WorldCity, Annual Report: No. 9 The Netherlands- Getting a line to Europe | Connecting Local Business Leaders To The Global Economy

Annual Report: No. 9 The Netherlands- Getting a line to Europe

July 6th, 2006

On-the-rise exports of telephony equipment are adding to Houston’s trade surplus with the Netherlands.

The United States exports more products to the Netherlands than it imports – and equipment for line telephony was one of the biggest growth commodities in that lopsided exchange last year. Houston replicated that pattern in its trade with the European country.

A mammoth jump in exports of line telephony equipment helped push Houston to more than $4.1 billion in bilateral trade and a $1.5 billion trade surplus with the Netherlands.

Houston’s exports rose nearly 24 percent to top $2.8 billion while imports jumped 18 percent to $1.3 billion, led by refined petroleum products, petrochemicals and beer.

The results reflected a gain of nearly 22 percent compared with 2004. Only the New York Customs District handled more trade with the Netherlands – $7.1 billion-worth.

The Houston-Galveston Customs District processed almost $521 million in telephony equipment headed to the European country. That was a huge 143 percent gain from export results in 2004 – and outpaced U.S. telephony exports as a whole.

The $1.8 billion in total U.S. line telephony equipment shipped to the Netherlands, which has one of Europe’s largest phone networks, reflected a 30 percent increase over 2004.

Although telecom industry exporters posted gains when it came to the Netherlands, Houston’s oil industry exporters did not. Non-refined oil, the second most important export, fell nearly 18 percent to end the year at $175 million. Right behind it, at $169 million, were petrochemicals in the cyclic hydrocarbons commodity category. They held nearly flat.

But computer exports were on the rise, jumping 18 percent to end the year near $148 million. Aircraft part exports also rose double-digit gains. Nearly $95 million-worth of jet and helicopter parts were exported through Houston. They included rotors, propellers and gliders for civil aircraft and $178,000 in parts for military aircraft.

An additional $71 million-worth of parts for regional jets were also exported.

The greatest percentage gain, however, came from molybdenum ores and other minerals. They soared to more $75 million, an increase of 148 percent. Molybdenum is used as an alloy in oil and gas pipelines, aircraft and missile parts.

One agricultural product appeared among Houston top exports. The Customs district processed nearly $71 million in nuts, mostly pecans. That was up 26 percent from 2004.

On the import side, the most important commodity was refined oil, which jumped 31 percent to end the year at nearly $356 million. Part of the jump came from rising oil prices. But Jim Edmonds, chairman of the Houston Port Authority, also said local demand for energy is growing as the state’s population increases. Texas has 23 million residents. Edmonds estimates it will reach 50 million by 2040.

Petrochemicals – in the form of cyclic hydrocarbons including benzene, styrene, ethylbenzene and toluene – held the No. 2 spot on the import list, rising 41.6 percent in value to exceed $125 million. Benzene imports alone totaled $78 million. Shell Chemical recently inaugurated a benzene extraction unit in Moerdjik, the Netherlands.

Benzene is used in the manufacture of clothing, compact discs, packages, paints, adhesives and computer casings.

Both Houston and the Dutch port of Rotterdam are important energy hubs. Several energy firms in the Netherlands have operations in or around Houston. For example, Royal Dutch Shell’s 1,500-acre refinery and chemical complex in the Houston Ship Channel is the sixth largest in the United States. It employs 1,000 workers.