Free State of Galveston made these businesses increasingly difficult to sustain. By the end of the 1950s, this era of Galveston's history had ended. The island of Galveston, which lies on the Gulf of Mexico, held one of the first major settlements in the eastern part of what is now Texas. During the mid-to-late-19th century, it became the largest city in the state. Galveston was also an important national commercial center and one of the busiest seaports in the United States, as the Port of Galveston was able to capitalize on Texas' rapid rise in the cotton trade. Its downtown was known as the
Port of Galveston winter season in 2012-2013. From 2014 to 2015, the cruise business expanded substantially, adding an additional 400,000 passengers. In order to lure larger ships, carrying up to 5,000 passengers, the port renovated and expanded Terminal 2. A new building was constructed on the foundations of an 80-year-old silo and then connected to the original Terminal 2. The port's contract with Royal Caribbean Cruise Lines specified that the work would be completed before the "Liberty of the Seas" was repositioned to Galveston. Both Royal Caribbean and Carnival expressed public displeasure when the project was delayed multiple times. One delay was due