Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Port of Corpus Christi becomes global crude oil supplier; Port of Brownsville secures $43M loan for ship channel expansion; US Lumber Brokers acquires Texas distribution center; and Holt Truck Centers expands across Texas with acquisition.
Port of Corpus Christi becomes global crude oil supplier
CORPUS CHRISTI, Texas —The shores along the Corpus Christi Ship Channel are lined with massive storage tanks, grain elevators and oceanbound vessels docked along the 34-mile blue-green waterway.
Since Congress repealed the crude oil export ban in 2015 and allowed U.S. crude oil to be sold on the world market, the Port of Corpus Christi has become a global crude oil refinery hub.
The port is the largest exporter of oil and fuels in the U.S. and the third-largest exporter of crude oil in the world, behind the top-ranked Ras Tanura port in Saudi Arabia and the Basrah Oil Terminal in Iraq.
The Port of Corpus Christi is also the top U.S. exporter of liquefied natural gas.
“I started here in 2015, when the Obama administration lifted the export ban, and I saw the first vessel sail out of Corpus Christi with the first load of domestic crude headed to an international market,” TJ Gonzalez, the port’s commercial and business development manager, told FreightWaves during a media event on Oct. 11. “Since then, our crude oil exports have increased 17 times; it’s what has put us on the map, being the No. 3 export gateway for crude oil in the world.”
The Netherlands is the top crude oil export market for the Port of Corpus Christi, followed by several other European and Asian countries.
The ship channel, which extends into the Gulf of Mexico, has helped the port export crude oil globally at an increasing rate, moving 33.5 million tons during the third quarter, a 3% year-over-year increase.
During the third quarter, the port achieved a quarterly record with 53 million total tons of freight moved. There were also smaller increases in volumes for refined products, liquefied natural gas and dry bulk goods, according to a news release.
Through the first eight months of the year, trade at the Port of Corpus Christi increased 9% year over year to $60.29 billion, compared to the same period in 2023, according to Census Bureau data compiled by WorldCity.
“Two of our larger oil customers are Enbridge and Gibson Energy,” Gonzalez said. “Enbridge roughly moves about 950,000 barrels per day, with Gibson moving an additional 500,000 barrels per day, and then the rest of our midstream partners make up the difference. That builds up to 2.5 million barrels per day at the port.”
The port recently kicked off the fourth and final portion of its $682 million project to deepen the ship channel to 54 feet. The project is scheduled to be completed next year.
The aim of deepening the channel is to move vessels carrying millions of gallons of crude oil and other commodities faster and more efficiently, Gonzalez said.
“By this time next year, from the Gulf of Mexico all the way through the inner harbor, we will be at 54 feet … and we look at sail times from this area here to deep water, you’re looking at about a two-hour sail time on a large crew carrier,” Gonzalez said. “When you look at our benchmark against other ports throughout the Gulf Coast, those times are maybe eight to 10, 12, to 15 hours. Shipping agents like to be able to get the ships into deep water and be able to get them out and get to the next destination quicker.”
Port of Brownsville secures $43M loan for ship channel expansion
Aiming to lure larger commercial vessels to South Texas, the Port of Brownsville announced it has received a $43 million loan that will enable it to move forward with its Brazos Island Harbor Channel Improvement (BIH) project.
The funds from the Texas Department of Transportation will go toward deepening the 17-mile-long Brownsville Ship Channel from 42 feet to 52 feet.
“This infrastructure investment will strengthen the port’s competitive advantage as the leading maritime hub in South Texas and support economic development for the region,” Port Director and CEO William Dietrich said in a news release.
The BIH project is funded through a public-private partnership involving the U.S. Army Corps of Engineers, the Port of Brownsville and liquefied natural gas developer NextDecade.
The total cost of the BIH project could be around $300 million. The work is estimated to be completed by the end of 2026.
Located 277 miles south of San Antonio at the southernmost tip of Texas along the Gulf of Mexico, the Port of Brownsville is the only deep-water seaport located along the border, making it a major trade channel between Texas and Mexico.
US Lumber Brokers acquires Texas distribution center
US Lumber Brokers has acquired a 20,000-square-foot distribution center in Del Valle, Texas.
The acquisition is part of the company’s expansion efforts in the Texas market, according to a news release.
“This acquisition not only expands our operational footprint but also reinforces our commitment to providing the highest quality lumber and specialty products to our customers,” Isabel Rodriguez, vice president of US Lumber Brokers, said in a statement. “With this new facility, we are well-positioned to meet the growing demand in the industry.”
Terms of the transaction were not disclosed.
US Lumber Brokers is headquartered in Austin, Texas, about 8 miles west of Del Valle. The company supplies and distributes wood products from around the world.
Holt Truck Centers expands across Texas with acquisition
San Antonio-based Holt Truck Centers has acquired Kyrish Truck Centers, expanding the company’s footprint in Texas to 35 locations.
The acquisition makes Holt Truck Centers the nation’s third-largest dealer of heavy trucks made by International Motors, according to a news release. Terms of the acquisition were not disclosed.
Houston-based Kyrish Truck Centers is a family-owned and -operated company founded in 1976. The firm sells medium-duty, heavy-duty and severe service-duty trucks, and is a dealer for IC Bus vehicles as well as International Motors.
The 550 employees of Kyrish Truck Center will become employees of Holt Truck Centers and will continue to operate from their current locations.
Holt Truck Centers provides full service, rebuilds and parts for all makes and models of on-highway trucks. The company also sells new and used on-highway trucks and trailers.
The post Borderlands Mexico: Port of Corpus Christi becomes global crude oil supplier appeared first on FreightWaves.
