[{"_1":2,"_76":-5,"_77":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6494971,"mediaKeyId","5610312-f52decf25a7e1c28175f71b2a532fb3f","parentId",5610312,"title","Port Canaveral presents record FY26 budget, proposes parking increase and major cruise-capacity projects; tariff timing raises import cost uncertainty","audioSeconds",1930,"startMs",681000,"endMs",2611000,"viewUrl","/Search/View?dp=1&key=5610312-f52decf25a7e1c28175f71b2a532fb3f&start=681&end=2611","thumbnailUrl","https://assets.pipeline.soar.com/5610312-f52decf25a7e1c28175f71b2a532fb3f/thumbnail_681000.jpg","articleUrl","/articles/6494971/Florida/Port-Canaveral-presents-record-FY26-budget-proposes-parking-increase-and-major-cruise-capacity-projects-tariff-timing-raises-import-cost-uncertainty","mediaUrl","https://secure.pipeline.soar.com/6494971-0c9b2cf13f652e82e02ff63a49ed0a1c/orig.mp4?Expires=1770992908&Signature=kuflUYqWIG1~Q8GQ5nUbnYfm7NeClgKFE3wywbeC3CrDdSoKJDu1ocrQjM9LcaLPATS8JhDDMCTwLHNQPbUdbpC7ouAh3xIyu3azEAmZF-PzXwIaJmKOapOakL7G2LV84z7iaDNywXXFAxKB8rLsCOxmMYIiiLlJOwkc0CJp6Cq2OracC74z1BFh0mqKbwsp8nua70wQk-fldOse-M5udS0RQbNYbn2LhhjsG7FqNgg4EJUUrDJZwgZ90eyDVz4lgL~YjreXyPE9k6xQuriYF6IDNafk~PF~-uyS5hR2EGuumPumdug60RA5PAxkQIOKFPjcz0Ib1Z2uwix2gAJgFg__&Key-Pair-Id=KUT5TJCACFTXG","author","Canaveral Port Authority","date","2025-08-20T09:01:00Z","article","Port Canaveral Authority officials on Aug. 20 presented a proposed fiscal year 2026 operating budget that forecasts $237,400,000 in operating revenue, proposed capital spending of $255,000,000 for the year and a five‑year capital plan totaling roughly $900,000,000. The board’s finance presentation also outlined a proposed increase in the daily cruise parking rate from $17 to $20, planned demolition and replacement of the Cruise Terminal 6 East parking garage, and tariff and Foreign‑Trade Zone (FTZ) changes that could create near‑term import duties on equipment the port ordered earlier.

The proposed operating budget projects more than 9,000,000 passenger movements in FY26 (up from 8.4 million in FY25) and an operating income of about $78,300,000. Cruise‑related activity is the largest revenue driver, accounting for roughly 53% of operating revenue; cargo and leases compose smaller shares. Capital projects prioritized for FY26 include expansion of Cruise Terminal 5 (landside expansion area increasing from about 90,000 to over 170,000 square feet), construction of a new ~3,000‑space parking garage to replace the existing ~800‑space CT6 East garage, and an additional parking garage on the port’s south/east side to serve CT3 and anticipated cruise volume tied to Carnival’s new vessel in FY27.

Why it matters: Port leaders said higher cruise calls and passenger volumes are the foundation for the FY26 forecast. If approved, the proposed budget and capital program would support terminal expansions and parking capacity timed to meet projected ship calls (the port projects 1,083 total ship calls and roughly 93 five‑ or six‑ship days in FY26). The tariff and FTZ items create an immediate financial uncertainty for planned equipment deliveries, including a new container crane and gangways, because recently announced tariffs may impose duties on European‑sourced equipment ordered before the tariff changes.

Most important details

- Operating revenue and passengers: CFO Jeff (Chief Financial Officer) told commissioners the FY26 proposed operating revenue is $237,400,000, a near 13% increase over FY25, driven primarily by a projected 9,000,000 passenger movements and higher cruise and parking revenues. Jeff said cruise parking is projected at $61,600,000.

