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. This $131 million project, funded by federal appropriations to the Port Authority and enhanced by private investments from APM Terminals, an independent division in A.P. Moller – Maersk, marks the next major investment in the growth of the Mobile container terminal and will expand berth capacity by 50%, enabling the terminal to handle three ultra-large container vessels (ULCVs) simultaneously. This will significantly enhance the Port of Mobile’s service offering and capacity for container traffic in the Gulf.

The “Phase V” project is the latest piece of a multi-phase expansion effort undertaken by the Alabama Port Authority and APM Terminals Mobile to ensure Mobile remains one of America’s most competitive and resilient container gateways. Following 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 now 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.

Construction on the new berth is expected to begin in 2026, with completion targeted for 24 months after groundbreaking. Once the additional dock is completed, the annual berth capacity of APM Terminals Mobile will be 1.4 million TEU, supported by a total of seven ship-to-shore cranes.

To support the long-term success of the terminal and strengthen public-private alignment, APM Terminals and the Alabama Port Authority have also 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, and increase the lease payments to underwrite the Port Authority 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 complete, the new berth will enhance the value proposition through boosting operational flexibility, reducing vessel wait times, and improving schedule reliability for carriers and shippers across the Southeast. The 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.

With the deepest channel in the U.S. Gulf, expanding berth and yard space, and seamless Class I rail access, Mobile offers customers a faster, more reliable alternative to congested coastal gateways. This next phase of investment continues a decade of shared progress, delivering the infrastructure needed to power growth, strengthen supply chain resilience, and support economic opportunity across the region. For more information visit ALports.com and read the APM Terminals Mobile issues paper, “Rethinking US Gateway Strategy – Why supply chain leaders are turning to Mobile, Alabama.”

Press Release