upriver to help in the development of theAmazon Basin of Brazil. 8Enforcement Through Selectivity--The U.S. CustomsService is experimenting at Barbours Cut Terminal inan effort to clear cargo more efficiently. 11Problems, Problems~Conrad H.C. Everhard, presidentof Dart Overseas Services, discusses the state of theAmerican maritime industry. 13New York, New York--A high-level delegation fromHouston journeys to the Big Apple to thank the maritimecommunity there for its support. 16Port Tiding.s--A page of news and notes on people andcompanies in and around the Port of Houston. 21Consular Christmas--Houston’s consular corps getstogether for the annual World Fellowship luncheon. 25Transportation Observations--The chairman of theInterstate Commerce Commission and the FederalMaritime Commission have agreed on some shippinglegislation proposals. 27

The Cover

Frota Amazonica’s TAPAJOS, specially designed for shallow-draft operationsin the Amazon River basin, loads at the Port of Houston. For a feature article onthis interesting line, see Page 8.

The Port of Houston MagazineEDWARD L. HORN, Editor CORA L. GUINN, Writer~PhotographerDON ZULLO, Associate Editor HILDA K. FLOWERS, Typesetter

THE PORT OF HOUSTON MAGAZINE (ISSN 0032-4825) is published by the Port of HoustonAuthority and is distributed free to maritime, industrial and transportation interests in the UnitedStates and foreign countries. This publication is not copyrighted and permission is given for thereproduction or use of any original material, provided credit is given to the Port of Houston.Additional information, extra copies or advertising rates may be obtained by writing the PORTOF HOUSTON MAGAZINE. Controlled Circulation postage paid at Houston, Tx. and atadditional mailing offices. Send address change to Port of Houston Magazine, P.O. Box 2562,Houston, Texas 77001.

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6 Port of Houston Magazine

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January 1982 7

| |l

|

Longshoremen swivel cargo for loading aboard the TAPAJOS

Frota Amazonica helping

in Brazil’s developmentTo an observer aboard one of

Frota Amazonia’s Brazilian flagvessels, commercial shipping alongthe Amazon River Basin offers a vistaunlike that of almost any other partof the world.

The hot, steamy ports of Belem,Manaus, Munguba and others alongthe swirling, twisting Amazon bustlewith activity 24 hours a day to satisfythe ever-increasing demand for heavyindustrial equipment and suppliesvital to the many major projectsalong the Amazon and interior partsof north and south central Brazil.

Immediately after off-loading in-bound cargoes, longshore crews beginloading outbound shipments of Brazilnuts, pepper, frozen fish, lumber andmany other products of the Amazonregion.

At night, when the master andpilots of Frota Amazonica’s vesselsskillfully navigate the ever-changing"Great River Gateway to SouthAmerica," the sounds differ fromthose along other waterways. Thenocturnal screams of birds andanimals that carry across the watersremind one that this is notDisneyland, but real jungle. Alongthe Amazon, snakes, crocodiles andman-eating piranha fish are real, notplastic.

This is the busy, teeming world ofFrota Amazonica, which will sooncelebrate its 13th year of providingthe only non-stop, direct project andgeneral cargo service from U.S.Atlantic and Gulf ports to theAmazon. In addition to the Port ofHouston, Frota regularly serves NewYork, Philadelphia, Norfolk, Savan-

Port of Houston Magazine

nah, Mobile and other ports as cargowarrants.

During the past 12 years, manydramatic changes have occurred innorthern Brazil as the "sleepinggiant" has awakened. The recentdiscovery of oil has, for example,created a market for equipment, sup-plies and technical assistance fromNorth America. Because the need forthese shipments is urgent, FrotaAmazonica has played a major role ingetting these cargoes to the Amazonthe fastest, most economical way.

Lawrence C. Rogers, vice presi-dent, liner division, of OmniumAgencies, Inc., New York, U.S.general agents for Frota Amazonica,cited an example of the advancedtechnology and versatility required ofthe carrier to insure safe, on-timedelivery of oil-related cargoes so vitalto Brazil’s industrial growth.

