Port Thankful for Abundance in 2024

By Rodger Rees, Galveston Wharves Port Director and CEO

During this season of giving thanks, the Port of Galveston has much to celebrate. When I reflect on 2024, I'm grateful for many things, including our strong financial performance, progress with master plan projects, and the support of our staff, board, City Council and community.

Financial Performance Fuels Growth

As a self-sustaining city entity with no taxing authority or city funding, we rely on our revenues, grants and bonds to maintain and expand our assets to grow our business and fuel regional economic growth.

Our cruise business, which generates about 60 percent of port revenues, has had remarkable growth. We leverage cruise revenues to fund major capital projects and other improvements throughout the port.

We continue to set new cruise records, thanks to the popularity of our homeport and investments by our cruise partners in larger and newer ships. We expect to end the year with more than 1.6 million cruise passengers and 380 cruise sailings.

Major Projects Moving Forward

We follow a successful financial model to manage expenses, build cash reserves and leverage those reserves to help fund capital projects with bonds and grants.

In 2024 we broke ground on more than $90 million in construction to expand and improve our West Port Cargo Complex. Thanks to a $36 million state grant, we're building retaining walls in front of two little-used slips, adding a 1,424-foot-long berth and improving paving in the cargo-handling area. The second phase, still to be funded, will involve filling the slips and more.

We also began demolition of a decommissioned grain cargo complex to add acreage for cargo, including large wind turbine pieces and roll-on/roll-off cargo.

On the cruise side, we broke ground on a $156 million cruise complex at Pier 16 to homeport MSC and Norwegian cruise lines beginning in 2025. Our fourth cruise terminal will be funded with the successful issuance of $157 million in bonds in August.

Investors recognized the port's financial resiliency, growth trajectory, strong management, recent rating upgrade from Standard & Poor's, and a positive outlook from Fitch.

Grateful for Partnerships and People

We couldn't succeed without strong partnerships. I'm grateful for all the people who believe in the port and help us deliver our mission, including the following:

• The Galveston Wharves Board of Trustees who volunteer their time to guide the port
• State and federal elected officials and entities, including the Texas Department of Transportation and Texas Commission on Environmental Quality, that provide grants for port programs and projects
• Port partners, including the pilots, stevedores, tenants, cruise lines and the International Longshoremen's Association
• The Galveston Chamber of Commerce and Galveston Economic Development Partnership
• Galveston citizens

Last but certainly not least is the port staff. This dedicated, hard-working group of more than 120 people achieve the work of a staff twice its size. All the departments work well together and are ready to take on any challenge or project, no matter how big. This can-do attitude and teamwork make the port successful and a great place to work.

From my family to yours - wishing everyone a happy holiday season.

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