The State of Alabama and the U.S. Army Corps of Engineers have signed a Project Partnership Agreement to deepen and widen the Port of Mobile, clearing the way for construction to begin on the approximately $365.7 million project.
Colonel Sebastien P. Joly, Commander of the Corps’ Mobile District, and John C. Driscoll, Director and Chief Executive Officer of the Alabama State Port Authority, signed the agreement, which allows the Corps to move into contracting and construction phases. The project will take the port’s federal channel to a depth of 50 feet, with completion targeted for late 2024 or early 2025.
Federal and State Funding Secured
The Mobile Harbor modernization program received full federal funding in February 2020 following passage of the Energy and Water Development and Related Agencies Act, which made approximately $377.6 million available to qualifying projects in Alabama and two other Gulf states.
Alabama’s cost-share commitment was secured in March 2019 when the Legislature passed and Governor Kay Ivey signed the Rebuild Alabama Act, allocating a portion of state fuel-tax proceeds to support roughly $150 million in bonds for the harbor project.
Economic Impact
U.S. Senator Richard Shelby, who championed the project for years, called the signing a milestone that would transform Alabama, expanding economic opportunities throughout the state and the region and increase U.S. competitiveness in the global market.
Governor Ivey said the Port of Mobile is poised to become a major hub for export activity and described it as a giant step forward in supporting industries in the Americas and beyond.
The project received its Record of Decision in September 2019 following a four-year environmental impact and economic feasibility study. In calendar year 2019, the public seaport terminals generated over 150,000 jobs and $25.4 billion in economic value to the state, according to the Alabama State Port Authority.