Gov. Josh Shapiro announced the state funding Oct. 13. The money, financed through borrowing, is part of a broader investment that includes $266 million in federal grants and at least $200 million from two private companies that lease port property: Holt Logistics Corp. and Glovis America.

Shapiro says the combined investments will generate 6,000 additional direct jobs and $45 million in annual state and local tax revenue. PhilaPort, the state agency that owns seaport facilities along the Delaware River, says the port currently supports about 8,000 direct jobs and 4,000 more in related industries.

The projection draws in part on a study by consulting firm Hatch. PhilaPort has not shared the study, describing it as commercially sensitive because it is being used in lease discussions with tenants. The International Brotherhood of Teamsters and longshoremen’s unions have endorsed the expansion. Teamsters work at the port’s auto yard, while longshore workers unload ships.

“This is going to create hundreds of new Teamster jobs, thousands of jobs across the area,” said Bill Hamilton, the Teamsters’ eastern region vice president, at the funding announcement. He also pointed to potential trucking work connected to increased cargo traffic.

The largest construction projects are planned for Southport, near the Navy Yard in South Philadelphia. PhilaPort plans to build two berths there so ships can dock directly at the terminal, easing congestion at the nearby Packer Avenue Marine Terminal. The project also includes filling in part of the river to add 10 acres to Southport. The authority expects the new berths to handle both containers and automobiles.

The state funding package includes $90 million authorized last year to buy a 152-acre rail yard from Norfolk Southern, which is expected to provide additional space for cargo. Federal grants awarded in 2021 and 2024 support the Southport berth project; Shapiro’s office said the grants required state matching funds before they could be used.

In Port Richmond, $58.1 million is designated for two electric ship-to-shore cranes and improvements to the berth at the Tioga Marine Terminal. The cranes are not made in the United States, according to the port authority and industry groups, and PhilaPort has asked the Trump administration for a waiver from federal rules requiring U.S.-made products on federally funded infrastructure projects.

PhilaPort handled a record 889,000 container units last year and about 250,000 automobiles. Its current land-allocation plan projects that new investment could lift container capacity to 2 million units and increase auto capacity from 588,000 to 694,000 vehicles. The port authority says container volume rose 39% from 2020 to last year, with perishable imports including fruit and meat contributing to growth.

The port says it intends to move ahead with existing tenants Holt and DVR/Glovis rather than launch a competitive process for development plans. A Hatch study commissioned to assess options for Southport and the Mustin rail yard was almost entirely redacted in records released by the authority. PhilaPort says its board reviewed alternatives and that its current partners bring value to the expansion.

The authority says bids for the cranes are expected this year, with the Southport berth project to be bid in 2027. The expansion follows PhilaPort’s 2040 growth plan, developed as nearby ports in New York and New Jersey, Baltimore and Wilmington, Del., pursue their own investments.