World War II only served to increase the Port of Texas City's development, with government contracts for fuel and other petroleum products. Most of the port was destroyed in the
Texas City Disaster of 1947, which occurred after two ships filled with ammonium nitrate exploded while docked in the port. After the disaster, the Texas City Terminal Railroad Company and port industries rebuilt the port facilities fairly quickly. Carbide and the Terminal Railway Company together in 1948 dredged the 2-mile Industrial Canal serving the main harbor area (DeMaet, 1993). The harbor's turning basin was also widened at this time, to accommodate 800 feet supertankers.
The post-War boom continued through the 1950s and '60s and only slowed in the 1970s, with foreign competition proving a deciding factor. Texas City Port companies have since focused on becoming more automated in their production. The port has also had to adjust to environmental concerns regarding air and water pollution.