The $365.7 million port modernization project just launched promises to expand the Port of Mobile as a globally competitive trade center.
The State of Alabama and the U.S. Army Corps of Engineers have entered into a project partnership agreement to complete a deepening and widening of the Port of Mobile by late 2024 or early 2025.
“Beyond the impact on the local and state levels, the Port of Mobile serves as a catalyst to our nation’s competitive position in the global economy,” said Gov. Kay Ivey. “The Port of Mobile is now poised to become a major hub for export activity, and this is yet another giant step forward in supporting our industries in the Americas and beyond.”
The Corps will now start the contracting and construction phases to take the port’s federal channel to a depth of 50 feet. Construction is expected to begin on the approximately $365.7 million project by the end of this year.
“The Mobile Harbor project leverages shore-side port investments that provide shippers cost competitive transportation solutions in an ever changing and increasingly competitive global economy,” said Alabama State Port Authority Director and CEO John Driscoll.
In February, the Mobile Harbor modernization program received full federal funding upon the passageway of the Energy & Water Development and Related Agencies Act. Under the act, approximately $377.6 million is available to qualifying projects in Alabama and two other Gulf states. Key features of the program will explore innovative ways to execute dredging in a logical, sequenced manner, unconstrained by more traditional project-specific, account-specific or single-year work plans.
“The completion of this historic project will transform Alabama, expanding economic opportunities throughout our state and the region,” said. U.S. Sen. Richard Shelby.
The Mobile Harbor modernization program also received the State of Alabama’s funding commitment in March 2019, when the Alabama Legislature passed and Gov. Ivey signed into law the Rebuild Alabama Act, which allocates a portion of the state’s fuel tax proceeds to support approximately $150 million in bonds to meet the federal cost-share requirements for the project.