The Alabama State Port Authority in conjunction with AutoMobile International Terminal recently signed an agreement in Argentina to partner with two South American companies to develop and operate a roll-on/roll-off vehicle processing facility at the Port of Mobile.
The facility will help the Port Authority meet the demand for vehicles imported and exported through the Gulf of Mexico.
The $60 million facility will be partially funded by a $28.8 million grant from the Alabama Gulf Coast Recovery Council and a $12.7 million Transportation Infrastructure Generating Economic Recovery Act grant.
A derelict bulk-material handling facility will be converted into the terminal and will sit on 57 acres, including a 40-foot ship draft that will be served by five Class I railroads.
“This agreement represents a key step in diversifying the Port Authority’s business while providing a strategic asset to regional automobile shippers,” Alabama State Port Authority Director and CEO James Lyons said.
Construction on the facility will begin later this year and is scheduled to be completed by the end of next year.
The partners are SAAM Puertos, a Chilean company specializing in port terminal operations, and Terminal Zarate, an Argentine company specializing in port services, including cars.
In 2016, the Port Authority began the process of finding a partner.