Port of Philadelphia announces major expansion with the help of state, federal and private funds

Joined by lawmakers and labor leaders, the Port of Philadelphia and Gov. Josh Shapiro unveiled plans Tuesday for a major expansion that would drastically increase the port’s capacity and facilities. 

Shapiro announced $371 million in state capital funds for PhilaPort’s expansion, a sum that, he said, matches $466 million in private investment and matching funds. The move will transform the 152-acre Mustin Yard parcel for auto and container cargo and add another docking berth, among other projects. 

“Container capacity across the entire port is expected to increase by 122%,” Shapiro added. “Auto capacity will increase by 18%, which is over 100,000 more cars coming through here.”

The state’s capital funds will be paired with more than $200 million in private-sector investment, including $100 million from both Holt Logistics and GLOVIS America, and $266 million in federal funds, bringing the total to roughly $837 million. 

The expansion funding will support dredging, land acquisition and infrastructure improvements, as well as new cranes and equipment. The plans also include construction of a new 2,000-foot berth at Southport Marine Terminal – PhilaPort's first new port space in more than 50 years. 

“At the end of the day, this is about (more than) infrastructure – it’s about creating jobs, attracting new business, and ensuring Philadelphia remains a vital port of our nation’s supply chain for generations to come,” said Rich Lazer, PhilaPort’s CEO and executive director, on Tuesday. “We have the assets, we have the workforce, we have the land, and we’re ready to take this port to a whole new level.”

Construction will begin as soon as permitting and contracting terms are set, Lazer said, adding that ground should be broken in early 2027. 

Officials touted PhilaPort as the most productive container port in the country, supporting more than 8,000 jobs and contributing nearly $1.2 billion in economic activity throughout the commonwealth.

“The combination of public and private investment being directed to South Philly is a promising sign for economic development across our region,” U.S. Rep. Mary Gay Scanlon, who represents parts of South Philadelphia in the 5th congressional district, said Tuesday. “It demonstrates, as we heard, a strong vote of confidence in our industrial future here and a strong vote for our workforce.”

Port officials said the expansion – which would add roughly 6,000 jobs to the existing 8,000 in and around PhilaPort – will help attract new business, increase cargo volume and strengthen Philadelphia’s role as a major hub for global trade.

Philadelphia Mayor Cherelle Parker opined that the city – known for its higher education and research institutions – is adding to its “eds and meds” title. 

“This historical year, we should be remembering who we are and our place in space as the ‘Workshop of the World,’” Parker remarked, referencing one of the city’s nicknames during the early 20th century. She added that the expansion will bring in an additional $45 million in state and local taxes. “When people ask you to define what Philadelphia is economically, you remind them that we are eds, meds, life sciences, and biotech,” she said, “but don’t forget that we are also maritime, shipbuilding and defense.”