The United States is the second largest chemical producing country in the world (behind China). Texas is the nation’s top state for chemical production and export. The entire Gulf Coast Region which includes Houston, is noted for the extraction and refining of oil from which essential base materials are produced for use in chemical manufacturing.
Chemical products such as fertilizers, paints, and lubricants start from petroleum derivatives such as ethylene, ethane, and methanol. Chemical exports from Texas are valued at nearly $40-billion and the state’s local quotient (LQ) from 2021 showed that chemical production in the Longhorn State is 2.66 times more concentrated in this region than in the rest of the nation. (“Supply Chains: Chemical Manufacturing Supply Chain”).
Reasons for the concentration of chemical manufacturers and the large scale volume of production are many and include: readily available raw materials, access to water for processing, low-cost energy, and a central location for transportation. The Port of Houston is the ideal hub for intermodal chemical transportation offering ready access to shipping channels, railyards, and a vast network of interconnected highways. In 2022, The U.S. Army Corps of Engineers released the U.S. Coastal and Inland Navigation System: 2022 Transportation Facts & Information Report and named the Houston Ship Channel the top-ranked American waterway (“Project Overview – Port Houston”).
Infrastructure Upgrades and Access Improvements at the Port of Houston
Trends such as the on-shoring of manufacturing, global uncertainty, and post-pandemic spending have combined to increase domestic production and the domestic and global demand for chemicals from the USA.
The Port Houston is responding to this need and taking advantage of infrastructure funding to modernize and expand. Approximately $1.5 billion in investments are expected over the next 5-years to enhance the Houston Ship Channel, Bayport Ship Channel, and Barbours Cut Ship Channel. As well as modernize cranes and equipment, improve container yards, and enhance port terminals. The objective is to create the most efficient, cost-effective, modern, and productive facility for moving dry and liquid bulk freight. Specifically, the infrastructure upgrades include:
- Adding additional STS cranes and hybrid RTG cranes
- Constructing and upgrading container yards, wharves and piers.
- Deepening and widening shipping channels to accommodate larger vessels
- Adding truck gate capacity to streamline operations, improve efficiency, and minimize wait times.
Why Lease Your Chemical Transport Chassis in Houston, TX?
Continued growth in the chemical manufacturing sector and in chemical distribution along the Gulf Coast will be enhanced by the significant investment in deeper shipping channels to accommodate larger ships, as well as more efficient loading docks, wharves, piers, and terminals. This in turn will increase the demand for rail and roadway transportation for the products produced in or imported into this region.
As chemical manufacturing output increases, so too will the demand for chemical transport equipment. Chemical distributors can take advantage of this increasing demand by expanding their fleet of chemical transportation chassis and equipment with a leasing company local to Houston, Texas. As the Port of Houston’s construction projects are completed, partnering with a local bulk liquid chassis leaser will help you procure the necessary equipment to expand your fleet.
Key Considerations for Chassis Leasing for Chemical Transportation
Other key considerations for those in the logistics industry who transport bulk chemicals through the Gulf Coast Region include:
- Transport chemicals with the proper equipment such as a drop frame chassis with the appropriate axle configuration for the volume and weight of your bulk liquid product(s).
- Be proactive and exercise caution by following all state and route-specific safety rules, routes, and bridge laws. During construction be aware that routes may be altered, have higher traffic volumes, or require additional time. Knowledge and planning are critical when it comes to safely transporting and handling bulk chemicals.
- Be aware of upcoming weather events. Across Texas and along the Gulf Coast extreme weather conditions may be present such as; flooding, hurricanes, wildfires, or even hazardous winter precipitation. Knowledge of forecasted conditions, alternative routes, and emergency pull-offs is vital for the safe transport of chemicals.
Contact Penn Intermodal Leasing, LLC and experience the advantages of a chassis leasing relationship that specializes in liquid bulk chassis. As a nationally recognized leader in chassis leasing, the team at Penn Intermodal can provide you with industry-leading equipment and expert advice. Headquartered in Houston, Texas, we are dedicated to serving Gulf Coast chemical manufacturers and chemical distributors. Contact us today and learn how Penn Intermodal Leasing, LLC can give your fleet an edge over the competition.
Sources
- “Infrastructure Overview.” Port Houston. Accessed 15 June 2024.
- “Project Overview – Port Houston.” Port Houston: Houston Ship Channel Expansion. Accessed 15 June 2024.
- “Supply Chains: Chemical Manufacturing Supply Chain.” Texas Comptroller. Accessed 15 June 2024.
