Wednesday, U.S. Sen. Richard Shelby (R-Ala.) announced that the U.S. Department of Transportation (DOT) had awarded a $100 million joint grant to the Mobile Airport Authority and the Alabama State Port Authority.
The federal grant enables the two entities to participate in the DOT Transportation Demonstration Program to allow for the enhancement of existing infrastructure.
Shelby, vice chair of the Senate Appropriations Committee, said the funding represents one of the most significant grant awards he has secured for the state in his more than four decades-long congressional career.
“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 a release, the DOT investment will pave the way for streamlined aviation, maritime, rail and highway infrastructure systems. DOT Transportation Demonstration Program funding was appropriated as part of the fiscal year 2021 appropriations bills.
The program will serve to upgrade 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. A two-site logistics park will be developed to support an integrated, intermodal seaport, airport, and rail terminal network for domestic and international freight movement.
Alabama State Port Authority director and CEO John Driscoll praised Shelby for his support of the state’s commerce infrastructure.
“The timing of this grant could not be better,” advised 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.”
Mobile Airport Authority chairman Elliot Maisel touched on the importance of financing the upgrades without having to assume debt.
“We owe a tremendous amount of gratitude to U.S. Senator Richard Shelby. This project would not be possible without his support and leadership,” proclaimed Maisel. “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 Alabama State Port Authority owns and controls the Port of Mobile, which is the 11th-largest seaport in the nation. Since 2015, it has grown 120% in volume and is one of the fastest-growing container terminals on the continent.
The Mobile Airport Authority’s operations generate $1.8 billion in economic value for Alabama. The authority owns and operates Mobile Regional Airport, Mobile Downtown Airport (BFM), and the Brookley Aeroplex.
Dylan Smith is a staff writer for Yellowhammer News. You can follow him on Twitter @DylanSmithAL
