Listen to article \u2022\u00a00:00 min<\/p>\n
With the planned expansion of Philadelphia\u2019s port on the Delaware River, it could grow to accommodate twice as much container cargo and over 100,000 more automobiles.<\/p>\n
Pennsylvania Gov. Josh Shapiro<\/a> earlier this month pledged $371 million<\/a> in state funding to help attract more goods to the Port of Philadelphia. He said the state investment, combined with hundreds of millions of dollars more in federal funds and corporate investments, would create thousands of jobs.<\/p>\n The Democratic governor framed the investments as a vote of confidence in Philly as a hub of global trade even as President Donald Trump<\/a>\u2019s tariffs have inflated the costs<\/a> of foreign goods. Trump has cast the import taxes as part of an effort to bring manufacturing jobs back to the U.S. <\/p>\n Shapiro says investing in the port will boost the local economy. <\/p>\n Here\u2019s what to know about what the governor called \u201cthe largest expansion\u201d in the port\u2019s history.<\/p>\n Where is the money coming from? <\/p>\n $371 million from the state, financed through borrowing. That includes $90 million Shapiro\u2019s administration authorized last year for the purchase of a 152-acre rail yard<\/a> from Norfolk Southern Corp. <\/p>\n $266 million from the federal government, via two grants that were announced during former President Joe Biden<\/a>\u2019s administration. Shapiro\u2019s office says that money couldn\u2019t be tapped until the state came up with matching funds.<\/p>\n At least $200 million from the private sector: $100 million apiece from Holt Logistics Corp. and Glovis America, both of which lease property from the Philadelphia Regional Port Authority<\/a> (PhilaPort), a state agency that owns seaport facilities along the Delaware.<\/p>\n How many jobs will be created? <\/p>\n PhilaPort says it currently supports 8,000 direct jobs, such as dockworkers, as well as about 4,000 jobs in port-related industries. Shapiro says the new investments will help create 6,000 more direct jobs \u2014 and generate $45 million in annual state and local tax revenues. <\/p>\n Those projections were based in part on a study performed by consulting firm Hatch that PhilaPort declined to share, calling it \u201ccommercially sensitive\u201d because it is being used to support ongoing lease discussions with tenants.<\/p>\n Shapiro\u2019s office referred questions about the matter to PhilaPort.<\/p>\n The Teamsters and longshoremen\u2019s unions spoke in favor of the plan. Teamsters work the auto yard at the port\u2019s Southport facility, while longshoremen unload cargo from ships.<\/p>\n \u201cThis is going to create hundreds of new Teamster jobs, thousands of jobs across the area,\u201d said Bill Hamilton, eastern region vice president of the International Brotherhood of Teamsters.<\/p>\n In addition to Philadelphia-based jobs, \u201cyou\u2019ll have, besides the Teamster jobs that are here, you\u2019re going to have trucking jobs coming and going,\u201d he said at the announcement Oct. 13. \u201c\u2026 It\u2019s a dream come true for some people without a college degree.\u201d<\/p>\n The port will be able to handle more shipping containers and automobiles, creating greater economic impact, according to the port authority. <\/p>\n What cargo is the state trying to attract? <\/p>\n The port handles cargo such as automobiles, paper, petroleum products, steel, and cocoa beans, as well as containers that carry goods such as produce and pharmaceuticals.<\/p>\n The new investments are aimed at bringing in more containers and vehicles, officials said. The port handled a record 889,000 container units last year<\/a>, as well as about 250,000 automobiles. <\/p>\n A key driver of the port\u2019s container growth has been an increase in perishable imports<\/a> such as fruit and meat, according to PhilaPort.<\/p>\n The volume of container cargo moving through the port was up 39% last year compared to 2020, Shapiro said. \u201cThe demand is quite real.\u201d <\/p>\n Based on its current land allocation plan, PhilaPort projects the new capital will more than double the port\u2019s container capacity to 2 million units and increase capacity for autos by 18%, from 588,000 to 694,000.<\/p>\n \u201cWe have the assets, we have the workforce, we have the land, and we\u2019re ready to take this port to a whole new level,\u201d PhilaPort CEO Rich Lazer said.<\/p>\n Why is this happening now? <\/p>\n Shapiro\u2019s announcement comes two years after PhilaPort unveiled a strategic plan<\/a>, Destination 2040, intended to guide its growth over the next decade and a half.<\/p>\n The plan cited increased investment by rival ports such as New York and New Jersey, Baltimore, and Wilmington, Del. <\/p>\n PhilaPort\u2019s board \u201cworked together to develop an ambitious vision for growth that not only plays to the strengths where this port is leading but also doubles down on the areas where we have the greatest potential to be able to grow,\u201d Shapiro said.<\/p>\n What projects are being funded? <\/p>\n Much of the expansion is planned for Philadelphia\u2019s southern port district, including at the Southport Auto Terminal on the eastern end of the Navy Yard.<\/p>\n Southport was created in 2010 when Gov. Ed Rendell set aside more than 200 acres of vacant land and water at the old Philadelphia Naval Base for port development. With $93 million in state funds<\/a> invested under Gov. Tom Wolf, Southport opened in 2019 as a 155-acre auto terminal, where Hyundai and Kia vehicles are stored and processed before they go to dealer showrooms.<\/p>\n That expanded the port\u2019s vehicle-import business, which started in 2010<\/a> at Pier 98 annex, a parking lot at Columbus Boulevard and Oregon Avenue.<\/p>\n Now Southport is poised to bring in more cargo. The port authority wants to build two berths that would allow ships to dock directly at Southport, relieving congestion for ships at the nearby Packer Avenue Marine Terminal.<\/p>\n The funding will also allow PhilaPort to fill in part of the river to expand the Southport terminal by 10 acres, creating more space for cargo, officials said.<\/p>\n Biden\u2019s administration previously authorized two grants \u2014 one in 2021 <\/a>and another in 2024<\/a> \u2014 totaling $266 million to support the Southport berth project. Shapiro\u2019s office said those funds couldn\u2019t be used until the state came up with matching funds, which the governor announced this month.<\/p>\n Once the berths are built, PhilaPort anticipates both containers and autos being handled at Southport, said spokesperson Marty O\u2019Rourke. <\/p>\n The port authority\u2019s acquisition last year of the nearby Mustin rail yard from Norfolk Southern is expected to create more space for that cargo.<\/p>\n Beyond South Philly, Shapiro\u2019s plan also invests in the Tioga<\/a> Marine Terminal in Port Richmond<\/a>. The state is providing $58.1 million for two electric ship-to-shore container cranes and berth improvements.<\/p>\n