"Recently," he said, "we carried a3,000-ton knocked-down drilling rigfrom Houston to Manaus fordischarge onto barges and eventualtowing to Castanho in the interior ofnorth central Brazil. We also carrieda large shipment of oil well equip-ment to Manaus where our vesselrendezvoused with another vessel thatcame from Kuwait carrying aknocked-down drilling rig.

"Our people, together with thereceivers, worked in harmony in pla-cing the combined cargoes on bargesfor towing to Boa Vista in northernBrazil and later transport overland tothe job site just over the border insouthern Guinea.

6 6K.,,onsidering the approximate

30-foot change in water level on theAmazon and its tributaries, one canimagine the tremendous coordinatedeffort required by carrier andcustomer to accomplish this ratherdifficult logistical feat. We are pleas-ed to learn delivery was made withoutany major hitches," Rogers said.

"Mindful of the enormous growthpotential with particular emphasis onthe increased activity of oil produc-tion in and around the AmazonBasin," he said, "we are pleased tolend our vast expertise to our oil wellmaterial shipper and forwarderfriends in the southwestern part ofour country."

In addition to serving as the primecarrier of oil related cargoes from theU.S. Southwest, Frota plays a majorrole in carrying significant movements

January 1982

of other types of modern heavy in-dustrial equipment including earth-movers, road, bridge and tunnelbuilding machinery, plant construc-tion and forest-clearing equipmentand heavy vehicles to northern Brazil.

Rogers points out that Frota is theexclusive carrier to Munguba, the siteof the world famous Jari River pulp-producing project, the enormousundertaking carved out of the junglea few years ago by the innovative in-dustrialist, Daniel K. Ludwig.

As industrial and agriculturalgrowth has leapt forward in "FrotaCountry," so has the need for a greatvariety of machinery components andparts brought by the carrier to theManaus Free Zone for assembly andlater domestic distribution or exportas finished products.

What kind of vessels are these thatcarry such important cargoes in suchunpredictable waters? Frota ownsthree sturdy sister ships built in1973--the TAPAJOS, TOCANTINSand SOLIMOES. Specially designedfor shallow-draft restrictions on theAmazon, the 5,350 d.w.t, ships have255,000 cubic feet of space including50,000 cubic feet for refrigeratedcommodities. The vessels also have580 CBM deep tank space equippedwith heating coils and pumpingfacilities.

6 Key to Frota Amazonica’srecord of success over the years,"Rogers stated, "is our constant searchfor new and innovative ideasto assist our customers, the ex-perience and expertise of our ships’masters, and the flexibility of ourships.

"And because our vessels are soflexible," he added, "we are capableof calling at difficult, out-of-the wayports--for lower revenues than onemight expect.

"Frota Amazonica, S.A., theBrazilian-flag line, is proud of its rolein the development of Brazil’seconomy as the carrier of Americanproject and general cargoes toAmazon ports," Rogers said.

"Frota and the Amazon aresynonymous," he added, "and as theexperts in this trade route, we lookforward to serving our friends andfaithful supporters for many years tocome."

Wrote Amazonica, a conferencemember, is represented in Houston bythe Dalton Steamship Corporation.

II II

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SalOn ProjecULiner Services

Customstesting newplan at Cut

"Selectivity" may speed up clearance of cargo

By CORA GUINN

"Enforcement through selectivity"are the watch words for the ex-perimental computerized cargoclearance program launched recentlyby the U.S. Customs Service at thePort of Houston’s Barbours Cut Ter-minal. The program is designed to cutCustoms clearance delays from daysto two or three hours.

UNDER THE program, cargomoving through Barbours Cut can becleared by Customs before the arrivalof the ship. The manifest on the in-coming vessel must be filed five daysprior to its arrival.

"Our goal is to shift the burden ofcertain record keeping and otherresponsibilities from the control ofCustoms to the trade industry," saidDonald F. Kelly, regional commis-sioner of Customs in Houston."Steamship companies will be respon-sible for notifying Customs ofunenteredcargo, proper handling of manifestand certain in-bond documents, andproviding records to Customs forreview."

According to Kelly, the current ad-January 1982

ministration’s drive to reduce spend-ing and cut costs means Customs hasto do more work with fewer people."It has been estimated that thenumber of inspectors involved can bereduced by more than 60. The pro-gram will allow the inspectors morefreedom and more time for narcoticssearch and will enhance the overallenforcement efforts of the customsoffice," he said.

