The Port of Brownsville has secured a US$43 million loan that will enable it to move forward with the Brazos Island Harbor Channel Improvement (BIH) project unlocking new opportunities for larger commercial vessels.
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Brownsville, the deep-water seaport located on the US-Mexico border, said it secured the low interest loan from the Texas Department of Transportation. The loan will enable the Port of Brownsville to contribute its share of the cost for the implementation of the project.
The harbour project involves deepening the 17-mile-long Brownsville ship channel from 42 feet to 52 feet. The increased depth will enhance navigability, ensure safer ship passage, and reduce transit times, boosting the port’s competitiveness and attracting more investments.
The BIH project is funded through a public-private partnership involving the US Army Corps of Engineers (USACE), the Port of Brownsville, and NextDecade.
Phase 1, which was funded by NextDecade, included deepening the channel from the western boundary of its lease site to the channel entrance and developing two ship berths and a turning basin for the Rio Grande LNG facility.
Phase 2, which is being executed by the Port of Brownsville and USACE, will deepen the channel from the turning basin area to Rio Grande LNG’s site. In August 2024, the USACE awarded a US$104 million contract to Callan Marine for Phase 2 implementation, with work set to begin this month. The project should be finished by 2026.
Brownsville is recording significant growth in throughput. In 2023, the port posted a 17 percent increase in total cargo tonnage to 17.8 million tonnes compared to the 15.2 million tonnes handled in 2022. Among the key cargo handled at the port include wind energy components, refined petroleum products, ores and minerals, steel and other metals, grains, and a variety of aggregates.
“This infrastructure investment will strengthen the port’s competitive advantage as the leading maritime hub in South Texas and support economic development for the region,” said William Dietrich, Port of Brownsville Director and CEO.
The BIH channel deepening project is expected to create more than 6,000 new jobs at the peak of construction and more than 800 full-time permanent jobs when complete.