Galveston is the fourth largest cruise port in the United States (11th globally), handling more than 2.2 million passengers in 2023. It is a drive-to port within proximity to large Texan metropolitan areas, including Houston, Dallas-Fort Worth, and Austin, with more than two-thirds of the passengers driving their own vehicle to the port. There is a substantial population with discretionary income from which to draw cruisers, which has been the main growth impetus. The emergence of the cruise industry in the 2010s represented a radical change in the port’s role and function. From a general bulk and breakbulk facility, cruises accounted, as of 2023, 72% of the port’s revenue, up from 62% in 2019.
In 2022, the third cruise terminal in Galveston (terminal 3) opened. The 161,000 square feet facility is located on Pier 10 and represents a partial reconversion of a RoRo facility (there is still the option to use the pier as a RoRo terminal with a direct access ramp on the eastern edge). It is the world’s first cruise terminal to be certified a LEED (Leadership in Energy and Environmental Design) zero-energy facility, meaning that it is able to fulfill the entirety of its electricity needs through 30,000 square feet of solar panels. The $125 million investment is a joint venture between Royal Caribbean and Ceres Terminals, which provides management and stevedoring services. The facility can handle the latest generation of Icon Class cruise ships (about 6,000 passengers) and is for the exclusive use of Royal Caribbean.
The two-story terminal is designed like an airport terminal with similar features such as check-in, luggage drops, security, and waiting areas before boarding by sequential groups through a gangway. Like a standard airport terminal, check-in is on the second floor, and arrivals are on the ground floor. This implies different access points for drop-offs and pickups. There is also a separate waiting area (lounges) for passengers occupying suites.
Since Galveston is a drive-to-cruise port, an important issue concerns parking, which is a significant source of revenue for the port authority. In 2023, more than 210,000 cars parked at facilities operated by Galveston Wharves, close to double pre-pandemic 2019 figures. In addition to the dedicated parking facilities adjacent to the terminal and operated by the port authority, an ecosystem of private parking services has emerged around the port. This has represented an unexpected reconversion of port-centric real estate, including the reconversion of old warehouses into covered parking lots.
Further, in 2023, Terminal 25 was renovated to better suit the requirements of its main customer, Carnival, mainly being able to bring its latest generation of cruise ships of the Excel class (about 6,000 passengers). A fourth cruise terminal, a joint venture with MSC Cruises, is underway at Pier 16 and is expected to open in late 2025. This will reinforce the position of Galveston as a major cruise turn port.