Overview
The Freeport Harbor Channel Improvement Project is a $295 million federal cost-shared project authorized by Congress in 2014. It consists of deepening and partial widening of the Freeport Harbor Channel and related navigation improvements. Federal investment for project construction is expected to total $165 million upon completion. Port Freeport’s commitment to this project is $130 million, the amount of the bond package approved on the May 2018 ballot.
The Freeport Harbor Channel was deepened to its current depth of 46 feet in the early 1990s. The Freeport Harbor Channel Improvement Project will further deepen the channel to authorized depths of 51-56 feet, making Port Freeport the deepest port in Texas and opening the Port to larger vessels.
In February 2020, Port Freeport received a new start designation for the commencement of construction from the U.S. Army Corps of Engineers (USACE). A Project Partnership Agreement (PPA) was signed between Port Freeport and the USACE on June 25, 2020, moving the project into the construction phase. The USACE FY2020 work plan included $19M in funding for the project, and on September 14, 2020, the USACE awarded the first dredging contract to Great Lakes Dredge & Dock Company, LLC, in the amount of $15.4 million. Project dredging for the first segment began in April 2021 and was completed in September 2021.
The USACE FY2021 work plan included $24.9 million in funding for the project, while the USACE FY 2022 work plan included an additional $73.2 million. Contracts totaling $10.25 million for the widening of Reach 2 and the dry excavation for the bend easing were completed in April 2022 and March 2023, respectively, by Orion Group Holdings, Inc.
The FY2023 Federal Omnibus Budget included $90.7 million, bringing the combined federal funding total to $207.8 million and fully funding the project. In May of 2023, the USACE awarded the final dredging contract on the project to Great Lakes Dredge & Dock Company, LLC, with substantial completion of the project expected by the end of calendar year 2025.
The project also includes enhancements to the upper turning basin, selective widening of the channel, and lower channel bend easing, making it easier for modern vessels to navigate.
Since the current channel is not designed to handle the larger vessels currently in service, a deeper channel will enable Port Freeport to market the Port to a wider range of global vessels, expand capacity and customer base, and potentially attract new liner services. This, in turn, is expected to facilitate additional economic opportunities.
News and Resources
US Army Corps of Engineers Galveston District Dredging Website
We want to help you stay informed about the latest news regarding the Freeport Harbor Channel Improvement Project. This page includes press releases for your reference.
If you are a member of the media and would like more information about Port Freeport or the Freeport Harbor Channel Improvement Project, please contact:
Port Freeport
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09-12-2024 PORT FREEPORT COMMISSION ADOPTS A ZERO TAX RATE
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June 2, 2022 – PORT FREEPORT RECEIVES ADDITIONAL FUNDING FOR THE FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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November 22, 2021 – PORT FREEPORT BREAKS GROUND ON FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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April 8, 2021 – PORT FREEPORT BREAKS GROUND ON FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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January 21, 2021 – PORT FREEPORT RECEIVES SECOND ROUND OF FEDERAL FUNDING FOR FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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September 16, 2020 – U.S. ARMY CORPS OF ENGINEERS AWARDS FIRST CONTRACT FOR THE FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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June 25, 2020 – PORT FREEPORT SIGNS PPA WITH U.S. ARMY CORPS OF ENGINEERS
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February 13, 2020 – PORT FREEPORT RECEIVES FEDERAL FUNDING FOR THE FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT
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September 12, 2019 – PORT COMMISSION SETS 2019 TAX RATE AND APPROVES 2020 BUDGET
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June 17, 2019 – PORT FREEPORT EARNS AN “Aa2” RATING FROM MOODY’S
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May 21, 2019 – PORT FREEPORT RELEASES UPDATED ECONOMIC IMPACT ANALYSIS
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September 19, 2018 – PORT COMMISSION SETS 2018 TAX RATE AND EXPANDS ADDITIONAL TAX EXEMPTION
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May 22, 2018 – U.S. ARMY CORPS OF ENGINEERS APPROVES FREEPORT HARBOR CHANNEL IMPROVEMENT PROJECT GENERAL REEVALUATION REVIEW
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May 7, 2018 – VOTERS APPROVE $130 MILLION PORT FREEPORT BOND PACKAGE
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April 23, 2018 – EARLY VOTING FOR PORT FREEPORT BOND ELECTION TAKES PLACE APRIL 23 – MAY 1
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April 3, 2018 – VOTER REGISTRATION DEADLINE APPROACHING FOR MAY 5TH PORT FREEPORT BOND ELECTION
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February 16, 2018 – PORT FREEPORT COMMISSIONERS CALL FOR $130 MILLION BOND ELECTION TO SUPPORT CHANNEL IMPROVEMENT PROJECT
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Financial Information
- Cost of the Freeport Harbor Channel Improvement Project – $295 million
- More than half of the Freeport Harbor Channel Improvement Project is expected to be paid with federal funds, with approximately $165 million to be provided by the U.S. Army Corps of Engineers (USACE)
- Port Freeport’s commitment to this project is $130 million, the amount of the bond package approved on the May 2018 ballot
- In the USACE FY2020 work plan, Port Freeport received $19 million to begin construction
- In the USACE FY2021 work plan, Port Freeport received $24.9 million in funding
- In the USACE FY2022 work plan, Port Freeport received $73.2 million in funding
- The FY2023 federal Omnibus Appropriations Bill included an additional $90.7 million making the project fully funded
Approved Bond Package
General Obligation bonds for the Freeport Harbor Channel Improvement Project were issued in multiple series over several years as work on the channel progressed. The phased issuance enabled the Port Commission to manage the tax rate at its original level. In September 2024, the Port Commission adopted a tax rate of $0.000000. The annual debt service payments are being repaid from operating revenues of Port Freeport.