ALTHOUGH the shipping lines,brokers and forwarders will do muchof the required documentation,Customs will do "after-the-fact"selective audits of the companies’records just as the Internal RevenueService audits selected tax returnsrather than all of them.

According to Kelly, the goal of thetrade in Houston is to enhance theeconomic gains in the city. "We havecomplete faith in the industry and thepeople who handle the cargo," hesaid. "We do not anticipate grossnegligence nor a problem withdrugs." However, a penalty systemfor violation of the guidelines of thecomputerized cargo clearance pro-gram has been set up.

The three-month experimental pro-

gram began on November 15. Kellysaid it is too early to talk about theaccuracy rate of the program. "Thatrate would depend on the size andvalidity of the sampling. We estimatethe program to be 98 per cent ac-curate," he said.

ONCE THE study has been suc-cessfully completed, the Customs Ser-vice will seek authority to changeregulations on a national basis.

The "Model Seaport Program" hasthe approval of most of the shippingindustry. "Everybody in the tradeworks together. Any changes made inCustoms would be done in a par-ticipatory way. We have had meetingswith various interests and so far, sogood," Kelly said. It is the hope ofthe Customs office that as the ship-ping industry becomes more com-puterized, they will be capable of in-terfacing the computers and increas-ing the efficiency of the industry evenmore.

ASKED WHY Houston was chosento test the program, Kelly said, "If itworks at the Port of Houston with itsbooming shipping industry, it willwork anywhere."

11

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By CORA GUINN"The steamship industry today is

like the story of the late SupremeCourt Justice Oliver Wendell Holmes,who was boarding a train but couldnot find his ticket. While thedistinguished justice searched hispockets the conductor recognized himand said, ’You don’t need yourticket; besides you’ll probably find itlater.’ Holmes replied, ’The problemis not finding my ticket, but wheream I going’?"

CONRAD H.C. EVERHARD,president of Dart Orient Services,Inc., told that story to show the pre-sent state of the American maritimeindustry. He was the guest speakerrecently at a luncheon sponsored bythe Houston World Trade Associa-tion.

Everhard, center, chats with C.A. Rousser, right, director of trade development for the Port ofHouston Authority, and J. Daniel Culpepper, managing director of Gulf & Eastern Steamship andChartering Corp., before his speech.

Whither the steamship industry?Conrad Everhard outlines the problems in Houston speech

"We in the industry face a similarproblem," Everhard said at the con-clusion of the Justice Holmes anec-dote.

EVERHARD feels that there arethree main problem areas in interna-tional shipping. These are: U.S. anti-trust policies, labor relations and theUnited Nations Conference on Tradeand Development (UNCTAD).

"Our industry is an internationalbusiness. We do not make toothpastein New Jersey to sell in Texas. Weare now operating under a shippingact passed in 1916, and under anti-trust laws from the 19th Century. Noother nation involved in merchantshipping imposes laws such as theSherman Act on the activities of itstrade, its shipping or the conferencesin its trade because they realize it isonly half of the equation," Everhardsaid.

ACCORDING to Everhard, thereare several shipping bills before Con-gress. Most of them do not proposetotal deregulation, but rather "re-regulation."

Labor relations in the maritime in-dustry have always been complex andunstable. Since 1946 every labornegotiation has been impacted by astrike with the only exception being in1974. In 1980, Everhard said, historywas made when the maritime industry

was able to resolve its differenceswithout a strike.

"IN EACH instance of a strike-free negotiation, we had federal deci-sions which indicated that the Inter-national Longshoremen’s Associationwas ahead in the legal battle to winjudicial approval of the rules on con-tainers," he said.

"In 1980, the U.S. Court of Ap-peals for the District of Columbiaand the Supreme Court of the UnitedStates had both indicated approval ofthe general principles behind the ruleson containers, leaving it to the Na-tional Labor Relations Board todetermine whether these principleshad been properly applied to our in-dustry. This issue is far fromsettled," Everhard said.

The National Labor RelationsBoard took six months to assign thecase to an administrative law judge,Joe Harmatz, who has issued a100-page decision. He did not findthe ILA or the industry right on allcounts. "If it was a victory, it wouldbe called an 85 per cent victory,"Everhard said.

