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 located in proximity to large Texas metropolitan areas, including Houston, Dallas-Fort Worth, and Austin, with more than two-thirds of passengers driving their own vehicles to the port. There is a substantial population with discretionary income to draw cruisers from, which has been the primary driver of growth. The emergence of the cruise industry in the 2010s marked a significant shift in the port’s role and function. From a general bulk and breakbulk facility, cruises accounted for, 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 under a 60-year concession. 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 as a LEED (Leadership in Energy and Environmental Design) zero-energy facility, meaning it can fulfill its entire electricity needs through 30,000 square feet of solar panels. The $125 million investment is a joint venture between Royal Caribbean and Ceres Terminals (acquired in 2023 by SSA Marine), 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 majority of the cruises last 4 or 5 days and are bound to Cozumel and Costa Maya in Mexico.
The two-story terminal is designed like an airport terminal, featuring similar amenities such as check-in, luggage drop-off, security, and waiting areas, all of which are accessed sequentially through a gangway for boarding. 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, a significant concern is parking, which is a substantial source of revenue for the port authority. In 2023, more than 210,000 cars were parked at facilities operated by Galveston Wharves, close to double the pre-pandemic 2019 figures. In addition to the dedicated parking facilities adjacent to the terminal, operated by the port authority, a network 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 (about 1.5 kilometers to the west) was renovated to better suit the requirements of its primary 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.