PhilaPort announces major expansion backed by public and private investment
The Port of Philadelphia (PhilaPort) is preparing for the largest expansion in its history following the announcement of an $837 million investment package aimed at increasing container and vehicle handling capacity, developing new terminal infrastructure and expanding the port’s cargo operations.
Pennsylvania Governor Josh Shapiro announced the funding on October 13, with the Commonwealth committing $371.5 million in capital investment. The state funding is expected to unlock a further $466 million from private-sector investment and federal grants.
According to the Shapiro Administration, the expansion is expected to increase PhilaPort’s container capacity by 122% and automobile handling capacity by 18%. The programme is also projected to create more than 6,000 jobs and generate $45 million in state and local tax revenue.
The investment package includes more than $200 million in private-sector funding and $266 million from the federal government, supporting infrastructure projects across the port’s facilities.
PhilaPort expansion focuses on Southport infrastructure
A central element of the development programme is the construction of a new 2,000-linear-foot berth at Southport Marine Terminal, representing the port’s first new berth development in approximately 50 years.
The project will be supported by two US Department of Transportation grants and will be accompanied by the acquisition of the 152-acre Mustin Yard property, providing additional land for container and vehicle cargo operations.
The Commonwealth’s capital funding includes $145 million for reclamation work at Southport Berth II and the North Wharf, alongside $31 million for dredging at Southport Berth I.
A further $109.4 million has been allocated to land acquisition, while $58.1 million will support the purchase of cranes and other cargo-handling equipment.
PhilaPort also plans to acquire and develop additional properties within Philadelphia’s Southern Port District, with the aim of increasing terminal capacity and supporting future access improvements.
At Tioga Marine Terminal, planned berth upgrades will improve facilities for liquid bulk barges and breakbulk vessels, extending the investment programme beyond container and vehicle cargo.
The projects form part of PhilaPort’s Destination 2040 Strategic Plan, which identifies infrastructure development and additional cargo-handling capacity among the port’s long-term priorities.
Container and vehicle capacity set for significant growth
The planned expansion is intended to accommodate additional international cargo volumes and strengthen PhilaPort’s ability to handle both containerised freight and finished vehicles.
GLOVIS America, an ocean carrier specialising in finished vehicle transportation, is among the companies involved in the port’s wider development plans.
Scott Cornell, CEO of GLOVIS America, said the investment would help align terminal infrastructure with customer demand and the company’s vehicle shipping operations.
Holt Logistics also welcomed the announcement, with its President, Leo Holt, pointing to the longer-term employment and infrastructure implications of the construction programme.
Rich Lazer, CEO and Executive Director of PhilaPort, said the combination of infrastructure investment, available development land and the port’s workforce would support efforts to expand operations and attract additional cargo business.
The port authority expects the programme to increase its market share while supporting employment across terminal operations, transportation and associated services.
PhilaPort investment builds on previous infrastructure projects
The latest announcement follows more than $600 million in Commonwealth investment in PhilaPort over the past decade.
In January 2026, construction began on road improvements near Packer Avenue Marine Terminal, supported by approximately $10 million in funding from the Pennsylvania Department of Transportation (PennDOT). The project is intended to ease traffic congestion and improve access to the terminal.
PennDOT also extended the Pennsylvania Intermodal Cargo Growth Incentive Program until July 2027. According to the state administration, $1.3 million in incentives has been awarded to cargo carriers under the programme, which it associates with 1.8 million units of cargo moving through Pennsylvania ports.
Over the previous two years, the Pennsylvania Department of General Services provided $11 million for annual maintenance dredging to preserve navigational depths and support maritime infrastructure.
The port has also expanded its passenger shipping activities. In April 2026, Norwegian Cruise Line’s Norwegian Jewelmarked the return of cruise departures from Philadelphia after a 15-year absence.
According to the state administration, PhilaPort supported more than 8,000 jobs and generated nearly $1.2 billion in economic output across Pennsylvania in 2025.
The newly announced expansion programme is expected to add substantial cargo-handling capacity through the development of Southport, additional terminal land and equipment investment, although the administration has not specified a completion date for the overall programme.
