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March 7, 2005

CHOCTAW POINT TERMINAL RECEIVES FEDERAL PERMIT - ASPA MOVES FORWARD ON CONSTRUCTION

The Alabama State Port Authority (Authority) moved one step closer to providing Alabama industries and economic development officials with a much needed transportation system to move containerized cargoes through the Port of Mobile.  The U.S. Army Corps of Engineers (USACE) issued on Friday a permit to construct a wharf, container terminal and intermodal rail yard for the proposed Choctaw Point Terminal in Mobile, Ala.  The permit also authorizes project related dredge and fill activities to serve the deepwater container terminal on Mobile River.  In noting the importance of Choctaw Point, Governor Bob Riley said, "A growing and vibrant port is crucial to keeping Alabama's economy on track.  The expansion of the container terminal will give Alabama industries a better system to transport their products and raw materials and help them compete in today's global economy.  It will also help us recruit new industries to the state that will generate new jobs."

"This announcement marks another positive step in the creation of the intermodal terminal and enlargement of the port facilities," according to Alabama Congressman Jo Bonner.  "Numerous officials at the local, state, and federal levels, as well as many individuals associated with the Alabama State Port Authority, have worked tirelessly to reach this point, and I commend the Corps of Engineers for their work in ensuring this permit application was done in a thorough and timely manner and with an eye towards minimizing as much as possible the impact to the surrounding wetlands area.  The intermodal facility will undoubtedly yield immediate and positive economic results once it goes into operation, and it will be a key component of the ongoing push to make the Port of Mobile one of the most competitive import-export sites anywhere in the world."  

The USACE issuance of Permit #AL101-04269-L closed out a three year, three month environmental study process which began with the Authority’s application to the Corps and to the Alabama Department of Environmental Management (ADEM) in December 2001.  A team led by Volkert & Associates, Inc., of Mobile, managed the environmental studies and public outreach component for the proposed project.  Both the container terminal and the intermodal rail yard propose to unavoidably impact 24.5 acres of wetlands. 

Under the permit, the Authority will create and enhance 56.6 acres of wetlands and tidal creeks in the immediate area of the proposed terminal to compensate for wetland and water bottom impacts.  N. D. “Skeeter” McClure, IV, P.E., the Authority’s Project Manager for the Environmental Impact Study (EIS), expressed his appreciation for, “the support and hard work of the cooperating agencies for their efforts in evaluating project related impacts and crafting the mitigation plan outlined in the Permit.”  The Proposed mitigation plan was developed under the leadership of the U.S. Fish & Wildlife Service with contributions from ADEM, the Environmental Protection Agency, U.S. Department of Commerce National Marine Fisheries Service, and the Alabama Department of Conservation and Natural Resources.  “The Authority’s board and management worked diligently with the environmental resource agencies to minimize impacts to the aquatic environment.  The resulting mitigation plan will replace impacted wetlands for the project with higher quality wetlands rather than seek credits in some distant wetland bank more commonly associated with development projects,” advised James K. Lyons, Director and CEO for the Authority.    

Also in response to public inquiries and comments obtained during the Draft EIS public hearings and open written comment period, the Authority committed to providing neighboring communities and the Mobile area with attractive bay front access on Mobile Bay’s western shore.  In December 2004, the Authority hired Spectrum and Associates to develop the park’s master plan and to coordinate public involvement in the development of the recreational area, including a public campaign to name the new bay front park.  The first public meeting on the proposed park was held on February 22nd with nearly 100 citizens and stakeholders in attendance. 

The USACE permit defines the project as consisting of a 2,000 foot deepwater wharf, a container yard, an intermodal rail yard, and acreage designated for value added distribution facilities.  The Permit also provides for storm water management, including the relocation of the Tennessee Drain.  The permit allows for the Authority to move forward on construction of the $250 Million terminal and will facilitate ongoing negotiations with private investors interested in terminal operations.  Jimmy Lyons added, “The permit validates the project and prospective investment in the project.  The Authority has long sought a private investment partner to supplement the State’s financial commitment in 2000 and to attract a world class player in containerized cargo transportation and operations to Alabama.”  The $80 Million supplemental appropriation bill to fulfill the State’s commitment for the Choctaw Point Terminal project cleared the Alabama House of Representatives in a 96-0 vote and is pending in the Senate.   

Alabama State Port Authority (http://www.asdd.com) operates the State of Alabama’s deepwater port facilities in Mobile, Ala.  Its varied facilities handle more than 20 million tons of cargo each year, including such general cargo as forest products, metals, project cargo and containers, and bulk commodities such as coal and cement. The Authority is currently in the initial phase of its $300 Million development program port wide which includes the proposed container/intermodal transportation and distribution center at Choctaw Point, a $30 Million expansion at the coal terminal, a $9 Million expansion at the Pier E general cargo terminal and ongoing investments associated with security upgrades in conjunction U.S. Homeland Security measures.   The Authority’s proposed Choctaw Point Terminal and its general cargo and bulk facilities are located at the Port of Mobile with immediate access to two interstate systems, five Class 1 railroads, and nearly 15,000 miles of inland waterway connections. 

Mobile!  The Real Easy!