Port Canaveral commissioners voted on Wednesday to halt their plans to build a new cruise terminal on the site of their current North Cargo Berth 8.
The decision came after state officials threatened to revoke government grants if the project went forward. The plan was to build Cruise Terminal 7 by Summer 2026.
Florida Secretary of Commerce J. Alex Kelly and Florida Department of Transportation Secretary Jared Perdue sent a letter to the port commissioners earlier this month expressing concerns about the project’s potential negative impact on the space industry.
They argued that the development would hinder the operations of commercial space companies, which rely on the area for recovering and reusing launched rocket hardware.
“Growing cruise capacity is important,” the letter stated. “But it cannot be accomplished by shouldering out the longer-term benefits presented by the commercial space launch industry.”
The port had initially planned to build the new cruise terminal on the south side, at the current site of Blue Points Marina. However, due to complications and delays, they shifted their focus to the north side site.
Port Canaveral CEO John Murray explained that the port’s existing cruise terminal facilities are struggling to accommodate the growing demand for cruise services. This has led to the port turning away potential business, which could have significantly boosted its revenue.
The decision to halt the expansion has significant implications for the port’s future. Cruise ships and cruise passenger parking currently account for over 82% of the port’s operating revenue.
While the space sector contributes only about 1% of the port’s income, its potential for growth and long-term benefits are substantial.