The Port of Houston Authority (PHA) and the Port of Galveston have signed a memorandum of understanding (MOU) to build new container facilites.
Pelican island is on a 40 feet deep shipping channel directly across from existing terminals in Galveston.
The MOU sees the ports collaborating on a plan to build a container terminal on the island.
With the proposed Panama Canal widening expected to be operational by 2014, market demand for container facilities is expected to boom.
About 12% of Houston's throughput currently travels the Canal, but port authorities expect this share to rise to as much as 23%.
No construction tenders have been announced, with the MOU expecting work to begin only after the Houston Bayport Container Terminal is completely built in a few years time.