The Alabama Port Authority is building an inland container intermodal transfer facility in Montgomery to extend rail service northeast from the Port of Mobile; it will be served by CSX.
The port made the announcement on Jan. 28, following Board approval of a $2.042 million land purchase.
Phase I of the 272-acre facility is estimated to cost $54 million and take up to two years to construct.
The port said the project will reestablish regularly scheduled CSX Intermodal service at the Port of Mobile, and the Class I railroad will contribute up to $12.5 million for infrastructure improvements.
Additionally, the Montgomery facility will serve Amazon’s new 650,000-square-foot inbound cross dock distribution center and Hyundai Motor Manufacturing Alabama’s (HMMA) recently expanded manufacturing facility, among other businesses.
“This project will provide our shippers cost-competitive transportation services to and from one of the nation’s fastest growth containerized cargo gateways,” Alabama Port Authority Director and CEO John C. Driscoll said.
“This is another great example of how successful partnerships can help foster creative solutions for CSX customers,” added Tom Tisa, head of business development for CSX. “These infrastructure investments will provide the opportunity to grow our business in the region.”
In related developments, Alabama Gov. Kay Ivey on Jan. 4 announced a proposed $231.6 million initiative to boost supply chain capacity in central and southern Alabama; Norfolk Southern is slated to provide more than 50% of the funding as part of a public-private partnership.