Richard Shelby secures $100 million federal infrastructure grant
Sen. Richard Shelby announced that the Mobile Airport Authority (MAA) and the Alabama State Port Authority (ASPA) have received a U.S. Department of Transportation (DOT) grant in the amount of $100 million to participate in the DOT Transportation Demonstration Program. The joint grant will help them participate in the DOT Transportation Demonstration Program to allow for the enhancement of existing infrastructure. The DOT investment aims to capitalize on and streamline aviation, maritime, rail, and highway infrastructure systems. It will also attempt to generate efficiencies in inventory and supply chain management. Since 2015, the Port of Mobile – the eleventh largest seaport in the nation – has grown its volume by 120 percent, making the gateway one of the fastest-growing container terminals in North America. The grant is one of the largest of ever rewarded to Alabama according to Shelby. “This is one of the most impactful federal grants during my time in Congress,” stated Shelby. “Mobile is uniquely positioned to become a major transportation hub, with infrastructure already in place for maritime, rail, aviation, and highways. For many years, I worked to create those conditions by dredging the Port of Mobile and improving the airport. This program will build on that vision. Our Gulf Coast and the entire state of Alabama stands to benefit immensely from this funding in ways we can only imagine. Mobile has a lot to offer, and I am thrilled that we are utilizing its existing infrastructure to create a new transportation hub and economic power source for the entire state.” According to Shelby’s press release, the program will improve the Port of Mobile’s freight container operations by first providing start-up for a dedicated inter-terminal connector with rail access to the Port Authority’s terminal railway and five Class I railroads. The project will also develop an adjacent, two-site Logistics Park that will support the long-term growth of an integrated, intermodal seaport, airport, and rail terminal network for domestic and international freight movement. Furthermore, the project will allow for the use of newer technology to move cargo while also reducing truck distances between the Port of Mobile and regional logistic centers throughout Alabama. John Driscoll, Director and Chief Executive Officer of the Alabama State Port Authority, praised Shelby’s efforts and leadership. “The timing of this grant could not be better,” stated Driscoll. “The port is progressing nicely on the channel modernization program, and we just closed out calendar year 2021 with unprecedented growth at our container intermodal facilities. As we move into our fourth container terminal expansion, this port is poised to deliver cost-effective, reliable, and efficient freight and intermodal cargo service for underserved logistics markets regionally and across North America. We’re deeply appreciative of the U.S. DOT funding opportunity and Senator Shelby’s leadership in modernizing our port and multi-modal transportation infrastructure to meet shipper needs and keep American commerce competitive globally.” “We owe a tremendous amount of gratitude to U.S. Senator Richard Shelby. This project would not be possible without his support and leadership,” said Elliot Maisel, Chairman of the Mobile Airport Authority. “This investment puts us closer to our goal of building a new terminal debt-free, and that’s exciting. By avoiding debt, we can keep costs low for airlines and pass those savings along to our customers.” The Mobile Airport Authority owns and operates Mobile Regional Airport (MOB), Mobile Downtown Airport (BFM), and the Brookley Aeroplex, generating $1.8 billion in economic value for Alabama.
Port of Mobile adding automotive terminal
The terminal will cost $60 million.
MTC Logistics to open $58 million distribution facility at Alabama port
Baltimore, Maryland-based MTC Logistics announced plans to build a $58 million cold storage facility on property owned by the Alabama State Port Authority, creating between 50 and 70 jobs and providing a boost to the port’s container operations. Company officials said the 300,000-square-foot facility will be five stories tall and will contain almost 12 million cubic feet of refrigerated space, enabling it to store 40,000 pallets of product. All of the product will transit in on containers and will be processed through APM Terminals before or after arriving at MTC Logistics. The MTC facility will be situated on land between APM Terminals and Mobile Aeroplex at Brookley near downtown Mobile. The Alabama State Port Authority announced the sale of the property to MTC. “We have been in the temperature-controlled logistics business for 90 years and are thrilled Mobile will be a part of our future,” said Brooks Royster, president of MTC Logistics. “Being able to find property immediately adjacent to a world-class port such as Mobile and in such close proximity to I-10 is a very unique opportunity.” “MTC Logistics’ new cold storage distribution facility will be a great addition to the growing operations at the Port of Mobile,” said Greg Canfield, secretary of the Alabama Department of Commerce. “This family company is making a significant investment in Alabama and creating good-paying jobs in Mobile.” The Port of Mobile handled nearly 29 million tons of goods and 320,000 shipping containers in 2017. (Alabama State Port Authority) Expanding cluster David Rodgers, vice president of economic development for the Mobile Area Chamber of Commerce, said MTC Logistics’ facility will be able to blast freeze poultry product coming from across the Southeast for export across the globe. This project will enhance Mobile’s containerized operations to reach more markets throughout the world. Shipping containers are a big part of the Alabama State Port Authority import and export business. (Mike Kittrell/Alabama NewsCenter) “This is a great project for us as Mobile continues to grow its warehousing and transportation industry cluster,” Rodgers said. “It grows the Port of Alabama and increases capacity at APM Terminals. Mobile’s infrastructure assets are second