With the Port of Galveston becoming the fourth busiest cruise homeport in the country, local officials on the island are planning to transform the port over the next 20 years.

A newly approved 20-year strategic master plan for the Port of Galveston involves adding new cruise terminals, hotels, and a pedestrian greenbelt to the port over the next two decades. Galveston Wharves Board officials, who operate the port, predict a $2.4 billion investment in the projects.

According to Galveston Wharves Board officials, the Port of Galveston has moved almost 3.6 million passengers and 2.9 million tons of cargo annually in recent years. Port director and CEO Rodger Rees said that, with global growth in cruising, officials are predicting the port could almost double its cruise passenger numbers over the next 15 years.

"We now have 46 million people that live within eight hours of this port," Rees said.

To meet growing needs at the port, the 20-year plan includes building up to three new cruise terminals, on-site parking garages, and increasing cargo capacity from 3 million tons a year to more than 5 million tons over the next five to 10 years.

The plan also includes adding a maritime park, walkways along the waterfront, retail space, up to three hotels near the cruise terminals, and multifamily units along Harborside Drive intended for nearby hospital and port workers.

Port officials were originally following a master plan approved in 2019; however, progress came faster than expected. In six years, the port had two new cruise terminals, an internal roadway, expanded cargo facilities, and progress with industrial development on Pelican Island.

"We were building our fourth cruise terminal when we were not supposed to have that done until 2030, so what we did was we decided to go ahead and upgrade and do a new master plan," Rees said.

The Galveston Wharves Board of Trustees approved the newly updated version of the strategic plan on Feb. 11.

In the updated plan, port officials want to keep focusing on Pelican Island development, specifically improving road and rail bridge access to the island that's located directly north of Galveston.

Rees said officials have tried to focus more on what the future might hold for Pelican Island, especially now that Davie Defense Inc. has a lease on the 77-acre tract, where the company plans to build Arctic icebreaker ships to boost national security in the Arctic region.

While some residents have brought up concerns about increased traffic in the area with the expansion of the port, Rees said they've made improvements on traffic flow as they've grown the port. The strategic plan mentions adding internal traffic circulation to serve existing and new terminals.

According to the plan, the projects would be funded through operating revenues, grants, public-private partnerships, and debt financing. According to port officials, the port increased gross revenues from $59 million in 2019 to $87.3 million in 2025, while holding operating expenses steady at $40 million.

"The cruise business is a lot of fun, it makes a lot of money, but economically speaking, it is what’s allowing us to rebuild this whole port," Rees said.

Rees said port officials were looking for feedback about the plan. Residents were encouraged to head to Cruise Terminal 16 last week in Galveston for a public open house to give input on the plan.