Posted on February 20, 2025
Once considered a hidden gem lying in wait amid bigger East Coast ports, PhilaPort spent much of last year finishing the process of becoming a full-fledged polished diamond.
In March, Philadelphia welcomed the largest vessel ever to call a Delaware River port – the CMA CGM Marco Polo with a capacity of 16,200 TEUs – to the Packer Avenue Marine Terminal (PAMT). The event was made possible by deepening the shipping channel to 45 feet and significant infrastructure upgrades. It signaled to the maritime world that PhilaPort is ready to handle the next generation of Super Post-Panamax ships.
But in the dog-eat-dog maritime cargo world, ports must always look ahead.
“We are currently drawing more interest from big ships, the campaign from 45 feet to 50 feet is well underway and gaining traction,” said Christian Holt, Sales and Marketing Representative for Holt Logistics, a family-owned global logistics service provider with almost a century of experience in the Port of Philadelphia. “The process does not happen overnight; it takes years of hard work and communication. Through partnerships with city, state, private, and public companies, efforts are underway to speed up the timeline.”
“The top 10 ocean carriers continue to invest in Super Post-Panamax ships, driving bigger ships with more cargo. If the river stays at 45 feet, the Port of Philadelphia will not be able to handle the larger ships, causing the carriers to skip Philadelphia and continue to NY/NJ or Baltimore.”
The Pace Quickens
Meanwhile, facility expansion at PhilaPort moves forward at a swift pace.
Construction of the 165,000 square foot Philadelphia Distribution Center – Cold (PDC Cold) warehouse is proceeding on target, Holt said.
“Having a state-of-the-art, cold, near dock warehousing allows PhilaPort to continue to accommodate the growth of refrigerated cargo that powers the Port,” he said. “Additionally, it opens more opportunities on the terminals for more container densification, in other words handling more containers on the same footprint.”
Slated for completion in 2026, the facility will significantly increase cold storage capacity, meeting the region’s growing demand for refrigerated goods.
“A&E Construction Co. is on schedule and working diligently to complete the building. As of February 1st, additional rooftop refrigeration units were placed, ongoing steel installation, progress on CMU block walls, LMP walls continue being placed on the freezer, and concrete pour took place. Racking vendors will start installing as soon as the certificate of occupancy is given in September 2026. The space will house over 25,000 pallet positions of new products wanting to call Philadelphia and divert from more congested ports on the East Coast,” said Holt.
Asia Service
He said the new warehouse is the perfect destination for Asian perishable and refrigerated cargo, driving a direct Asian string to PAMT. Holt provides logistics and marketing services to Greenwich Terminals LLC which operates PAMT.
Sean Mahoney, Senior Director of Marketing for PhilaPort, echoed the importance of a direct container line service with Asia.
“That is our #1 goal. We had one, briefly, last year, but then the Houthis closed off the Red Sea / Suez Canal and we lost that service,” he said. “We’re confident that our track record of successfully handling the big ships, the continued growth of international trade, congestion and delays at other ports, our North America-leading productivity, and our significant capital investments will enable us to attract a direct, all-water, ocean container service from Asia.”
Sean Mahoney, Senior Director of Marketing for PhilaPort
Earlier this year, the World Bank and S&P Global Market Intelligence efficiency index ranked PhilaPort the number one medium port in the United States. A great honor, but port officials took slight issue with the designation.
“We don’t need to focus on that word, ‘medium,’” Mahoney said. “PhilaPort can handle the same size container ship as ANY port on the US East Coast. The Delaware River port complex handled 36 million tons of cargo in 2023, making us one of the biggest port systems in the USA. As the World Bank and S&P said, we are #1 in North America for container productivity. So, we are big, and we are the most efficient container port. Don’t focus on the phrasing of the analytical methodology. We’ll put our productivity up against any port on the continent.”
Strategic Plan
PhilaPort also released its Strategic Plan; Destination 2040 in October. The comprehensive roadmap will guide the port’s development over the next 15 years. PhilaPort said it expects container volume to reach almost 1.6 million units by 2040.
PhilaPort reported another year of significant growth at its January Board of Directors meeting, with a notable 8 percent increase in total tonnage. Record-breaking numbers were achieved in both containers – 840,751 TEUs, up 13% and new vehicle imports – 281,819 units, up 9%. PhilaPort’s Southport auto terminal is operated by Glovis America, an affiliate of South Korea-based Hyundai Motor Group.
Mahoney said despite the push for expansion, refrigerated cargo is still Philly’s sweet spot.
“We have more and better U.S. Department of Agriculture meat re-inspection warehouses for imported meat than any port, by far. We have more and better fruit re-pack facilities than any port. These re-pack houses provide cold warehousing, of course, but also drayage from the port, customized packaging for the retailer, quality control, labeling, ripening/shelf-life extension, transportation to the customer or inland warehouse and other essential services to the fruit importer. These companies typically also coordinate with the marine terminal, customs broker, and freight forwarder to ensure an efficient supply chain,” he said.
