Philadelphia’s port is set for an $837 million expansion backed by state and federal funding and private investment, with officials projecting about 6,000 new jobs and $45 million in additional annual tax revenue. Gov. Josh Shapiro announced the package Oct. 13, 2026, at SouthPort Marine Terminal. The state plans to contribute $371 million for two new docking berths on the South Philadelphia waterfront—the first such berths built there in more than 50 years—and new ship-to-shore cranes at Tioga Marine Terminal in Port Richmond. The 152-acre Mustin Yard, a former U.S. Navy property beside SouthPort, is slated to become a facility for imported cars and container cargo. PhilaPort acquired the property from Norfolk Southern last year. The federal government is contributing $266 million, including two U.S. Department of Transportation grants. Private companies are expected to add $200 million. Holt Logistics, which operates Packer Avenue Marine Terminal, plans to invest $100 million, company president Leo Holt said. The projects are expected to raise container-handling capacity by 122% and auto capacity by 18%, or more than 100,000 vehicles. Shapiro said the added capacity could give Pennsylvania businesses better access to materials and parts, including companies in manufacturing, life sciences and energy. The state funding includes $31 million for dredging at Southport Berth I and $145 million to fill part of the river and create land for Southport Berth II and the North Wharf. Another $109.4 million is designated for land acquisition and $58.1 million for cranes and other equipment, according to Shapiro’s office. The expansion comes amid a broader push to strengthen Philadelphia’s maritime economy and compete with ports in New York, New Jersey and Virginia. The port opened a $60 million cruise terminal in August, after cruise service resumed in Philadelphia earlier this year following a 15-year break. In July, South Korean shipbuilder Hanwha won $2 billion in contracts to build two missile-tracking vessels at Philly Shipyard. Philadelphia Mayor Cherelle Parker said the port and shipbuilding industries should be counted alongside the city’s education, health care, life sciences and biotech sectors. She said the expansion is expected to create union jobs with health care and retirement benefits and provide revenue for city services. Shapiro said disagreements over whether to prioritize container cargo or auto imports had hindered the port’s development, and credited PhilaPort CEO Rich Lazer with helping establish a path forward. Bill Hamilton, president of Teamsters Local 107, credited the governor with securing state support that helped bring in federal and private funding. The port’s longer-term plans also include a proposal to deepen the Delaware River’s main shipping channel to 50 feet so larger ships can reach the port. Port officials say the work would help it compete for business; environmental advocates have raised concerns about potential effects on water quality and aquatic life. Shapiro said container volumes at PhilaPort have risen 39% since 2020. The port handles half a million cars and about 20% of the fruit imported into the United States each year, he said. It supports 8,000 jobs and contributes about $1.2 billion in annual economic activity to Pennsylvania, according to the governor.