Mobile to receive $100M for USDOT Transportation Demonstration Program

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U.S. Sen. Richard Shelby (R-AL) announced Tuesday that the Mobile Airport Authority (MAA) and the Alabama State Port Authority (ASPA) will jointly receive a $100 grant from the U.S. Department of Transportation (USDOT).

The two Alabama entities will take part in a USDOT Transportation Demonstration Program that is intended for entities that are well-positioned to augment existing intermodal and multimodal assets in close proximity with capital investments that strengthen infrastructure connections.

“This is one of the most impactful federal grants during my time in Congress,” Shelby said. “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.”

The USDOT’s investment will capitalize on and streamline aviation, maritime, rail and highway infrastructure systems, and generate efficiencies in inventory and supply chain management, Shelby’s office said. Funding for the program was appropriated as part of the Fiscal Year 2021 appropriations bill.

“The timing of this grant could not be better,” said John Driscoll, Director and Chief Executive Officer of the Alabama State Port Authority. “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.”

The program will improve the Port of Mobile’s freight container operations by providing start-up for a dedicated inter-terminal connector with rail access to the Port Authority’s terminal railway and five Class 1 railroads. Additionally, the program will develop an adjacent, two-site Logistics Park to support the long-term growth of an integrated intermodal seaport, airport, and rail terminal network for domestic and international freight movement. The program will allow for the use of newer technology to move cargo while reducing truck distances between the port and regional logistics centers throughout the state.