A total of $156,835,000 in revenue bonds for the building of the port’s fourth cruise terminal has been successfully priced by Galveston Wharves, leading to over $1.8 billion in orders from investors, as stated in a press release.
Due to high demand, interest rates were decreased by the port, resulting in around $2 million in savings on principal and interest.
In the words of Rodger Rees, Galveston Wharves’ port director and CEO: “Investors acknowledged the port’s financial stability, swift recovery post-Hurricane Beryl on July 8, growth trajectory, efficient management, recent rating improvement by Standard & Poor’s, and a positive forecast by Fitch.”
Managing the financing are Hilltop Securities and Piper Sandler companies.
Work is currently ongoing to convert an existing cargo warehouse into a 165,000-square-foot cruise terminal at Pier 16. This $96 million initiative will involve marine enhancements to the pier, two passenger boarding bridges, and designated ground transportation zones.
Furthermore, the port intends to construct a $55 million parking facility accommodating about 1,700 vehicles. The whole projected cost of $151 million will be covered through port funds and revenue bonds.
Expected to launch in November 2025, the new cruise terminal will serve as the homeport for MSC Cruises’ Seascape. A comprehensive operational contract was settled between Galveston Wharves and MSC Cruises in early 2024.
Under the 20-year accord, with four optional five-year extensions, MSC will institute a fixed cruise timetable beginning in late 2025, coinciding with the terminal’s debut. The port retains the option to negotiate with other cruising companies for terminal usage, contingent on availability.
