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Maritime Economic Development: Corpus Christi, Everett, Kalama

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The first structural components for construction of Austrian steel-maker voestalpine, Texas $750 million manufacturing facility arrived August 19 at Port Corpus Christi’s cargo dock 9 on board the MV BBC Zarate. The Port of Everett has signed one new lease and renewed three additional leases to bring to 70 percent the occupancy of the Waterfront Center, a port-owned facility housing marine-related businesses and retailers. Northwest Innovation Works and Williams’ Northwest Pipeline have signed a pre-construction agreement for a 3.1-mile pipeline lateral to feed natural gas to the $1.8 billion NWIW methanol production facility planned for the Port of Kalama.

First Structural Components for voestalpine, Texas HBI Project Arrives at Port Corpus Christi 

The first structural components for the construction of the voestalpine, Texas facility arrived August 19 at Port Corpus Christi’s cargo dock 9 on board the MV BBC Zarate. The initial shipment consisted of 2200 tons of structural steel for the reformer building and for the furnace tower, including welded steel columns, frames, beams and bracings.

Expected to be operational by first quarter 2016, the Austrian steel and technology group’s $750 million facility at Port Corpus Christi’s La Quinta Trade Gateway will utilize natural gas from the South Texas Eagle Ford Shale in the production of high quality Hot Briquetted Iron (HBI). The iron will be processed to remove impurities resulting in HBI that will ultimately be used for high quality sheet steel for high end automobiles among other applications. 

Approximately half of the HBI will be exported to voestalpine’s steel-making plants in Linz and Donawitz, Austria. The rest will be sold to international customers and placed in voestalpine’s strategic reserve. 

Approximately 1,000 jobs are anticipated to be created during construction of the facility. Once operational, voestalpine Texas will employ 150 full-time staff.  

Everett Port’s Waterfront Place Center Adds Tenant, Renews Other Leases

The Port of Everett has signed a new lease and renewed three more for its Waterfront Center facility, bringing the building to 70 percent occupied. 

In July, the port commission authorized a new five-year lease with Eagle Home Mortgage to occupy 1,168 square feet of office space located on the first floor lobby of Waterfront Center. The new lease is expected to support 10 jobs at the site.
 
Bluewater Distilling, known for its organic vodka and gin products, has signed a new five-year lease to nearly double its footprint at the Waterfront Center and add a flag-ship restaurant and designer cocktail lounge. The larger space will also provide room for an additional copper distilling operation. This winter, Bluewater will be relocating from its current warehouse space in Waterfront Center to its new 4,790 square foot retail space on the northwest side of the building. 

Ocean Research College Academy (ORCA), an early college high school academy through Everett Community College, has also signed a new five-year lease to expand its footprint in the building. ORCA plans to extend its current space by an additional 1,600 square feet, which will allow ORCA to accommodate nearly 50 percent more students with two additional classrooms and a meeting space. The space is expected to be ready for ORCA’s fall quarter.

With ORCA’s expansion, neighboring tenant ISIS Holdings has signed a new one-year lease to relocate its office to a more prominent location in the building. The corporate security provider will occupy 929 square feet on Waterfront Center’s first floor lobby and expects to move into the new space in August. 

The  Waterfront Center opened in 2011 and rents to marine-related services, office and retail users that support the Craftsman District. It also houses the port’s administrative offices. The Craftsman District is one of five districts within the new Waterfront Place Central development. This new mixed use neighborhood will bring additional tax revenue, jobs and activity to the waterfront. Construction on the first phase of this renewed project kicks off this month, with vertical construction expected in early 2016.

The Waterfront Center at the Port of Everett.
Photo/Port of Everett

Kalama: Pre-Construction Agreement for Pipeline Lateral to Proposed Port Facility

Northwest Innovation Works (NWIW) and Williams’ Northwest Pipeline have signed a pre-construction agreement for a 3.1-mile pipeline lateral that would deliver natural gas to the $1.8 billion NWIW methanol production facility planned for the Port of Kalama

The facility will be located at the port’s North Port Marine Terminal and will manufacture methanol for export to Asia, where it will be used to produce olefin.

Permitting for the facility is also moving forward. NWIW has hired a firm to provide environmental and permitting expertise for the project. Under a separate contract, the same firm will also assist the Port of Kalama with the permitting activities that fall under the port’s purview.

In 2012, Northwest Pipeline filed an application with the Federal Energy Regulatory Commission (FERC) to build a pipeline to the port property for another project that was not completed. As part of the agreement with Northwest Innovation Works, Northwest Pipeline will re-file its original application with FERC for authorization to construct and operate a new 3.1-mile, 24-inch diameter pipeline and other facilities to deliver the necessary volumes of natural gas to the methanol facility. 

"We look forward to working with NWIW and the Port of Kalama and believe the project offers exciting new potential market opportunities that will benefit the community and Cowlitz County," said Allison Bridges, senior vice president of Williams’ western operations, including Northwest Pipeline. "As the project moves forward, we’re committed to building lasting relationships with stakeholders and the community." 

NW Innovation Works is a multi-national partnership planning methanol production facilities in the Pacific Northwest.  Major investors include CECC and Dalian Xizhong Island Petrochemical Industrial Park Development Co., Ltd.

Tulsa-headquartered Williams Northwest Pipeline, a wholly owned subsidiary of Williams Partners, is a 3,900-mile gas transmission system crossing the states of Washington, Oregon, Idaho, Wyoming, Utah and Colorado. The bi-directional system provides access to British Columbia, Alberta, Rocky Mountain and San Juan Basin gas supplies.
 

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