Shown are two “Spyglass” class autonomous boats manufactured by Austin-based defense technology firm, Saronic Technologies.
In February, news broke that an Austin tech startup, Saronic Technologies — considered a “unicorn” because of its billion-dollar valuation — had set its eyes on building a $3.2 billion shipyard codenamed “Port Alpha” in the Rio Grande Valley.
The company’s plans for the Port of Brownsville were revealed after it applied for a massive tax incentive from Cameron County. But the proposal drew swift backlash from locals who have already been on high alert due to the industrialization of the region, and at the port in particular. After residents flooded a Cameron County Commissioners Court meeting to protest the tax abatement, county officials held off on making a decision. Now, they’re scheduled to take the matter up again on June 2. Nonetheless, between February and now, a lot has already happened in Saronic’s favor. Here’s everything we know about the project so far.
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What is Saronic Technologies?
Saronic Technologies is a defense technology company that was founded in September 2022 by four men, including a former Marine and a former member of Navy SEAL Team 6. Since its founding, it has secured $9.5 billion in startup funding and has already begun securing hundreds of millions in contracts with the U.S. military.
Shown is an aerial view of the Port of Brownsville, the southernmost deepwater port in the contiguous United States.
What would the company build at the Port of Brownsville?
The company describes itself as a manufacturer of “intelligent Autonomous Surface Vessels (ASVs)” that can be integrated into “traditional naval and maritime fleets.” As such, Saronic Technologies is hoping to build a next-generation shipyard at the Port of Brownsville that will produce autonomous, AI-powered drone ships for the U.S. military. Port Alpha is “an important component” to Saronic’s plans to build “advanced, highly capable autonomous ships at scale,” company officials said in February. The company’s lineup includes four vessels ranging from six feet long to about 180 feet long with various cargo and payload capacities.
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How big is the proposed Port Alpha project?
According to Cameron County records, Saronic is seeking incentives for a proposed $3.2 billion Port Alpha shipyard at the Port of Brownsville.
Shown is a “Spyglass” class autonomous boat, left, and a “Cutlass” class autonomous boat manufactured by Austin-based defense technology firm, Saronic Technologies.
How many jobs is Saronic promising — and who would get them?
The shipyard is expected to generate “10,000 permanent jobs within the first 10 years of operations,” according to county records. As part of the proposed incentive agreement, Saronic would be required to pay employees a minimum wage of $25 per hour, or $52,000 per year. And at least 35% of Saronic’s Brownsville workforce would be required to come from the local community. However, the actual number of local workers may fall far short of that goal.
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“The County and Company agree that there is a shortage of qualified labor in the County,” the proposed tax abatement agreement reads.
What tax breaks has Saronic already received?
While residents balked at the idea of Cameron County giving Saronic a tax break, another local government entity quietly approved one just a few weeks after the initial public outcry. On March 10, the Point Isabel Independent School District Board of Trustees approved a $228 million economic incentive under Texas’ Jobs, Energy, Technology, and Innovation Act.
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“This agreement represents a win-win for our students and our community,” Board President Heather Scott said after the decision, adding that Saronic’s shipyard will “transform the region.”
A prototype Saronic Spyglass ASV completes a full mission profile in its first open water exercise with the US Navy.
What could Cameron County approve next?
The proposal before Cameron County is similarly lucrative and could save Saronic millions in property taxes over the course of a decade. Cameron County is considering abating as much as 95% of Saronic’s tax bill from 2029 through 2038, records show. Further, the proposed agreement only applies to Phase 1, or the first 836 acres, of the project build. It does not include or prohibit future tax abatements on future phases of development.
