February 17, 2003

Port of Houston Authority 

The Port of Houston Authority was notified last week by the New York Board of Trade that it has been designated "a green coffee port".  The decision means that Houston is an approved delivery point for the Coffee “C” futures contract traded on the NYBOT’s Coffee, Sugar & Cocoa Exchange.  

"The Port of Houston's designation as a green coffee port will have a tremendous impact on our local and regional economy," said James T. Edmonds, chair of the PHA Commission.  "Coffee traders from all over the world now have several incentives to do business here."

“Our Texas legislators and voters all have a reason to beam with pride,” stated Alistair Macnab, executive director of the Greater Houston Coffee Association.  “The exciting growth strategies envisioned by the association may now move confidently forward.”

According to the GHCA, Houston’s coffee port designation will increase jobs in the coffee processing industry (e.g. roasting, blending, labeling, packaging, marketing, and retailing) as well as in the coffee servicing industry. The latter would most likely involve logistics providers thereby impacting business for coffee brokers/traders, warehouse operators, freight forwarders, customhouse brokers, road, rail and ocean carriers. 

The GHCA estimates an overall 15 percent increase in direct and indirect jobs related to coffee trading through the Port of Houston.  Additionally, the GHCA estimates that Houston has the potential in the next few years to increase its coffee imports to approximately 3.7 million bags annually, more than double the 1.8 million bags imported in 2002, as a result of the amount of transportation/distribution warehouse space available locally. 

The GHCA is working with several banks and trade organizations to develop ways to help local small businesses enter the coffee industry and work with coffee sellers, buyers, retailers and transporters to help Houston become one of the major distribution centers for coffees imported from Asia, Latin America and Africa. 

“The Port has delivered the opportunity that poises Houston for continued economic growth,” stated Tom Kornegay, PHA executive director.  “We’ve cleared the way for local businesses to take their enterprises to exciting new heights as dynamic key players in global trade and commerce.”

Kornegay noted Houston’s proximity to 20 million consumers in the greater southwestern U.S. as an example of the importance of the development “This is a vital component in the Port Authority’s strategy.  "We view this as a natural progression in our role as a world class trading point.”

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