- Parking rate change: The port is proposing to increase the daily parking fee from $17 to $20, citing a market analysis comparing off‑site lots, other Florida ports and Florida airports. The CFO said the rate change would account for an approximately $8,000,000 favorable increase year over year and would help fund infrastructure and future parking projects.

- Operating and staffing impacts: The proposed FY26 operating expense total is $159,000,000. The port reported current authorized headcount at about 311 positions, with a proposal to add 12 positions (bringing total budgeted headcount to about 323). The budget includes about $9,500,000 for salaries and benefits and additional one‑time operating items tied to terminal construction and passenger shuttles (about $2.5 million) to cover displaced parking while the CT6 East garage is demolished and rebuilt.

- Capital program and timing: The FY26 capital budget is $255,000,000, of which roughly $188,000,000 is cruise‑related. Key FY26 projects include the CT5 landside expansion, waterside mooring/dolphin work for CT5 (award to a marine contractor was discussed), demolition and replacement of CT6 East parking garage (anticipated award to follow), a new east/south side parking garage, road improvements, and parks/recreation work. The port’s five‑year capital plan (FY26–30) is projected at about $900,000,000 with major items including a new Cruise Terminal 4 (roughly $300,000,000) planned to start in FY27 and CT10 expansion in later years.

- Tariffs and FTZ status: Staff described a developing issue with newly announced duties on some EU‑sourced equipment. A container crane ordered more than a year ago and gangways arriving from overseas are currently in bonded/FTZ areas, and customs duties could apply. Staff said they are pursuing “grandfather” or other relief provisions but warned the port may need to clear equipment and pay tariffs if relief is not obtained before key deadlines (October 1 was cited as relevant for some shipments). The port’s staff said Customs and Border Protection handles tariff collection and that the duty exposure could be material (staff estimated potential costs in the hundreds of thousands to low millions of dollars depending on the item and timing).

Board actions and next steps

- The board did not vote on the proposed FY26 budget on Aug. 20; the CFO said the final proposed budget, the capital plan for FY26, tariff changes and FTZ changes will be brought back for formal approval at the Sept. 24 meeting.

- The board approved several consent and financial items during the meeting, including acceptance of the June/July financial memo and disposals, and specific consent items related to spare parts and capital contracts (see \"Votes at a glance\").

Discussion highlights and concerns

- Traffic and passenger flow: Commissioners asked for more detailed reporting on traffic‑flow improvements for Cape Canaveral and the port’s plans to fund and schedule road/traffic mitigation projects. The CFO said millions are budgeted to address traffic and that staff will present more detailed studies and plans at upcoming meetings.

- Gangways and boarding bridges: Operations staff emphasized that gangways and boarding bridges are critical single points of operational failure when ship calls are high; the board approved a request to procure a large inventory of spare parts for Adelte boarding bridges to reduce the risk of extended out‑of‑service time.

- Tariff timing and procurement risk: Commissioners and staff discussed the difficulty of predicting final duty exposure for equipment ordered before the tariff change. Staff said they are coordinating with other ports and congressional offices to seek relief where possible but warned that the port may need to pay duties and later pursue reimbursement or relief.

What’s next: Staff will continue refining the FY26 proposed budget and will return on Sept. 24 with the final proposed FY26 operating budget, capital plan, the five‑year cash flow, and proposed tariff/FTZ changes for a vote.

Ending note: The session also included routine operational updates—cruise line schedules (Royal Caribbean, Carnival, Disney, MSC, NCL) and cargo updates—and ceremonial recognition of retiring Canaveral Fire Rescue Chief Dave Sargent. The board recessed after approving the consent agenda and scheduled the next regular meeting for Sept. 24.

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Port Canaveral presents record FY26 budget, proposes parking increase and major cruise-capacity projects; tariff timing raises import cost uncertainty