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Port of Galveston is nearing an agreement with Royal to build new third terminal and bring a new largest Oasis Ship with up to 6200 passengers in 2020.

 

Port officials nearing deal on third cruise terminal

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Pier 10 at the Port of Galveston is one of the possible locations for a third cruise terminal.

JENNIFER REYNOLDS/The Daily News

GALVESTON

 

Port of Galveston officials are nearing an agreement with Royal Caribbean to build a third cruise terminal at the Port of Galveston that could cost $85 million and bring the world’s largest passenger ship to the island in 2020.

 

“We’re working toward a really good agreement,” said Ted O’Rourke, chairman of the port’s governing board. “It’s a great opportunity if we are able to put it together.”

 

 

Port Director Rodger Rees in March announced that Royal Caribbean wanted to bring an Oasis-class ship to the island, but that doing so would require a new cruise terminal.

 

The port already is home to two cruise terminals at piers 25 and 27, but the size of the Oasis-class ships requires additional support, officials said.

 

Royal Caribbean’s Oasis-class ships, of which there are four with more planned, are more than 1,180 feet long and capable of carrying more than 6,200 passengers.

 

Officials are discussing putting the third cruise terminal at Pier 10, next to the Wallenius Wilhelmsen Logistics and BMW vehicle processing plant, Rees said.

 

“Right now, the talk is about having Royal Caribbean come in and build the terminal themselves, then we’d have them lease the land from the port, sharing in revenues with them. We’d control the parking aspect of it,” Rees said.

 

Royal Caribbean officials did not respond to a request for comment by deadline Friday.

 

The proposed facility would have to be about 155,000 square feet, port officials said.

 

The BMW facility would not have to move under current plans, Rees said.

 

The benefit of having Royal Caribbean build the cruise terminal would be that the port wouldn’t have to take on substantial debt and would, instead, be able to focus on its substantial infrastructure needs, Rees said.

 

Ever since the Carnival Celebration made its first voyage from the island in September 2000, the port has come to depend more and more on the cruise business for revenues.

 

The port depends heavily on revenues from cruise ships. Port officials anticipate about 55 percent of revenue budgeted for 2018 will be cruise related.

 

Port officials are projecting operating revenues of about $37.4 million in 2018 against operating expenditures of $37.2 million, according to documents.

 

“This doesn’t use up our borrowing power to build a new terminal,” Rees said.

 

 

Addressing dilapidated facilities at the island’s public docks could cost as much as $250 million, a problem exacerbated by the fact the port is projected to bring in only about $250,000 in net income in 2018, port officials said.

 

For a third cruise terminal to be ready to host an Oasis-class ship in the fall of 2020, officials will need a project planned and designed by about November, Rees said in a previous interview with The Daily News.

 

There is not yet a final agreement with Royal Caribbean, and all details of the proposed third cruise terminal could still change, Rees said.

 

The Wharves Board of Trustees must approve whatever agreement is eventually reached with the cruise line, Trustee Elizabeth Beeton said.

 

The Port of Galveston is a landlord port, which generates much of its income from lease agreements with maritime tenants and fees related to ship calls.

 

The port is home to three year-round Carnival Cruise Line ships, one year-round Royal Caribbean ship, one seasonal Royal Caribbean ship and a seasonal Disney Cruise Lines ship.

 

The Carnival Vista, the cruise line’s newest and biggest ship, will arrive at Galveston’s docks Sept. 23.

 

 

 

 

Matt deGrood: 409-683-5230; matt.degrood@galvnews.com

 

 

 

 

 

 

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I think this will be great for Galveston to have three cruise terminals. The cruise industry has grown significantly over the past decade for Galveston. I remember the days when the Carnival Ecstasy & Conquest were the only year round ships and Royal Caribbean came seasonally.

 

Since Royal Caribbean currently uses Terminal #2 on Sundays, I wonder if once the terminal is built whether or not they will continue using terminal 2 on Sundays or if another cruise line will get to use the space.

 

It will be interesting to see if this frees space for another cruise line to depart from Galveston too. I would imagine Royal Caribbean would try to use their new terminal as much as possible, especially if they pay for it.

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Crossing my fingers for the deal to come thru. We sailed Oasis from Ft Lauderdale in summer 2016 and loved that mega ship. I get motion sickness easily but that was one smooth week. We absolutely love the Promenade inside walk way. That stands out over other cruise lines for us.

 

There were talks in the past of attracting higher end lines to do longer trips like Panama Canal. Maybe Pier 2 can accommodate another cruise line to do that.

