PHILADELPHIA, PA — Pennsylvania will commit $371.5 million to expand the Port of Philadelphia, leveraging an additional $466 million in federal and private investment to increase cargo capacity, strengthen the region’s position in international trade and support more than 6,000 new jobs.
Gov. Josh Shapiro outlined the investment Tuesday, October 13, alongside Pennsylvania Department of Transportation Secretary Mike Carroll, port executives, labor representatives and elected officials.
The combined investment of more than $837 million will finance the largest expansion in PhilaPort’s history, with projects designed to increase container-handling capacity by 122% and automobile-handling capacity by 18%.
The administration projects the expansion will generate $45 million in state and local tax revenue.
The financing includes at least $200 million in private-sector investment and $266 million in federal support, including funding associated with two U.S. Department of Transportation grants.
The capital program will support dredging, land acquisition, new marine infrastructure, and cargo-handling equipment, expanding the port’s ability to accommodate containerized freight and imported vehicles.
A central component is construction of a new 2,000-linear-foot berth at the Southport Marine Terminal, the port’s first new berth in 50 years.
The project will be accompanied by the acquisition of the 152-acre Mustin Yard property, providing additional space for container and automobile cargo operations.
The Commonwealth’s capital allocation includes $145 million for reclamation work at Southport Berth II and the North Wharf, $109.4 million for land acquisition, $58.1 million for cranes and equipment, and $31 million for dredging at Southport Berth I.
Those specified allocations total $343.5 million of the state’s $371.5 million commitment.
The expansion also includes improvements to the Tioga Marine Terminal berth to accommodate liquid bulk barges and breakbulk vessels, along with additional property development in the Southern Port District.
PhilaPort Chief Executive Officer Rich Lazer said the investment would allow the port to expand operations and compete for additional shipping business.
“Governor Shapiro’s continued investment in PhilaPort will help us expand operations, attract new business, and increase market share — while creating thousands of family-sustaining jobs over the long haul,” Lazer said.
The expansion comes as PhilaPort seeks to build on its existing role in regional supply chains.
According to the administration, the port supported more than 8,000 jobs and generated nearly $1.2 billion in economic output across Pennsylvania in 2025.
The port has also been ranked the nation’s most productive container port for three consecutive years, according to figures cited by the governor’s office.
The investment is intended to expand the port’s cargo-handling capabilities while providing additional infrastructure for shipping companies and logistics operators.
Scott Cornell, chief executive officer of GLOVIS America, pointed to demand for vehicle-handling capacity as a factor supporting the investment.
“As the world’s largest ocean carrier of finished vehicles, we needed to match with best-in-class terminal capacity, and most importantly, we needed to match the customer demand,” Cornell said.
The port’s growth strategy also includes improvements to landside transportation infrastructure.
In January, PhilaPort began construction on a project intended to reduce congestion at the intersection outside the Packer Avenue Marine Terminal, supported by approximately $10 million in PennDOT funding.
The state has also provided $11 million over the past two years for annual maintenance dredging, which preserves navigation depths needed for commercial vessels.
PennDOT extended the Pennsylvania Intermodal Cargo Growth Incentive Program through July 2027, with the Shapiro administration reporting $1.3 million in incentives awarded to cargo carriers.
Those incentives have been associated with 1.8 million units of cargo moving through Pennsylvania ports, according to the administration.
Over the past decade, Pennsylvania has invested more than $600 million in PhilaPort’s growth, reflecting a sustained effort to increase the port’s capacity and commercial activity.
The latest commitment is substantially larger than individual infrastructure projects previously funded by the Commonwealth.
Philadelphia Mayor Cherelle Parker emphasized the employment implications, particularly for workers seeking jobs that provide wages, health benefits, and retirement security.
The projected creation of more than 6,000 jobs would represent a significant expansion of the port’s employment footprint, although the administration did not specify a completion date for the full capital program.
The investment will support PhilaPort’s Destination 2040 Strategic Plan, which identifies infrastructure expansion as a means of increasing cargo volumes and strengthening the port’s competitive position.
The combination of new berths, additional land, and cargo-handling equipment is intended to give Philadelphia greater capacity to compete for international shipping business while expanding economic activity across Pennsylvania.
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