Governance
Freeport Harbor Channel Improvement Project
- Overview
- Financial Information
- FAQS
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
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
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 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 federal government has fully funded its share of the project cost. The project is being completed in multiple segments and contracts.