HOWEVER, Everhard pointed outthat the 100-page decision is not thefinal word. The next step is for theparties to file exceptions and take the

matter to the full five-man NationalLabor Relations Board.

On the horizon for every maritimenation is the UNCTAD code of con-duct for liner conferences providingfor very specific allocations ofcargoes. Everhard reminded his au-dience that the UNCTAD Code wasadopted only in principle in 1974,with implementation pending ratifica-tion by nations representing 25 per-cent of liner tonnage. That ratifica-tion is now near.

IF THE UNCTAD code is adoptedit will mean "one country-one vote.""I am sure you agree with me that acountry like the U.S. should dictateits own maritime destiny rather thanlet the United Nations do it for us,"he said.

In conclusion Everhard said, "Werequire the exchange of resourcesamong nations, be they the productof our intellect, our soil, our factoriesor our personal services, and we re-quire the removal of inefficient bar-riers to such exchange if we are tocontinue to satisfy our mutual needs.

"I’m confident that the ReaganAdministration will face this ongoingeconomic challenge and bring us froma spectator role to one of controllingour own course in shipping matters."

January 1982 13

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14 Port of Houston Magazine

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Get the facts, then let’s get together.Manchester Terminal and our affiliatedManchester Stevedoring offer threedocks for ocean-going vessels; accessto a fully-equipped container yard;open area storage for steel products andmachinery; storage warehouses forcotton, bagged and drummed goods;direct rail access to all warehousesand docks; stevedoring service for allcargoes. And there’s a lot more. Sendfor our comprehensive new full colorbrochure. See it and then see usfor complete cargo handling in thePort of Houston.

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January 1982 15

Port entertainsNew York Cityshipping groups

The Port of Houston Authority recently sponsored itsannual trade development luncheons at Club 21 in NewYork, which once again proved to be quite successful.Helping the Port Commissioners and staff to welcomeNew York’s "finest" shippers and forwarders werevarious county and city officials.

Hosts included Port Commission Chairman FentressBracewell and Commissioners Marcella D. Perry, JohnGarrett and Howard Middleton.

From the Port of Houston staff were: R.P. Leach, ex-ecutive director; C.A. Rousser, director of trade develop-ment; Basil Finn, general sales manager; Leon Utterback,eastern sales manager, and Jack Wojewnik, assistanteastern sales manager.

Representing the City of Houston were CouncilmenHomer Ford, John Goodner, Johnny Goyen, AnthonyHall, Christin Hartung, Ernest McGowen, Sr., LarryMcKaskle, Ben T. Reyes, Eleanor Tinsley and JimWestmoreland. County Judge John Lindsay and Commis-sioner Bob Eckels were also present. The pictures on thefollowing pages are identified from left to right.

Sheldon Tannen of the "21" Club accepts plaque from Bracewell.

Thomas A. Vroman, North American Maritime Agencies, accepts PHAGolden Armadillo Maritime Man of the Year Award from Utterback.

Garrett; Gene Campbell and Tom Yost, Sealand Service; Rousser; ArtNovacek, PRMMI.

Paul Hancock, Costa Line; Rousser; Lee DiPaci, World Wide Shipping;Dan Jonker, Boyd, Weir & Sewell; Frank Galatola, Dart Orient Services.

YI

Colin Braciley and Augie Grevers, New York Navigation; Bill Squicciarini,kes Co.

Bill Queenan, Incotrans; Mrs. Perry; Finn; Don Connell, AmericanOcean Freight.

Garrett, Ms. Hartung, Middleton, Mrs. Tinsley.

ii~ii: i~il,i~

Jim Bambrick, Hansen & Tidemann; Jack Chack, Ned Projects; SvendHansen, Hansen & Tidemann.

1 6 Port of Houston Magazine

Marilyn Perrone, Current Marine; Goodner; Rosemary Fisher, Chester,Blackburn & Roder.

Catherine Cole, Baltic Shipping; K. Khaustov, Amtorg Trading; John Grif-fith, Norton Lilly & Co.

Hank Darlak and Pat Davenport, Lummus Company; Ted Thorjussen,West Gulf Maritime Association.

