By a 4-1 vote, members of the Port Canaveral Commission reversed their decision to construct a new cruise terminal on the north side of the facility.
The August 21, 2024 decision followed concerns raised by officials at the Florida Department of Commerce and Department of Transportation, who had issued a letter to the port commissioners on August 2, 2024.
The challenge from the state officials centered on whether the addition of a terminal in the proposed location, at North Cargo Berth 8, would affect the planned expansion of liquefied natural gas (LNG) facilities that support Space Florida, the state’s aerospace division.
While Port Canaveral is a major hub for the cruise industry and provides LNG to cruise ships, it also supports the space industry with LNG. The fuel lowers emissions and is a key environmental component for the cruise industry, which is now routinely constructing ships that are powered by LNG.
In their letter to the Port Canaveral Commission, Florida Department of Commerce Secretary J. Alex Kelly and Department of Transportation Secretary Jared Perdue suggested that by building another cruise terminal on the north side of Port Canaveral, the port would essentially be “supporting one sector to the direct detriment of the other.”
The two high-level officials told the commission that their decision to build the terminal must be reversed, although it was not clear why they believed the new cruise facilities would impact any space industry infrastructure.
The state Department of Commerce also questioned the commission’s actions regarding an $8 million grant for a road project that would lead to the new cruise terminal, saying it would review the port’s compliance with the grant’s criteria.
Commission Chairman Micah Loyd noted that the letter from the state officials indicated there was some confusion on their part about the process to establish the location of the proposed terminal.
“The letter addressed the state’s disappointment in the location, and it reinforced that we are to support space and cargo in that location. We’ve been asked to put that location on hold,” said Micah Loyd, chairman of the Port Canaveral Commission.
Some commission members appeared disappointed with the state’s position and the outcome of the terminal proposal. After commenting on the state’s challenges, a majority of commissioners voted to nix the cruise terminal plan.
“The port has not identified another place for a cruise terminal. Reversing the decision is not easy, but I would make a motion to do so,” said Jerry Allender, secretary and treasurer of Port Canaveral Commission.
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“In general I’m a proponent of home rule, there are certainly exceptions, but when you have an asset that is as valuable as the port is, and the importance extends beyond regional to encompass state and federal concerns, and desires and wishes, where it’s really that much of an important asset, it requires flexibility,” said Fritz VanVolkenburgh, member of Port Canaveral Commission.
Port Canaveral Is the World’s Second-Busiest Cruise Port
Port Canaveral currently has six cruise terminals: Terminal 1, Terminal 3, Terminal 5, Terminal 6, Terminal 8, and Terminal 10.
It is the second-busiest port in the world in terms of cruise arrivals, welcoming 6.9 million cruise guests in 2023. Only PortMiami is busier, with 7.3 million cruise arrivals.
All of the major cruise lines have a presence at Port Canaveral. Lines that homeport ships at the facility for a wide variety of Caribbean and Bahamas itineraries include Carnival Cruise Line, Royal Caribbean International, Norwegian Cruise Line, and Disney Cruise Line.
