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Sunday, September 28, 1997

Port of Houston profits from surge in trade with Venezuela

HOUSTON (AP) -- Seaborne trade between Venezuela and the Port of Houston has almost doubled in four years as a wave of U.S. companies returns to revive huge oil fields in the South American country.

Trade with Venezuela is expected to continue to skyrocket because the national oil company, Petroleos de Venezuela SA, has launched a massive effort to double its oil production.

Currently, 50 multinational companies are drilling for oil in Venezuela and shippers are rushing to meet trade demand.

As a result, Venezuela may displace Mexico as the Port of Houston's leading trading partner this year in both tonnage and dollar value of trade.

Although Mexico was the Port of Houston's leading trading partner by weight in 1996, Venezuela ranked higher by trade dollar value. The two countries are the only ones where the Port has field offices.

Air cargo trade between Venezuela and Houston increased to $18.3 million last year and seaborne trade to $2.3 billion, a 28 percent increase for the Houston port.

In 1992, the trade totaled $1.3 billion.

Rainer Lilienthal, Port of Houston general manager of trade development, expects to see an increase in both the $587 million worth of machinery and equipment already being shipped from Houston to Venezuela, and the $1.1 billion of petroleum products exported from Venezuela to the Port.

Similar gains are seen throughout much of South America because of the opening up of the oil industry.

"Brazil, Argentina, Chile, Peru, they're all opening up. They're all giving concessions for exploration and exploitation of oil fields," Lilienthal said.

The growth of trade also reflects freer trade in South America, construction of electric plants by U.S. companies, and rising investments in infrastructure projects such as roads and bridges.

"When a power plant is being built, they have to build a road to it," Lilienthal said.

Trade agreements such as the North American Free Trade Agreement and Mercosur -- a trade agreement among Argentina, Brazil, Chile and Paraguay -- also have stimulated an increase in trade among these South American countries. Send a Letter to the Editor about This Story | Start or Join A Discussion about This Story
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