STS cranes at APM Terminals' Port Elizabeth Terminal, at the Port of New York and New Jersey. Stock Photo: Mihai_Andritoiu/Shutterstock

The Alabama Port Authority and APM Terminals Mobile announced an agreement to proceed with construction of a new 1,300-foot container berth at the Port of Mobile. The $131 million project, funded by federal appropriations and private investments from APM Terminals, will expand berth capacity by 50% and enable the terminal to handle three ultra-large containerships simultaneously.

Construction is expected to begin in 2026, with completion targeted for 24 months after groundbreaking. Once operational, the annual berth capacity of APM Terminals Mobile will reach 1.4 million TEU, supported by seven ship-to-shore cranes.

The Phase V project follows the recent completion of the $366 million Mobile Harbor deepening project to 50 feet, making it the deepest container port in the U.S. Gulf. The new berth complements more than $200 million in investments currently underway, including a 33-acre container yard expansion, a rail capacity upgrade, and construction of a new rail flyover bridge that will enable direct on-dock rail access.

“This expansion is about more than infrastructure — it’s about cementing Mobile’s position as the Gulf’s premier container gateway,” said Doug Otto, Interim CEO and Director of the Alabama Port Authority. “With the channel deepening complete, a new berth underway, the Phase IV expansion in progress, and APM Terminals’ continued partnership, we’re connecting businesses across Alabama — and across the nation — to global markets faster and more efficiently than ever before.”

“This new berth is a strategic next step in making sure Mobile stays ahead of the growth curve,” said Brian Harold, Managing Director of APM Terminals Mobile. “As cargo volumes grow, we’re committed to scaling further in full partnership with the Port Authority and our customers.”

The new berth will be located at the southern end of the existing container terminal and is adjacent to 25 acres of land that could be developed in the future for container handling, value-added logistics, or storage needs.

To support the long-term success of the terminal, APM Terminals and the Alabama Port Authority have agreed to a 20-year extension of APM Terminals’ concession to operate the container terminal, now running through 2058 with two 10-year extension options. The agreement includes increased lease payments to underwrite the Port Authority investment.

The expansion comes as APM Terminals, the port operating arm of Danish shipping giant Maersk Group, pursues other Gulf Coast investments. The company will invest $500 million in a new container terminal on the Mississippi River’s west bank at the Louisiana Gateway Port. The initial development encompasses 200 acres featuring on-dock rail facilities and a berth capable of accommodating post-Panamax vessels, with potential expansion up to 900 acres.

APM Terminals previously ceased operations at Port Houston in July 2015.

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