to none, and growing our economy is our top priority.” A groundbreaking is expected by December, with an estimated opening date in the second quarter of 2020. Company officials expect an 18-month construction project. “We’re extremely pleased to see this world-class services company invest in both our region and our port. MTC’s investment will create new jobs and add new products to the port’s container intermodal operations,” said James K. Lyons, director and CEO of the Alabama State Port Authority. Partners in this project include the Alabama State Port Authority, APM Terminals, the City of Mobile, Mobile Area Chamber of Commerce, Mobile County and the state of Alabama. Mobile County Commission President Connie Hudson said the county government is committed to providing roadwork needed to facilitate trucking to and from the MTC site. “We are pleased and proud to welcome MTC Logistics to Mobile,” Mayor Sandy Stimpson said. “We are out there every day looking for opportunities to recruit jobs and families to Mobile. This announcement is the latest proof that Mobile is open for business.” This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Alabama port looks to add to its $22.4 billion economic impact with expansions
The Alabama State Port Authority is one of the largest economic engines for the state and wants to build on its $22.4 billion economic impact. The 4,000 acres that make up the state docks have multiple complexes that handle everything from auto parts to coal and from poultry to pine. But the port could be doing more, according to Jimmy Lyons, director and CEO of the Port Authority. Alabama port moving forward with growth plans from Alabama NewsCenter on Vimeo. “We’ve got a couple of exciting projects going on right now,” Lyons said. “We’re in the midst of doing a second expansion to our container terminal, actually our third phase. We finished phase two last year and realized that’s not enough, so we’re going to phase three right away. We’re on schedule to have that work all completed by the end of ’19.” The start of 2019 should see construction begin on a new $60 million automobile roll-on, roll-off terminal, a major move to support automotive logistics in a state where automotive manufacturing is a major industry. Another major event will take place Aug. 14 when Walmart officially opens its $135 million import distribution center in Mobile. In addition to creating 550 full-time jobs, that 2.5 million-square-foot facility will generate something the port desperately needs: empty shipping containers. Lyons told the Economic Development Association of Alabama at its 2018 Summer Conference this week that the state struggles to find enough shipping containers to meet the demand. With Walmart bringing in 50,000 containers per year when fully operational, that will help provide more empty cargo containers for exporters. That will reduce costs for exporters who pay to bring in empty containers; it will also help Alabama’s port retain business that now goes to other ports when containers aren’t available, Lyons said. The Army Corps of Engineers is seeking comments now on a $388 million plan to enlarge the port’s Mobile Ship Channel. A deeper and wider channel will clear the way for the port to accommodate larger ships that are already starting to come through the expanded Panama Canal, Lyons said. A deeper channel also allows ships to carry more weight, making the port more efficient for importers and exporters, he said. According to an economic impact study from the University of Alabama’s Center for Business and Economic Research, the port is responsible for 134,608 direct and indirect jobs in the state with a direct and indirect tax impact of $486.9 million. In 2017, the port handled 28.7 million tons of goods and 318,889 shipping containers. Republished with the permission of the Alabama Newscenter.
Port of Mobile taps partners to develop $60M auto export facility
The Port of Mobile is poised to become a major hub of auto export activity, with a new facility that will allow vehicles to be driven directly onto cargo ships bound for markets around the world. Representatives of the Alabama State Port Authority and AutoMobile International Terminal, a joint venture of Terminal Zárate S.A. and SAAM Puertos S.A., signed a Memorandum of Understanding this week to develop and operate a vehicle processing roll-on/roll-off (RO/RO) facility at the Port of Mobile. The signing took place in Buenos Aires, the headquarters of Terminal Zárate S.A. and also the site of a trade mission involving Alabama business leaders. The state delegation is visiting Argentina and Ecuador this week to find new markets for Alabama products and services. The agreement is a giant step forward in supporting automotive logistics in the Americas and abroad, according to James K. Lyons, director and CEO of the Port Authority. “This agreement represents a key step in diversifying the Port Authority’s business while providing a strategic asset to regional automotive shippers,” Lyons said. Important infrastructure Automobiles have long been Alabama’s top export, topping $7.75 billion last year alone. State-made models are currently loaded onto ships at ports in other states, so the new RO/RO facility at the Port of Mobile will provide a more convenient option for state automakers. “Alabama is the No. 3 auto exporter among U.S. states, with shipments to 88 countries last year,” said Greg Canfield, secretary of the Alabama Department of Commerce. “This new facility is an important piece of infrastructure that will help our automakers maintain their competitive edge as they continue to grow.” Construction on the automotive RO/RO terminal is scheduled to start by the end of this year, with completion expected by the end of 2019. The new terminal would convert about 57 acres of a former bulk material handling facility into a state-of-the-art automotive processing and logistics terminal. The 40-foot ship draft facility is served by five Class I railroads serving all of North America and immediate, unencumbered access to two interstate systems (I-65 and I-10). The overall project represents a total investment of about $60 million. Proceeds