STOCK TITAN

The Port of Huntsville Marks Another Year of Growth in Intermodal Transportation

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Very Positive)
Tags
Rhea-AI Summary
The Port of Huntsville's International Intermodal Center experienced a 24% growth in rail lifts in 2023, showcasing its high-quality intermodal services. The port's strategic location and state-of-the-art amenities have attracted over 400 companies, leading to efficient cargo handling and distribution. Collaborations with Norfolk Southern and significant investments in infrastructure ensure a promising future for the port, benefiting the Huntsville community and Tennessee Valley region.
Positive
  • None.
Negative
  • None.

Insights

The 24% increase in rail lifts at the Port of Huntsville signifies a robust expansion in intermodal freight activity, which serves as an indicator of economic growth within the region. This growth can potentially lead to increased business activity, as efficient transport hubs are critical for supply chain optimization. The investments in rail and air cargo infrastructure, amounting to over $300 million, reflect a long-term commitment to enhancing the port's capacity and services.

From an economic standpoint, the expansion of the Port of Huntsville is likely to attract further investments into the area, bolstering job creation and supporting the local economy. Additionally, the presence of U.S. Customs and Border Protection onsite, along with the Foreign Trade Zone, could incentivize international trade by reducing bureaucratic delays and costs, making the port an even more attractive logistics hub for businesses.

However, continued growth could also necessitate further infrastructure investments to prevent bottlenecks and maintain service quality. The port's success may drive regional infrastructure developments, potentially impacting the state's budget and resource allocation priorities.

The reported increase in rail lifts at the Port of Huntsville is a clear sign of its growing importance as a logistics hub. The strategic location alongside I-565 and the connection to the Norfolk Southern Railroad mainline provide a competitive advantage by reducing transit times and facilitating access to East and West coast ports. This accessibility is essential for businesses that rely on just-in-time delivery models.

For companies operating in the aerospace and automotive sectors, which are prevalent in North Alabama, the port's enhanced capabilities may lead to improved inventory management and reduced logistics costs. The state-of-the-art amenities, including cold storage facilities, are particularly beneficial for industries requiring specialized handling, such as pharmaceuticals or perishable goods.

It's important to monitor how the port's growth aligns with industry trends towards sustainability and reduced carbon footprints. The shift towards rail, a more environmentally friendly mode of transport compared to trucking, could be seen as a positive move by environmentally conscious stakeholders.

The significant investment in the Port of Huntsville's intermodal infrastructure positions it as a key player in the logistics sector. The dual runway system capable of supporting simultaneous flight operations and the large air cargo ramp for Boeing 747s underscore the port's readiness to handle substantial air freight volumes. This is particularly relevant given the 21st continental U.S. ranking for international air cargo volume at Huntsville International Airport.

While the port's enhancements are poised to meet current demand, it is essential to consider the scalability of these improvements to accommodate future growth without compromising service quality. The logistics industry is rapidly evolving with technological advancements such as automation and real-time tracking systems. The port's ability to integrate such technologies will be important for maintaining its competitive edge.

Moreover, the impact on local traffic patterns and community development must be addressed, ensuring that the infrastructure keeps pace with the port's expansion to mitigate any potential negative effects on the surrounding areas.

HUNTSVILLE, Ala., March 27, 2024 /PRNewswire/ -- The International Intermodal Center at the Port of Huntsville announces another year of exceptional growth in 2023. The North Alabama inland port saw 24% more rail lifts in 2023 (27,597) than in 2022 (22, 210).

The Port of Huntsville saw rail lifts grow 24% in 2023 thanks to its unique amenities as North Alabama's inland port.

"The International Intermodal Center at the Port of Huntsville has proudly served North Alabama and South Central Tennessee with comprehensive, high-quality intermodal services since 1986," said Butch Roberts, CEO of the Port of Huntsville. "We are proud of our successful track record because more than 400 companies trust our capabilities to provide excellent customer service that is vital to their operations."

Currently the only inland port in North Alabama, the Port of Huntsville provides a single hub location specializing in receiving, transferring, storing and distributing international and domestic cargo via air, rail and highway. The intermodal complex is equipped with a five-mile rail spur connected to the Norfolk Southern Railroad mainline, allowing easy access to ports on both East and West coasts of the United States.

"The Huntsville and North Alabama community is a fast-growing part of the state and supports a number

of important industries from aerospace to automotive," said Shawn Tureman, Norfolk Southern Vice President Intermodal & Automotive Marketing. "Our partnership with the Port of Huntsville allows us to bring Alabama and Tennessee businesses access to major U.S. seaports. Together, we are ensuring that businesses can enjoy efficient, reliable, and economical intermodal service that ensures speed to market of their products."

