The Alabama Port Authority took in about $245 million in fiscal 2026, up more than 20%, as 168 deep-draft ships used the 50-foot channel in its first year.
The Alabama Port Authority has closed the strongest revenue year in its history. It took in about $245 million in fiscal 2026, up more than 20% from the year before.
The authority credited the deeper Mobile Ship Channel, which reached its full 50-foot depth on Oct. 3, 2025. It also pointed to more customer demand, more bulk cargo and strong rail traffic. The figures are in the authority’s release marking the channel’s first year.
What the deeper channel changed
Since the channel opened at full depth, 168 ships have used it with a recorded draft of more than 45 feet, the authority said. Draft is how deep a ship sits in the water. A ship that can sit deeper can carry more cargo on each trip.
“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 the release.
The $425 million Mobile Harbor Modernization Project was a partnership between the authority and the U.S. Army Corps of Engineers. Dredging began in 2020. The project also widened part of the channel so ships can pass each other.
Who paid for it
The authority said:
- federal funding covered more than $270 million
- the state of Alabama put in $150 million, which also paid for dredging at three of the authority’s berths to reach 50 feet
- the state money came from the 2019 Rebuild Alabama Act
Congress authorized the project in the 2018 Water Resources Development Act.
What comes next
The channel is one piece of more than $2 billion the authority said it is spending on the port and beyond. The release listed:
- a major expansion of the container terminal
- new inland rail facilities
- more work on terminals and rail lines at the Port of Mobile
“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,” Otto said.
What it means for you
- Bigger ships, fewer trips. Each deep-draft sailing carries more cargo than the old channel allowed, the authority said. It counted the deeper channel among the reasons revenue rose.
- More investment is coming. The container terminal expansion and new rail work are part of the more than $2 billion the authority said it is investing.
- The wider economy. For context, Mobile County’s unemployment rate was 4.4% in August, up from 3.8% a year earlier, according to the Bureau of Labor Statistics. The August figure is preliminary.
- Road work nearby. Our road construction and closures page tracks the I-10 Mobile River Bridge project and other work around downtown.
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