Bond Issuances:
June 2019 – $35 million of the $130 million bond package for the Freeport Harbor Channel Improvement Project was accounted for with the June 2019 General Obligation Bond issuance ($31.8M Par Issuance, $3.2M Net Premium).
January 2021 – $39.2 million of the $130 million bond package was accounted for with the 2021 General Obligation Bond issuance.
March 2023 – the final $55.8 million of the approved $130 million bond package was accounted for with the issuance of the March 2023 General Obligation Issuance.
Frequently Asked Questions
Here, you will find answers to some frequently asked questions about Port Freeport and the Freeport Harbor Channel Improvement Project. For additional or specific inquiries, please call 800.362.5743.
Congress authorized the Freeport Harbor Channel Improvement Project in 2014. The current channel, at a depth of 46 feet, is not designed to handle the larger global vessels in service today. The new generation vessels that carry more cargo require deeper water and expanded areas for navigation. A deeper channel will enable Port Freeport to market the Port to a wider range of global vessels, including those that now transit the expanded Panama Canal.
The Channel Improvement Project will be completed in multiple segments and contracts. The contract for the first segment was awarded in September 2020, and the dredging work commenced in April 2021. The total project will take approximately 5 years to construct.
The current channel, at a depth of 46 feet, is not designed to handle the larger global vessels currently in service. The new generation of vessels that carry more cargo require deeper water and expanded areas for navigation. A deeper channel will enable Port Freeport to market the Port to a wider range of global vessels, including those that now transit the expanded Panama Canal.
The Freeport Harbor Channel has been deepened several times throughout its history to facilitate reliable movement of commerce, which has supported commercial and industrial expansion in Brazoria County and created new employment opportunities. Many companies in the area, including BASF, The Dow Chemical Company, Freeport LNG, and Phillips 66, use marine transportation to move their products globally. A 2019 Texas A&M Transportation Institute study determined the Freeport Harbor Channel is impacting more than 150,000 jobs statewide. Having a deeper channel designed for a wider range of global vessels expands marketing opportunities to attract new business to the Port and support more employment in many areas, including International Longshoremen, stevedores, truckers, businesses providing supplies, fuel, maintenance, and more.
At a depth of 46 feet, Freeport Harbor Channel is not designed to handle the larger global vessels that are in service today. A deeper channel will enable Port Freeport to market the Port to a wider range of global vessels, expand its capacity and customer base, and potentially attract new liner services. This, in turn, is expected to facilitate additional economic opportunities such as new jobs and increased purchases of supplies, fuel, and other services.
Yes. The Freeport Harbor Channel Improvement Project will deepen the channel from its current depth of 46 feet to 51 to 56 feet at its deepest point. The cargo capacity of the Neo-Panamax class ships transiting the new Panama Canal locks is 2 to 3 times that of the old Panamax class ships, which have a draft of 48 to 50 feet.
No land acquisition is required to complete the Freeport Harbor Channel Improvement Project.
No widening of the channel inside the jetties is needed. The distance between the jetties is 1,200 feet and the current channel width is 600 feet.
