Pennsylvania Extends Incentive Program to Attract New Cargo to Its Ports

 

Pennsylvania, located in the northeast United States, is extending a novel incentive program it operates rewarding carriers for each container they land in the state’s ports. According to state officials, the decade-old program supports tens of thousands of jobs and spurs economic growth.

The program began in 2015 and state officials report is a tool to compete with other East Coast ports in attracting new ocean carriers and new trade lanes to Pennsylvania. Due to end in June 2025, the state has decided to extend the program for two years, incentivizing shippers to move cargo through Pennsylvania ports. 

“Pennsylvania’s ports are critical to our transportation network and to our economy, and growth at the ports means growth in the Commonwealth,” said PennDOT Secretary Mike Carroll.

The program provides up to $1 million annually to participating ocean carriers. Since it was established in 2015, participants have sent over 3 million units of cargo through Pennsylvania ports, resulting in over $7 million in incentive funds awarded to nine ocean carriers.

The incentive is available for new service at a Pennsylvania port as well as for existing carriers. New carriers enrolled in the program receive $25 per new container unit loaded or discharged from vessels to a Pennsylvania port. Existing participants qualify for the incentive payment by exceeding established benchmarks, which the officials said helps retain business with an opportunity for rewarding growth.

The program also includes incentives for ocean carriers adding a new service line from Southeast or Far East Asia. Carriers would, for two fiscal years, earn $25 per container unit loaded or discharged if the container is coming from the Southeast and Far East Asia. Instead of the usual incentive cap of $250,000 per fiscal year for standard carriers, Asian carriers qualify for an increased cap of $500,000 per fiscal year. 

The incentives aim to bolster the appeal of Pennsylvania ports in the global supply chain. Officials report that in 2024, PhilaPort, which owns terminals in the Port of Philadelphia and along the Delaware River, handled over 840,000 containers, while PSA Penn Terminals handled 357,000 containers. PhilaPort last year released an ambitious plan to revitalize the Philadelphia port as part of a program to grow cargo operations, and which will see the first cruise ship in decades to be homeported in Philadelphia starting in 2026.