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                             DEPARTMENT OF COMMERCE 
                           Foreign-Trades Zones Board 
 
                                 [Docket 23-88] 
 
                                  53 FR 17739 
 
                                  May 18, 1988 
 
 
Proposed Foreign-Trade Zone for Victoria and Calhoun Counties, Texas, With 
Two Subzones in Victoria County for CMC Steel Fabricators, Inc.; Application
and Public Hearing 
 
TEXT: An application has been submitted to the Foreign-Trade Zones Board (the
Board) by the Calhoun-Victoria Foreign-Trade Zone, Inc. (CVFTZ), a non-profit
Texas Corporation, requesting authority to establish a general-purpose 
foreign-trade zone in Calhoun and Victoria Counties, Texas, and two special-
purpose subzones in Victoria County, all sites of which would be within or 
adjacent to the Point Comfort Customs port of entry. The application was 
submitted pursuant to the provisions of the Foreign-Trade Zones Act, as 
amended (19 U.S.C. 81a-81u), and the regulations of the Board (15 CFR Part 
400). It was formally filed on April 27, 1988. CVFTZ is authorized to make 
the proposal under House Bill 83, 69th Texas Legislature, Third Call Session,
1986, signed on October 15, 1986. 
 
   The proposal calls for a general-purpose zone consisting of six sites 
totalling 1,235 acres in Calhoun and Victoria Counties. Sites 1, 2, and 3 
are located in Calhoun County; Sites 4, 5, and 6 are in Victoria County. 
Site 1 (97 acres) is at the Calhoun County Navigation District's marine 
terminal, located at Point Comfort two miles south of U.S. Highway 35 on FM
1395. The site contains a public dock and 25,000 square feet of warehouse 
space and is expected to be the first to be activated for Calhoun County. 
Site 2 (494 acres) is adjacent to Site 1 on its north. It is owned by the 
Aluminum Company of America (Alcoa) and contains a bauxite processing 
facility, part of which is currently active. Site 3 (120 acres) is the 
Westside Navigation District's Long Mott Turning Basin property, located 
between State Highway 185 and the Victoria Barge Canal, near the Union 
Carbide dock. The site is about 12 miles west of Sites 1 and 2. The Calhoun
County Navigation District will operate all three sites, using Sites 2 and
3 for longer-term development (industrial/commercial activity) for large 
industrial users. Site 4 (135 acres), owned by Victoria County, is located 
at the Victoria Regional Airport on U.S. Highway 59, and development as an 
industrial park is planned. Site 5 (29 acres), known as Skytop Brewster, 
is located at Skytop and Moller Roads in eastern Victoria, about 1 mile from
Site 4. The privately owned site has over 255,000 square feet of 
manufacturing, office and warehouse space that is available for immediate 
activation. The site was formerly used for the assembly of oil rigs and can
be utilized for both warehousing and manufacturing operations. This site is
expected to be the focus of the County's initial zone activity. Site 6 (359
acres) is the Victoria Navigation District's Pickering Turning Basin 
property at the north end of the Victoria Barge Canal. It is located about 
12 miles southwest of Sites 4 and 5, and industrial/commercial development
is anticipated. The latter three sites will be operated by the Victoria 
Economic Development Corporation.  
 
   No manufacturing approvals are being sought at this time for the general-
purpose zone sites. Such requests would be made to the Board on a case-by-
case basis. 
 
   The two proposed subzones are for the railroad freight car repair and 
rebuilding facilities of Safety Railway Service and Safety Steel Service, 
operating divisions of CMC Steel Fabricators, Inc., a Texas corporation. The
Safety Railway facility (176 acres) is located at Aloe Field at the corner 
of Warehouse Road and Highway 59, four miles west of the City of Victoria, 
and the Safety Steel plant (7 acres) is located at 201 East Crestwood Street,
Victoria. The plants use some parts and steel material from foreign sources
for their operations. Safety Railway expects to use imported parts, such as
wheels, axles, sideframes and bolsters, dutiable at 5.5 percent, in the 
repair of railroad freight cars, which are dutiable at 18 percent. Safety
Steel imports steel, dutiable at 6 percent, for the sizing, cutting, shaping
and welding of parts (5.5%) which would then be supplied to Safety Railway 
for their repair operation. Safety Steel estimates that 15 percent of the 
steel it presently uses is imported. It expects an increase to 20 percent in
the near future. The application indicates that the main purpose for zone 
procedures is to assist the companies in obtaining contracts for the repair
and rebuilding of foreign-owned railroad freight cars for reexport. 
 
   In accordance with the Board's regulations, an examiners committee has 
been appointed to investigate the application and report to the Board. The 
committee consists of: John J. Da Ponte, Jr., Director, Foreign-Trade Zones 
Staff, U.S. Department of Commerce, Washington, DC 20230; Don Gough, 
Deputy Assistant Regional Commissioner, U.S. Customs Service, Southwest 
Region, 5850 Sal Felipe Street, Houston, Texas, 77057-3012; and Colonel 
John A. Tudela, District Engineer, U.S. Army Engineer District Galveston, 
P.O. Box 1229, Galveston, Texas 77553-1229. 
 
   As part of its investigation, the examiners committee will hold a public 
hearing on June 16, 1988, beginning at 9 a.m., at the Calhoun County 
Courthouse, 211 South Ann Street, Port Lavaca, Texas 79979. 
 
   Interested parties are invited to present their views at the hearing. 
Persons wishing to testify should notify the Board's Executive Secretary in 
writing at the address below or by phone (202/377-2862) by June 13, 1988. 
Instead of an oral presentation, written statements (triplicate) may be 
submitted in accordance with the Board's regulations to the examiners 
committee, care of the Executive Secretary, at any time from the date of 
this notice through July 18, 1988. 
 
   A copy of the application and accompanying exhibits will be available 
during this time for public inspection at each of the following locations:
 
 
County Judge's Office, Calhoun County, 
2nd Floor, Calhoun County Courhouse, 
11 South Ann Street, 
Port Lavaca, Texas 79979. 
 
 
Office of the Executive Secretary, 
Foreign-Trade Zones Board, 
U.S. Department of Commerce, Room 1529, 
14th and Pennsylvania Avenue NW., 
Washington, DC 20230.  
 
   Dated: May 10, 1988. 
 
 
John J. Da Ponte, Jr., 
 
   Executive Secretary.   
[FR Doc. 88-11029 Filed 5-17-88; 8:45 am] 
 
   BILLING CODE 3510-DS-M