Alabama Port Authority and APM Terminals To Build New Berth at Mobile Container Terminal

STS Cranes APM Terminals Port of Mobile

MOBILE, Ala. –– The Alabama Port Authority and APM Terminals Mobile this week announced an agreement to proceed with construction of a new, 1,300-foot container berth at the Port of Mobile.

APM Terminals is an independent division of A.P. Moller-Maersk and it will be adding private investment to a federal appropriation to the Port Authority to fund the $131 million project. The project will expand berth capacity by 50%, which will enable the terminal to handle three ultra-large container vessels (ULCVs) simultaneously.

This project is “Phase V” of a multi-phase expansion effort by the Alabama Port Authority and APM Terminals Mobile to maintain the competitive strength of the Port of Mobile. This project follows the recent completion of the $336 million Mobile Harbor deepening project to 50 feet, which made it the deepest container port in the U.S. Gulf. In addition, an additional $200 million of investment is currently under way that includes a rail capacity upgrade, a 33 – acre container yard expansion, and construction of a new rail flyover bridge that will enable direct on-dock rail access.

Construction of the new berth should begin in 2026, with a two-year completion target after ground is broken. With the addition of the new dock, the annual berth capacity of APM Terminals Mobile will be 1.4 million TEUs, supported by seven ship-to-shore cranes.

The relationship between APM Terminals and the Alabama Port Authority is strong, as evidenced by their recent agreement to a 20-year extension of APM Terminals’ concession to operate the container terminal, which now runs through 2058 with two 10-year extension options. There will be an increase in lease payments to underwrite the Port Authority investment.

Doug Otto, Interim CEO and Director of the Alabama Port Authority, said “This expansion is about more than infrastructure –– it’s about cementing Mobile’s position as the Gulf’s premier container gateway. With the channel deepening complete, a new berth under way, 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.”

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