Post date: Aug 01, 2013 7:31:7 PM
(Archive Photo | Alabama State Port Authority)
Michael Finch II | mfinch@al.com By Michael Finch II | mfinch@al.com on July 24, 2013 at 11:19 AM, updated July 25, 2013 at 2:23 PM
MOBILE, Alabama -- A new $36 million steel terminal will be constructed on the north side of the port, officials with the Alabama State Port Authority said early Wednesday, which will expand the port’s ability to handle steel coil at the main docks complex. The port has partnered with Alabama Steel Terminals, who will operate and manage the terminal that will be placed on a 40-foot deep channel behind the port’s Pier D2 berth.
The project which will be built in two phases is expected to create as many as 50 permanent jobs with an annual payroll of $2 million. A larger facility would broaden the port’s ability to move more of the steel coils that come into and leave the port. “Today it’s all done manually and this facility will allow us to automate some of it,” said James K. Lyons, director and chief executive of the Port Authority. Alabama Steel Terminals, the newly-formed venture between TriState Maritime Services, Inc. and the Richardson Group of Companies, was chosen as the best company to take on the public-private partnership, Lyons said.
Back in March, the plans received a boost from the Industrial Development Board for the city of Mobile when they approved about $4.8 million in tax abatements. The entire facility should be complete within two to three years, Lyons said. Meanwhile the first phase, a 178,200-square-foot covered bay area complete with three 50-ton overhead bridge cranes, is slated for completion 12 months from the start of construction. The 168,000 square feet of open storage yard is expected to handle about 650,000 tons of steel annually. The announcement of the new facility comes almost two months after Standard and Poor’s upgraded the Port’s credit rating from BBB+ to A-.
Steel mills in Mobile and around the region are just a few of the reasons the expansion was needed, Lyons said. The port exports a large amount of steel to Mexico, too. The new facility will also help cement the port’s standing as a top location for steel imports and exports in the country, Lyons said. Update: This post was updated at 5:34 p.m. on July 24 to include comments from Port Authority director and CEO James K. Lyons and additional background information about the port.