New Ro/Ro Facility Coming to Alabama

Plans are in motion to develop a new vehicle processing roll-on/roll-off (RO/RO) facility at Alabama’s Port of Mobile in the U.S.

Today in Buenos Aires, Argentina, the Alabama State Port Authority signed a Memorandum of Understanding with AutoMobile International Terminal, a joint venture of Terminal Zárate S.A. and SAAM Puertos S.A., to develop and operate the new $60 million facility, which is expected to be completed in 2019.

The agreement marks a giant step forward in supporting automotive logistics in the Americas and abroad, according to the port authority’s director and chief executive officer, James K. Lyons. “This agreement represents a key step in diversifying the Port Authority’s business while providing a strategic asset to regional automotive shippers,” he said.

The partnership between Terminal Zárate S.A. and SAAM Puertos S.A. was selected following a Request for Proposal issued by the Alabama State Port Authority’s in late 2016.

The new terminal will convert approximately 57 acres of a derelict bulk material handling facility into a state-of-the-art automotive processing and logistics terminal.  The 40 ft. ship draft facility is served by five Class I railroads serving all of North America and immediate, unencumbered access to two interstate systems (I-65 and I-10).  

Construction on the automotive RO/RO terminal is expected to begin by year-end 2018, with an anticipated completion date of year-end 2019.

“This project is a significant component of our growth strategy and given our strong experience as a RO/RO terminal we are convinced we will develop AutoMobile International Terminal into a world class RO/RO processing and handling facility,” said Robert Murchison, President of Terminal Zárate S.A.

“We look forward to work together with Terminal Zárate and the Alabama State Port Authority and bring all our knowledge and experience to the service of the terminal, and consolidate our position in America,” said Yurik Díaz, Manager of SAAM Puertos S.A.

The overall project represents a total investment of approximately $60 million. Proceeds from the Alabama State Port Authority’s recently awarded $12.7 million Transportation Infrastructure Generating Economic Recovery (TIGER) grant and the $28.8 grant from the Alabama Gulf Coast Recovery Council as authorized under the Resources and Ecosystems Sustainability, Tourism Opportunities and Revived Economy of the Gulf Coast Act of 2011 would contribute toward the cost of the project. The concessionaire agreement facilitates the private sector partner contribution toward the facility.