The federal government is responsible for maintaining the Freeport Harbor Channel. The federal government collects a Harbor Maintenance Tax on cargo imported into United States ports. This tax funds the U.S. Army Corps of Engineers budget, which maintains federal channels in our nation’s ports, including the Freeport Harbor Channel.
The material dredged from the channel will be placed in three existing areas: the offshore ocean dredge material disposal site (ODMDS) and dredge material placement areas (DMPA) 1 and 8, located on Port-owned property. The U.S. Army Corps of Engineers awarded a contract to raise the containment dike around Placement Area 1, increasing capacity for the Freeport Harbor Channel Improvement Project. That work was completed in March 2020.
Congress authorized the Freeport Harbor Channel Improvement Project in 2014. The contract for the first segment was awarded in September 2020, and the dredging work commenced in April 2021. The total project will take approximately five years to construct.
The Environmental Impact Statement (EIS) prepared by the U.S. Army Corps of Engineers states shoreline impacts from the construction of the Locally Preferred Plan (LPP) Alternative of the Freeport Harbor Channel Improvement Project would be so slight that they would not be noticeable against the background changes in shoreline position at either the Surfside or Quintana beaches and for areas 0.5 to about 3 miles from the jetties, the erosion rate could decrease by up to 0.5 foot/year. The full EIS can be found at http://www.swg.usace.army.mil/Portals/26/docs/Planning/FINAL%20FHCIP%20FEIS_Vol-I_August%202012.pdf.
According to the Environmental Impact Statement (EIS) prepared by the U.S. Army Corps of Engineers, no significant environmental impacts are expected in relation to the Freeport Harbor Channel Improvement Project. The EIS was a comprehensive study that included the following: dredged material management, air quality, shoreline erosion, economics, historic resources, protected species, navigation, recreation, water and sediment quality, energy needs, hazardous materials, and in the general, the welfare of the people. The full EIS can be found at http://www.swg.usace.army.mil/Portals/26/docs/Planning/FINAL%20FHCIP%20FEIS_Vol-I_August%202012.pdf.
Previously, the Galveston District of the U.S. Army Corps of Engineers used Mean Low Tide (MLT) as its vertical measurement for navigation projects. The internationally recognized Mean Lower Low Water (MLLW) has recently become the new standard of measure. MLLW is the average minimum tidal depth that maritime operators will likely encounter. The Freeport Harbor Channel Improvement Project will deepen the channel from its current depth of 46 feet to a maximum level of 56 feet mean lower low water at its deepest point.
Most federal government programs will not pay the entire cost of a project. It is typical for the federal government to require a specified amount of matching funds from the sponsor. For the Freeport Harbor Channel Improvement Project, it is estimated the U.S. Army Corps of Engineers will commit $165 million toward the construction of the $295 million project; the $130 bond package approved by the voters in 2018 will account for Port Freeport’s cost share.
The federal government has fully funded its share of the project cost. The project is being completed in multiple segments and contracts.
Congress has authorized a federal cost-shared project to deepen and partially widen the Channel. Voters authorized the Port to issue ad valorem tax bonds to fund the local sponsor share of the Freeport Harbor Channel Improvement Project. The ballot language and bond resolution clearly stated it is “for the purpose of improving, constructing or developing the Freeport Harbor Channel Improvement Project.”
Ad valorem tax bonds must have the approval of the voters before they can be issued.
Port Freeport is a government entity created by the Brazoria County voters in 1925 to be the local sponsor for the Freeport Harbor Channel and engage with the U.S. Army Corps of Engineers in Freeport Harbor Channel maintenance and improvements. The voters also gave the Port taxing authority to fund activities related to cost-share responsibilities for Freeport Harbor Channel navigation improvements. In September 2024, the Port Commission adopted a tax rate of $0.000000.
In September 2024, the Port Commission adopted a tax rate of $0.000000. The annual debt service payments are being repaid from operating revenues of Port Freeport.
The voters authorized the Port to issue ad valorem tax bonds to fund the local sponsor share of the Freeport Harbor Channel Improvement Project. The ballot language and bond resolution provide the legal restriction for how the bonds are spent and state specifically they are to be used “for the purpose of improving, constructing or developing the Freeport Harbor Channel Improvement Project.” Other landside projects related to the inland movement of cargo are not part of the bond program.
In September 2024, the port adopted a tax rate of $0.000000.
100% of the bond package will be used for the Freeport Harbor Channel Improvement Project. The ballot language and bond resolution provide the legal restriction for how the bonds are spent and state specifically they are to be used “for the purpose of improving, constructing or developing the Freeport Harbor Channel Improvement Project.”
