Port of Galveston Port Arthur. Some businesses threatened to pull out of Galveston completely if the port wasn't reopened. Governor William P. Hobby declared martial law and sent the Texas National Guard to take control of the city and the port. The city was under martial law until January 1921, when the longshoreman agreed to return to work for a salary increase that was less than they had sought. Later that decade, the port of Galveston became a major sulphur exporter. As the oil industry expanded in Texas, no pipelines were built to Galveston. The Intracoastal Canal opened in 1933. For several years
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