Barge traffic is on the increase at the Port of Palacios. The Gulf Intracoastal Waterway plays an integral part in the movement of cargo throughout the U.S. and bulk cargo transportation is the newest maritime enterprise to find a home on the Port. Although considered a shallow water port, regular maintenance dredging and the Port's proximity to many large agricultural tracts and coastal development projects provide a cheap, safe and environmentally friendly method of transporting fertilizer, grain, gravel and other building materials to the area.