The Port of Galveston is proposing a $40 million development project on Pelican Island to support shipbuilding growth, improve logistics and expand cargo and fuel infrastructure.
The Port of Galveston is planning a $40 million investment to develop 357 acres on Pelican Island, aiming to support shipbuilding operations and expand cargo and fuel infrastructure along one of the state’s last large-scale deepwater port sites.Port Director and CEO Rodger Rees announced the proposal Tuesday, describing the land as “prime waterfront acreage” positioned to become a major hub for maritime growth. The site includes about 100 acres adjacent to the Gulf Copper shipyard recently acquired by Davie Defense in a $1 billion deal.
Rees said the project would transform Pelican Island into “our next great growth opportunity,” leveraging its strategic location to support the shipbuilding industry and broader port operations.
“This essential infrastructure will give the shipbuilding project critical logistics support to reduce supply-chain bottlenecks and accelerate contract delivery and jobs creation,” Rees wrote in a column published on the port’s website.
Planned improvements include constructing a liquid natural gas facility to refuel cruise and cargo ships, expanding cargo-handling space for roll-on/roll-off, or “ro-ro,” operations, and making roadway upgrades to improve truck movement throughout the port.
The development would be funded through a combination of the port’s operating reserves and anticipated federal and state grants, according to officials.
Rees also highlighted the need to address aging infrastructure in the area, specifically calling for solutions to replace the Seawolf Parkway/51st Street bridge. He urged stakeholders to pursue “an affordable design” that meets both road and rail transportation needs.
Galveston Wharves Board of Trustees Chair Jeff Patterson said the project reflects broader financial planning challenges and opportunities facing the port.
“The key is trying to figure out the funding source(s) and how we manage our cash flow to fund our next round of priorities,” Patterson said, adding that expanding Terminal 10 will also factor into funding decisions.
He described the situation as “good problems to have,” noting the port’s growth trajectory and increasing demand for infrastructure improvements.
Officials say the Pelican Island project could position the Port of Galveston as a critical logistics hub supporting shipbuilding, cargo movement and energy services along the Texas coast.
Further planning and funding decisions are expected as the port refines its long-term development strategy.
.png)
.png)
