Ain't We Got Fun?
Ain't We Got Fun?
Cruising in the Gulf - The Fourth Most Popular U.S. Cruise Port Advancing at a Steady Clip
“I’m having fun with what I’m doing.”
These were the seven words Rodger Rees, Galveston Wharves port director and CEO, proclaimed when asked about his tenure thus far working at the port.
A more cynical take would pass this off as some motivational cliche. Yet it took just two minutes of listening to Rees to see that he is having fun with what he’s doing. The port director and CEO exudes positivity and a genuine conviction for his work, and it’s a joy to see fun and work cohabitating and thriving.
Rees arrived at the Galveston Wharves in 2018, just before the pandemic. The port had not been profitable, barely breaking even, but had great potential. Upon Rees’ arrival, he and his team developed a 20-year strategic plan that was adopted and approved by the Galveston Wharves Board of Trustees in 2019.
Guided by that master plan, the port has built a third cruise terminal and is beginning construction on a fourth. The self-sustaining city entity, which receives no tax revenues, is also investing millions in cargo and transportation infrastructure improvements this year. Rees attributes success to the port’s vision, location and strong relationships with port partners.
“Within a 12-hour drive of Galveston,” Rees explains, “you’ve got 50 million people.” While long considered a tourist town, income from the cruise sector now makes up 65 percent of the port’s annual revenue.
Carnival Cruise Line was the first operator to recognize the Texas port’s potential. They arrived in the early 2000s and loaned the funds to the port to renovate a terminal. Fast-forward to the present and the Port of Galveston is now the fourth most popular cruise home port in the U.S., hosting 1.49 million cruise passengers in 2023.
“The pandemic changed travel habits,” Rees notes, “and we benefited from that.” For every seven passengers on a given cruise leaving from Galveston, one car arrives and parks. “We have almost 9,000 parking spaces with this new terminal we’re building, and parking revenue is a big driver,” Rees remarks.
The port has partnered with MSC Cruises, a leading international cruise company, to begin construction on the fourth cruise terminal complex. The estimated $150 million project includes the $100 million cruise terminal with marine work and passenger boarding bridges, along with a $42 million parking structure.
“We’re budgeting record revenues and cash flow this year,” Rees explains. Port cash reserves and revenue bonds will fund the project, and Rees is “excited beyond belief for the city and region” to welcome the MSC Seascape, a virtual maritime city that can accommodate 5,632 passengers and 1,648 crew members, in 2025.
Ships like the MSC Seascape are a big reason why Rees is having so much fun. “The difference in the cruise business from a few years ago is that now the attraction is the ship,” Rees notes. Galveston is home to some of the newest and most beautiful ships sailing today, including the newly built Carnival Jubilee, the Norwegian Prima and Royal Caribbean’s Oasis Class Harmony of the Seas.
While cruising takes up much of Rees’ time, roughly one-third of annual revenue comes from cargo shipments. While not as “sexy” as cruising, you wouldn’t know it coming from Rees. He lists with great enthusiasm the range of products that come through Galveston - automobiles, fertilizers, bananas, tractors, bulldozers, and wind turbine pieces. With additional cargo property from the slip fills and grain elevator property demolition, there is much anticipation for growth in the cargo business.
Much of the port’s cargo leaves by rail, and Rees is also quite proud of the work the port is doing to minimize the greater maritime carbon footprint. “The port is part of a shore power task force,” Rees details, “with Carnival, Royal, CenterPoint Energy, Shell, and Texas A&M University.”
Allowing docked cruise and cargo vessels to plug directly into the local electrical grid rather than run their hydrocarbon-powered engines improves air quality and reduces their carbon footprint. In another environmental gain, the Carnival Jubilee is now being fueled by clean-burning liquefied natural gas (LNG) at its Galveston home port.
Rees is also a vocal proponent of community involvement and ensuring the city of Galveston is an active partner in the port’s development. “Galveston’s population is 50,000, and you don’t make a move in this town without everybody knowing it,” Rees recounts. “For example, we are involved in creating a maritime-related curriculum with the Galveston Independent School District’s Ball High School.” Galveston College is working to expand its maritime offerings, and Galveston already has one of the few maritime academies in the country, with the Texas A&M Maritime Academy located on the island.
While Galveston is accustomed to tourism, more terminals equal more tourists. Rees explains, “At our height, we now have approximately 25,000 cruisers getting on and off on three-ship days. Another cruise terminal adds almost another 8,000 passengers. Traffic is a concern.” Rees goes on, “so I hold a lot of neighborhood talks to keep the community informed.” Rees understands the complex interplay of growing the port and Galveston tourism while prioritizing community concerns. The port, community, and regional leaders are looking for ways to improve state and city roadways for the future.
Galveston Wharves is celebrating its 200th birthday in 2025. Cruising will likely represent a larger share of revenue over the coming years as more and more families take advantage of one-of-a-kind vessels.
“Cruises are a good value,” Rees remarks. “You pay a flat fee and have everything included. I’ve seen rates as low as $499 per person for a week-long cruise.” The other draw to cruising from Galveston Wharves is ships hit open waters in just 45 minutes. Comparing this with three hours from New Orleans, there’s a reason under Rees’ leadership that the port is the fourth most popular in the U.S.
While Rees contends challenges lie ahead, his infectious enthusiasm is hard to ignore. It also helps that construction on the fourth terminal is an impressive seven years ahead of the port’s master plan schedule and that the impact of cruise activity brings in $73.5 million in local purchases by passengers and crew to Galveston.
So, while Rees and his team (to whom he gives abundant praise for all the success) are advancing at a steady clip, one of the most important things for Rees is to make sure that “we are all still having fun.” At the moment, the answer is a resounding yes.
