Pennsylvania invests USD 371.5 million in Port of Philadelphia expansion

The Pennsylvania government announced on October 13 a $371.5 million state capital investment for the Port of Philadelphia (PhilaPort). The package funds the construction of a new 2,000-foot (610-meter) berth at the Southport Marine Terminal, the first project of its kind at the site in 50 years, and aims to expand the port's capacity for automobile and container cargo.

Of the total state funding, $31 million will go toward dredging at Southport Berth I and $145 million toward fill work at Southport Berth II and North Wharf. An additional $109.4 million will be allocated to land acquisition and $58.1 million to cranes and other equipment. According to both sources, this state investment would leverage an additional $466 million, including more than $200 million in private investment and $266 million in federal funds, bringing the expansion program to a total exceeding $837 million.

The plan also includes the development of the 152-acre (61.5-hectare) site known as Mustin Yard, adjacent to Southport, which PhilaPort acquired from Norfolk Southern in September 2025. In addition, upgrades will be made to the berth at the Tioga Marine Terminal to enable handling of barges carrying liquid bulk cargo and general cargo vessels.

According to Port Technology, the program would generate more than 6,000 jobs and contribute $45 million in state and local tax revenue. Rich Lazer, PhilaPort's Executive Director, noted that Governor Josh Shapiro's investment will help expand operations, attract new business and increase the port's market share, while creating sustainable jobs for families in the long term.

Governor Shapiro's office projects that the expansion will increase container capacity by 122 percent and automobile capacity by 18 percent at PhilaPort's facilities. The port had handled a record 889,268 TEU in 2025, six percent more than the previous year, according to Baird Maritime.