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This will create a traffic nightmare unless departures/arrivals are midweek. Plus where are they going to park all those additional cars? It’s not like the parking lots and garages aren’t full now. We cruise Royal almost exclusively and my experience has been that the ICE staffing is woefully deficient every time we return. Lots of serious planning and collaboration necessary. Galveston has never been known for that. Better than Houston but that’s not saying much. Maybe that is changing. I was really hoping for additional itineraries.

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This will create a traffic nightmare unless departures/arrivals are midweek. Plus where are they going to park all those additional cars? It’s not like the parking lots and garages aren’t full now. We cruise Royal almost exclusively and my experience has been that the ICE staffing is woefully deficient every time we return. Lots of serious planning and collaboration necessary. Galveston has never been known for that. Better than Houston but that’s not saying much. Maybe that is changing. I was really hoping for additional itineraries.

 

This will create a traffic nightmare unless departures/arrivals are midweek.

Answer : Access off I45 to Harborside being redesigned and starting.

 

Ingress/Egress to Terminals 1 & 2 is being redesigned from/to Harborside and l be improved .

Terminal # 3 will have new better directions and rerouting for access and parking. .

 

 

Plus where are they going to park all those additional cars? It’s not like the parking lots and garages aren’t full now.

Answer: New lots are already being built and more in progress now and new multi story lots are being discussed by port..

 

We cruise Royal almost exclusively and my experience has been that the ICE staffing is woefully deficient every time we return.

Answer: YES I agree and That is in every port in US . Sorry to say . With new terminal # 3 obviously new allocations for ICE and

 

Galveston will be necessary ! This is highly necessary I agree.

 

Lots of serious planning and collaboration necessary. Galveston has never been known for that. Better than Houston but that’s not saying much. Maybe that is changing.

Answer: CHANGING - New aggressive Wharves Board, New aggressive Wharves Board Chairman , New Good Board Members , New Executive Director of Galveston hired from Port Carnival and responsible for the growth of that port. And lots of Short Term / Long Term Panning happening. All leases of current tenants being renegotiated to allow for planned growth in areas needed for parking garages and new terminals docking.

 

I was really hoping for additional itineraries.

Answer : A Royal Decision not Port Decision. Yes for sure , hope so. It should happen at some point.

Edited by ssb
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Another Galveston Daily News Comment : ....

 

The Port of Galveston may find itself with a third cruise terminal — along with a much needed economic shot in the arm — without having to lay out a large sum of cash up front or make significant commitment to debt to fund the project.

 

“Right now, the talk is about having Royal Caribbean come in and build the terminal themselves,” Port Director Roger Rees recently told a Daily News reporter. “Then we’d have them lease the land from the port, sharing in revenues with them. We’d control the parking aspect of it.”

 

Projections for the third terminal at the Port of Galveston point to a cost of about $85 million.

 

The interesting aspect about this proposal is that the port, which has struggled for years without enough cash for many capital improvements, will be leasing land to the cruise line.

 

The heavy capital investment for the facility would come from the cruise line, while a smaller investment in a new parking facility would come from the port.

 

If successful, this concept would allow the port to invest its limited free capital into other much needed infrastructure needs, of which there are many.

 

The driving factor in this project is to allow the port to welcome Royal Caribbean’s Oasis-class of ship in the fall of 2020. These Oasis-class ships, of which there are four with more planned, are more than 1,180 feet long and capable of carrying more than 6,200 passengers. Cruise ships currently serving the port average between 3,000 and 4,000 passengers.

 

The very larger Oasis-class vessels require special services and infrastructure at the ports servicing them. The proposed facility at Pier 10 in Galveston would need to be in the 155,000-square-foot range. Currently cruise ships occupy piers 25 and 27.

 

Galveston is the fourth-largest cruising port in the nation. The port generated $37.5 million in revenues — making it a significant economic engine for the community in 2018. The flip side is the port also carried roughly $37.2 million in expenses in 2018 — eking out a meager $250,000 or so of free cash flow, hardly a significant sum allowing for investment or taking on project debt toward expensive improvements.

 

The port needs to grow in both capacity and quality. And by creatively finding a way to bring much needed infrastructure improvements without incurring heavy debt service, the port will be better positioned to serve both current and prospective clients. If this plays out as initially discussed, it would be good for Galveston and is certainly an idea worthy of serious consideration.

