The nation’s two largest ports fell under scrutiny during last year’s supply chain disruption, and now seemingly smaller ports are making major infrastructure headway. The Port of Mobile, Alabama, ranks among the top 20 based on volume and is about to receive a $100 million cash injection.
“Today’s incredible $100 million federal grant awarded to the Alabama State Port Authority and the Mobile Airport Authority will further expand and optimize our growing container terminal and pave the way for an international airport that will connect imported, and exported air cargos to our deep draft port, two interstate highway systems, five Class I railroads, and 15,000 miles of inland waterways,” Mobile Mayor Sandy Stimpson reportedly said.
Revenue from the Consolidated Appropriations Act was recently earmarked for the entities that will reportedly use the windfall to continue expansion projects. Airport officials plan to use their $62 million portion to construct a new international terminal at the Mobile Downtown Airport (BFM). The Airport Authority anticipates the completion of the terminal in 2024.
“This investment puts us closer to our goal of building a new terminal debt-free, and that’s exciting,” Mobile Airport Authority chairman Elliot Maisel reportedly said. “By avoiding debt, we can keep costs low for airlines and pass those savings along to our customers.”
Alabama State Port Authority officials plan to use the remaining $38 million to improve freight efficiency via water, rail, air, and highway. The big-ticket item will be an investment into an interterminal bridge. The structure would sync the intermodal container complex and marine terminal with transfer facility terminals and an adjacent logistics park.
Decision-makers are also investing heavily in infrastructure to make the port more competitive. Civil infrastructure projects are advancing to prepare for distribution center build-outs. These transportation hubs are going up around the Mobile Harbor that is undergoing a $367 million channel deepening and widening project. The harbor dredging is expected to deliver a 50-foot draft channel by early 2025, allowing it to handle among the largest container vessels.
“The timing of this grant could not be better. 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,” John C. Driscoll, of the Alabama State Port Authority, reportedly said. “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.”
The $100 million grant was part of the Consolidated Appropriations Act 2021, a $2.3 trillion spending bill that combines $900 billion in stimulus relief for the COVID-19 pandemic in the United States with a $1.4 trillion omnibus spending bill for the 2021 federal fiscal year and prevents a government shutdown. Reports indicate the Port of Mobile is also expected to receive upwards of $265 million from the $1.2 trillion infrastructure spending package.
Sources: fox10tv.com, alreporter.com, freightwaves.com, logisticsmgmt.com
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