Port Canaveral’s planned seventh cruise terminal is dead in the water after commissioners voted to pull back the project based on concerns from state departments.
Canaveral Port Authority Commissioners voted 4-1 in a meeting Wednesday to abandon the plans agreed upon in May that would turn North Cargo Berth 8 into a new terminal. The decision comes after the Florida Departments of Commerce and Transportation sent the port a letter detailing displeasure with the intention and potential detriment for the space industry.
Commerce Secretary J. Alex Kelly and Transportation Secretary Jared Perdue sent the letter this month. No definitive alternative for the land was presented, but the pair emphasized that the benefit of the cruise industry should not come at the expense of the space industry. Mentioned in the letter was the land’s potential use for liquified natural gas (LNG).
LNG is used by the maritime and space industries and is at the forefront of clean energy debates.
The letter’s main warning, however, had to do with expenses. The two state departments threatened to shift or stop funding to the port unless the decision was reversed.
Commissioner Kevin Markey was the sole vote against reversing course on the cruise terminal and said it was largely symbolic. He was displeased with how the concerns were communicated but told Central Florida Public Media that if he was the deciding vote, he would have ultimately agreed.
“We got that letter, whenever it was dated, on a Friday after 5 (p.m.) by email. Not the way I would’ve handled it,” he said. “How about a phone call? How about a heads up? How about saying something during all those prior meetings?”
The competing interests of sea and space travel rise as the industries soar.
Port Canaveral is expected to reach 7.3 million guests from cruise vessels this fiscal year, which ends Sept. 30. This milestone would break a record 6.8 million cruise guests that the port reported last fiscal year. In fact, the port has already broken it, currently sitting at 6.9 million guests.
In May, Space Florida, the state agency that works to bring commercial space companies to the state, said it must nearly double its presence around the port by 2033 to support the growing business. Fifty-nine launches from the Space Coast have occurred this year, and the industry hopes to break its record 72 orbital launches set in 2023.
Thursday morning, Gov. Ron DeSantis announced a $5.8 million state grant to help pay for a new road leading to a planned Titusville industrial park meant to meet the growing needs of the space business.
Although the industry is skyrocketing, Commissioner Fritz VanVolkenburgh disagreed with the state’s mention of using the land for LNG facilities.
“I would not be in favor of having, say, an LNG facility such as liquefaction at the port. I don’t think that’s a suitable location for it,” VanVolkenburgh said.
He added that the federal and state property north of the port may be a better destination but noted his say was just a precaution.
No course is set for where to move forward with North Cargo Berth 8 or where the cruise terminal will be slated.
The port will once again have to pivot its cruise terminal plans. Timing issues capsized the port’s original plans of building it on the south side, which sparked the change to the north cargo berth.
Commissioner Wayne Justice said he understood the competing interests but had concerns over whether the board’s decision - and lack of clarity ahead - may cost the state down the line.
“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 the industries and its own interests. Commissioner Micah Loyd said he spoke with Perdue recently to see if the state and port could align on expansion needs.
VanVolkenburgh noted the disagreement was a good problem to have.
“It’s much better to be in high demand as opposed to being underutilized,” he said.
“Unfortunately, the more demand that you get, the smaller the port gets.”
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