Governor Kay Ivey delivered a speech at the Alabama State Capitol in Montgomery, Alabama, on Thursday, February 1, 2024, as she joined the Alabama Port Authority in announcing a new record-breaking economic impact for the state. (Governor's Office/Hal Yeager)
MONTGOMERY, Ala. – Gov. Kay Ivey announced Thursday at an event with the Port Authority that the Port of Mobile's economic impact on Alabama's economy totals $98.3 billion, an increase of about $13 billion over the previous year effects of the previous year.
The Alabama Port Authority commissioned the economic impact report covering calendar year 2022 (the most recent year for which complete data is available).
Overall, the report showed that — in addition to a total statewide economic impact of $98.3 billion — the port supports 351,359 jobs in Alabama, or one in seven jobs statewide.
These jobs amount to $22.5 billion in income for Alabamians in all 67 counties.
Additionally, the port and related industries paid back $2.4 billion in taxes to the state, local governments and federal government in 2022.
“While our Gulf Coast port may be called 'The Port of Mobile,' the staggering $98 billion economic impact figure means it is really 'The Port of Alabama,'” Ivey said. “Whether it's our booming automotive industry, the export of natural resources like coal and limestone, and countless other goods made in and from Alabama, the Port of Mobile touches every corner and every industry in our state. The future of our port is bright and I look forward to its growth continuing to contribute and impact all of Alabama.”
“The Port of Alabama has grown tremendously – and we’re just getting started,” said John Driscoll, director and CEO of the Alabama Port Authority. “These impact metrics demonstrate both the benefits of the Port of Alabama to our entire state and the key role of state investments in achieving this growth. With more than $1 billion in capital projects underway, we expect this growth to continue and, more importantly, continue to make Alabama businesses more globally competitive.”
“The Port of Mobile is an economic powerhouse for the state of Alabama and is growing bigger and stronger every day,” said Sen. Greg Reed, R-Jasper, president pro tempore of the Alabama Senate. “With coal being one of the Port's largest exports and my district being the state's largest coal producer, the success of Alabama's coal industry and the Port of Mobile are inextricably linked. I am a proud supporter of the port and its mission and am pleased, but not surprised, to see the incredible economic impact it has on our great state.”
“Geographically, my home district couldn’t be much further from the Port of Mobile, but the port’s influence on my district – and virtually all of my Alabama House members’ districts – is very present,” Alabama State House Speaker Nathaniel Ledbetter said. “It is clear that our commitment to investing in the port is generating remarkable returns for our state, and it is critical that we continue to support this economic engine so that Alabama can continue to thrive.”
The port currently has more than $1 billion in statewide capital projects. The Port Authority will expand its capacity to one million TEUs (20-foot equivalent standard cargo containers) upon completion of the Phase IV expansion at the container terminal. In addition to the terminal expansion and port deepening and expansion project, the Alabama Port Authority plans to develop logistics facilities in Mobile and open a new inland intermodal facility served by CSX in Montgomery. These projects are expected to be operational within the next two years and will provide shippers with new benefits and opportunities.
Other planned investments include the construction of a flyover bridge to provide rail access at the container terminal, the upgrade of general cargo piers and the development of an inland intermodal facility in northern Alabama. These projects are funded primarily by federal appropriations and grants supported by former Sen. Richard Shelby, R-Alabama. In addition to federal funding, the Alabama state legislature appropriated $20 million in 2023 to upgrade the port's McDuffie Coal Terminal. Beyond these public funding sources, the port reinvests all revenue outside of operating costs into improving and expanding its facilities.
Following the passage of the Rebuild Alabama Act, which provided funding to deepen and expand the Port of Mobile's shipping channel, the port's economic impact in Alabama increased by more than $200 billion. Additionally, the Port's planned intermodal container transfer facility in Montgomery has led to $2.2 billion in new project announcements in the region. What is noteworthy is that both milestones were achieved before the projects were completed.
This economic study was again conducted by Martin Associates, an internationally recognized economic and transportation consulting firm specializing in the analysis of the transportation and logistics industry. The report, which includes both Alabama Port Authority public facilities and private operators using the port, is rigorous and conservative in its analysis. In particular, Martin Associates identified container freight as the most significant new business line driving the port's rapid growth.
This analysis is separate and independent from a recent analysis in Forbes that ranked the Port of Mobile as the second fastest-growing port of entry into the United States over the past decade, ahead of Chicago's O'Hare Airport and Atlanta's Hartsfield-Jackson Airport.
A full report and additional information, including the Alabama Port Authority's economic impact by legislative district or county, is available online at www.alportsimpact.com.
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