July 2017 Commerce Club
By Judith Schultz, GHPB
“Houston has so much business in its backyard, everyone wants a piece of it,” said Matt Fleming, Vice President of Business Development at TGS Cedar Port Industrial Park, to the July 13 Commerce Club attendees at Brady’s Landing.
Outlining the focus TGS Cedar Port has on serving the polyethylene (P/E) market, Fleming related aspects of the economic drivers of the market that benefit the Texas Gulf coast, a summary of the TGS company, and the Cedar Port site characteristics. Fleming showed an EIA (Energy Information Administration) map of ethylene crackers on the Texas and Louisiana Gulf coast. “Houston,” said Fleming, noting that the graphic particularly pinpointed 16 cracking facilities ranging from Freeport to Lake Charles, “is at the center of the market.”
Developments related to the P/E industry include Venezuela-based PBP, Inc., settling at Cedar Port in 2015 on 50 acres with a 312,000-square-foot warehouse. The company provides turnkey resin bagging, packaging and storage services to the resins market. Another 1,000,000 in square footage is planned for the future. Ravago Americas is nearing completion of a fully integrated plastic resin campus at Cedar Port, including a 750,000-square-foot warehouse. Developments with additional P/E industry-related companies are in the works.
Cedar Port history harkens back to around 1950 when the land was purchased and developed by U.S. Steel, with plans for up to six steel mills. TGS (Trans-Global Solutions, Inc.) formed a partnership that purchased Cedar Port Industrial Park in 2014. Already home to a variety of enterprises, including massive distribution warehouses for Walmart and Home Depot, TGS Cedar Port looks to continue infrastructure expansion and offer diverse site availability.
Cedar Port’s multiple capabilities include dual rail service through Union Pacific and BNSF, approximately 2400 working railcar storage spots, multiple 135 car unit train interchange, and railcar cleaning/transloading. Railcar spots are expected to expand to 3,000 by first quarter 2018. Their Cedar Bayou location offers access to the Houston Ship Channel and 3-hour barging to Barbours Cut and Bayport terminals. The park is in the pipeline corridor and offers connections in close proximity to barge docks. Deepwater docks are in design.
“The real take-away here is that we are all in it together,” Fleming quipped while summing up his presentation. “We need to fight for the region!”
The session closed with a Q&A that touched on Cedar Port development opportunities, such as the potential to deepen/widen Cedar Bayou and rail expansion.
Editor’s Note: Andrew Lipow, President, Lipow Oil Associates, will be the featured speaker at the Commerce Club on September 14, 2017. Individual seats and table sponsorships are available. Reserve your seat at www.txgulf.org/commerce-club or by calling (713) 678-4300.
- Date September 6, 2017
- Tags Aug.-Sept. 2017