Pennsylvania will spend more than $371 million at the of Philadelphia, a commitment that officials say will unlock $466 million in federal grants and private investment as part of a $837 million expansion described as the largest in the hub’s history.
The plan is expected to increase container capacity by 122% and automobile capacity by 18%, add more than 6,000 jobs, and generate $45 million in annual state and local tax revenue.
PhilaPort will use the state funding, together with two U.S. Department of Transportation grants, to build a new 2,000-foot berth at Southport Marine Terminal—the port’s first new berth in more than 50 years.
“PhilaPort has a long and storied history that spans back over 300 years to the very founding of our Commonwealth,” said Gov. Josh Shapiro, at a press conference Tuesday. “It was here where goods produced in Philadelphia embarked for destinations around the globe, and today, the port remains a major player in global trade and a critical piece of our economy. This is a game changer for PhilaPort and it builds on our work to grow the economy and create real opportunity for Pennsylvanians.”
As a specialized mid-Atlantic gateway, Philadelphia handled a record 889,268 TEUs in 2025, compared with 8.9 million TEUs at New York-New Jersey and 5.7 million TEUs at Savannah.
PhilaPort currently supports more than 8,000 jobs and contributed nearly $1.2 billion in economic output across Pennsylvania in 2025, according state data. The expansion is projected to lift port-related employment to about 14,000.
The program also includes dredging at Southport, land acquisition, infrastructure improvements, and new cranes and cargo-handling equipment. Project components include $31 million for Southport dredging, $145 million for reclamation work at Southport Berth II and the North Wharf, and $58.1 million for cranes and other equipment.
Private commitments include $100 million each from terminal operator Holt Logistics and vehicle-processing company Glovis America.
The expansion would transform the 152-acre Mustin Yard parcel adjacent to Southport for container and automobile cargo, while the new berth would add vessel capacity at Southport. Officials told local media that auto capacity gains would amount to more than 100,000 additional vehicles annually.
Construction is expected to begin once permitting and contracting are complete, with port officials projecting a ground-breaking in early 2027.
The announcement positions Philadelphia to compete for additional container and automobile business as East Coast ports seek to expand capacity. State officials said the investment is intended to strengthen PhilaPort’s role as a global trade hub and support future cargo growth.
Read more articles by Stuart Chirls here.
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