Sims’ Houston contract confirmed by Enstructure

Wellesley, Massachusetts-based Enstructure, a provider of port terminal and logistics services, has announced the continuation and expansion of a long-term port services agreement with Sims Ltd. following that metals recycling firm’s acquisition of Tri Coastal Trading (TCT) assets near Houston.

Australia-based Sims, which has sizable operations in the United States, purchased portside assets of Galena Park, Texas-based TCT for $66.5 million earlier this month.

As part of that transaction, Sims will assume TCT’s 18-year service agreement with Enstructure, gaining access to the company’s network of port infrastructure assets, which include deep water docks and adjacent on the Houston Ship Channel in Galena Park, Texas.

“Enstructure’s facilities will service Sims’ consolidated ferrous and nonferrous metal recycling operations in the Gulf Coast region,” states the logistics company.

On its website, Enstructure describes its Galena Park facilities as including more than two dozen docking berths, 1 million square feet of warehouse space, 20 acres of outdoor storage, eight “heavy lift” cranes, and access to four rail lines and four interstate highways.

“We are excited to further expand our marine terminal services with Sims from our East Coast network to the Gulf Coast,” say Enstructure co-CEOs Matthew Satnick and Philippe De Montigny. “This strategic partnership with Sims exemplifies the vital role that Enstructure’s infrastructure plays in facilitating holistic supply chain solutions for our customers.”

“We’re confident that consolidating our Houston operations with Enstructure will improve current processes and reduce costs,” said Sims Managing Director, Stephen Mikkelsen. “Following the transition, we anticipate a return on invested capital of over 20 percent in the region.”

Enstructure describes itself as owning and operating a network of port infrastructure assets on the East Coast, Gulf Coast and inland waterways system of the United States.