Dive Brief:
- APM Terminals Mobile will invest $60 million to expand rail infrastructure and provide faster connections from Alabama to the Midwest and other inland markets.
- The logistics provider will add rail storage space and expand the tracks at its facility near the Port of Mobile to 12,000 feet. As part of the investment, the Alabama State Port Authority will build a bridge allowing APM to provide on-dock rail service.
- The project, which will take roughly 24 months to complete, is expected to double capacity for shippers. The facility will eventually link up to a planned inland port in Montgomery, which is expected to be completed in 2025.
Dive Insight:
APM Terminals Mobile is capitalizing on the recent growth of the Port of Mobile, which has handled a record number of TEUs as more shippers opt for ports on the Gulf and East Coasts.
Growth in Alabama’s overall cargo volumes have benefited APM — the company handled 56,545 TEUs in September 2022, the largest throughput since container operations began in 2008.
By expanding infrastructure, APM Terminals Mobile can better connect shippers to rail carriers further inland, according to the release.
"Canadian National and CSX Railways currently provide intermodal connectivity between Mobile and Midwest markets such as Chicago and Memphis," Media Relations Manager Thomas Boyd told Supply Chain Dive.
Rail service in the area could grow further with the construction of the planned inland port in Montgomery. Once completed, the facility will reestablish “regularly scheduled CSXT Intermodal rail service at the Port of Mobile,” according to a release.
APM Terminals’ investment is the latest step the company’s taken to expand its presence on the Gulf Coast. Last May, it announced a $104 million terminal expansion, creating one million TEU throughput capacity.
“These improvements and our expanded rail facility will ensure customer competitiveness and strengthen Alabama as the preferred logistics corridor,” Leo Huisman, head of APM Terminals Americas, said in a statement.
