MOBILE, Alabama – Alabama officials today announced that CN, a Canadian transportation company, is collaborating with Alabama Export Railroad and Ray-Mont Logistics to launch the first phase of a new, high-tech logistics park in Mobile.
Opening in late 2021, the first phase of the facility will serve to bag plastic pellets for containerized shipping around the world. The terminal will include two bagging lines with a capacity of 300 Forty-Foot Equivalent Units per week.
“This logistics park is another exciting development that will add new capabilities at the state’s gateway for international commerce, the Port of Mobile,” Governor Kay Ivey said. “We welcome this collaboration and look forward to seeing the future growth of this facility.”
Total initial investment in the facility is $16 million, and the project will create up to 50 jobs.
James Cairns, Senior Vice President, Rail Centric Supply Chain at Montréal, Canada-based CN, said he is excited by the partnership formed to bring the project to fruition in Alabama’s Port City. CN’s Class 1 freight railway stretches for more than 20,000 miles across Canada and through the U.S. Midwest and South.
“CN is once again using the strength of its unique tri-coastal network to help customers win in their markets,” Cairns said. “This logistics park will service customers across our network and the first phase will specifically serve the demand for bagging and stuffing plastic resin containers, which is on the rise in the U.S.”
EYEING GLOBAL MARKETS
Strategically located in Mobile, the facility will provide customers with an unobstructed option to access Asian, Latin American, and European markets without warehousing costs or requiring double handling. The Port of Mobile also offers significant available export capacity.
“Along with our core partners Canadian National and Ray-Mont Logistics, we believe this project represents the first step toward the establishment of a multicommodity logistics hub which will serve producers and global markets for decades to come,” said Kate C. Luce, president and CEO of Alabama Export Railroad.
“Our interest in pursuing this intermodal opportunity is due in part to the continued federal and state investments at the Port of Mobile, as well as the recent announcement of additional container capacity at APM Terminals,” she added.
Officials in Mobile cheered the logistics park project and its growth potential. The plastic pellets shipped from the facility will be used in various applications, including plastic packaging for fresh and frozen food.
“Today’s announcement is a huge step for the future growth of container traffic in Mobile. This logistics hub will put previously vacant property into production to create jobs, add product diversity, and turn the intermodal flywheel at the Port of Mobile,” Mayor Sandy Stimpson said.
“Additionally, we are excited to welcome Ray-Mont Logistics to town and look forward to the continued success of this partnership,” he added.
“Ray-Mont’s new investment positions Alabama’s seaport into the fast growth resin market, while providing shippers a near-port gateway equipped with new ocean carriage services into key export markets” said John Driscoll, director and CEO of the Alabama State Port Authority.
