BCEDA News

10/14/03

By GEORGE TALBOT
Business Reporter
 

POINT CLEAR -- A series of expansions planned at the Alabama State Docks will be crucial to keeping the state's automotive manufacturing industry running smoothly, a panel of auto executives said Monday at the Alabama International Trade Conference.

"We don't just want to use the port in Mobile as our primary point of entry, we're depending on it," said Rob Cyrus, director of purchasing for Hyundai Motor Manufacturing of Alabama Inc. "We need those expansions to happen and to happen on schedule."

The Docks is seeking federal permits for the initial phases of a five-year, $280 million to $300 million expansion plan that includes construction of a new container terminal at Choctaw Point, south of the Docks' main facility along the Mobile River. Construction is scheduled to begin next summer.

Cyrus said Hyundai expects to import weekly about 350 containers of parts and other equipment once its manufacturing plant, now under construction in Hope Hull, begins full production in March 2005. The Docks averaged 353 containers a week in 2002.

"We talked to other ports in New Orleans, Tampa, and Savannah (Ga.), but the key to our decision to import through Mobile was the expansion at Choctaw Point," said Cyrus, part of a panel that included representatives from the state's three other major automakers, Mercedes-Benz U.S. International Inc., Honda Motor Co. and Toyota Motor Corp.

The Docks' current capacity is about 60,000 containers per year; the Choctaw Point expansion will boost capacity by about 600,000 containers.

"We know the current capacity won't be sufficient when all of the auto plants are up and running, and that's why they very much want to see the expansion move ahead," said Docks spokeswoman Judy Adams. "They've made it very clear that Choctaw Point is central to their plans."

Automotive products were the state's leading export last year, according to statistics released by the Alabama Development Office at the two-day conference, which continues today at the Grand Hotel in Point Clear.

During 2002, Alabama producers exported more than $8.3 billion worth of goods, up nearly 10 percent from 2001. Automotive exports accounted for about $2.1 billion of the total, with more than half going to Germany.

Also Monday, Leon Maisel, president of the Mobile Area Convention and Visitors Bureau, told about 50 state lawmakers and business leaders that Mobile is "on the verge" of being selected as a home port for a major cruise line.

"I can't say exactly when it's going to happen, but it's going to happen soon," Maisel said.

Tim Parker, chairman of the Alabama Port Authority, the Docks' governing board, told audience members that board members are taking a methodical approach toward deciding whether to allow ExxonMobil Corp. to build a liquefied natural gas terminal on Middle Bay Port. The proposed $600 million project would create about 50 jobs but could carry some safety risks.

"We're a statewide board that makes statewide decisions, but obviously we're sensitive to local concerns," Parker said. "We understand there are some intense feelings out there in the community, and we're taking those into consideration."

The conference continues today with panel discussions on Alabama's trade potential with Cuba and on the state's efforts to expand its international trade.