Governor of Alabama, Kay Ivey has announced the creation of the ‘Alabama-USA Corridor,’ a proposed programmme of US$231.6 million for rail projects to upgrade economic development infrastructure in central and southern Alabama.
The Governor stated the development and upgrade of infrastructure to move the commerce for Alabama and the greater southeastern region of the country is among the top priorities of the program.
“Creating good port access to central Alabama is a key part of this initiative, and it can provide options for freight containers to reach new destinations inland, which our country has struggled with during the supply chain crisis,” noted Ivey.
The first phase of the A-USA Corridor project involves an initiative of US$71.6 million, which is expected to link the Port of Mobile in Alabama with the McCalla Intermodal Facility near Birmingham. This 450 km rail corridor will also link mega economic development sites in Etowah, Shelby and Washington/Mobile, each totalling more than 4 km2.
The first phase of the project also involves 12 specific track, signal and yard improvements on Norfolk Southern rail lines between Mobile, Selma and Birmingham.
Additionally, in Jefferson County in Colorado, a 420,873m² site will be developed with up to a million square feet of warehousing under the roof. The Growing Alabama Tax Credit program has helped expedite the work required to make these sites immediately available for manufacturing, warehousing and distribution.
Norfolk Southern has partnered with Alabama and local economic development authorities by investing US$5.7 million to the Etowah County Commission for improvements to the Little Canoe Creek site.
“The Alabama Port Authority welcomes this vital project as we address rapid growth in the port’s container intermodal and freight business lines,” said the authority’s director and CEO, John C. Driscoll, who added that the Norfolk Southern rail improvements will bolster capacity, reliability, and market access through the Port of Mobile for regional supply chains.
During the construction phases of the project, the A-USA Corridor is estimated to create positive economic benefits for Alabama of US$497.2 million in gross business activity, including US$184.8 million in earnings to 4,247 direct and indirect Alabama workers. During construction, US$13.1 million in state and local taxes are also expected to be generated.
The A-USA Corridor is a public-private partnership, with Norfolk Southern, funding more than 50% of the project. Alabama is investing US$5 million into the project, with the remainder coming from present and future federal Consolidated Rail Infrastructure and Safety Improvements Program (CRISI) grants through the Alabama Department of Transportation, in partnership with Norfolk Southern.
According to a recent economic impact report prepared by staff at The University of Alabama’s Culverhouse College of Business, from 2000 to 2020 the A-USA Corridor provided new and expanded economic development investments totalling US$14.3 billion with 20,498 jobs in Alabama.
