The Port of Galveston has signed a Memorandum of Understanding (MoU) with Royal Caribbean Cruises Ltd. on the development and operation of a new cruise terminal.
The long-term lease negotiations could lead to a 60-year transaction: a 20-year initial term and four 10-year options, according to the port.
Based on the details revealed so far, the new terminal will cover approximately 200,000 square feet on ten acres of land in the southeast section of the port known as Pier 10. Improvements to the pier bulkhead and apron will be made to accommodate the cruise line’s largest vessels. The new facility is anticipated to open in fall 2021.
“This new cruise terminal to be built by Royal Caribbean allows the port to continue investing in our infrastructure while growing our cruise business exponentially. This partnership will bring both larger class ships as well as more visitors to the City of Galveston and the region,” said Port Director/CEO Rodger Rees.
“Over the last 15 years, Royal Caribbean has brought over 2.4 million guests to Galveston driving an economic impact of USD 65 million each year. The development of a new terminal is crucial to our continued growth and expansion of the brand in the region,” said Michael Bayley, President and CEO, Royal Caribbean International.
Royal Caribbean currently has two ships that sail out of Galveston, Liberty of the Seas, the largest cruise ship to sail from the State of Texas and Vision of the Seas. The Port expects the new cruise terminal to generate an additional 1.0 million passengers halfway through the term of the contract.