The Philadelphia Regional Port Authority is currently in discussions with Norfolk Southern Corp. regarding the acquisition of 150 acres at the former Philadelphia Navy Base. This move is viewed by the agency as an opportunity to potentially double the port's job support capacity, introducing up to 15,000 new jobs, as highlighted by Ryan Mulvey, the director of government and public affairs.
The targeted site, known as Mustin Yard, is prized for its strategic positioning at the confluence of deepwater, highway, and rail access. This acquisition is contingent on securing a commitment for state funding, as conveyed by Mulvey to the Pennsylvania House Transportation Committee.
PhilaPort's interest in the site aligns with its ambition to augment its capabilities in handling automobiles and containers, crucial elements in global trade. The port reported a significant increase in container throughput, reaching 743,000 units last year, marking an 80% rise since 2016. This growth is partly attributed to the import of perishables such as fruits and meats. Projections suggest that container volumes could reach approximately 1.5 million units by 2040. The Mustin Yard, exceeding the size of the port's main container terminal, represents a strategic expansion opportunity for PhilaPort.
While specific financial details regarding the acquisition and development of the site remain undisclosed, industry experts anticipate the cost to be substantial. This development comes as PhilaPort seeks additional state aid amidst increasing investments by competitor ports, including significant commitments by Delaware and developments by Mediterranean Shipping Co. in Baltimore.
PhilaPort's operations currently support 12,000 jobs, contributing $90 million in state and local tax revenue. The development of Mustin Yard is projected to further boost revenue by $38 million and create additional jobs, contingent on various factors including capital investment and the nature of cargoes processed. The port authority has engaged a consulting firm for a comprehensive economic analysis to explore the full potential of the site.
Recent investments under Gov. Tom Wolf's administration have significantly enhanced PhilaPort's infrastructure, including the acquisition of new electric cranes and the development of a 155-acre auto processing center. These investments have facilitated growth in container and auto volumes, demonstrating the strategic value of enhancing the port's capabilities.
Source: The Philadelphia Enquirer