Construction of the Alabama Port Authority’s Montgomery Intermodal Container Transfer Facility remains on schedule for an early 2027 opening, with site grading and underground utility work completed and rail-infrastructure construction now underway.
The $100 million, 272-acre terminal is being developed as an inland extension of the Port of Mobile’s container gateway. It will connect central Alabama manufacturers, distributors and exporters with Mobile through direct CSX (NASDAQ: CSX) rail service, creating a rail alternative to truck drayage between the coast and the Montgomery market.
The Alabama Port Authority and Montgomery Regional Chamber of Commerce toured the construction site in January, less than a year after the project’s February 2025 groundbreaking. Port officials said crews had completed grading and subsurface utility installation and were building a new rail siding and a bridge over the CSX main line.
“The Montgomery ICTF is a critical investment in Alabama’s supply chain infrastructure,” Alabama Port Authority Director and Chief Executive Doug Otto said during the site visit, according to the authority. The authority said the terminal remains on track to begin operating in early 2027.
Rail-served extension of Mobile
The project is designed as a container-transfer terminal rather than a conventional inland river port. Containers moving through the Port of Mobile would be carried by CSX rail to Montgomery, where they could be transferred between trains, trucks and the terminal yard for regional delivery or export consolidation.
Similar hubs are in operation in South Carolina, Virginia, and the West Coast.
At full operation, the terminal is expected to handle up to 60,000 container units annually, or approximately 30,000 40-foot-equivalent containers. The facility is planned to operate five days a week, with daily express rail service between Mobile and Montgomery.
The authority’s current plans call for more than 25,000 feet of rail track, including two 3,500-foot process tracks, a 3,500-foot support track and approximately 10,000 feet of lead track paralleling the existing CSX main line. The facility also will include container-storage space, truck access, administration and maintenance buildings, and new access and signalization improvements near U.S. 31.
The terminal is located on authority-owned land near Montgomery’s Interstate 65 and Interstate 85 corridors, a location intended to serve the region’s auto, manufacturing and distribution base. The Federal Railroad Administration completed the project’s environmental review in October 2024, clearing a key pre-construction step.
Equipment and construction milestones
The authority in September awarded Konecranes of Finland a contract to supply two rubber-tired gantry cranes for the terminal. The cranes will handle container transfers between trains, trucks and the storage yard and are scheduled for delivery in late 2026.
Construction contractor Ragnar Benson continues to work on stormwater drainage installation, subgrade stabilization, reinforced-concrete pavement preparation and siding-bridge work. Remaining major activities include pavement installation, track connections, lighting, markings and completion of the bridge and terminal buildings.
The project’s development cost has been described as $94 million in earlier announcements and construction-industry reporting, while the port authority’s 2026 progress update and other recent reports put the total at $100 million. The project is funded largely through federal appropriations, according to authority officials.
Regional logistics bet
The authority has positioned the terminal as a catalyst for development in Montgomery’s Interstate Industrial Corridor. The Montgomery Regional Chamber has said the project has helped attract industrial interest to nearby sites, although the long-term cargo base will ultimately depend on shipper commitments, rail-service reliability and the competitiveness of the Mobile-Montgomery intermodal lane.
Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Read more articles by Stuart Chirls here.
Read more:
Regulators turn down requests for summary denial of UP-NS merger
Union Pacific blasts rival railroads’ trackage rights requests
Rail freight slides in rare off-week
Norfolk Southern: New intermodal era about removing rail friction
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now