Port Commissioners approved a 25% reduction in the Port of Corpus Christi Authority security surcharge on wharfage and dockage effective April 1, 2011. The reduction will provide an estimated $900,000 cost savings to our customers and help the Port maintain a competitive advantage. “The Port is always looking for better ways to serve our customers. Reducing the security surcharge will not cut security efforts or personnel.” said Mike Carrell, Port Commission Chairman.
In response to the September 2001 terrorist attack on the United States, ports around the nation increased security efforts to better protect their facilities. These increased security efforts required significant investment of capital funds and increased operating costs. On June 8, 2004, the Port of Corpus Christi Authority established a security surcharge of 10% to be added to all dockage and wharfage billing to our customers. This surcharge helped to cover approximately 60% of the Port’s total security costs. The surcharge was increased one-half of one percent each year up to a maximum of 12% in January 2008. The surcharge was then lowered to 10% in January 2009, which is the current rate. The 10% surcharge was projected to provide approximately $3.6 million in revenues for 2011. The action taken today will reduce the security surcharge from 10% to 7.5%.
A number of important events have taken place in the last six months allowing the Port to reexamine this charge. These events include a continued effort to reduce port expenses and a forecast for increased revenues from the Port’s diversification actions, the implementation of an early retirement program during the latter half of 2010, a layoff of mid-level managers, and numerous other cost reductions.
Port Commissioners recently approved several leases and options for new facilities along the Fulton Corridor that will bring new investment to our community and increase Port revenues. These include a lease for a new export terminal for coal, a long-term lease for the public grain elevator, renewal of a Navy Ship mooring contract, and two lease option agreements for new bulk liquid export facilities. Last month, the Port Commission also took two separate actions related to the sale of the Naval Station Ingleside property that will add to our revenues.