The Alabama Port Authority reported a record $245 million in revenue for fiscal year 2026, more than a 20 percent increase over the previous year as the Port of Mobile continues to expand its capacity to handle cargo.
The authority attributed the increase to higher customer demand, increased bulk cargo volumes, strong rail activity and the additional capacity provided by the Mobile Ship Channel’s expansion to a depth of 50 feet.
The channel reached its authorized depth over a year ago on October 3, 2025. Since then, 168 vessels with recorded drafts greater than 45 feet have transited the waterway, according to the Port Authority.
The deeper channel allows ships to carry more cargo per trip, potentially reducing transportation costs for shippers. The project also widened portions of the channel to accommodate two-way vessel traffic.
The most recent revenue figures continue a period of growth for the port. The authority reported $196.6 million in operating revenue in fiscal year 2024, up from $184.9 million in fiscal year 2023. The fiscal 2026 figure represents a further increase, although the figures should be compared with care because they may reflect different revenue measures.
“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 in a statement.
The $425 million Mobile Harbor Modernization Project was a joint effort between the Alabama Port Authority and the U.S. Army Corps of Engineers. Dredging began in 2020 to accommodate larger cargo vessels and improve navigation through the harbor.
Congress authorized the project through the 2018 Water Resources Development Act. Support from former U.S. Senator Richard Shelby and Alabama’s congressional delegation helped secure more than $270 million in federal funding.
The state committed $150 million to the channel expansion through the 2019 Rebuild Alabama Act, signed by Governor Kay Ivey on March 12, 2019. The funding covered Alabama’s share of the project and additional dredging at three port berths to reach the new 50-foot depth.
The expansion is part of more than $2 billion in capital investments the Alabama Port Authority is making to increase cargo capacity and improve transportation connections. A $131 million project announced in October 2025 will add a 1,300-foot container berth, increasing annual berth capacity to 1.4 million twenty-foot equivalent units and allowing three ultra-large container ships to dock simultaneously.
A 2025 Alabama economic development guide reported that port-related activity supported 351,359 jobs statewide and generated $98.3 billion in economic value in 2022.
Otto said the deeper channel was an important early step in the authority’s broader investment strategy.
“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.”
