BROWNSVILLE, Texas - The Port of Brownsville is “very heavily influenced” by the economics of Mexico and the integrated economy that the Rio Grande Valley has with its neighbor to the south.
That is the view of Eduardo A. Campirano, port director for Brownsville Navigation District.
Campirano appeared on KURV 710 News Talk’s Morning News show to give an economic status report on the Port of Brownsville. The interview was prompted by a new op-ed by the Port titled “A Central Hub of Commerce and Sustainable Growth.”
Anchor Sergio Sanchez said what happens in Monterrey is “usually a good indicator” of the Valley’s economy and as more and more steel and aluminum raw material is arriving at the Port and being shipped to Monterrey and Saltillo, “I’m guessing there is still a lot of strength in US manufacturing and northern Mexico manufacturing.”
“Without a doubt,” Campirano responded. “Our biggest influence… is not only the border region, but it's the Monterey area all the way up to San Luis Potosi.”
Campirano continued: “You’re so right, especially with that kind of commodity, with the steel movements and aluminum movements. But, you know, we also feed the Frontera in terms of trucking, in terms of lubricants for industry. All of that comes through the Port of Brownsville. So, again, our business is very heavily influenced by the economics of Mexico and the integrated economy and we have here in the region.”
By way of an example, Campirano cited the increase in load rail car movements.
“Eighty five percent of our rail car movements are going into Mexico. We are the railroad’s largest customer. We will probably move more than 80,000 loaded rail cars this year,” Campirano said.
"Over the last four years, our railroad has been growing at a roughly 20 percent clip every year. And every year in the last four or five years we've eclipsed the record. Forty thousand, 50,000, 60,000, 70,000. We will go over 80,000 this time. So, it won't be too long before we're going over 100,000 cars a year.”
Sanchez also asked Campirano where the Port’s revenues go. “With operating revenue for the 2022 season, 38 million bucks is what has been reported. Where does all that money go, chief?” Sanchez asked.
Campirano responded that the Port of Brownsville is run like a business.
“We don't rely on any tax revenue for port operations. So all of the revenue that we use for capital improvements, that we use for investment, is basically reinvesting.”
Campirano give an example.
“This year we'll probably break $40 million in operating revenue for the first time in the history of the Port. And our operating expenses have always been in the $18 million to $19 million (range). So, at the end of the day, you can kind of almost look at… we put back 50 cents on the dollar, sometimes higher, back into the bottom line every year. So, that revenue is what we've been able to accumulate over time to put us in a position to make major capital improvements.”
Campirano said the Port’s last report on cash-on-hand and investments was $108 million.
“So, we're in very good financial shape. But, again, nothing you do at the Port is small. That Dock 11 project that we talked about the other day where we got $11.5 million dollars, the estimated cost of the whole project is $35. So that difference comes from the Port. The road improvements that we're doing right now, a little over $6 million, we're paying for that ourselves.”
Campirano reiterated that the Port does not on depend on taxes or any other form of revenue from either the state government or federal government.
“Ports have to generate their own income. And so that money gets put back into the port operations and really, more importantly, gets put back into port capital improvements.”
Campirano added that the biggest project the Port is working on is the deepening of its ship channel.
“We still have a cost to bear on that major project, even though a lot of the money is coming from our private sector partners and some of it from the federal government. Even so, the Port’s share is still going to be substantial. So, we can't lose sight of those big major projects because without those we can't expand.”