State-of-the-art amenities include a rail cargo terminal and ramp, U.S. Customs and Border Protection onsite, Foreign Trade Zone No. 83, and 436,000 square feet of air cargo warehouse and distribution facilities with 35,000 square feet of cold storage. The Port of Huntsville is located alongside I-565 allowing for convenient, uncongested access to the interstate highway system.

Parallel 12,600-foot and 10,000-foot runways permit simultaneous flight operations, and the air cargo ramp is large enough to park ten Boeing 747 aircraft side by side. Huntsville International Airport is ranked 21st in the continental U.S. for international air cargo volume, and the airport serves seven major cargo airlines as well as international freight forwarders DSV and Kerry Logistics.

"Rail traffic has increased year-over-year thanks to our partnership with 14 steamship lines and service provided by Norfolk Southern," Roberts said. "We have invested more than $70 million in rail intermodal infrastructure and $230 million in air cargo infrastructure. These investments, along with the presence of first-class amenities including a depot storage yard and U.S. Customs onsite guarantee a bright future for HSV. "

The International Intermodal Center at the Port of Huntsville has proudly connected the rapidly growing Huntsville community and the Tennessee Valley region with the rest of the world for 38 years – providing quality, multi-modal transportation to a diverse regional customer base – and stimulating its economic growth and development.

"The impact of our relationships with regional government and community organizations has allowed us to work closely together to produce the kind of prosperity and economic growth that is the envy of cities across the country," Roberts said. "We look forward to continuing our work to fuel even more expansion and jobs in the communities we serve."

About the Port of Huntsville

The Port of Huntsville is an inland port facility that is comprised of four operating entities – Huntsville International Airport (HSV), International Intermodal Center, Jetplex Industrial Park and Huntsville International Spaceport, and four contract operations including Foreign Trade Zone No. 83, a fixed base operator, the Four Points by Sheraton hotel and Sunset Landing Golf Course. The Port of Huntsville is governed by an Airport Authority with a five-member Board of Directors. Notable features of HSV include two parallel runways at 10,000 feet and 12,600 feet with a 5,000-foot separation allowing for simultaneous operations during instrument conditions. The International Intermodal Center (IIC) is an inland port of entry for both international air cargo flights and ocean containers arriving by rail. Adjacent to Huntsville International Airport and Jetplex Industrial Park, the IIC offers U.S. Customs & Border Protection Port Directors and Inspectors on site 24/7, on-site freight forwarders and customs brokers, public use Foreign-Trade Zone No. 83, and direct access to the interstate highway system. The IIC serves as a key logistics hub for receiving, transferring, storing and distributing international and domestic freight via air, rail, and highway. Learn more at portofhuntsville.com.

About Norfolk Southern

Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a customer-centric and operations-driven freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods, and Norfolk Southern originates more automotive traffic than any other Class I Railroad. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as to major ports in the Gulf of Mexico and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

Media Contact:
Mary Swanstrom
Public Relations Manager
The Port of Huntsville
+1 256 772 9395
prmanager@hsvairport.org

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/the-port-of-huntsville-marks-another-year-of-growth-in-intermodal-transportation-302101696.html

SOURCE The Port of Huntsville

FAQ

How much did rail lifts grow at the Port of Huntsville in 2023?

Rail lifts at the Port of Huntsville grew by 24% in 2023 compared to 2022.

What amenities does the Port of Huntsville offer at its International Intermodal Center?

The Port of Huntsville offers amenities such as a rail cargo terminal and ramp, U.S. Customs and Border Protection onsite, Foreign Trade Zone No. 83, and 436,000 square feet of air cargo warehouse and distribution facilities.

How has the Port of Huntsville contributed to the economic growth of the Huntsville community?

The Port of Huntsville has connected the rapidly growing Huntsville community and Tennessee Valley region with the rest of the world for 38 years, providing quality, multi-modal transportation and stimulating economic growth and development.

What investments has the Port of Huntsville made in its infrastructure?

The Port of Huntsville has invested over $70 million in rail intermodal infrastructure and $230 million in air cargo infrastructure to enhance its services and ensure a bright future.

Who is the CEO of the Port of Huntsville?

Butch Roberts is the CEO of the Port of Huntsville.

Norfolk Southern Corp.

NYSE:NSC

NSC Rankings

NSC Latest News

NSC Stock Data

58.73B
226.08M
0.07%
77.56%
0.97%
Railroads
Railroads, Line-haul Operating
Link
United States of America
ATLANTA