Port of Corpus Christi OKs 50-year lease with joint venture

Lone Star Ports, a joint venture between the Carlyle Group and Berry Group, will lease about 200 acres on Harbor Island to develop a petroleum export terminal.

   The Port of Corpus Christi Commission on Thursday approved a 50-year lease agreement with Lone Star Ports, a joint venture between the Carlyle Group and Berry Group, for about 200 acres on Harbor Island to develop a petroleum export terminal.
   The proposed crude oil export terminal project — valued at $1 billion, according to Reuters — was first announced in October. The terminal will have two docks with access to an improved 56-foot ship channel depth upon its completion, which was expected to be in late 2020, according to the initial announcement.
   The U.S. Army Corps of Engineers earlier this year awarded a $92 million construction contract to Great Lakes Dredge & Dock Co. to deepen and widen the Corpus Christi Ship Channel to 56 feet at the entrance to Harbor Island and 54 feet throughout the rest of the harbor. The deepened channel will make the terminal capable of fully loading Suezmax vessels and nearly loading very large crude carriers, the Port of Corpus Christi said Thursday in a press release.
   Civil work for the facility re-purposing project, such as the demolition of existing dock structures, have already been underway ahead of the finalization of the definitive lease agreement, the port said. The execution of the lease enables the parties to commence equipment and materials procurements and other construction efforts, according to the press release.