The Port of Galveston (Texas), the largest cruise and cargo port in the US, is poised to undergo the development of its 4th cruise terminal complex, catering specifically to MSC Cruises.
In a recent development, the city-owned Galveston Wharves and MSC finalized an operating agreement granting the cruise company access to the port's new US$142 million cruise terminal complex. The development of this complex is slated to commence in early 2024, as per a February news release from Galveston Wharves.
Boasting the distinction of being the 4th most popular cruise home port in the U.S., the Port of Galveston witnessed a notable surge in cruise passengers, hosting 1.49 million individuals in 2023 - an impressive 43% increase compared to 2022, as highlighted in the news release.
The addition of a 4th cruise terminal is anticipated to yield significant economic benefits, projecting an additional 925 jobs and US$177 million in local business revenue annually, inclusive of passenger fees and sales tax revenue from cruise parking, according to the news release.
Contrary to initial projections outlined in the port's 2019 board-approved 20-Year Strategic Master Plan, which did not foresee the necessity for a 4th cruise terminal until 2031, Rodger Rees, Port Director and CEO of Galveston Wharves, clarified in the news release.
Rees said they were "able to begin this new project now because Del Monte Fresh Produce Co., a long-standing cargo tenant, has outgrown its facilities in Galveston."
"We are happy to see that Del Monte was able to relocate 30 miles to the south in Freeport, thus retaining its regional economic impact. We leveraged this opportunity based on the unprecedented popularity of the cruise industry and our optimal location in the central part of the United States."
The 20-year agreement, inclusive of four 5-year extension options, delineates a set cruise schedule for MSC commencing in November 2025, coinciding with the opening of the terminal, according to the news release. Moreover, the Port of Galveston retains the flexibility to engage in negotiations with other cruise lines for terminal utilization based on availability.