Philadelphia port will get a new berth, equipment thanks to $837M in new investments

Philadelphia's port is getting a $837 million investment that will help purchase new land, create jobs and expand tax revenue, officials announced Tuesday.

Pennsylvania Gov. Josh Shapiro and PennDOT officials were in South Philadelphia outlining plans that they say will expand PhilaPort to help the state grow as a global trade leader.

The funds to support the expansion include over $371 million from the Shapiro administration, $266 million in federal grants and another $200 million in private-sector investment.

"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," Rich Lazer, PhilaPort's CEO and executive director, said in a news conference.

You can watch the full update on our CBS Philadelphia YouTube channel.

Officials say the investments will help create more than 6,000 new jobs and generate $45 million in new tax revenue.

What the new money will fund

PhilaPort will use capital funding and two grants from the U.S. Department of Transportation to build a new 2,000-foot berth at the Southport Marine Terminal, the site of Tuesday's news conference. This is the first new berth at the terminal in 50 years, officials said in a news release.

The new berth and last year's purchase of the 152-acre Mustin Yard, a former Navy facility, will allow the port to move even more auto and container cargo.

Improvements are also coming to the Tioga Marine Terminal farther north up the river, enabling the facility to better handle barges carrying bulk liquids, among other changes.

Some specific price tags for how the funding from Pennsylvania will be used:

• $31 million for dredging at Southport
• $145 million for reclamation work at Southport Berth II and the North Wharf
• $58.1 million to acquire cranes and other new equipment

PhilaPort's recent history

Back in April, Philadelphia became a cruise port again after a 15-year hiatus. Leaders estimate that the cruise port alone could generate $300 million in annual economic output for Pennsylvania.

The port as a whole generated $1.2 billion in economic output for Pennsylvania, and between 2020 and 2025, PhilaPort improved its performance more than any other port in the country, a World Bank study found.

In a news release, the Shapiro administration said it sees PhilaPort as a vital economic engine for the Commonwealth and that it will create thousands of jobs statewide.