The U.S. Army Corps of Engineers (USACE), in partnership with the NC Ports Authority, has spent the last three and a half years working on a proposal known as the Wilmington Harbor 403 Project. This plan involves dredging the Cape Fear River and part of the ocean where it meets the river to a deeper depth (from 42’ to 47’) to accommodate larger cargo ships. Congress has earmarked over $830 million for the project, with North Carolina to contribute nearly $340 million.
As part of this process, an Environmental Impact Statement (EIS) was released in September 2025. The USACE held several community meetings and asked for both written and verbal public comments. The North Carolina Department of Environmental Quality (NCDEQ) conducted a public meeting in November 2025 and solicited written comments from residents. According to a DEQ letter, 100% of those who spoke at the DEQ’s meeting and 95% of the written comments opposed the proposal.
Numerous concerns were raised by the public, including:
- PFAS Contamination: Potentially placing PFAS-laden sediment in delicate ecosystems or on beaches and stirring up PFAS in the drinking water
- Ecosystem Impact: Dredging, placement of sediments, and increased flooding could disrupt bird nesting, convert freshwater marshes to saltwater, killing species that can’t move elsewhere, and disturb fish habitats. There were also concerns about its potential to increase flooding and erosion
- Need for the Project: Questions over the necessity of dredging and the economic return on investment
Roger Shew, a retired UNCW Geology professor, stated, “I just want this major project, that will affect plant and animal life in the estuary, as well as the major impacts on us, to be fully vetted.” He highlighted other shortcomings in the report, including the need for better “mitigation strategies” and a thorough assessment of the project’s economic benefits. “It needs much closer scrutiny that addresses our concerns before moving forward.”
On February 3, Wilmington City Council unanimously passed a resolution opposing the 403 Project unless there is further study. The resolution states that the project “may influence hydrodynamic conditions, sediment movement, and shoreline stability within the Lower Cape Fear Region.” It requests that PFAS and flooding impacts be included in the risk-benefit analysis, and challenges the USACE’s assertion that the project would result in fewer ships using the channel. The resolution also mentions concerns for erosion of marshes, shorelines and riverfront areas and the loss of “natural buffers that help protect residences, public spaces, cultural resources and community infrastructure.” However, their resolution also suggests a study to deepen the channel further to 51 feet for “long-term competitiveness.”
The city didn’t comment further on the project.
Initially scheduled to make a decision in February, the DEQ was asked by the USACE and the NC Ports Authority to pause their formal review to discuss potential issues and solutions. The DEQ’s review resumed in February at the request of the USACE and, on February 24, the NC DEQ released a statement opposing the project.
In their letter, DEQ scientists echoed many public concerns, reminding the USACE of their duty to protect “the physical, esthetic, and recreational qualities for the shorelines of the State” while managing, preserving, and enhancing the State’s water quality. The DEQ emphasized that if a project poses a risk to a “fragile or historic area, or other area containing environmental or natural resources of more than local significance” or if it results “in major or irreversible damage to … [certain] historic, cultural, scientific, environmental or scenic values or natural systems,” then the DEQ must deny the application.
The DEQ’s letter primarily cites worries about increased flooding, PFAS contamination, permanent loss of freshwater wetlands, and fish habitat. They also noted significant gaps in the research within the USACE’s EIS, “regarding the severity of salinity-driven loss of wetland functions, degradation of Primary Nursery Areas and Anadromous Fish Spawning Areas, erosion and shoreline instability associated with altered hydrodynamics and vessel wakes, cumulative flooding risks under accelerating sea level rise, the handling and potential remobilization of PFAS-contaminated sediments, the adequacy and feasibility of proposed mitigation measures, and clear economic necessity justifying a determination of overriding public benefit.”
What’s next?
USACE spokesperson David Connolly said, “Given all the integration and engagement throughout this process, the objection provided at this late stage in the process is disconcerting.”
There is no specific timeline for addressing the DEQ’s concerns, as USACE is still reviewing the DEQ’s letter, “line by line” for consistency “with all enforceable State policies.”
The USACE plans to submit a report to the Assistant Secretary of Army for Civil Works and complete a final EIS. If they find feasible solutions to the DEQ’s concerns that could be “resolved within the existing timeline and budget,” they may continue discussions with the Division of Coastal Management. If not, the issues could be raised in a formal federal dispute resolution process.
While the USACE doesn’t technically need DEQ’s approval to proceed, they do require matching state funds. Currently, the State has not indicated whether it will support the project against the DEQ’s recommendations. As stakeholders await further developments, the future of the Wilmington Harbor 403 Project remains uncertain, highlighting the ongoing tension between economic interests and environmental stewardship in the region.