The Port of Corpus Christi hopes to secure a deal with DP World to develop a container terminal.
The port and DP World have entered into an exclusive negotiation agreement to finalize a deal within the next year.
Port CEO Kent Britton said that DP World was the first of two container companies to reach out to the port 18 months ago. This interest is a result of the ship channel improvement project and the Harbor Bridge project allowing for larger vessels to arrive at the port, Britton said. The port is also considering an off-site railyard near Robstown.
“It’s … a great sign that Corpus is open for business,” Britton said of the container terminal project.
Britton said that despite the area’s water crisis, he believes the potential container terminal deal shows that there is still room for economic growth in industries without high water demands.
The terminal, which would be located where the port currently has warehouses near Harbor Drive in Corpus Christi, would have a capacity of nearly 1 million 20-foot equivalent units annually. That is about a quarter of the container volume handled by the Port of Houston, according to Britton.
DP World “handles approximately around 10% of global container traffic each year through a network of more than 100 ports and terminals worldwide,” according to a news release. The Corpus Christi project would be the company’s first container development project on the Gulf Coast. The company was founded in Dubai.
If the deal goes through, DP World would design, build and operate a new container terminal on land owned by the port. The port would build the dock structure. The port is also considering a new turning basin outside the Inner Harbor to allow for the largest class of container ships.
Britton estimates the port’s investment alone would be in the range of $250 million.
“Final terms have not been agreed to, but we both are far enough along now that we think we can focus on this opportunity,” Britton said.
A final deal would need approval from the port commission.
DP World and the port have both completed feasibility studies of commercial viability, Britton said.
Britton hopes the first boxes would move through the terminal by the end of 2029.
He said that a container terminal would attract manufacturing in the region of Texas and Northern Mexico.
Currently, the vast majority of the port’s tonnage is liquid oil and gas.
A container terminal would represent a “significant diversification” for the port, Britton said.
In a news release, DP World in the Americas Chief Executive Officer Brian Enright said that the company looks forward to working with the port authority, local labor and other stakeholders to “deliver a world-class terminal that supports job creation, attracts new trade flows, and generates long-term economic value for South Texas and the broader U.S. economy.”
“Corpus Christi represents an opportunity to strengthen supply chain connectivity, attract new trade, and support long-term economic growth in South Texas,” DP World in the Americas chief operating officer Morten Johansen said in an email statement shared via a port spokesperson.
“While we remain in the exclusive negotiation phase, we believe the region is uniquely positioned to become a major trade gateway that can attract investment, expand cargo capacity, and create new opportunities for the region.”
Olivia Garrett reports on education and community news in South Texas. Contact her at olivia.garrett@caller.com.
This article originally appeared on Corpus Christi Caller Times: Port of Corpus Christi negotiating container terminal project
Reporting by Olivia Garrett, Corpus Christi Caller Times / Corpus Christi Caller Times
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By Olivia Garrett, Corpus Christi Caller Times | USA TODAY Network
