TEXAS CITY — A New Jersey-based marine construction firm was awarded a $61.8 million contract Wednesday to deepen the Texas City Ship Channel.
The dredging contract from the U.S. Army Corps of Engineers will add 5 feet to the channel depth to accommodate larger ships headed to and from the Port of Texas City. Larger ships mean fewer trips to deliver and drop off product at the port which dramatically reduces shipping costs, port officials have said.
Weeks Marine’s construction division, which is headquartered in Houston, won the contract. Part of the funding for the channel includes a $17.5 million local match, all of which will be paid by Texas City oil refineries BP, Valero and Marathon, as well as oil pipeline and transportation company Enterprise, Texas City Economic Development Corp. Manager Nick Finan said.
A portion of the funding for the dredging project also is coming from the federal stimulus package passed by Congress earlier this year, Finan said. The total cost of the dredging project, including studies and engineering work that began last year is $70.8 million.
Port of Texas City President Bill Mathis said without the stimulus funding, the dredging project would have been delayed several more years or not happened at all.
“It’s good for Texas City and for the port,” Mathis said. “It gives up an opportunity now to complete with the Port of Houston which already (has its channel) at 45 feet.”
The Port of Texas City and the city had been working on getting funding for deepening the channel since 1986, but the first funds for the project were not authorized until 2008, Finan said.
