Galveston to Propose $160 Million Bond for Expansion with New Cruise Terminal

Galveston, Texas, is taking significant strides to enhance its status as a top cruise destination with plans to secure a $160 million bond for the construction of a new cruise terminal. This ambitious move aims to accommodate the growing demand for cruise operations and attract a fourth major cruise line to the port.

The city is currently engaging in discussions with MSC Cruises to potentially homeport the MSC Seascape in Galveston. This ship, boasting a capacity of over 5,600 passengers, would significantly boost the port’s capacity and profile. Galveston, which processed 1.5 million cruise passengers last year, already ranks as the fourth-largest cruise port in the United States.

City officials underscore the economic impact of cruise tourism, citing that passengers contributed approximately $1.3 billion in off-ship spending last year. This robust economic activity underscores the port’s critical role in the local and regional economy and supports the case for expanding its facilities.

Confidence in securing the necessary funding is high, with Rodger Rees, Galveston Wharves port director and CEO, noting the strong investor interest in previous bond offerings. “Last time we did this, we did a $50 million bond offering and we had $250 million in orders,” said Rees, highlighting the five-fold oversubscription as an indicator of investor confidence.

The port plans to repurpose the Del Monte Fresh Produce Co.’s building into a 165,000 square-foot state-of-the-art cruise terminal. This development is part of a broader vision to ensure that Galveston remains competitive and capable of hosting the largest cruise ships in the industry.

A vote on the bond proposal is scheduled for later this week, following detailed presentations to city officials. This comes as Carnival Cruise Line, another major operator at the port, announces its slate of ships set to sail from Galveston in the 2025-26 cruise season, further emphasizing the port’s growing importance as a cruise hub.

This development is a clear signal of Galveston’s commitment to strengthening its cruise industry infrastructure, aiming to enhance the city’s appeal as a premier cruise port globally.