MOBILE, Ala. — The Port of Mobile is set to undergo a $131 million expansion that promises to strengthen Alabama’s role as a key player in global trade and boost the state’s economy. The project, a collaboration between the Alabama Port Authority and APM Terminals, will add a new 1,300-foot container berth, increasing the port’s capacity by 50% and enabling it to handle three ultra-large container vessels simultaneously.
The expansion project, dubbed Phase V, is projected to raise the annual container terminal capacity to 1.4 million twenty-foot equivalent units (TEUs), supported by seven ship-to-shore cranes. This development follows the recent completion of a $366 million harbor deepening project that established Mobile as the deepest container port on the U.S. Gulf Coast, with a 50-foot channel depth.
“This expansion solidifies Mobile as a national logistics hub and strengthens our supply chains at a critical time,” said a representative from the Alabama Port Authority. “It creates good-paying jobs in the region and supports sustainable economic growth.”
Funded through federal appropriations and private investment from APM Terminals, the project will begin construction in 2026 with an anticipated completion timeline of 24 months. The expansion is expected to reduce vessel wait times and increase operational efficiency, making Alabama’s largest port more competitive nationally and internationally.
APM Terminals, which operates the Mobile container terminal under a 20-year concession extended to 2058 through this deal, will directly invest in the infrastructure, signaling a long-term commitment to the region.
The economic impact is significant for Alabama. The Port of Mobile supports more than 388,000 jobs in the state and contributes nearly $39 billion annually to Alabama’s economy, according to the Alabama Department of Commerce. Increasing the port’s capacity will likely amplify these figures by attracting more shipping activity, diversifying trade routes, and encouraging related industries.
As the U.S. Gulf Coast continues to grow in importance as a gateway for international trade, the Port of Mobile’s expansion positions Alabama to capture a larger share of the $1 trillion+ goods that pass through Gulf ports annually.
Local economic advocates see the project as an opportunity to build resilient infrastructure that benefits working families and promotes equitable growth.
“The port expansion means more opportunities for Alabama workers and businesses,” said a local economic development official. “It’s a critical investment in our state’s future in an increasingly global economy.”
With Alabama’s strategic location, this extended terminal capacity will support vital trade links across the Caribbean, Latin America, and Asia, providing Birmingham and surrounding communities with stronger economic connections and job growth potential.
Construction is scheduled to begin in early 2026, with completion expected by 2028, marking a new era for Alabama’s maritime industry and economic development.
The Port of Mobile expansion underscores Alabama’s ongoing commitment to infrastructure investment and economic vitality in a changing global trade environment.