Port of Mobile reports record revenue following channel deepening
Alabama Port Authority reports increased deep-draft vessel movements and stronger cargo activity one year after completion of the Mobile Ship Channel project.
The Alabama Port Authority has reported record annual revenue at the Port of Mobile, one year after the completion of a major navigation channel deepening project that expanded access for larger cargo vessels.
The Mobile Ship Channel reached its authorised depth of 50 feet on 3 October 2025, following a $425 million modernisation programme undertaken in partnership with the U.S. Army Corps of Engineers.
Since the deeper channel became operational, 168 vessels have transited with recorded drafts exceeding 45 feet, according to the port authority.
The development has enabled vessels to transport larger cargo volumes without the previous channel depth restrictions.
Deeper channel supports cargo operations
The Alabama Port Authority closed fiscal year 2026 with revenue of approximately $245 million, representing an increase of more than 20% compared with the previous fiscal year.
The authority attributed the performance to several factors, including stronger customer demand, increased bulk cargo volumes, higher rail activity and the additional capacity provided by the deeper navigation channel.
The Mobile Harbor Modernization Project began in 2020 and involved deepening the channel to 50 feet and widening a section to accommodate two-way vessel traffic.
The project received more than $270 million in federal funding, while the State of Alabama contributed $150 million towards the channel expansion and additional dredging at three port berths.
The completed improvements allow larger vessels to access the port with fewer draft-related limitations.
Further port and rail investments underway
The channel modernisation forms part of a broader capital investment programme exceeding $2 billion across the Alabama Port Authority’s operations.
Planned and ongoing developments include the expansion of the Port of Mobile’s container terminal, new inland rail facilities and improvements to existing terminal and rail infrastructure.
According to the authority, these projects are intended to strengthen cargo handling capacity and improve connections between maritime and inland transportation networks.
The deeper channel is already supporting higher-draft vessel movements, while the wider infrastructure programme is expected to expand the port’s operational capabilities over time.
Although the authority identifies the channel improvements as one contributor to its stronger financial performance, the reported revenue growth also reflects changes in cargo demand and rail activity.
