After nearly a decade in the works, the first phase of Portland’s Ocean Gateway passenger terminal is finally complete and scheduled to begin operations on May 2.

The project’s second phase, a mega-berth able to accommodate huge cruise ships, remains on hold until the city and developers agree on a plan to redevelop the Maine State Pier.

The terminal will host the CAT ferry and other ships during the off-season. It will also serve tour buses and has a state-of-the-art customs facility.

Ocean Gateway’s completion is an important step toward what could prove to be a radical transformation of Portland’s East End waterfront. The $20.7 million facility is the linchpin of a cluster of development projects in the area that includes hotels and condominiums. “Ocean Gateway is the catalyst that brought this all together,” said Jeff Monroe, Portland’s transportation and ports director

The terminal building, with a glass façade offering striking views of Casco Bay, aims to balance form and function. Similarly, Monroe said development plans for the area must walk the line between supporting maritime activities and offering the picturesque backdrop that draws many to Portland. “Protecting ourselves from gentrification is a very delicate balancing act,” he said.

Though Portland’s status as a tourist destination is undisputed, Monroe said many people don’t realize that the Port of Portland is also a transportation hub and economic powerhouse. The port pumps three quarters of a billion dollars into the state’s economy each year and employs over 1,500 people. Many important commodities pass through the port including all of the state’s road salt, much of its heating oil and most of the paper made in Maine.

But while most everyone loves seeing lobster boats, Monroe said few are as enthusiastic about cargo ships and oil tankers. “People look at the harbor and say the views are immensely valuable, but they don’t recognize the commerce that goes on here,” he said.

Also overlooked is the fact that Portland has long been an important transportation center. Ocean Gateway’s proximity to the shore, rails, and roads mean it could be the spot that connects the three modes of transit.

City Councilor and chair of its transportation committee, Kevin Donoghue, said he wants the facility to see year-round use, and that it has “enormous potential” as a transportation center. The city’s bus system is looking to redo its routes, and Donoghue said, “one very real possibility is that routes might emanate from Ocean Gateway.”

Better-coordinated transportation would reduce the number of single-occupied cars on the road and ease parking tensions, said Donoghue, particularly for island residents who could ride the ferry to the mainland and then take public transportation to their final destinations.

Portland is a popular port of call for many cruise ships, which put an average of $200 per passenger into the local economy, said Monroe. About half of that sum is out-of-pocket spending at restaurants and gift shops. The rest is made up of fees and supply costs that are figured into ticket prices. Last year, about 50,000 cruise ship passengers visited Portland. Monroe says he’d like to see that number double.

But cruise ships have ballooned over the years, and today many measure over 1,000 feet long and 18 stories high. These ships currently berth at Portland’s Ocean Terminal on the Maine State Pier. The pier, built in 1922, was never intended to serve ships of this size and needs extensive — and expensive — repairs to continue to do so. What’s more, the turn to get into the berth at the Maine State Pier is a tricky one that Monroe compares to “parallel parking” a thousand-foot ship.

No one wants to turn cruise ships away, but progress on the mega-berth continues to be slow. It was originally part of the Ocean Gateway plan, but it was put off due to the high cost of building materials. Now, the $7 million mega-berth is part of the Maine State Pier redevelopment plan, though Monroe said it will be built at the Ocean Gateway facility.

The only question is when. In December, after ten months of deliberation and deadlock, the Portland City Council chose the Olympia Companies to redevelop the pier. But choosing a developer is only the beginning. Donoghue said the council chose Olympia based on its approach to development, but that its plan will not be implemented exactly as proposed. The city and the company are currently negotiating the terms of negotiations on the plan, and it is unclear when the final proposal for the pier will be unveiled.

Once the development plans are decided, building the mega-berth will be one of the first steps in the pier’s redevelopment since it will be hard to undertake any other construction until cruise ships have a new place to dock, said Monroe. He estimates the mega-berth will be operational by the summer of 2009. “It’s all permitted and approved. All the Department of Ports and Transportation needs now is the money to build it,” he said.