Port Galveston adjusts 2020 budget assuming no cruises will sail this year

   May 1, 2020 ,   Cruise Industry

The Galveston Wharves Board of Trustees on April 28 unanimously voted to adjust budget 2020 under the assumption that there will be no more homeporting (cruises) in 2020. "The worst-case scenario” is due to cancellations caused by the ongoing COVID-19.

The vote amended the budget of Port Galveston (Texas USA), lowering the amount of money that officials are projecting the port will collect by USD 14.8 million, projecting net income of ~USD 40 million. At the beginning of 2020, the port projected net income at USD 54.5 million.

The budget adjustment is based on the assumptions of what kind of business the cruise port will still have in 2020 and is buoyed by cost-saving measures, officials announced. For instance, Port Galveston assumes the loss of cruise shipping would allow other types of marine vessels to use the port paying for dockage. The port will institute a hiring freeze and not increase salaries for the remainder of 2020, but no one will be laid off.

Port of Galveston (Texas)

The port has ~USD 36 million in cash reserves, of which USD 14 M are unrestricted funds. Of that, it anticipates spendings ~USD 0,77 M during the cruise shutdown. No cruise vessels have left Galveston TX since March 13, when the passenger shipping by all cruise companies was suspended due to the global pandemic. Later, CDC's "no-sail order" halted all voyages in the USA through mid-July. In case that homeport cruises (roundtrips from Galveston) do return in 2020, the port could readjust its budget upward.

For 2020 (June through December), in Galveston are homeported ships from the fleets of CCL-Carnival Cruise Line (Dream, Freedom, Vista), RCI-Royal Caribbean (Enchantment OTS, Liberty OTS, Adventure OTS) and Disney Cruises (Wonder).