Texas must stop stalling and give Galveston's port its $44 million

Texas lawmakers, especially Sen. Mayes Middleton and Rep. Terri Leo-Wilson and others who serve this region, should fast-track the Port of Galveston’s request for $44 million in federal aid money it’s clearly qualified to have.

It’s baffling the request hasn’t already been granted and that the money isn’t already being used to improve the port, which is an asset for the state of Texas, as well as local interests.

The reason the $44 million is stalled in Austin, rather than contributing to the local, regional and state economies, also is baffling.

As we understand it from talking to port leaders, the problem is state leaders don’t recognize maritime industries as being engaged in transportation.

Port Director Rodger Rees is in Austin today hoping to convince lawmakers that maritime industries are transportation and to let go of $44 million the port qualifies to have from the state’s share of federal money from the American Rescue Plan Act of 2021.

The money would be partial reimbursement of $58 million the port lost during 15 months that pleasure cruising was shut down by U.S. Centers for Disease Control and Prevention COVID-19 orders, Rees said.

Congress approved the act and the president signed it into law to give financial relief from the COVID-19 pandemic.

The federal government gave Texas $16 billion and the port has attempted to secure a share of that without success since last year, Rees said.

“This is an ongoing battle that I have fought and have testified about in front of the senate and house committees,” Rees told The Daily News last week. “We’re trying desperately to change their thought process in including the waterfront as part of transportation.”

Rees has met Gov. Greg Abbott twice about the money and both times Abbott said the port would receive the funding, he said.

“I know they have spent some money, some of it went to education or hospitality,” Rees said. “We’re eligible for the $44 million; there’s no doubt about it.”

The problem is Texas doesn’t recognize maritime infrastructure as “transportation,” Rees said.

That’s not the case in other states, he said.

For example, Florida approved $250 million for its cruise ports the day the funding was announced, Rees said.

“The state has the authority to transfer funding from federal allocations to public seaports for lost revenue,” he said.

The port needs the money for major capital and rehabilitation projects, officials said.

As a self-sustaining city entity with no taxing authority, the port generates and leverages revenues to pay for major capital and maintenance projects detailed in its 20-Year Strategic Master Plan, officials said.

The 2019 plan has identified more than $600 million in critical projects needed to improve port assets, generate regional jobs and revenues and benefit Galveston, port officials said.

Master plan projects include an interior roadway, expansion of the West Port Cargo Complex and rehabilitation of long-neglected docks, according to the port.

The port would use the $44 million in federal money to help fund the projects, which were delayed by the loss of revenues because of COVID restrictions but are now back in development.

The port also would leverage the money to secure grants, public-private partnerships and bonds, Rees said.

The port is negotiating with MSC International for a public-private partnership to build a fourth cruise terminal and parking deck with an estimated investment of $70 million, for example, Rees said.

“The terminal is anticipated to produce 925 jobs, $177.4 million in local business services revenue, and $5.1 million in state and local taxes,” Rees said.

It’s surprising something as prosaic as the allotment of a windfall of federal money could make the zany list in a state whose politics frequently redefine zany; but here it is.

The movement of people and cargo aboard any means of transport, including maritime vessels, is transportation just by definition.

Even if it weren’t, withholding such a small fraction of the state’s share from the port while Texas is awash in cash seems not only short-sighted but punitive.

The state of Texas needs to stop stalling and start writing the check.