Houston gains increased bid points for U.S. food aid cargoes

Houston gains increased bid points for U.S. food aid cargoes The Port of Houston has received U.S. Department of Agriculture approval to expand the number of bid quote points for handling food aid shipments from two to 11.
   The expanded bid points are expected to improve efficiencies and lower costs in the bidding, handling and shipping procedures for food aid from the port.
   “This process provides the freight handlers the opportunity to work directly with the commodity suppliers in quoting their rates and services,” said H. Thomas Kornegay, executive director for the Houston port authority, in a statement.
   The new program transitions from a pilot program started at the port in 2004. Prior to the pilot, the costs related to getting food aid cargo to Houston and unloading it onto the dock were completely borne by the commodity vendor bidding on the project.
   Also under the former system, the port’s turning basin was one of only two bid points recognized by the USDA, even though the shipments could pass through any number of other terminals located in the port.
   “The uncertainty of where the cargo would land resulted in bids that were based on the highest handling and wharfage rates available,” the Houston port authority said. “The pilot program provided some relief by shifting the unloading and terminal handling costs to the steamship lines, which had greater control over where shipments would be routed.”
   The expansion will allow bids to come directly from (Turning Basin) Richardson, Cooper/T. Smith Stevedoring, J.J. Flanagan, Commodity Solutions, Ports America, Shippers Stevedoring, and Empire Stevedores; (Care Terminal) Coastal Cargo of Texas; (Jacintoport Terminal) Jacintoport International; and (Barbours Cut Container Terminal) Shippers Stevedores, and Cooper/T. Smith Stevedoring.
   Under the program, the port said each freight handler has direct communication with USDA and each stevedoring company bids directly to the commodity vendors. The costs of shipping and handling will continue to be borne by the commodity vendors.
   “From this interaction, the freight handlers will also be able to manage their transit shed space more efficiently and effectively,” Kornegay said. “We believe this process will provide the lowest landed cost in the handling of USDA products through the Port of Houston and subsequently benefit the taxpayer and those countries that have the greatest need for our products.”