Recovering from Beryl, Galveston still on track for $160m bond offering

'It shows how strong and resilient our port is that a day after the Category 1 hurricane buffeted the region, a Royal Caribbean cruise ship sailed from Galveston,' Port Director/CEO Rodger Rees said.

Mariner of the Seas, delayed a day by Beryl, turned around at Galveston on Tuesday.

Port escapes the worst

The storm, packing 80 mph winds, caused widespread damage in the greater Houston/Galveston region and left more than 2m people without power. The Port of Galveston experienced relatively minor damage and some power outages, Rees said.

One day after the storm, port staff worked with port partners to begin safely reopening. After Mariner of the Seas sailed July 9, the port resumed cargo operations today.

Fourth cruise terminal

The port is preparing to issue a revenue bond package of up to $160m to fund construction of the new cruise complex at Pier 16, including a terminal, parking garage and other improvements. The financing co-managers are Hilltop Securities and Piper Sandler Companies.

As earlier reported, Standard & Poor's recently upgraded its rating for the bonds, and Fitch upgraded its outlook.

Construction under way

Construction has begun to convert an existing cargo warehouse into the 165,000-square-foot facility. The $96m cruise terminal project will include marine work on the pier, two passenger boarding bridges and ground transportation areas. 

In addition, the port will build a $55m parking garage with space for approximately 1,700 cars. The estimated $151m project will be funded with port cash reserves and the bonds. 

The new terminal is planned to open in November 2025 to homeport MSC Seascape, part of a long-term operating agreement between the Port of Galveston and MSC Cruises.