“In 2023, $7.3 billion in food cargoes came up the Delaware River, of which $3.9 billion was fruits and vegetables. We talk to global meat companies that are increasing production in Australia, South America and elsewhere. They are targeting the USA – and thus, primarily, Philadelphia – for increased shipments. Pharmaceutical and alcohol supply chain companies are talking to us about increased volumes. All this augurs well for future growth in cold and temperature-controlled cargoes,” Mahoney said, adding Holt has added a thousand reefer plugs, giving PhilaPort over 4,000 at PAMT alone.
The Packer Avenue Marine Terminal can handle more than 1.3 million TEUs annually, making it one of the most productive port facilities in the US.
Fruit Season Underway
Holt offered a positive fruit trade update. He said the 2025 fruit season is well underway and strong from all origins.
The Peru crop will hit 80 million cases, which is up 16% from last year. Four Breakbulk Vessels were loaded this season for the first time ever. Peru still has 15 million cases to ship as of week 4 (approximately 3,000 containers). About 55% of that volume comes to the Delaware River, a staggering number compared to the rest of the United States.
The Morrocco crop is very strong this season. The market is currently moving well (both in the USA and Canada). Large volumes arrived in late January/early February, and stability is projected over the next few months.
The Chile season has finally started to ramp up after dealing with swell issues at loading ports/origin. Even with the weather and delays, a strong Chile season is projected to hit 58 million cases of grapes, of which 70% come to the Delaware River. Frutas De Chile is projecting 4.5 million cases of grapes arriving from Chile/Peru from the last week of February through the end of March. Likewise, only 3 million cases will be shipped under the system approach (pre-clearance).
Meat imports were at record levels from all origins as traders continued to be opportunistic in the current market.
“Philadelphia is known worldwide as a gateway for perishables, but there is plenty of capacity for dry and frozen products coming from Asia,” Holt said. “The marketing and sales team at Holt Logistics is in contact with the major ocean carriers and has interest from two to three who are analyzing a direct Asian port call into Philadelphia.”
The Cold Cluster
Mahoney said the region’s cluster of cold warehousing sets Philadelphia apart.
“It is also important to note the essential role of private sector investments in cold warehousing in our region. Hundreds of thousands of additional square feet of new refrigerated and freezer warehouse space have gone up in recent years and is continuing to be built in our region. Our local stakeholders and other supply chain leaders see Philadelphia’s world leadership in fruits, vegetables, proteins, pharmaceuticals, and alcohol and chemical products that need the cold supply chain,” he said. “These private sector companies see our continual growth in cold cargoes, they see our terminal and road improvements, and they are building warehouse capacity to meet the increased cold cargo volumes coming to PhilaPort.”
Thousands of square feet of additional warehousing are scheduled for the greater Philadelphia area:
The “Keystone Trade Center” at Fairless Hills, PA, just north of Philadelphia, will offer 15 million square feet of new, Class A warehousing near our Port.
The “Bellwether District” development will offer 10 million square feet of new, Class A warehousing in Philadelphia five miles from our Packer Avenue Marine Terminal.
New warehousing is being built in the neighborhoods near PhilaPort’s Tioga Marine Terminal (TMT).
Holt said PhilaPort can tighten efficiency through new infrastructure, processes and equipment. He pointed out things such as adopting appointment times, electrifying older cranes from diesel to electric, and demolishing older buildings will increase traffic flows and the Port’s ability to handle more containers.
Polishing the Diamond
The expansion of PhilaPort’s rail capabilities is essential, he said.
“The goal is to grow rail business at Packer Avenue Marine Terminal. Greenwich Terminals LLC is the fastest delivery to rail on imports and exports on the East Coast, with the capacity to triple the current number of rail moves,” Holt said. “There are plenty of on-dock and near-dock connections, and the company has great working relationships with CSX, Conrail, and Norfolk Southern.”
The proper use of technology and user-friendly applications and statistics to improve customer service is essential, said Holt, adding value-added services for customers, such as appointment times and Geofence app-based checks will help get trucks loaded faster, allowing them to spend more time driving.
In the long term, PhilaPort sees growth by diversifying even further into businesses such as cruise lines, liquified natural gas and hydrogen power.
“Ten years ago, I referred to the Port of Philadelphia as a diamond in the rough, now it’s a diamond, and Destination 2040 will make it a polished one,” said Larry Antonucci, president of 721 Logistics, a long time PhilaPort customs broker and freight forwarder. “The commitment by the State, via PhilaPort, along with the many port stakeholders, to continue investing in the port’s infrastructure in order to not only keep its competitive advantage with perishables, fresh/frozen proteins, lumber, paper, etc., but also build out its capabilities into other commodities and trade lanes.”
