Originally Published in The Produce News on July 3, 2025
PhilaPort continues to invest to maintain status as East Coast port leader
With its proximity to major population centers such as New York, Philadelphia, Baltimore and Washington, DC, the Delaware River is the top shipping point on the East Coast for all types of goods, including automobiles, steel, perishables and cocoa beans.
The Port of Philadelphia, better known as PhilaPort, deftly manages shipping operations for several of the main terminals on the Delaware River, and it continues to invest in the facilities to keep up with the rising demand for its services.
In October 2024, PhilaPort unveiled a roadmap for the future titled “PhilaPort Strategic Plan: Destination 2040,” which charts the course of the Port of Philadelphia for the next 15 years and beyond, including major investments in infrastructure to elevate port capabilities, drive economic growth and expand capacity.
“This plan is a testament to the shared vision and commitment to continue making PhilaPort a world-class port and reaffirms the port’s commitment to growth, sustainability and prosperity for the region,” PhilaPort said in a statement.
According to PhilaPort, demand has been growing steadily for the past decade, with a compound annual growth rate of 8 percent, and growth is expected to continue along similar trends.
However, recent developments in the region, including proposed expansion projects at other major East Coast ports, as well as a new presidential administration that has leaned more heavily on tariffs as a tool for diplomacy, have intensified competition among port operators and added new challenges.
“At the moment, we not seeing major negative effects from the tariffs, as most of our key trade regions are only experiencing the 10 percent reciprocal rate,” Sean Mahoney, senior director of marketing at PhilaPort, told The Produce News. “Import taxes inherently limit trade, and the impact is especially challenging for perishable goods, which operate on thin margins and are highly sensitive to cost increases.”
He added that the broader uncertainty surrounding tariffs affects not only international partners but also U.S. businesses, particularly small businesses, which make up a significant portion of the logistics and perishables sectors.
Investing for the Future
Destination 2040 is based on five themes designed to ensure that PhilaPort maintains its leadership position well into the future: growth and expansion, expansion, safety, sustainability and community.
Among the goals of the strategic plan are tripling container capacity to 3 million; land acquisition and modernization of terminal facilities; addition of hundreds of thousands of square feet of new warehouse space resulting in 20 percent increase in breakbulk cargo tonnage leading to nearly $3 billion in new business revenue; creation of nearly 9,000 new direct jobs and more than 10,000 indirect jobs; and generating $170 million in revenue from state and local taxes.
Mahoney said that a number of projects have either been completed or are under way and on schedule.
Recently, the river was dredged to a depth of 45 feet to enable larger vessels to call on the Port of Philadelphia, which was a major step forward
“We’ve proven that the Port of Philadelphia can handle larger vessels to an industry-leading standard – most notably demonstrated with the successful call of the 16,000 TEU CMA CGM Marco Polo,” said Mahoney. “As the most productive port in North America (according to the World Bank) we worked the vessel with our usual efficiency, confirming that we can accommodate the same class of ships as any port on the U.S. East or Gulf coasts. Our cargo volumes continue to rise, and to remain competitive our goal is to begin taking steps toward deepening the main channel to 50 feet.”
One major project currently under way is the PhilaPort Distribution Center Cold Warehouse, construction of which is expected to be completed this coming fall. But Mahoney said expansion of the port facilities will continue under Destination 2024.
“We’re continuing to acquire near-dock lands and have recently acquired close to 40 additional acres near our Packer Avenue Marine Terminal,” he said. “Within the next several months, we plan to announce further acquisitions, which are outlined in Destination 2040.”
Mahoney added that PhilaPort is also making progress on the SouthPort terminal berth, which will be the first new berth in Philadelphia in the last 50 years.
“Also, millions of square feet of third-party warehousing are going up in our region, including the Bellwether District in Philadelphia, which is just five miles from our port, and the nearby Keystone Trade Center, which includes 15 million square feet of new Class A warehousing,” said Mahoney. “They are looking for new cold warehouse customers!”
He said that these initiatives, plus federal, state and private infrastructure improvements, will enable PhilaPort to continue cargo growth, which is up 94 percent since 2015, and maintain its North American-leading productivity.