Norfolk Southern Corporation will invest more than $200 million to grow capacity on the 3B Corridor, a key rail line in Alabama. The 3B Corridor connects markets in northern and central Alabama to the Port of Mobile and destinations worldwide. The project will help Norfolk Southern accommodate expected growth in several sectors in the Southeast.
The 3B Corridor is strategically aligned with the Port of Mobile, which contributes $85 billion in annual economic value to Alabama. It’s an important part of Norfolk Southern’s annual traffic, serving critical industries like agriculture, automotive, chemicals, forestry, and steel. The investments are expected to yield immediate returns when they begin to come online in 2025.
“Together with our customers, we are anticipating where markets are heading, and positioning to deliver on their supply chain needs now and into the future,” said Norfolk Southern President and CEO Alan H. Shaw. “These investments will bring immediate returns as they make rail an even more competitive part of our nation’s supply chain and expand our customers end-to-end solutions.”
“We are grateful to Norfolk Southern for these investments in our state and for their support of our existing industries,” said Alabama Department of Commerce Secretary Ellen McNair. “This is proof that our open for business approach is attracting growth in our state among world-class businesses looking to locate or expand their operation. We look forward to the positive impact these enhancements will have on Alabama’s economic competitiveness and on the nation’s supply chain more broadly.”
The project involves a mix of terminal and track-based infrastructure improvements, including capacity projects in central and southwest Alabama, customer-specific projects in north Alabama and locations north of Mobile, yard upgrades in Wilton and a series of grade crossing improvements throughout the region.
Norfolk Southern is collaborating on a project to allow a high-volume met coal customer to take advantage of the expanded 3B Corridor. This new premium met coal production facility, set to be developed in 2025, will help power global production of metals products, especially for essential infrastructure projects, for decades to come.
Another customer, Packaging Corporation of America, recently expanded its paper mill located along the corridor, partnering with Norfolk Southern on the project to enhance efficiencies for both companies.
“Without Norfolk Southern’s investment in the region, we would not have been able to maximize the opportunity to ship more volume via rail,” said PCA Vice President, Transportation Ross Corthell. “The projects Norfolk Southern is planning and doing in the region are great examples of how their long-term strategy to invest in infrastructure, operate safely and efficiently, and market their service, is designed to promote growth.”
“Norfolk Southern is focused on delivering long-term value through collaboration and innovation with our customers and their markets,” said Norfolk Southern EVP and Chief Marketing Officer Ed Elkins. “This means being deeply engaged from the beginning, working with customers to identify business needs and help develop solutions, staying engaged throughout the development process, and finally executing on the safe, reliable, efficient transport of their cargo. Our comprehensive approach is all about being there for our customers’ needs today and being ready to handle the next phase of their business tomorrow.”
Click here for an overview of Norfolk Southern’s business and impact on the state of Alabama.
South Alabama Logistics Park Welcomes Two New Companies
Simpson Strong-Tie and Veyer are locating new warehousing and distribution facilities in Mobile’s South Alabama Logistics Park (SALP), located about 12 miles from the Port of Mobile. The total investment for both projects is $17.3 million.
Simpson Strong-Tie will invest $7.5 million in its new facility, and create 16 jobs. The company is one of the world’s largest manufacturers of structural construction products, including steel connectors, fasteners, anchors and other building solutions.
Veyer, a wholly owned subsidiary of Office Depot, is a 3PL logistics provider for fulfillment, distribution, warehousing, transportation, and final-mile delivery services to Fortune 500 and eCommerce companies. The company will create 18 jobs with a total investment of $9.8 million. Veyer will also re-route its supply line for this new facility to the Port of Mobile.
“The facilities, infrastructure, and connectivity at SALP is unparalleled anywhere in the Southeast,” said Philip Burton, CEO of Burton Property Group and the developer of the South Alabama Logistics Park. “Combined with the support of our state and local officials, we are poised to continue to add new jobs and new opportunities in the Mobile market. I am thrilled to welcome VEYER and Simpson Strong-Tie to SALP and to Mobile.”
“Today’s announcement highlights the strategic investments happening in anticipation of the Port of Mobile’s growth. VEYER and Simpson Strong-Tie’s decision to establish facilities at the South Alabama Logistics Park underscores the confidence in Mobile’s future as a leading logistics hub,” said Mobile Chamber President and CEO Bradley Byrne. “We are excited to welcome these esteemed companies to Mobile and look forward to the positive impact they will have on our community.”
“Announcements like this show the importance of the Port to our economy, both locally and statewide. Simpson Strong-Tie and VEYER are locating facilities here because of the $1B of investments in our container terminal and the incredible efficiency, connectivity and competitive costs we can offer,” said John Driscoll, the Director and CEO of the Alabama Port Authority. “With the deepening and widening of the ship channel nearing completion, we believe announcements like today’s will happen more and more often.”
