MOBILE, Ala. (WALA) — The Alabama Port Authority and APM Terminals Mobile are moving forward with the next major phase of expansion at the Port of Mobile — a new container berth designed to significantly increase ship handling capacity and support the region’s rapidly growing trade flows.
The agreement allows construction of a 1,300-foot container berth, a key plank in the port’s long-term modernization strategy. According to the announcement, the $131 million project is funded through a combination of federal allocations to the Port Authority and private investment from APM Terminals, a division of A.P. Moller – Maersk.
Officials said the upgrade will expand berth capacity by 50%, enabling the port to handle three ultra-large container vessels (ULCVs) at once — a critical advantage as shipping lines deploy larger ships to U.S. Gulf ports.
The new berth is included in the port’s “Phase V” upgrade, one piece of a broader transformation to cement Mobile as one of the most competitive, resilient, and efficient container gateways in North America.
It follows the recently completed $366 million Mobile Harbor deepening project, which expanded the channel to 50 feet, giving the port the deepest container port draft in the entire Gulf of Mexico. The enhancement allows the largest global container ships to call Mobile fully loaded.
Additional infrastructure investments underway include:
A 33-acre expansion of the container yard
Increased rail capacity for faster inland access
A new rail flyover bridge and on-dock access improvements
These improvements are expected to accelerate cargo transportation throughout the Southeast, Midwest, and inland markets beyond traditional Gulf Coast logistics routes — strengthening U.S. supply chain movement for automotive, e-commerce, energy, and industrial sectors.
To secure alignment on future growth and operational investment, APM Terminals and the Alabama Port Authority agreed to extend the terminal operating concession through 2058, with two optional 10-year renewals. The agreement also increases lease payments to help finance the public infrastructure share.
Groundbreaking is expected in 2026, with approximately 24 months of construction once underway. Upon completion, the Mobile facility will support:
The Port of Mobile continues to be one of the fastest-growing U.S. container ports, outpacing regional competitors due to:
Economic development leaders say the Phase V expansion helps keep U.S. Gulf trade competitive and ensures Alabama remains a major contributor to global commerce.
Originally reported by Stephen Alexander in Fox 10 TV.
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