As we approach the port’s 200th anniversary, 2025 could be the biggest year in our history in terms of infrastructure spending, economic benefits and direct payments to the city of Galveston.
We’re investing more than $250 million in waterfront infrastructure to improve long-neglected, decaying berths and cargo lay-down areas. We’re also expanding our cruise business to meet growing demand.
City Payments to Increase
What’s most remarkable is that not one dime of this investment comes from the city of Galveston.
As a self-sustaining, city-owned entity, we fund our operations and improvements with operating revenues, state and federal grants, and revenue bonds.
And while the city doesn’t give the port any money, City Hall benefits directly from the port’s growth with payments for cruise parking, passenger fees and other annual payments.
That total is rising significantly as our cruise business grows. The port is projected to pay the city $3 million in 2025. It’s forecast to increase by 50 percent to $4.5 million in 2027.
While we recognize the city’s financial challenges, we also have a responsibility, as outlined in the City Charter, to reinvest port revenues to maintain and improve our infrastructure.
Revenues and Debt
The Galveston Wharves Board of Trustees recently adopted a 2025 budget that projects $83 million in gross revenues, a 6.4 percent increase over 2024. The port’s growth is largely fueled by cruise revenues, which account for more than 60 percent of total revenues.
As I pledged from the beginning when I joined the port in 2018, we are leveraging cruise revenues to fund waterfront infrastructure improvements, including at our West Port Cargo Complex. We’ll make significant progress on those improvements in 2025, with the first phase to be completed in 2026.
We’re seeking another state grant to fund the second phase to fill two outdated slips to add acreage for cargo handling. We’ll need to have tens of millions of dollars in port revenues on hand to match those grants.
In 2025, we will begin paying debt service that will grow to $17 million per year. This debt is largely for Cruise Terminal 25 improvements and the fourth cruise terminal complex.
Economic Growth
In November we’ll open Cruise Terminal 16 and welcome MSC Cruises. The terminal is forecast to annually generate almost 1,000 local jobs, $58 million in income and $21 million in local purchases.
This is on top of the 4,500 local jobs, $291 million in income and $111 million in local purchases calculated for 2023. A new survey shows that 34 percent, or roughly 500,000 cruise passengers, stay in local hotels before or after their cruises. All over the island, residents tell me they love the cruise business and what it is doing to revitalize Galveston. I am so happy for my staff who are recognized for all their hard work.
Celebrating 200 Years
Next year, the port will celebrate an exciting milestone — its 200th anniversary. We’re working with port and community partners to plan a year of events to spotlight the city and port regionally and nationally.
Visit www.portofgalveston200.com throughout the year for updates on port activities and historical programs presented by our community partners.
Wishing everyone a happy holiday season and a prosperous 2025.
