Just over one year after the Mobile Ship Channel reached its authorised depth of 50 feet, the Alabama Port Authority (APA) has closed the strongest revenue year in its history.
Since the channel opened to its full depth on October 3, 2025, 168 vessels have transited it with a recorded draught greater than 45 feet, and more are being added every day. For APA customers, each of those sailings means more cargo moved per trip, without the depth restrictions the old channel required.
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That increased efficiency showed up in the Port Authority’s results. The organisation closed fiscal year 2026 with revenue of approximately USD245 million, up more than 20% over the previous fiscal year. Increased customer demand, higher bulk cargo volumes, strong rail activity, and the added capacity of a deeper ship channel all contributed.
“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,” Alabama Port Authority Director and CEO Doug Otto said. “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 USD425 million Mobile Harbour Modernisation Project was a state-federal partnership between the Alabama Port Authority and the US Army Corps of Engineers to deepen and widen the ship channel for larger, modern cargo vessels. Dredging began in 2020. In addition to the greater depth, the project widened a portion of the ship channel to allow two-way vessel traffic.
Congress authorised the project in the 2018 Water Resources Development Act, and support from former US Senator Richard Shelby and Alabama’s congressional delegation made the project’s full implementation possible. Together, they helped secure more than USD270 million in federal funding that was needed to carry out the work.
The State of Alabama invested USD150 million to cover its share of the channel expansion and fund additional dredging at three of the Port Authority’s berths to reach the new 50-foot depth. Those investments were funded through the 2019 Rebuild Alabama Act, which was championed by Gov. Kay Ivey and received bipartisan support in both chambers of the Alabama Legislature.
The project is part of more than USD2 billion in capital investments the Port Authority is making to strengthen its capabilities and capacity at the Port of Mobile and beyond. These include a major expansion of the container terminal, the development of inland rail facilities, and significant investments in terminals and rail infrastructure at the Port of Mobile.
“We are already seeing the return on investments driven by a commitment from our state and federal partners,” Otto said. “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.”