The Alabama Port Authority and APM Terminals Mobile have announced plans to move forward with building a new 1,300-foot container berth at the Port of Mobile. The $131 million project will be financed through federal appropriations to the Port Authority, along with private investment from APM Terminals, an independent division of A.P. Moller – Maersk. By expanding berth capacity by 50%, the project will give the terminal room to handle three ultra-large container vessels (ULCVs) at once. Once it comes online, the addition is expected to reinforce the Port of Mobile’s standing as one of the Gulf’s key centers for container trade.
The “Phase V” project is part of a multi-phase development effort aimed at ensuring Mobile remains one of the nation’s most competitive and resilient container gateways. It follows the completion of the $366 million Mobile Harbor deepening project, which increased the channel depth to 50 feet, making it the deepest container port in the U.S. Gulf. Alongside this, more than $200 million in related investments are currently in progress, including a 33-acre container yard expansion, upgrades to rail capacity, and construction of a rail flyover bridge that will provide direct on-dock rail access. Construction on the new berth at Port of Mobile is set to begin in 2026 and is expected to take 24 months. When finished, APM Terminals Mobile will be able to handle 1.4 million TEU a year, with operations backed by seven ship-to-shore cranes.
In a move to strengthen long-term collaboration, APM Terminals and the Alabama Port Authority have agreed to extend APM Terminals’ concession to operate the facility for another 20 years, now running through 2058, with two optional 10-year extensions. The revised agreement also includes higher lease payments to support the Port Authority’s investment.
“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.”
Once completed, the new berth at Port of Mobile will enhance operational flexibility, cut vessel waiting times, and improve schedule reliability for carriers and shippers across the Southeast. Located at the southern end of the existing container terminal, it will be adjacent to 25 acres of land that could be developed in the future for container handling, logistics, or storage purposes. With its deep-water channel, expanded berth and yard capacity, and direct Class I rail access, Mobile continues to offer customers a faster and more reliable alternative to congested coastal gateways, reinforcing its role in driving supply chain efficiency and economic growth throughout the region.
