State officials urge Port Canaveral to reconsider cruise terminal plans, threaten funding cuts

PORT CANAVERAL, Fla. - State officials have urged Port Canaveral to reconsider its plan to prioritize cruise development over space industry needs, warning that the port could lose funding if it proceeds with a new cruise terminal.

In May, the port announced that the facility's north side was the optimal location for a new cruise terminal, citing the existing infrastructure and a completion target of 2026. However, the Florida Department of Commerce and Transportation disagrees with the decision.

In a letter sent to Port Canaveral commissioners last week, the agencies emphasized the importance of both cruise tourism and commercial space launches to Florida’s economy. The letter stated, "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."

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The agencies argue that the proposed terminal site is crucial for a natural gas expansion intended to support the aerospace industry. However, some experts believe there is room for both industries to coexist. A national cruise expert, Stewart Chiron, argued that the port's plans should not negatively impact other businesses and that there is sufficient space for both cruise and space operations.

"There’s a lot of posturing and misunderstanding, but I believe there’s enough room for both sectors to thrive," Chiron said.

State officials have threatened to withdraw funding from Port Canaveral’s recent applications to the Florida Seaport Transportation and Economic Development Council if the port does not comply with their requests.

The Port Authority responded in a statement, saying, "The Port has been an integral part of the commercial space industry’s growth and operations in our state, and our commitment to the enterprise remains strong. We look forward to working in partnership with Secretary Perdue and Secretary Kelly towards a positive resolution."

The next board meeting at Port Canaveral is scheduled for August 21.