ASSESSMENT OF THE TEXAS DEEPWATER TERMINAL

The results of a study conducted to assess the vitality of a Texas deepwater port are presented. The two major issues in the study were the financial feasibility of such a project and the role of the state of Texas in its development. A deepwater oil terminal at Freeport, Texas, would greatly influence refinery activity along the Texas Gulf Coast. An analysis of many factors indicates that predicted demands for crude oil in the Gulf Coast area would justify a 0.6 million cu m/d (3.75 million bbl/d) facility. A facility of this size would provide an average transportation cost saving of $3.78 cu m ($0.60/bbl) through the use of very large crude carriers instead of smaller tankers. Over a 30-year pay-out period, given operating costs of $3.3 billion and a capital investment of $1.2 billion (1980 dollars), a projected total cost saving of $18.4 billion would be realized. The construction and operation of the offshore terminal facility are expected to bring economic benefits to the local area. The number of jobs that would be created by the offshore terminal and the related expansion of the refinery and petrochemical industry would provide increased opportunities for employment. Use of supertankers instead of conventional small tankers would reduce the number of collisions in the vicinity of ports and harbors. Depending on the average size of the operating fleet, the probability of a collision for supertankers could be one-sixth that for smaller vessels. The results of the analysis indicate that an offshore deepwater terminal on the coast of Texas is practicable. /Author/

Media Info

  • Media Type: Print
  • Features: Figures; Maps; References; Tables;
  • Pagination: pp 7-14
  • Monograph Title: Inland waterway user charges, port development, and research methodologies
  • Serial:

Subject/Index Terms

  • Subject Areas: Highways; Marine Transportation; Planning and Forecasting;

Filing Info

  • Accession Number: 00301063
  • Record Type: Publication
  • ISBN: 0309029503
  • Files: TRIS, TRB
  • Created Date: Nov 27 1979 12:00AM