Port Canaveral halts cruise expansion amid concerns over space industry

The seventh cruise ship terminal planned for Port Canaveral is in crisis after commissioners voted to pull the project based on concerns from state departments.

Canaveral Port Authority commissioners voted 4-1 at a meeting Wednesday to abandon plans agreed to in May that would convert North Cargo Pier 8 into a new terminal. The decision comes after the Florida Departments of Commerce and Transportation sent the port a letter detailing their displeasure with the intent and the potential detriment to the space industry.

Commerce Secretary J. Alex Kelly and Transportation Secretary Jared Perdue sent the letter earlier this month. No definitive alternative for the land was presented, but both emphasized that the benefit of the cruise industry should not come at the expense of the space industry. The letter mentioned the land’s potential use for liquefied natural gas (LNG).

LNG is used in the maritime and space industries and is at the forefront of clean energy discussions.

The main warning in the letter, however, concerned expenditure. The two state departments threatened to transfer or suspend funding to the port unless the decision was reversed.

Commissioner Kevin Markey was the only one to vote against the cruise terminal reversal, saying it was largely symbolic. He was not pleased with the way the concerns were communicated, but told Central Florida Public Media that if he had been the deciding vote, he would have ultimately agreed.

“We got that letter, whatever the date was, on a Friday after five o’clock via email. That’s not the way I would have handled it,” he said. “What about a phone call? What about a heads up? What about saying something during all those meetings beforehand?”

Competing interests in sea and space travel increase as industries thrive.

Port Canaveral is expected to reach 7.3 million cruise guests this fiscal year, which runs from Oct. 1, 2023, to Sept. 30, 2024. This milestone would break the record of 6.8 million cruise guests the port had last fiscal year. In fact, the port has already broken it, with 6.9 million guests currently.

In May, Space Florida, the state agency working to bring commercial space companies to Florida, said it must nearly double its presence at the port by 2033 to support the growing space business. Fifty-nine launches have taken place from the Space Coast this year, and the industry hopes to break its record of 72 orbital rocket launches set in 2023.

On Thursday morning, Gov. Ron DeSantis announced a $5.8 million state grant to help pay for a new road leading to a planned industrial park in Titusville intended to meet the growing needs of the space industry.

Although the space industry is booming, Commissioner Fritz VanVolkenburgh disagrees with the state’s mention of using the land for LNG facilities.

“I would not be in favor of having, for example, an LNG facility like the liquefaction facility at the port. I don’t think it’s a suitable location for that,” VanVolkenburgh said.

He added that federal and state property north of the port might be a better destination for the proposal, but noted that his comment was only a precaution.

No direction has been set as to where to move forward with North Cargo Pier 8 or where the cruise terminal will be located.

The port will once again have to modify its plans for the cruise terminal. Time constraints scuttled the port’s original plans to build it on the south side, prompting the move to the northern cargo dock.

Commissioner Wayne Justice said he understood the competing interests but was concerned that the board’s decision — and the lack of clarity going forward — could cost the state dearly.

“There’s not a lot of room for cruise ships in the state of Florida these days,” he said.

Still, Port Canaveral and its commissioners will look for a way to balance industries and their own interests. Commissioner Micah Loyd said he spoke with Transportation Secretary Perdue last week to see if the state and the port could align on expansion needs.

VanVolkenburgh noted that disagreement was a good problem to have.

“It is much better to have high demand than to be underutilized,” he said.

“Unfortunately, the greater the demand, the smaller the port becomes.”

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