Alabama Port Authority’s new facility will expand rail service

Montgomery project reestablishes intermodal rail service at port

A new facility in Montgomery will expand operations at the Port of Mobile (above).

The $2 million purchase of 272 acres in Montgomery will allow the Alabama Port Authority to construct an inland container intermodal transfer facility that will extend intermodal rail service at the port.

“This project will provide our shippers cost-competitive transportation services to and from one of the nation’s fastest growth containerized cargo gateways,” said John Driscoll, director and CEO of the Alabama Port Authority.

The Montgomery intermodal container transfer facility will be serviced by CSX Transportation Intermodal, reestablishing regularly scheduled CSXT Intermodal rail service at the port. CSXT will contribute up to $12.5 million toward infrastructure improvements at the facility.

“This is another great example of how successful partnerships can help foster creative solutions for CSX customers,” said Tom Tisa, head of business development for CSX. “These infrastructure investments will provide the opportunity to grow our business in the region.”

Phase I of the facility is estimated at $54 million and could take up to two years to construct. It will connect inland Alabama shippers to the seaport’s intermodal container transfer facility at Mobile.

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The Montgomery ICTF extends the container intermodal assets at the seaport to public and private investments inside Alabama, including the shovel-ready South Alabama Mega Site where CSX is currently investing $6 million into rail spur infrastructure to accommodate large-scale, advance manufacturers.  In Montgomery, economic development officials recently announced Amazon’s 650,000-square-foot inbound cross dock distribution center and Hyundai Motor Manufacturing Alabama’s (HMMA) recently completed expansion to support the addition of its fourth and fifth models, the Tucson and Santa Cruz. The project is aimed at serving these new investments, as well as other regional shippers.

“Alabama’s economy is rebounding stronger than ever, and our Port is doing record business, so, I am thrilled to see us working to connect areas like Montgomery with our gateway to the world,” said Gov. Kay Ivey. “Truly, Alabama’s economy will be running on all cylinders with the addition of this CSX Transportation Intermodal. I look forward to the continued growth that is sure to follow.”

The project when completed will generate 2,618 direct and indirect jobs, $340 million in business revenues and more than $14.2 million in state and local taxes, according to the port authority.

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