From left to right: Matt Schatzman, NextDecade Chairman and CEO; Ernesto Gutierrez, Brownsville Navigation District Commissioner; John Wood, Brownsville Navigation District Commissioner; Sergio Tito Lopez, Brownsville Navigation District Vice Chairman; Jaime Pinkham, Assistant Secretary of the Army, Civil Works; Esteban Guerra, Brownsville Navigation District Chairman; William Dietrich, Port Director and CEO; John Reed, Brownsville Navigation District Secretary; Col. George H. Walter, U.S. Army Corps of Engineers Southwestern Division Commander; and David Keane, NextDecade Senior Vice President Policy & Corporate Affairs.
BROWNSVILLE, Texas — December 6, 2024 — Signaling a major turning point in the Port of Brownsville’s 88-year history, the Brownsville Navigation District (BND) and the U.S. Army Corps of Engineers (USACE) today, held a groundbreaking ceremony for Phase 2 of the Brazos Island Harbor (BIH) Channel Improvement Project.
The transformative project will deepen the 17-mile-long Brownsville Ship Channel from 42 feet to 52 feet, improving navigational safety and enabling larger commercial vessels to access South Texas.
“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,” said Brownsville Navigation District Chairman Esteban Guerra. “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.”
The BIH project solidifies the port’s role as a vital gateway for global trade. The project promises enduring benefits for the regional economy, driving significant economic activity and job creation across the Rio Grande Valley. According to the USACE, 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 project advances business development while conserving the regional ecosystem. An environmental assessment conducted by the USACE found no anticipated impacts on aquatic environments or critical habitats during and after completion of the project.
“The BIH groundbreaking ceremony marks a milestone in our journey to shape the Port of Brownsville’s future,” said Port of Brownsville Director and CEO William Dietrich. “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.”
According to the USACE 2022 annual report, 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.
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.
“We’re very excited about the collaboration between USACE, NextDecade, and the Port of Brownsville on this P3 project,” said USACE Galveston District Commander Col. Rhett Blackmon. “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.”
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 they are 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.
“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,” said NextDecade Chairman and CEO, Matt Schatzman.
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. 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.
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 renourishment 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.
About the Port of Brownsville
The Port of Brownsville is the only deep-water seaport directly on the U.S.-Mexico border and encompasses 40,000 acres – the largest land-owning public port authority in the country. The port transships more steel into Mexico than any other U.S. port and is home to premier energy, shipbuilding, and ship recycling industries. As the major multimodal transportation hub serving the Rio Grande Valley and northern Mexico, the Port of Brownsville supports investment opportunities and jobs. Activity at the port is responsible for adding more than $2 billion to the regional economy, $3 billion to the Texas economy, and the creation of more than 51,000 jobs statewide. For more information, visit www.portofbrownsville.com
From Left to Right: Col. George Walter, U.S. Army Corps of Engineers Southwestern Division Commander, Matt Schatzman, NextDecade Chairman and CEO; Jaime Pinkham, Assistant Secretary of the Army, Civil Works; Esteban Guerra, Brownsville Navigation District Chairman; WIlliam Dietrich, Port Director and CEO; Col. Rhett Blackmon, USACE Galveston District Commander; and Aaron Snyder, P3 Program Director, U.S. Army Corps of Engineers.
