Air Freight News

Port Freeport awarded $11 million MARAD grant to enhance Velasco Terminal Operations

May 19, 2026
Aerial view of Velasco Terminal at Port Freeport, where 10 acres will be improved to enhance cargo handling operations.

Port Freeport has been awarded an $11 million Port Infrastructure Development Program (PIDP) FY 2025 grant through the U.S. Maritime Administration (MARAD) to support critical infrastructure improvements at its Velasco Terminal, enhancing cargo handling capabilities and operational efficiency.

“Enhancing our terminal capabilities positions Port Freeport to operate more efficiently, better serve our customers, and capitalize on future growth opportunities that will generate jobs and promote economic development in Brazoria County and beyond,” said Rob Giesecke, Chairman of the Port Freeport Commission. “We appreciate the leadership and support of Senator Ted Cruz, Senator John Cornyn, and Congressman Randy Weber in helping secure these important funds for Port Freeport and the State of Texas.”

The project will transform approximately 10 acres into a high-utility cargo handling area designed to improve efficiency, safety, and security. Planned improvements include upgrading the surface from stabilized limestone to heavy-duty concrete pavement, installing advanced stormwater drainage systems, and adding high-mast lighting to support terminal operations.

“These improvements will enhance operational performance at Velasco Terminal by increasing efficiency and supporting safe, reliable cargo handling,” said Phyllis Saathoff, Executive Director and CEO of Port Freeport. “Investments like this allow Port Freeport to continue delivering dependable service while adapting to the evolving needs of maritime trade.”

The PIDP program provides federal funding for projects that improve the movement of goods through U.S. ports, supporting a more efficient and resilient national supply chain.

Port Freeport is a leading port in the export of crude oil and natural gas liquids and ranks 6th nationally in chemicals, 13th in total foreign waterborne tonnage, and 4th in the State of Texas by the same measure. A 2022 Economic Impact Study by Texas A&M Transportation Institute revealed that, nationally, the Freeport Harbor Channel generates 266,300 jobs and has a total economic output of $157.3 billion. Port Freeport serves Alliera, Atlantic Container Lines, AMPORTS, BASF, Chiquita Fresh N.A., Dole Fresh Fruit, The Dow Chemical Company, Enterprise Products Partners, ExxonMobil, Freeport LNG, Fresh Del Monte Produce Inc., Ford Motor Company, General Motors, Glovis, Grimaldi Lines, Hoegh Autoliners, Kirby Marine, Liberty Global Logistics, Linde, MEGlobal, NYK RORO, Phillips 66, Riviana Foods, Inc., Sallaum Lines, Tenaris, U.S Department of Energy, Volkswagen Group of America, and Vulcan Materials Company.

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