Free State of Galveston as well as the nearby city of Brazoria. The opening of the Houston Ship Channel in 1915 further challenged the port city. Houston and Texas City, as well as other ports, rapidly overtook Galveston as leading ports and commercial centers; by 1930 map makers were showing Houston as the major city on the Texas coast, instead of Galveston. Cotton shipping, which Galveston had thoroughly dominated on a worldwide level, began migrating to other ports in Texas and on the West Coast. As Galveston's traditional economy declined, Texas' oil boom began in 1901, with oil wells and refineries constructed throughout the
Port of Galveston then-newest ship, the "Carnival Magic" at the port. Terminal 2 was expanded in 2016 to accommodate Royal Caribbean's desire to base their larger "Freedom"-class ships in Galveston. The new facility can accommodate up to 5,000 passengers and allows for simultaneous handling of passengers embarking and disembarking. Port officials have earmarked $100,000 for the design of a third terminal, but are waiting for definitive interest from a cruise line before beginning work. The port receives fees of $11-$26 per cruise ship passenger, depending on whether port employees are responsible for tying the ship down, or for paying the harbor pilots responsible