News / APMT and port authority get closer with plan for new berth at Mobile

Photo: APM Terminals

Maersk’s port operating subsidiary, APM Terminals, is set to significantly expand capacity at its facility in the US port of Mobile after agreeing a contract extension with Alabama Port Authority for its concession to run until 2058.

The two yesterday agreed to build a new 400-metre berth, expanding Mobile’s capacity by 50% and “enabling the terminal to handle three ultra-large container vessels (ULCVs) simultaneously”.

The $131m cost of the new berth will be funded by “federal appropriations to the port authority, and enhanced by private investments from APM Terminals”.

Construction is expected to begin in 2026 and is expected to take two years, taking Mobile’s handling capacity to 1.4m teu a year.

It follows a $366m dredging project, the ‘Middle Harbour deepening’, which has taken its draught to more than 15 metres, which means the port can handle the largest vessels afloat and now has the deepest draught on the US Gulf coast. This also comes in addition to a $200m investment to expandi the container yard and running the rail network up to the dockside.

“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 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,” he added.

Meanwhile, APMT and the port authority also agreed a 20-year extension of APM Terminals’ concession, “now running through 2058 with two 10-year extension options, and increase the lease payments to underwrite the port authority investment”.

Since it entered the port, APMT’s investment in Mobile has been predicated on the argument that it could provide genuine Gulf coast alternative to gateways on the US west and east seaboards, and its current service portfolio supports this.

According to eeSea liner database, although Mobile currently only hosts seven services, they all are deepsea connections and are a roll-call of the main deepsea vessel-sharing agreements: there are five Asia-North America strings via the Panama Canal – Gemini’s US3, MSC’s Lone Star Express, on which Zim charters slots, two Ocean Alliance Asia-North America strings, the USEC6 and USEC7, and the Premier Alliance’s EC4.

In addition, MSC has its transatlantic Gulf of Mexico Express and India/Middle East-North America Indusa services calling at Mobile.

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

The berth will be at the southern end of the terminal and is “adjacent to 25 acres [10ha] of land that could be developed in the future for container handling, value-added logistics, or storage needs”, he added.