Port of Mobile revenue hits record $245 million after deepening

The Alabama Port Authority (APA) has reported its strongest revenue year on record, with fiscal year 2026 revenue reaching approximately $245 million.

Port of Mobile revenue hits record $245 million after deepening

This represents an increase of more than 20 per cent year on year, following the deepening of the Mobile Ship Channel to 50 feet.

Since the channel reached its authorised depth on 3 October 2025, 168 vessels have transited with a recorded draft exceeding 45 feet. The additional depth allows vessels to carry more cargo per voyage, reducing the restrictions previously imposed by the channel.

Higher customer demand, increased bulk cargo volumes, strong rail activity and additional vessel capacity contributed to the revenue growth.

Doug Otto, Director and Chief Executive Officer of the Alabama Port Authority, said: “We saw the value of having a deeper channel immediately, and we are continuing to see its impact on the cargo our customers are now able to move. It’s helping shippers make better use of their transportation dollars, and it’s allowed a greater volume of cargo to move through the Port of Mobile.”

The $425 million Mobile Harbor Modernization Project was delivered through a partnership between the APA and the US Army Corps of Engineers.

The project involved deepening and widening the channel to accommodate larger cargo vessels, with dredging work beginning in 2020. A section of the channel was also widened to enable two-way vessel traffic.

Congress authorised the project under the 2018 Water Resources Development Act. More than $270 million in federal funding was secured with support from former US Senator Richard Shelby and Alabama’s congressional delegation.

The State of Alabama contributed $150 million towards the channel expansion and additional dredging at three port berths to achieve the 50-foot depth.

The state funding was provided through the 2019 Rebuild Alabama Act, championed by Governor Kay Ivey and supported by both chambers of the Alabama Legislature.

The channel project forms part of more than US$2 billion in capital investment by the APA to expand capacity at the Port of Mobile and strengthen its wider logistics network.

Planned and ongoing developments include a major container terminal expansion, inland rail facilities, and further investment in port terminals and rail infrastructure.

Otto said: “We are already seeing the return on investments driven by a commitment from our state and federal partners. With a historic level of capital investment underway, the channel expansion was a critical first piece of the infrastructure investments that are positioning the Port of Mobile and the State of Alabama for continued growth in the years ahead.”