from the Port Authority’s recently awarded $12.7 million Transportation Infrastructure Generating Economic Recovery (TIGER) grant and the $28.8 million grant from the Alabama Gulf Coast Recovery Council as authorized under the Resources and Ecosystems Sustainability, Tourism Opportunities and Revived Economy of the Gulf Coast (RESTORE) Act of 2011 would help pay the cost of the project. Ideal partners In late 2016, the Port Authority initiated a Request for Proposal process to identify a potential partner in the construction of the facility to meet the region’s growing demand for finished automobile import/export facilities in the U.S. Gulf of Mexico. The authority selected the partnership between Terminal Zárate S.A. and SAAM Puertos S.A. and began concession agreement discussions for the construction and operation of the new facility. Terminal Zárate S.A. specializes in port services; cars, containers and project cargo handling operations; storage and logistics services; warehousing; equipment rental and other activities providing value to client logistic chains, economic sectors and overseas trade. It is among the largest RO/RO terminals in the Americas, with a 9 million vehicle throughput to date. “This project is a significant component of our growth strategy, and given our strong experience as a RO/RO terminal we are convinced we will develop AutoMobile International Terminal into a world class RO/RO processing and handling facility,” said Robert Murchison, president of Terminal Zárate S.A. The other partner in the joint venture, SAAM Puertos S.A., is a subsidiary of Sociedad Matriz SAAM S.A., a Chilean multinational company that provides foreign trade services by means of port terminal operations, towage and logistics. With a network of 11 ports in six countries, SAAM Puertos S.A. is one of the major port operators in South America and partners with the world’s leading shipping companies. “We look forward to work together with Terminal Zárate and the Alabama State Port Authority and bring all our knowledge and experience to the service of the terminal, and consolidate our position in America,” said Yurik Díaz, manager of SAAM Puertos S.A. Republished with the permission of the Alabama Newscenter.
Wal-Mart to invest $135M in Alabama import distribution center
Retail giant Wal-Mart Stores Inc. plans to invest at least $135 million to open a massive import distribution facility in Mobile County, creating 550 jobs and providing a major boost to the Port of Mobile. Wal-Mart’s new 2.5 million-square-foot facility will service about 800 stores with products primarily shipped through the Alabama port’s container terminal. The company’s plans were announced today at a groundbreaking ceremony at APM Terminals. “As you know, there’s been a tremendous competition for the distribution center that Wal-Mart is going to build here in Mobile,” Glen Wilkins, public affairs director for the retailer, said at the ceremony. He added, “I think we did a great job choosing Mobile. I think that was a fantastic idea.” ‘Powerful catalyst’ The Alabama facility will be Walmart’s sixth import distribution center in the nation as the retailer expands its logistics network. The Port of Mobile is one of the nation’s busiest deep-water ports. (Contributed) “Wal-Mart’s decision to locate an import distribution center in Mobile County is a clear signal that Alabama is serious about creating jobs for its citizens and expanding the potential of the Port of Mobile,” Gov. Robert Bentley said. “Wal-Mart is making a substantial investment in Alabama, and we look forward to expanding our valuable partnership with the company through this project,” he added. The Wal-Mart distribution center will become an important player in the Port of Mobile’s container business. The facility is expected to generate cargo volume of approximately 50,000 TEUs, or twenty-foot equivalents, a standard unit of measure in container transportation. “Wal-Mart’s distribution and logistics center in Mobile County will enhance Alabama’s connection to the global economy and provide a major boost in cargo volume to the Port of Mobile,” said Greg Canfield, secretary of the Alabama Department of Commerce, who spoke at today’s ceremony. “The Wal-Mart hub will act as a powerful catalyst for job creation and significantly increase the operations of the world’s largest retailer in the state.” Port credit Canfield added that the Wal-Mart distribution center project is the first to qualify for a “port credit” incentive adopted in 2016 by the Legislature as part of the Alabama Renewal Act. Denson White of APM Terminals checks on the unloading and loading of containers. APM will be the site of a $135 million Wal-Mart import distribution center, officials announced today. (Mike Kittrell/Alabama NewsCenter) The port credit is meant to stimulate cargo traffic and job growth at facilities such as the Port of Mobile. The 4,000-acre seaport is one of the nation’s busiest deep-water ports, handling more than 50 million tons of cargo annually. Wal-Mart qualified for a port credit totaling $3 million. Bentonville, Arkansas-based Wal-Mart already has more than 38,000 workers in Alabama. The 550 full-time jobs being created at the import distribution center in Mobile will have an average annual wage of $35,000, plus benefits. Some salaried workers will earn more than $50,000, Wal-Mart said. The Alabama State Port Authority and APM Terminals joined the state and local economic development team that worked on “Project Beverly,” as it was code-named during the recruitment. “We are excited about how this facility will help us serve customers from Alabama to the Great Lakes and the economic impact it will have through local job creation and future economic development in the Mobile area,” said Jeff Breazeale, Wal-Mart’s vice president of Direct Import Logistics. “We are grateful to the State of Alabama, Mobile County, the City of Mobile and the Alabama State Port Authority for the support we have received throughout this process, and we look forward to a strong relationship with the community for years to come.” This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission of Alabama NewsCenter.
