Port of Mobile gears up to handle cars

AutoMobile International Terminal’s vehicle processing roll-on/roll-off facility is expected to be completed by the end of 2019.    The Port of Mobile is expanding its horizons by gearing up to handle automobiles.
   On Wednesday, the Alabama State Port Authority signed a memorandum of understanding with AutoMobile International Terminal, a joint venture between Terminal Zárate S.A. and SAAM Puertos S.A., to develop and operate a vehicle processing roll-on/roll-of (ro-ro) facility at the Port of Mobile, according to a joint press release issued by the companies.
   Construction is expected to start by the end of this year, with an anticipated completion date of year-end 2019. The overall project represents an investment of about $60 million.
   Proceeds from the port authority’s recently awarded $12.7 million Transportation Infrastructure Generating Economic Recovery grant and the $28.8 grant from the Alabama Gulf Coast Recovery Council as authorized under the Resources and Ecosystems Sustainability, Tourism Opportunities and Revived Economy of the Gulf Coast Act of 2011 will be used toward the project. “The concessionaire agreement facilitates the private-sector partner contribution toward the facility,” the companies said.
   Alabama State Port Authority Director and CEO James Lyons told American Shipper Wednesday the port has two to three ro-ro ships coming in per month, strictly discharging oversized cargo, such as windmill components, but does not have suitable storage for automobiles. He said the vehicle processing ro-ro facility is a major step in diversifying the port’s business.
   Toyota Motor Corp. announced in March that it had established a joint-venture company with Mazda Motor Corp., dubbed Mazda Toyota Manufacturing, U.S.A. Inc., which will produce vehicles in Huntsville, Ala., starting in 2021. Huntsville is about 300 miles from the Port of Mobile. 
   When asked if this joint venture will bring business to the Port of Mobile, Lyons said Wednesday it is too early to tell.
   Although the port doesn’t handle automobiles yet, container shipping continues to play a prominent role at the port, with BlueWater Reporting’s Port Dashboard tool showing how five fully cellular container services connect the port to regions outside North America.
   The port authority announced in December that the port authority and APM Terminals’ board of directors, in separate actions, approved a $49.5 million expansion of the port’s container facility.