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(The Center Square) - Gov. Josh Shapiro said that his administration is "all in" on a vital part of the Philadelphia waterfront.
Joined by elected leaders from various levels of government on Tuesday, Shapiro announced his administration is investing $371.5 million into the Port of Philadelphia.
"This announcement is going to kickstart a new era for growth here at the port," Shapiro said. "The kind of growth we have not seen for decades."
"The kind of growth we talked about, we hoped for, but now we're actually going to get done," he added. "And this is going to have a positive ripple effect all across our commonwealth."
In addition to the investment from the Shapiro administration, the private sector will kick in at least $200 million, alongside $266 million of federal support. These investments, totaling to $837 million, announced on Tuesday are the largest expansion in the port's history.
"It is a super big deal for the city of Philadelphia," Philadelphia Mayor Cherelle Parker said.
In 2025, PhilaPort supported more than 8,000 jobs and contributed nearly $1.2 billion in economic output throughout the state, according to the Shapiro administration.
For the past three years, PhilaPort has been ranked the most productive container port in the United States, according to the 2025 Container Port Productivity Index (CPPI), published by the World Bank and Standard & Poor's (S&P). Last year, PhilaPort was the only U.S. port ranked among the CPPI's Global Top 50, ranking 48th worldwide and second overall in North America.
The investments announced on Tuesday will help create more than 6,000 new jobs and generate $45 million in state and local taxes. As a result of this funding, the port will expand container capacity by 122% and auto capacity by 18% across its facilities.
The capital funding from the Shapiro administration, which will expand the port's operation, will support $31 million for dredging at Southport Bert I; $145 million for reclamation work at Southport Berth II and the North Wharf; $109.4 million for land acquisition; and $58.1 million to support crane and equipment acquisition.
"It's clear this part of the city is experiencing a renaissance, back to the days of being the leading port," said U.S. Rep. Mary Gay Scanlon, D-5th District. "In recent years, we've seen significant commercial and industrial redevelopment of the bellwether district into a major logistics and manufacturing hub."
The port, as part of this project, will use capital funding to leverage two U.S. Department of Transportation federal grants and, for the first time in 50 years, construct a new 2,000 linear-foot berth at Southport Marine Terminal. The new berth will accompany the purchase of the 152-acre Mustin Yard parcel, creating significant expansion opportunities for auto and container cargo.
PhilaPort CEO & Executive Director Rich Lazer said Philadelphia's waterfront holds history for generations of Pennsylvanians as he touted the latest round of investments.
"Today, we're building on and expanding that legacy," Lazer said. "PhilaPort brings together a remarkable set of strengths, a deep water port, rail connections, access to the interstate highways, experienced terminal operators, a skilled, unionized workforce, and land available for development and expansion."
"Few ports can match that combination and even fewer have the room to grow," he added. "Philaport is uniquely positioned for that future."
The investment will also allow the port to acquire and develop additional properties in the Southern Port District, the Shapiro administration said, thereby enhancing container capacity and supporting future growth and access initiatives.
"At the end of the day, this is about more than infrastructure," Lazer said. "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."
"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," he added.
Bill Hamilton, eastern region vice president of the International Brotherhood of Teamsters, noted that this will benefit building trades unions in the region.
"One thing about the unions in this town, the unions in this town don't fight against each other," Hamilton said. "They fight for each other."
"This is not a one-size-fits-all port," he added. "This is a port that fits everyone."
While the focus on Tuesday was mainly centered on the development of the Southport berth, PhilaPort will also invest in improvements at the Tioga Marine Terminal berth to better handle liquid bulk barges and breakbulk vessels, and support cargo handling capabilities.