Washington, DC - After years of working with the Port of Houston, the U.S. Department of Agriculture (USDA), the International Longshoreman’s Association and commodity suppliers, U.S. Rep. Gene Green (D-Texas) has succeeded in bringing additional bid points to the Houston Ship Channel. This means shippers contracted by the United States government to deliver food aid to foreign countries will now be able to choose whichever Ship Channel terminal best suits their needs, reducing their costs and passing savings on to taxpayers.

“This change will make the process of moving foreign assistance through Houston more transparent and less costly,” Green said. “This is good news for the Port of Houston, the government, the commodity shippers and people around the world who desperately need the food that moves through our port,” he added.

Until 2001, USDA didn’t differentiate between the various terminals along the Houston Ship Channel, so commodity suppliers simply submitted bids via “Port of Houston.” Although each terminal’s operating costs and fees were different, commodity suppliers factored in the highest possible costs when submitting bids regardless of which terminal was actually used.

From 2004 until now, the Houston Pilot Program was implemented which established separate bid points for the Barbour’s Cut and Turning Basin receiving locations. Now, the Pilot Program has been cancelled and shippers will choose from among twelve terminal bid points.

H. Thomas Kornegay, executive director of the Port of Houston Authority, said the new process would provide freight handlers the opportunity to work directly with commodity suppliers in quoting their rates and services, and that interaction would result in more efficient management of transit shed space.

“We believe this process will provide the lowest landed cost in the handling of USDA products through the Port of Houston and subsequently benefit the taxpayer and those countries that have the greatest need for our products,” Kornegay said.

The policy change took effect with the invitation for bid points issued January 23.