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Port Canaveral reverses decision on new cruise terminal after state’s threat to pull funding

Florida warned port officials earlier this month over changes

Port Canaveral leaders reversed its decision on a new cruise terminal following the state’s warning earlier this month that it would withhold current and future infrastructure money.

The board held a meeting Wednesday morning and voted 4-1 to go back on plans to build a new cruise terminal where there’s a cargo berth.

Department of Commerce Secretary J. Alex Kelly and Department of Transportation Secretary Jared Perdue wrote a letter on Aug. 2 that the current plan would affect the expansion of facilities serving the space industry.

“Florida’s cruise tourism and commercial space launch sectors are both vitally important,” Kelly and Perdue wrote. “Port Canaveral bears the responsibility of housing and supporting both. We will help you do both. But in this case, the port has announced its intention to support one sector to the direct detriment of the other. That decision must, therefore, be reversed.”

The two warned that Florida would take action against the port if the plan was not reversed, such as the Department of Transportation shifting planned investments to other seaports and spaceports and the Department of Commerce halting funding for Port Canaveral projects.

In May, the port announced the plan to build the new cruise terminal and parking garage would happen at the existing North 8 berth and adjacent to Terminal 5, an area that CEO John Murray had said is underutilized.

Also in May, Space Florida, the state’s aerospace agency, announced it must nearly double by 2033 the current footprint of about 2,800 linear feet of wharf space around Port Canaveral to help the expanding private space industry over the next half-century.

After Wednesday’s commission meeting, Murray talked about what’s next.

“We’re going to take a look at everything,” he said. “I think we’re at a point now that we have to look with a fresh eye.”

Murray said the port has been focused on balancing, ‘everything that makes Port Canaveral what it is’ including space, recreation, marinas, and restaurants.

Murray confirmed the port still will not be renewing the 50-year lease of the Cape Marina when it expires in 2026.

“It is incredibly painful. It’s a tremendous loss to the community.” said assistant general manager Dylan Houck.

The marina has been in Houck’s family for three generations. Houck said his wish is for the port to let the marina build a new dry stack.

“Renew our lease under the terms of redevelopment, and they can start building their terminal on the southside so they can satisfy now their space partners along with their cruise partners,” Houck said. “We understand that there are competing interests, but we’ve been here for 48 years and we think we know how to do it best.”

News 6 reporter James Sparvero also asked Captain Murray a question for those who do not want to see a new terminal built, at all.

Local critics including fishermen have told Sparvero they think the port’s overcrowded now with big ships.

”I think if you canvas a wider population, you’ll find that there are more ‘yays’ than ‘nays’ on the port’s business and our growth,” Murray said. “We bring a lot back to this community to Central Florida, and to the state as a whole.”

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About the Authors

Brenda Argueta is a digital journalist who joined ClickOrlando.com in March 2021. She is the author of the Central Florida Happenings newsletter that goes out every Thursday.

Jim is a Capitol reporter for the News Service of Florida, providing coverage on issues ranging from transportation and the environment to Legislative and Cabinet politics.

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