Rodger Rees, Port Director & Chief Executive Officer, Port of Galveston

Invest: spoke with Rodger Rees, port director and chief executive officer of the Port of Galveston, about the port’s infrastructure investments, cruise growth, workforce development, and long-term plans for expanding operations. “The cruise business is a major source of revenue for us,” Rees said.

What changes over the past year have impacted the Port of Galveston, and in what ways?

Seven years ago, we put together a master plan that has been our roadmap for growth. The exciting thing is that we’re ahead of schedule, so we recently updated it. This year, we expect to see cargo growth after completing a $106 million expansion project in our West Port Cargo Complex.

This was funded with port operating revenues and a $36 million state grant, which really jump-started this important project for us. We’re a major Texas cargo port, with about 3 million tons of cargo moving across our docks.

We are also the fourth-largest cruise port in the United States, behind the three major cruise ports in Florida. We expect close to 2 million passengers this year, and that growth is happening rapidly. In 2025, we opened our fourth cruise terminal to homeport MSC and Norwegian cruise lines.

The cruise business is our major revenue source. The growth in cruise activity generates the cash flow needed to make investments in infrastructure and future development. We have also seen new industries, like shipbuilder Davie Defense, that will contribute to job growth and economic impact.

How does Galveston differentiate itself from other cruise ports and attract new cruise line investments?

One advantage is that we do not have geographic challenges. Many cruise ports have bridges or other physical limitations that restrict larger ships. We do not have those barriers.  

We are also a drive market. About 70% of our cruise passengers drive here, and within an eight-hour radius, there are approximately 46 million people. Having that many potential customers within a one-day drive has been a major factor in our growth.

We have excellent access and continue to expand our cruise operations. We are currently discussing the development of a fifth cruise terminal. We already host all the major cruise lines, and our proximity to open water continues to support growth.

We also have a vibrant and growing waterfront commercial sector. Our newly adopted master plan envisions a second commercial area with lodging, retail, multifamily housing, and other uses to serve cruise passengers, tourists, and the community.

The master plan clearly outlines where we are headed and the opportunities that exist for future expansion.

What impact have infrastructure investments had on the local economy and the port’s competitiveness?

The cruise business provides the financial foundation for many of the investments we are making. While cargo activity is not yet back to where it was decades ago, we have been investing in the infrastructure necessary to support future growth. We have filled one of our slips and added a new cargo berth as part of that effort.

Another major opportunity is shipbuilding. We recently sold a leasehold interest on Pelican Island to Davie Defense, which plans to build icebreakers there. That project represents a $1 billion investment and more than 2,000 jobs.

We have a unique workforce because we are located in the middle of one of the largest oil and gas regions in the world. As growth continues throughout the Houston Ship Channel area, Galveston is well positioned to benefit from new industrial activity and related investment.

Port tenant Davie Defense recently broke ground on the shipbuilding project with support from state and federal leaders, and the response from policymakers has been positive. We believe this growth will continue.

How is the port working with educational institutions and industry partners to build the next generation of maritime professionals?

Workforce development is a major focus. We regularly bring middle and high school students to the port because it is important to introduce young people to maritime careers early.

As part of our 200th anniversary celebration in 2025, we established scholarship endowments at Texas A&M Galveston and Galveston College. We created a $300,000 scholarship program for maritime studies at Texas A&M Galveston and a $50,000 scholarship program at Galveston College.

The greatest workforce needs are in skilled trades such as welding, pipefitting, electrical work, and other shipbuilding-related professions. These are the positions that will be critical as new industrial projects move forward.

I also serve on a committee with Galveston College that helps develop curriculum aligned with workforce needs. We are focused on building interest in these careers and retaining talent locally so that students can move directly into opportunities in the region.

How is technology changing port operations and logistics?

At this stage, our primary focus remains infrastructure. We have not fully embraced AI yet, although we continue to monitor how other ports are using it for scheduling and operational coordination.

Right now, our attention is centered on supporting growth opportunities, particularly around shipbuilding and cargo operations. One of the challenges we are addressing is the development of additional maritime infrastructure, including new berths that would allow us to better utilize undeveloped property adjacent to major projects.

Fueling infrastructure is another important area. Many new cruise ships are LNG-powered, and we see opportunities to support that market. LNG is abundant in this region, and developing local fueling capabilities could become another area of growth for the port.

We are also continuing conversations with cargo companies about bringing larger vessels to Galveston. Because we do not face geographic restrictions, we can accommodate some of the largest ships currently operating. The infrastructure improvements we are making today are designed to support both cargo and cruise growth well into the future.

Looking ahead over the next three to five years, what are your top priorities for the port?

One of the biggest priorities is Pelican Island, where the port owns 357 largely undeveloped waterfront acres. Unlocking Pelican Island’s potential will require better access and infrastructure.

We are working with stakeholders, including TxDOT and USDOT, to improve transportation access to the island. Plans under consideration include new road and rail connections, and a multi-use berth that would support future industrial and cargo development.

Utilities are another priority. As an island community, power infrastructure is critically important, and we are focused on improving reliability and capacity to support future growth.

Overall, our priorities are better access, stronger utilities, workforce development, and continued expansion of maritime and shipbuilding operations. The recent shipbuilding investment was a significant milestone, and improvements to Pelican Island will help position Galveston as an even larger player in the maritime industry over the coming years.