Federal approval has been granted to the Georgia Ports Authority for a $2.3 billion container terminal in Savannah, a step toward raising yearly handling capacity to 12 million TEUs.

The U.S. Army Corps of Engineers issued the permit for the Savannah Container Terminal after a three-year review, Georgia Ports President Kevin Price said at the State of the Port of Savannah event.

On Hutchinson Island, the planned 350-acre facility would add 3.5 million TEUs of yearly capacity and take the largest container ships.

Work is set to start in January 2028, with the project expected to finish in the mid-2030s.