From the 1920’s, when the first shrimp trawlers arrived in Palacios and the first harbor was dug, to the four large turning basins and busy Channel, many changes have taken place on the Port. The increased commerce and development in the area resulted in the creation of the Matagorda County Navigation District #1 in 1940. As turning basins were added and the shrimp fleet expanded, the number of boats in the harbor topped 400 in the 1980’s.
With increased pressure on the shrimping and fishing industry in recent years due to imported seafood, lower prices and higher fuel costs, the Palacios shrimp fleet has declined to around 200 boats. Several families who have fished these waters for decades still maintain successful operations on the Port however. Shipyard activity has become diversified not only with Gulf and Bay shrimp boats, but now includes ferries, tugboats, barges and other commercial and large recreational vessels.
Due to increased availability of dock and land on and near the Port, new businesses have found a home here, including a tugboat and barge manufacturing company, a recreational vessel manufacturing company, and bulk cargo transportation. Other District properties, including a recreational vehicle park and commercial center, are available for development.