 

• Leonard Woolsey

 

Leonard Woolsey: 409-683-5207; leonard.woolsey@galvnews.com

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https://www.google.com/maps/place/Galveston,+TX/@29.3167977,-94.7869604,1690m/data=!3m1!1e3!4m5!3m4!1s0x863f59c8c4059259:0xe58b03c9b9eaecc1!8m2!3d29.3013479!4d-94.7976958

 

Google map location of proposed terminal.

 

In regards to possible new routes, maybe drop Grand Cayman since you have tender 6000 people, and add Labadee with Jamaica and Cozumel. Labadee would make it more profitable to RC.

 

Good news for Galveston after years of rumors.

 

How is the Harborside Drive connection to I-45 going to be improved?

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https://www.google.com/maps/place/Galveston,+TX/@29.3167977,-94.7869604,1690m/data=!3m1!1e3!4m5!3m4!1s0x863f59c8c4059259:0xe58b03c9b9eaecc1!8m2!3d29.3013479!4d-94.7976958

 

Google map location of proposed terminal.

 

In regards to possible new routes, maybe drop Grand Cayman since you have tender 6000 people, and add Labadee with Jamaica and Cozumel. Labadee would make it more profitable to RC.

 

Good news for Galveston after years of rumors.

 

How is the Harborside Drive connection to I-45 going to be improved?

-------------------------------------------------------------------------------------------------------------------------

An earlier in time article in Galveston Daily News

 

 

It’s good the city of Galveston plans to spend about $2.3 million to improve traffic flow on Harborside Drive and to make it easier and safer for pedestrians to cross the heavily traveled road.

 

 

We hope, however, the city is lobbying the state to make other improvements that don’t seem to be among those planned for this project.

 

The Texas Department of Transportation in 2014 began a study of the 6.2-mile corridor running between Interstate 45 and the western end of state Highway 87, identifying areas for improvement, including new light signals and crosswalks.

 

The agency, Port of Galveston, city, University of Texas Medical Branch, Downtown Partnership and Mitchell Historic Properties had all searched for ways to improve safety and access. The corridor study was completed in 2015.

 

 

The construction likely will include several changes to improve safety, including moving the Cruise Terminal 1 entrance to 23rd Street and the Cruise Terminal 2 entrance to 33rd Street, according to the Harborside Drive transportation study.

 

The study also calls for a sidewalk plan and landscaping to help areas with heavy pedestrian traffic, according to the study. The work also will include raising medians between 20th and 33rd streets and adding wayfinding signs for drivers and pedestrians, according to the plan.

 

 

The Galveston Industrial Development Corp., a nonprofit funded through a portion of sales taxes, is paying for the construction, but contracted with the city to design and oversee the work.

 

Once a state transportation agency review is completed, the city will begin the bidding process for construction projects, city spokeswoman Jaree Fortin said.

 

 

The city expects the projects to be completed by late 2019, she said.

 

“With almost 1 million people cruising out of the Port of Galveston in 2017, Harborside is an important gateway for visitors and a vital corridor to downtown and UTMB,” Fortin said.

 

 

“However, the project is intended to not only improve the aesthetics of Harborside Drive, but to also facilitate safe travel and encourage reinvestment along the waterfront and the historic downtown area.”

 

There’s no doubt improvements need to be made along Harborside near the cruise ship terminals. Anybody who’s driven by there when one of the ships has been docked has seen tourists trying to cross Harborside without getting run over, or seen tourists dragging their luggage along a dirt path to one of the remote parking lots.

 

 

Harborside needs more improvement than just that, however. For one thing the state needs to rethink the intersection at Harborside and Interstate 45. The most recent improvements attempted to make the intersection look better with landscaping and brick pavers. That was counterproductive.

 

Pavers on the south side of the intersection have been beaten into rubble by commercial vehicles attempting to navigate the underpass. The only purpose the pavers now serve is as a source of debris to be scattered along the road, picked up by tires and thrown into somebody’s windshield.

 

 

Meanwhile, the right turn from Harborside onto the freeway service road is too narrow and sharp for long trucks to easily navigate, which causes traffic problems when oversized loads have to pass through, which is fairly frequently.

 

The intersection doesn’t need to be prettified, it should be re-engineered to better accommodate the heavy commercial traffic coming and going from the port.

 

 

And Harborside is not going to be an efficient, reliable route from I-45 to downtown until the state builds an overpass taking it over the railroad tracks.

 

• Michael A. Smith

Galveston Daily News

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I wonder how they're going to improve Harborside also. Can't really make any wider. Maybe in certain areas. But not the whole length down to Wallenius Wilhelmsen.

 

Sent from my Samsung Galaxy, using speech to text.

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