ECHDC board approves contract to start Buffalo Cruise Terminal construction

ECHDC says transformation of long-vacant waterfront site to support Great Lakes Cruises & fuel Western New York’s travel and leisure sector

√ Board also authorizes 20-year license agreement with American Cruise Lines

Erie Canal Harbor Development Corp. press release

The Erie Canal Harbor Development Corp. board of directors met and authorized a crucial contract with Union Concrete and Construction Corp. to begin phase 1 construction of the new Buffalo Cruise Terminal. Located at the Outer Harbor’s Slip 2 parcel on Fuhrmann Boulevard – the former site of the Pier Restaurant demolished in 2007 – the contract is not to exceed $13.4 million. Phase 1 construction is slated to begin next month marking the first major step toward a grand opening of the terminal scheduled for the 2028 season. This announcement follows Gov. Kathy Hochul’s recent unveiling of renderings for the Buffalo Cruise Terminal.

“Thanks to Gov. Hochul’s unwavering vision to reclaim our waterfront and establish Buffalo as a premier Great Lakes destination, we are taking a massive step forward today by approving this critical phase 1 contract,” ECHDC Chairperson Joan Kesner said. “This transformation at Slip 2 will welcome thousands of new travelers to Western New York and seamlessly integrate into the public spaces ECHDC has built at Wilkeson Pointe and the Bell Slip. Whether you are a cruise passenger stepping foot in our city for the first time or a local resident enjoying a walk to the new scenic sunset point, this project is a win for the Buffalo community.”

The project transforms the Slip 2 site into a vibrant cruise hub capable of supporting both domestic and international travel. Phase I will prioritize vital marine and structural work, including seawall repairs, guardrails, and heavy-duty mooring bollards. As these seawall improvements progress, cruise lines will be able to utilize the site for scheduled dockings.

The subsequent phase 2 of the project, which will be put out for bid separately, will focus on upland infrastructure and amenities. This includes a dedicated building that will house public restrooms and a Customs and Border Protection (CBP) facility.

The entire site design will feature upgrades to seawall shoring, site remediation, and improved public access, including a multiuse path, pedestrian promenade and scenic sunset point with seating, and a small parking lot. To ensure continuity along the Outer Harbor, the terminal’s aesthetic will mirror the design elements of nearby ECHDC destinations, such as the Bell Slip and Wilkeson Pointe.

While the permanent multi-ship facility is being built, Buffalo has already officially reentered the cruise sector. Earlier this year, the Hochul announced the first cruise ship in decades at a temporary docking site near the Erie Basin Marina, validating local market demand.

Demonstrating immediate commercial viability for the new terminal, the ECHDC board also authorized the corporation to enter into a 20-year revocable license agreement with American Cruise Lines Inc. The agreement grants ACL non-exclusive rights to dock commercial passenger vessels at the terminal, manage passenger boarding and off-boarding, and perform essential vessel resupply operations. Under the terms of the agreement, ACL will pay a one-time upfront fee of $25,000, followed by monthly payments scaled for passenger volume and vessel dock-time. These long-term revenues will directly support terminal operations and maintenance. Because the license is non-exclusive, ECHDC retains the right to enter into future docking agreements with additional cruise lines, maximizing the terminal’s long-term utility.

In 2022, Hochul announced an initiative to establish a Great Lakes cruise terminal in Buffalo. Cruise lines have been touring the Great Lakes for years but have been bypassing Buffalo as they travel between Toronto and Cleveland. In 2024, ECHDC completed a market demand study for the cruise ship industry in Buffalo that focused on the potential and viability for Buffalo to become a destination for cruise lines already touring the Great Lakes. The study also analyzed six potential locations along the Buffalo waterfront that could support both domestic and international cruise operations and recommended the south berth space of Slip 2. ECHDC used this study to initiate conversations with nearly all major Great Lakes cruise lines to bolster the city’s potential as a cruise destination. ECHDC has received two commitment letters from Great Lakes cruise lines to add Buffalo to their travel itineraries.

While a small subset of the cruise ship industry, the Great Lakes cruise sector has nearly tripled its total passenger numbers – from 9,000 in 2010 to more than 25,000 in 2023. The post-COVID growth of the industry is expected to continue, with larger numbers of passengers, vessels, revenues and related activities in Great Lakes port cities. Other coastal cities, including Cleveland, Milwaukee, Duluth and Detroit, are already taking advantage of these upward trends. Buffalo’s strategic position at the southern end of the Welland Canal – the only access point for cruise ships into the Great Lakes from the St. Lawrence River – coupled with its unique attractions and assets – make the destination a logical stopover point. Given Buffalo’s variety of tourist sites, airports, hotels and access to consumers within a four-to-six-hour drive, the community has the necessary infrastructure in place to support homeport status, meaning a place where cruises can start or finish, as well as a host of local activities for passengers. 

Erie Canal Harbor Development Corp. is governed by a nine-member board consisting of seven voting directors and two non-voting, ex-officio directors. As a subsidiary of Empire State Development, the state’s chief economic development agency, ECHDC supports and promotes the creation of infrastructure and public activities at Canalside, the Ohio Street corridor and the Outer Harbor.