SPI Insights

Beating its deadline by several weeks, a major cruise line committed to starting construction in April on a new $100 million cruise terminal to serve one of the largest cruise ships in the world at the Port of Galveston.

Through a public-private partnership, the cruise line will build the terminal, then lease it from the port for an initial term of 20 years, with four 10-year extension options.

Construction of a third cruise terminal was put on hold in 2021 due to the pandemic. The cruise line exercised a contract option to extend its final decision until April. In the meantime, the cruise operator and port staff continued to lay the groundwork to move forward.

Port officials said the new terminal will generate millions of dollars in ground rent and other revenues for the port, which it will reinvest in infrastructure and capital improvements as outlined in its Strategic Master Plan.

The port will pay the city of Galveston at least $300,000 a year. Based on passenger volume, officials anticipate this amount to increase if annual passenger numbers at the new terminal grow beyond 600,000.

Based on adjusted plans and timelines, the terminal is now scheduled to be completed in October 2022 with the Oasis-class ship beginning service in November 2022.