Ed Wintle, Lone Star Industries; Mrs. Tinsley; Lang Tompkins, PotashCompany of America.

Carol Chrein, Great Waters of France; Rita Willoughby, Draco Marine;Judge Lindsay.

Tony Vinci, General Electric; Roy Ruckert, Gill & Duffus Chemical Co.;Bill Hennelly, Oasis Oil Co.

’~!i!~~~~ii~iiii ~i~i

Bill Dinah, Mitsui & Co.; Nat Padin, Amalgamet, Inc.; Roy Bradbury,Potash Company of America; Utterback; John Reynolds, Nichimen & Co.

Murray Finkel, SCA International; Henry Graebner, J.M. Huber Corp.;Harold Whitestone, Industrial Raw Materials; Dick Stout, Hercules Inc.;Standing: Jack Sherman, Pennwalt Corp; Carl MacDonald, U.S. Steel.

Rousser; Irving Heisler, BMT Commodities; Gloria Romero, Brown &Sites; Wojewnik.

Fred Schoenhut, C.E. Bickford Co.; Bob Cummings, General Foods; Ut-terback; George Leishman, General Foods; Leach.

January 1982 1 7

SOLID GOLD TO PERU.,~,~ ~o.~io~Breakbulk Service by the IndependentPeruvian-flag Carrier

NavieraNeptuno S.A.

Sailings every 14 days from Houston andNew.’ Orleans Direct to Callao.*

BIEHL & CO.U.S. Gulf General Agents

Houston New Orleans{713) (~88-77()() (5()4) 581-7788

* \(Idili<~l]~l[ []~.’t’tl~,iall poI’[~, L]I[ il]dLlq’t211]Cl](.

I

1 8 Port of Houston Magazine

Bob Virgulak, E.Z. America Ltd; IreneSeaboard Shipping; Art Viterito, Javco, Inc.

Powell and Dick Kramer, Jim Schwartz, Allied Chemical; Middleton; Albert Loser, Klockner, Inc;Ernest McGowen.

Frank Dougherty, Asarco; Finn; Charles Kane, Asarco; Wojewnik. John Dickey, Kanematsu-Gosho (USA); Linda Greishaber, GeorgiaPacific; Bernie Spiro, Reynolds Fastener Joe Misa, Georgia Pacific.

F. Sarola and E. Sarola, F. Henjes Co; J. Wojewnik. K. Masina, Karr Ellis; Milosevich, Mangili Shipping; Fran Ligotti, FranligForwarding; P. Favre, Unsworth & Co.; A. Merola, Franlig Forwarding Co.

T. Kramer, B D P International; D. Wittkamp, Cobal Forwarding. J. Grimando, E.A Esposito; J. Hill and D. Harbin, Phoenician Transport;T. Hill, Elof Hansson Inc.

Wojewnik; Doris DeVito, Dyson Shipping; S. Palumbo, Behring Interna-tional; J. Gennarelli, Dyson Shipping.

McGowen, Goyen, Westmoreland, Reyes.

January 1982 1 9

Jacintoport

, ::i~ iii~Dockside Storage Area for Project Shipments -Goodpastu re Terminal

ii

Roll-on Roll-off Ramp

Heavy Duty Barge Crane Available

1606 Clinton Drive, Galena Park,TX 77547 (713) 672-8385Jacintoport (713) 452-4591

Container On-Off Loading

We’ve expanded and modernizedou r two private terminals to morequickly handle ships with up to 38’draft. Special equipment and facil-ities include five 300-ton cranes, adockside crating complex, and aroll-on, roll-off ramp.

Containers, general cargo, roll-onroll-off, heaw lift and bulk loading.Shippers Stevedoring can handle anyjob you have. And we can handle itanywhere in the Port of Houston.

For project shipments, we offer adockside storage area of 40 acres.

Whatever you have to ship, wher-ever you need it done, put the load on us.

SHIPPERSSTEVEDORING

COMPANY

Five 300- Ton Mobile Cranes

Modular Home Capabilities.

Jerry McManus, PresidentB.M. "Bruno" Salesi, Manager

Ted Dugey, Jr., Jacintoport Manager

2 0 Port of Houston Magazine