Philadelphia port plans capacity increase with million land acquisition from Norfolk Southern.

The Philadelphia Regional Port Authority is advancing negotiations to purchase 152 acres from Norfolk Southern Corporation for million, a strategic acquisition anticipated to generate significant employment opportunities in the region. The agency’s board voted to empower its staff to negotiate the acquisition of land located at the former Philadelphia Navy Base, a decision that officials assert is vital for the port’s growth.

Documents released by the port authority indicate that the parcel of land, situated near the Packer Avenue Marine Terminal and Southport Auto Terminal, presents considerable potential for expanding the port’s capabilities in handling shipping containers and automobiles. This move is aligned with PhilaPort’s ongoing efforts to bolster its operational scope along the Delaware River, which is seen as an essential economic stimulant for the Commonwealth of Pennsylvania.

The targeted land, referred to as the Mustin Yard, features an intermodal rail facility that offers numerous expansion possibilities. These enhancements aim to improve connectivity between the port and major distribution centers throughout the United States. According to a memo prepared for the board meeting, acquiring this land remains a top priority for PhilaPort, emphasizing its role as a cornerstone in the agency’s expansion strategy.

As part of this initiative, the port authority is expected to finalize the deal by this fall, following a funding commitment from the state. This funding is typically arranged through state borrowing mechanisms to support such significant investments. The negotiated purchase price aligns with the land’s appraised value, reinforcing the financial prudence of the acquisition.

A previous analysis conducted by PhilaPort’s consultants suggested that the transformation of the Mustin Yard into a container terminal could create approximately 15,000 jobs. This development would more than double the current 12,000 direct and indirect jobs supported by the port’s operations. The anticipated economic impact of this expansion will rely heavily on the types of cargo handled at the site and the level of capital invested.

As the port authority moves forward with its plans, it is cognizant of the projected growth in container cargo, which is expected to increase to 1.6 million units by 2040. This forecast suggests that existing port capacities may soon be surpassed, underscoring the urgent need for land acquisition to meet future demands.

Historically, the Mustin Yard was managed by the Delaware River Port Authority after the U.S. Navy vacated the premises in 1996. Following a transfer of ownership in 2008, Norfolk Southern took control of the property, which has remained a focal point for potential development in the region. The current acquisition aims to position PhilaPort advantageously for future growth and economic investment.

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