July 31 2020
APM Terminals Mobile targets supply chain growth
- Gamechanger port with proximity to rapidly growing Southeast market.
- Appeals to diversified gateway strategy for imports.
- Spurring regional growth through manufacturing and distribution centers (DC’s).
- Commercial real estate available for DC’s and manufacturing.
APM Terminals Mobile is actively working with logistics professionals looking to make their supply chains more competitive in a post COVID-19 world by explaining the attributes of the port as a logistics center.
Major companies already in Alabama are Hyundai, AM/NS Calvert, Outokumpu, Northrop Grumman, Mercedes Benz, Honda, Airbus, Amazon, Walmart, Bombardier and BendPak who have selected the Port of Mobile and the state of Alabama as a hub for global logistics supply and distribution as well as manufacturing.
Santa Paula, California-based BendPak recently opened a new distribution center 11 miles from APM Terminals Mobile and is able deliver products same-day or next-day to more customers in the eastern half of the country. “Opening the Mobile distribution center represents our continued commitment to being the industry leader and best at serving our customers, and part of that commitment means reducing delivery times,” said Don Henthorn, BendPak president and founder. “This new facility brings our products geographically closer to our customers and that makes a huge difference.”
“This new distribution center will enhance our ability to get our customers what they need, when they need it,” said Jeff Kritzer, BendPak’s executive vice president. “Today’s consumer expects immediate delivery and we’re focused on helping that become a reality. The definition of Mobile is agile and transportable. We couldn’t think of a more befitting name to call this beautiful city, our new home.”
“We have it all. A world-class, high productivity, growing port at APM Terminals Mobile with available land near the port to grow manufacturing and DC’s, five class-I railroads for inland supply chains, three interstate highways and a cargo airport near the port for Sea-Air and e-commerce needs,” said Brian Harold, Managing Director of APM Terminals Mobile.
“We have more eyes on Mobile as companies seek to expand their e-commerce business with closer proximity to customers. We’re offering 24/7 access to ships with a wider, deeper harbor and multiple start times (10 options) for faster vessel operations. This enables us to speed urgent cargo to local distribution centers or get ships back on track if they are behind schedule.”
To serve cargo growth in the market, ocean carriers are adding more services and upsizing vessels. COSCO is upsizing vessels on their GME service calling Mobile, and the 2M Alliance of Maersk and MSC is upsizing some vessels in the TP18 and TP88 strings.
Transit times between Asia and US inlands are comparable via Mobile routing for those customers looking to add to their gateway supply chain options. Five class-I railroads operate adjacent to APM Terminals Mobile, ensuring fast, affordable supply chains from the Intermodal Container Transfer Facility (ICTF) delivering strong end-to-end supply chains to the US Midwest and central Canada, serving Memphis, Decatur, Detroit, Chicago, Toronto and Montreal destinations.
Strategic site selection as a logistics hub
To fuel economic expansion, the Alabama Renewal Act allows companies with 75+ employees to get up to $3 million in tax deferral credits. Other business incentives include tax credits for cargo owners on incremental cargo volumes. Land is plentiful and open for investment with two logistics parks currently in operation and more to come. Foreign Trade Zone status in many designated locations near the port and business parks also increase the attractiveness of businesses looking for a new distribution center or manufacturing site. (Stay tuned for more announcements)
For refrigerated cargoes, a world-class, new refrigerated warehouse is being built to enhance the port’s cold chain distribution center attractiveness. MTC Refrigerated Warehouse will open in January 2021 to serve international supply chains with the most modern refrigerated technology and capacity for the future growth of cold chains.
Protected port from severe weather
Another feature enhancing Mobile’s attractiveness for supply chain growth is the port’s ability to withstand hurricanes through its modern infrastructure. Opened in 2008, APM Terminals Mobile was designed to withstand powerful hurricanes, following Hurricane Katrina’s impact on Gulf Ports in 2005. Equally important, Mobile Bay creates a protected barrier to the US Gulf’s open water forces. The port is also less prone to fog conditions.
Continuous modernization plan
APM Terminals Mobile has growth ambitions to become a 1.5 million TEU port (2019 volume was 419,000 TEU). The infrastructure is ready – with an expanding truck gate in 2020 to handle growing container volumes. This comes on the heels of the container berth expansion in March 2020 and a November 2019 container yard expansion. Sustainable investments include a new fleet of 15 electric cars, replacing gasoline-powered vehicles – and the installation of LED lighting throughout the terminal. These initiatives recently won an environmental award from the Partner’s for Environmental Progress organization.
Business-friendly partners in the Port Authority and State Government
APM Terminals Mobile has an excellent, working relationship with the Alabama State Port Authority (ASPA) and Director/CEO John Driscoll and Director Emeritus Jimmy Lyons – whose leadership has enabled the facility to become one of the fastest growing ports.
The ASPA will be deepening the Mobile harbor to 50’ starting in 2021 to accommodate the largest vessels in the global fleet and ensure the port’s future logistics competitiveness.
The economic development teams within ASPA, regional and state work together with exceptional speed to assist companies locating to the area. “We would like to thank our ASPA leadership and Alabama Governor Kay Ivey, the Alabama Secretary of Commerce, Greg Canfield, our City and County Leaders and the Mobile Area Chamber of Commerce for their success in making Mobile such a competitive port and attracting new business to the region,” added Mr. Harold.