Home of Today's Common Sense

Published Brownsville Herald 12/26/2004
I have been watching the news and opinions, relating to the way our public officials have wasted our tax money. The Brownsville Navigation District in particular popped to the top of the dubious list in Rosendo Garza’s letter to the editor- “Don’t throw good money after bad”!
As it happens, however there are many real folks that depend on the businesses and facilities that are part of “The Port”. I would like to see an amount of focus placed on how we might benefit from the information gained from the painful process.
The Navigation District suffered a great loss with the sudden departure of “Mr. B”. Not having, his understanding of public finance, the enormous personal resources he could bring to bear on the problems he faced, and his broad personal influence in the community and other parts of the government, will be felt for some time to come.
I was once told that the Chinese character for disaster is also the same as for opportunity. I would suggest that in this disaster, we take the opportunity to evaluate and define what the port business is, what the functions are and how we can best evolve an entity in a niche that will foster community and business growth while operating in an efficient and self sufficient manner. We need to know what we can do or offer that will inspire new business.
In considering this, I spoke to a number of local businessmen who depend on the viability of the port as well as the former Port Director, Jim Kruse. Unfortunately, a request addressed and hand delivered to Chairman Mr. Peter Zavaletta, went unanswered.
The Navigation District is more than just a Port and a Railroad; it is a living – breathing center of commerce. In 2003 the Port realized approximately $8.9 million in revenues on operating costs of approximately $6.2million. Depreciation on buildings and equipment accounted for $2.2 million. It appears that the contributions from taxes just about equaled the costs associated with debt service (bonds). Of the operating revenues 56% were related to cargo operations and the rest were mostly related to property leases.
Within the port there are a large variety of businesses that you would expect: tug boats, barge services, chemical and petroleum storage, warehousing, stevedoring, vessel supplies etc. all paying rent and contributing to the viability of the port and the growth of the community. There are also a number of other businesses that I believe take advantage of things that we can do better than other ports. They in my mind fall into a classification of “value added” businesses. There are manufacturing companies that support the maquiladora plants, and other processors that utilize the tax deferral status of imported goods of the Free Trade Zone ( an area, for Customs Purposes, is considered outside tariff territory thereby allowing manipulation or repacking of imported merchandise before tax is paid or it is exported. Manufacturing can also be accomplished in a Free Trade Zone prior to duty assessment and payment. )There is also vessel / oil rig repair yard.
One of better examples are those that recycle old ships by taking them apart and helping to put the usable materiel back into use. These companies use the specific mechanical skills that seem to abound in the area and meet stringent environmental rules. That means that so many of our folks that have these exceptional skills can work at home and don’t have to leave to find work in shipyards elsewhere and that the recycling of vessels a bit past their prime does not have to be outsourced to places like India where the ecology is not considered so scrupulously.
I would like to suggest that we rethink our Port identity and how we can enhance our opportunities by taking advantage of the unique things we do have by sponsoring a full scale workshop to evaluate how the Port’s business should exist and move forward to the future. Because it has run the same way for many years does not mean it cannot evolve into something better.
In my mind and in some others I spoke to, one of the major functions of the Navigation District is that of an “Infrastructure Developer” encouraging transportation systems to support Port facilities and the community, and it was in that direction that in the 1990’s or thereabouts an effort was begun to secure a bridge between Mexico and the Port facilities. At the time the heavily loaded and physically large trucks carrying industrial goods to and from plants in Northern Mexico posed a safety hazard and an enormous amount of congestion at the bridges. It was felt that a bridge directly into the port would take this traffic from the down town streets. While the new Los Tomates Bridge reduces the congestion, I am still convinced that a truck bridge would enhance the Port’s business and fulfill a real need. With regard to the viability of a rail bridge to the port, it seems that if approved it would require a 35 mile belt of railroad track around Matamoros and it is perceived by some in Mexico that this would be a “belt of poverty” in the proximity of the tracks. While it might be a plus to the business in the Port, I think that in consideration of the West Rail project, the overall interests are addressed to a major extent by the new rail location.
I for one, envision a regional approach to the transportation development, something in the way of the Port Authority of New York and New Jersey. Who would have thought that two such divergent political entities could reach an accord. Perhaps the political leaders / voters of Harlingen, Port Mansfield, Port Isabel, and Brownsville could name an over all board that would select transportation professionals, protected from political interference by a civil service type system. They would manage an over all regional approach that would provide for future needs of the needs for maritime, rail, air and bus transport as well as the existing infrastructure as a region not trusting that crumbs will fall off one plate or another.
Such a plan might position passenger vessel facilities in Port Isabel and container freight operations closer to the mouth of the ship channel leaving the interior of port to accommodate businesses, vessels and freight that are not time sensitive and can benefit from value added processes. It also might focus facilities that are more suitable to inland movement and processing in Harlingen.
I would like to caution in the thinking, that a goal as important in priority as improving the business base, is self-sufficiency! The Navigation District should not ask the Tax Payer for a penny. That money is needed much more for the education of our children. Perhaps then some of the administrations credibility could be regained.