Dietrich discusses Phase 2 of the Brazos Island Harbor Channel Improvement Project

An interview with Port of Brownsville Director and CEO William Dietrich about the Phase 2 of the Brazos Island Harbor Channel Improvement Project:

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BROWNSVILLE, Texas – Brownsville Navigation District and the U.S. Army Corps of Engineers recently held a groundbreaking ceremony for Phase 2 of the Brazos Island Harbor (BIH) Channel Improvement Project.

According to the Army Corps of Engineers, the project is estimated to generate over 6,000 jobs at the peak of construction and create more than 800 permanent full-time positions.

The BIH project is funded via a two-phase innovative Public Private Partnership (P3) led by USACE, the Port of Brownsville, and NextDecade Corporation, parent company of Rio Grande LNG. Rio Grande LNG is building a liquefied natural gas export terminal at the port.

Managed by the Port of Brownsville and USACE, Phase 2 will deepen the channel from the turning basin to NextDecade’s site. The $139.5 million cost of Phase 2 is supported by $68 million in federal funding through the Infrastructure Investment and Jobs Act Appropriations Law, with the Port of Brownsville contributing $71.5 million. 

In October, the Port of Brownsville secured a $43 million loan from the Texas Department of Transportation to assist with the financing of the project.

BND leaders describe the BIH project as transformative. They point out the project will deepen the 17-mile-long Brownsville Ship Channel from 42 feet to 52 feet. This, they say, will improve navigational safety and enable larger commercial vessels to access South Texas.

In a video interview with the Rio Grande Guardian International News Service, Port of Brownsville Director and CEO William Dietrich said the project advances business development while conserving the regional ecosystem. He noted that environmental assessment conducted by USACE found no anticipated impacts on aquatic environments or critical habitats during and after the completion of the project.

“The BIH groundbreaking ceremony marks a milestone in our journey to shape the Port of Brownsville’s future,” Dietrich said. “With the BIH project, we are strengthening our role as a catalyst for business growth and demonstrating our responsibility to the community by transforming the port into a dynamic hub for value-added industries.”

Brownsville Navigation District Chairman Esteban Guerra said the BIH project solidifies the port’s role as a vital gateway for global trade. He said the project promises enduring benefits for the regional economy, driving significant economic activity and job creation across the Rio Grande Valley. 

“The Brazos Island Harbor Channel Improvement Project is paramount to the Port of Brownsville’s continued success. We are moving forward to enhance the navigational safety of the channel while securing our standing in the global marketplace,” Guerra said. “The BND is proud to partner with the U.S. Army Corps of Engineers and NextDecade to ensure lasting economic benefits and opportunities for families in the Rio Grande Valley.”

Phase 2 of the BIH project began in 2023 with the dredged material placement area improvement portion of the project. As part of the dredging process, materials collected are placed in approved disposal sites. The dredged material is often utilized for beach re-nourishment projects led by the USACE.

In August, the USACE awarded a $104 million contract to Callan Marine Ltd. for Phase 2 of the BIH project. The contractor is required to remove approximately 7,000,000 cubic yards of material using a pipeline dredge. The estimated completion date for Phase 2 of the project is 2026.

The Port of Brownsville ranked 50th among 150 U.S. maritime ports for waterborne cargo, handling 9.1 million tons in 2022. The port witnessed a banner year in 2023 with 17.8 million tons of cargo moving through the port’s docks, a 17% year-over-year increase. 

Other reaction

A Brownsville Navigation District press release includes comments from USACE and NextDecade.

USACE Galveston District Commander Col. Rhett A. Blackmon said:

“We’re very excited about the collaboration between USACE, NextDecade, and the Port of Brownsville on this P3 project. These types of partnerships are another innovative way to deliver projects faster—up to three years sooner—and with several millions of dollars in cost savings. The P3 program is part of USACE’s strategy to revolutionize its civil works program to advance the delivery of our national infrastructure by synchronizing actions, developing new tools, and streamlining activities.”

NextDecade Chairman and CEO, Matt Schatzman said:

“As the private partner in the Brazos Island Harbor Channel Improvement Project, NextDecade is committed to investing in the Rio Grande Valley’s future by creating thousands of jobs, helping educate current and future generations, and protecting the environment. We recognized back in 2019 the great benefits that deepening the Brownsville Ship Channel would bring to our LNG project, and to the Brownsville community and the surrounding Rio Grande Valley.”

Schatzman pointed out that in 2019, NextDecade committed to fully fund Phase 1, a $400 million investment, to deepen the channel from the western edge of its lease site, where it is constructing Rio Grande LNG, to the channel’s entrance near South Padre Island. This portion of the project began in 2023 and is expected to be completed in 2026.

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