Alabama Southern Railroad To Invest $9.8M At Tuscaloosa County Airport Industrial Park

TUSCALOOSA, AL — The Tuscaloosa County Economic Development Authority (TCEDA) on Thursday announced that Alabama Southern Railroad will invest $9.8 million to construct a second rail yard facility in the Tuscaloosa County Airport Industrial Park.

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TCEDA says the new location will support operations currently conducted at the company’s facility located near downtown Tuscaloosa, with the second facility providing additional capacity and reducing traffic concerns at the downtown facility.

The new rail yard facility will be off Highway 82 West and construction on the new rail yard is scheduled to begin this summer. TCEDA says it is expected to be fully operational during the third quarter of 2024.

Eight new jobs are also expected to be hired during the first year of operations.

“We are thrilled to announce the expansion of our rail footprint in Tuscaloosa, which will
provide critical capacity to meet the growing demands of our existing customer base and
facilitate future growth opportunities,” Company Sales Director Cody Gilliland said. “This
additional infrastructure investment underscores our commitment to delivering exceptional
rail service quality and customer satisfaction. By enhancing rail service fluidity, our customers
will benefit from greater efficiency and reliability while decreasing congestion in West
Tuscaloosa.”

The Tuscaloosa County Economic Development Authority approved a tax abatement package as
part of an investment by Alabama Southern Railroad, which was approved Thursday by its board of directors.

“Transportation is a critical factor when evaluating locations for new and expanding investment, so this addition to our rail resources will create new opportunities when promoting Tuscaloosa County,” TCEDA Executive Director Justice Smyth said. “This project also creates potential benefits for our existing industries while contributing positively to our on‐going community development.”

TCEDA says the company will receive an abatement of the non‐educational sales and use taxes for
purchases of equipment and building materials during the construction phase of the project.

What's more, the company will be eligible for a tax abatement in an estimated amount of $535,125. Along with the new property tax revenue generated from the project, TCEDA estimates the project will contribute over $600,000 during its first 20 years in certain taxes from direct employee spending by the new hires.

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