GBCPA Press Release
FOR IMMEDIATE RELEASE  
June 6, 2003
CONTACT:      Katie Chimenti, 281-326-3343
Larry Tobin, 281-326-1687         

 

Port Bad Faith Challenged
 


The Port of Houston Authority's projected costs for developing a container terminal at Spillman's Island are emerging as manipulative and misleading, according to the Galveston Bay Conservation and Preservation Association (GBCPA).
    "Truth is elusive in some fields, but not in engineering," said Larry Tobin of GBCPA. "Stabilization is a routine procedure that does not depend on unknowns such as market conditions.  Engineers know how much drainage costs, and they know how much fill dirt costs. This is why the Port's excessive projections have been so sharply challenged."
    The 900-acre island in the Houston Ship Channel is a dredge spoil disposal area and is among the potential alternative locations for the Port's proposed Bayport container terminal. Unconsolidated material on the island site would need stabilization to prepare it for port construction.
    An independent analysis, conducted by the engineering firm S&ME, Inc. and released in May by the Harris County Infrastructure Department, shows Port figures to be inflated by at least 50 percent. The average cost the new assessment gives for two-year stabilization of Spillman's Island would be $160,000 per acre. By contrast, the Port's current estimate is an average of $258,750 per acre, which is 58 percent higher.

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    Critics have long argued that the Port's figures were outlandishly high, serving only to dismiss Spillman's Island as a possible alternative to Bayport. Harris County commissioned the new study under pressure from watchdog groups, precisely because of repeated challenges to the Port's estimates of costs at Spillman's Island.
    "We have already seen the Port's figures drop by half, from their initial outrageous estimate of $600,000 per acre, with no clear explanation," Tobin said. Last year the Port told State Representative John Davis in a letter that stabilization costs at Spillman's would range between $297,000 and $428,000 per acre.
    "But now we learn from S&ME that $160,000 is a realistic number. By this stage, the Port's credibility is at rock bottom," he said.
    Tobin pointed out that the conservative assumptions in the new S&ME study may mean that even $160,000 is an overestimate, because these consulting engineers systematically used higher numbers where there was a choice. For example, fill material in large quantities generally costs $3.00-$5.00 per cubic yard, but S&ME used a price of $5.50.
    Similarly, their projection involved purchasing at once all required temporary "surcharge" material (used to achieve compaction). More likely less would be needed because work would occur in phases, re-using the same surcharge material on different sectors of the site. A third possible savings factor would be resale of the surcharge, not assumed by S&ME.
    "Now we know that the critics have been right all along," said GBCPA Chair Jim Blackburn. "The inflated numbers for Spillman's Island were apparently designed to make that site seem unfeasible, so as to bolster the case for Bayport. This is not the action of an agency operating in good faith. It is sheer manipulation."

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    A recent presentation by Port spokesman Charlie Jenkins underscored the Port Authority's disregard for Spillman's Island as a contender, noted Tobin.  Speaking at a joint May meeting of the citizen-industry advisory panels known as BAYCAP and SEACAP, Jenkins claimed it would take five to seven years to develop Spillman's Island. This is countered by the S&ME analysis, which indicates that stabilization could be accomplished in two years.
    "Jenkins revealed the port's real position when he expressed his belief that even if there were no geotechnical cost, Bayport would still be their preferred site," Tobin said. "The Port seems determined to reject the island site even though it has far lower environmental and community impacts than Bayport."

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Galveston Bay Conservation and Preservation Association
P.O. Box 323, Seabrook, Texas 77586
Phone: 281-326-3343
Website:
www.gbcpa.net
E-mail:  gbcpa@ev1.net