Charlie Jenkins, CEO, Port Houston

Charlie Jenkins, CEO, Port HoustonIn an interview with Invest:, Charlie Jenkins discussed Port Houston’s role in supporting regional economic development, global energy markets, and the broader Texas economy. Jenkins highlighted the port’s collaborative operating model, the impact of Project 11 and the workforce required to sustain continued growth. “The machine works. It’s producing well, and it’s producing more and more jobs and economic value,” Jenkins said.

How would you describe the current state of Port Houston and the developments shaping its growth?

Port Houston was created in a unique way in the early 1900s. Two ports in the region, one operated by the city and one by the county, were merged into a single entity with leaders representing the broader region.

There is a quote in our lobby: “Houston, the town that built the port, that built the city,” and I like to add “that built the region.” That is meaningful because the economic activity generated by the Houston Ship Channel helped establish institutions such as the Texas Medical Center, Rice University, and the Harris County Flood Control District. The channel has been instrumental to the development of our society, our region, and the state.

The activity associated with the channel represents approximately 19% of Texas’ GDP. We are one of the major legs supporting the Texas economy.

Port Houston also operates differently from most ports. We do not have a harbor master directing traffic through a centralized government structure. We manage through collaboration and cooperation. During disruptions, representatives from each segment of the industry come together to determine how traffic should move based on what is most important to the regional economy.

Our role is to support and promote regional maritime economic development while operating a business that helps pay for that mission. We operate eight public terminals, but more than 200 industrial partners are part of the greater port. That interconnected system has made this relatively young port one of the most important in the nation.

How are geopolitical developments and changing global trade flows affecting the port?

Port Houston supplies the world economy and receives traffic from across the world, so geopolitical issues matter. The war between Russia and Ukraine, conditions around the Strait of Hormuz, tariffs, and policies adopted by different countries all affect cargo flows.

Our port is particularly critical to the energy sector. Our energy partners have expanded their ability to supply fuel and other products globally. If the Houston port complex were measured as a country, it would be the world’s largest exporter of propane. Propane is one of the cleanest and most transportable fuels available to communities that may otherwise depend on wood, coal or other less efficient sources.

A major factor behind this capacity was the commercialization of hydraulic fracturing. The availability of lower-cost feedstock strengthened the competitiveness of the region’s energy industry and encouraged companies to modernize their facilities. According to the American Petroleum Institute, more than $1 trillion has been invested in retooling the region’s infrastructure.

That reinvestment created state-of-the-art facilities and additional capacity. Many companies can increase production without taking on the full fixed costs of building entirely new infrastructure, which strengthens their position in global markets.

What does the Houston Ship Channel’s recognition as the nation’s busiest waterway say about the regional economy?

We have been the busiest for a long time. The difference is that the significance of the channel is now being recognized and explained more clearly.

Our business model is focused on supporting maritime economic development and running competitive terminals to fund that work. We strive to offer low costs, high service, and low risk throughout the supply chain.

Consumer goods and containerized cargo generate significant economic multipliers through jobs, taxes, and business activity. Over the past 11 years, Port Houston’s compound annual container growth rate has been four times the average of the other top 10 largest U.S. ports and approximately twice the rate of the second-fastest-growing port.

We have sustained a compound annual growth rate of approximately 7.2% over that period. The machine works. It’s producing well, and it’s producing more and more jobs and economic value.

The public terminals are not separate from the wider port. They are part of a complex system that includes energy, manufacturing, logistics and hundreds of private companies. Together, those operations create value for the regional, state and national economies.

What has Project 11 meant for the port and its customers?

Project 11 was a calculated investment made in response to economic need and opportunity. We completed it through a collaborative and unconventional partnership. Port Houston built much of the project and transferred it to the federal government rather than waiting for the traditional federal construction process.

A study expected to be released soon estimates that Project 11 will contribute over $100 billion annually to the Texas economy by 2040. With the completion of Segment 1 through the bay, users are already enjoying significant benefits from this project. The project will cost approximately $1 billion, representing an extraordinary economic return.

We completed more than 75% of the project with the U.S. Army Corps of Engineers, on schedule and on budget. The improvements have expanded capacity and strengthened safety throughout the Galveston Bay region.

One of the most important results has been the reduction of daylight restrictions for large vessels. Previously, a vessel that completed loading late in the afternoon might have to remain at the dock overnight. That occupied terminal capacity and concentrated vessel movements during limited windows.

With the channel improvements, many large vessels can now move when they are ready. A gas carrier that finishes loading at 9 p.m. can depart at 9 p.m., allowing the next vessel to use the dock. Those efficiencies are essential to supporting global demand and the port’s current growth.

How is Port Houston helping build the workforce needed to sustain that growth?

Leaders do not accomplish things alone. Teams do the work, and the strength of the team determines performance.

Workforce development is not a new challenge. The required skills continually change as the market evolves. At different points, the industry may need engineers, attorneys, environmental professionals, architects, pipe fitters, welders, technicians, electricians, or equipment operators.

Houston benefits from having a large industrial complex with deep blue-collar and white-collar talent. The region’s workforce has been extremely robust and adaptive.

Our container business has grown approximately 7.2% annually, and the labor pool must expand with it. We work with the International Longshoremen’s Association, the West Gulf Maritime Association, and other partners to train additional workers, including crane operators, so they are prepared and productive when demand increases.

The same collaboration occurs through community colleges, universities, and workforce organizations. Every institution is trying to identify emerging needs and prepare people for the available opportunities. The region’s unity, focus, and commitment to growth have supported that process effectively.

How has your experience shaped your leadership, and what are your priorities for the next three to five years?

I am nowhere near as smart as I once thought I was, but I have more wisdom because I have been battle-tested and learned how organizations work.

Leadership requires supporting employees, holding people accountable, and recognizing strong performance. I am proud of how Port Houston cares for its employees, develops their skills, and creates career opportunities. Those opportunities must be earned by adding value to the organization.

One of my initial priorities was to recenter the organization on job creation and regional economic development rather than focusing only on our own business. The public port is the visible tip of the iceberg, but the broader industry beneath it generates most of the jobs and economic value. Our relationships with those partners have improved significantly.

Looking ahead, we need to balance execution with long-term planning. Rapid growth has required us to remain continuously focused on delivering projects and meeting immediate needs. Execution and planning require different skill sets, and organizations often struggle to excel at both.

Over the next three years, we will strengthen how we centralize and coordinate planning so our investments move us efficiently in the right direction. Better planning reduces wasted effort and helps ensure that what we build today continues creating value for future generations.

We inherited an extraordinary foundation from the people who came before us. Our responsibility is to leave an equally strong foundation for those who follow. I do not want the economic snowball created by this port to become smaller. I want it to continue growing and adding value to the region, Texas, and the country.