News & Reviews News Wire Mobile, port, and Alabama strike tentative deal to equally fund $3 million Gulf Coast grant: Analysis

Mobile, port, and Alabama strike tentative deal to equally fund $3 million Gulf Coast grant: Analysis

By Bob Johnston | June 11, 2024

| Last updated on July 24, 2024


Operating agreement must still be approved by city council

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Passenger train surrounded by crowd
A New Orleans-Jacksonville, Fla.,  inspection train pauses at Mobile, Ala., on Feb. 18, 2016, at the downtown Mobile station platform once used by Amtrak’s Sunset Limited, Gulf Breeze, and Gulf Coast Limited. After more than eight years of litigation,  hearings, and negotiations, infrastructure improvements required for two daily Mobile-New Orleans round trips now depend on the City of Mobile and Amtrak reaching operating and real estate lease agreements. Bob Johnston

MOBILE, Ala. — Mobile Mayor Sandy Stimpson said Tuesday that his city’s funding obligation to support two daily Amtrak round trips could be split equally between Mobile, the state of Alabama, and the Alabama State Port Authority.

As originally reported by AL.com, Stimpson announced Republican Gov. Kay Ivey had dropped her long-standing opposition to provide state funding for Amtrak service. That opposition had left the city on the hook for the $3.045 million to match similar commitments from Louisiana and Mississippi over the first three years of service.

There are some details still to be worked out regarding the timing and exact source of the state funding, according to the AL.com report. It is possible just the city and port could split the first year’s costs.

The operating agreement and a station site lease in Mobile must be executed before $223 million in capacity improvements agreed to by Amtrak, CSX, Norfolk Southern, and the Port of Mobile can commence, with 80% of that amount funded by a federal Consolidated Rail Infrastructure and Safety Improvement grant. Negotiations between the city and Amtrak began more than a year ago, but have dragged on since then despite periodic prodding by the Surface Transportation Board [see “Gulf Coast impasse at Mobile remains unresolved: Analysis,” Trains News Wire, March 18, 2024].

It is clear that Mobile’s financial obligation was one factor, but other contentious issues that led to the extended delay have not been disclosed by any of the parties. Unless the STB steps in, this effectively gives Mobile’s city council veto power over any operating conditions it seeks to impose. A formal agreement Amtrak can sign off on still awaits city council approval, and sources tell AL.com that may take up to 60 days to be executed.

In a statement, Amtrak says, “We applaud Mayor Stimpson’s work that has produced the good news from Gov. Ivey and an expansion of our partnership with the State Port Authority. Amtrak and the Southern Rail Commission look forward to the City Council’s upcoming actions on funding and real estate agreements in order to set the stage for track and platform construction to enable twice-daily Amtrak service between Mobile and New Orleans.”

The long-running Gulf Coast saga is into its ninth year, by Amtrak’s accounting, with talks to restore service having begun in 2015, and creation of a Federal Railroad Administration Gulf Coast Working Group in 2017. It has been more than three years since Amtrak unilaterally announced it planned to start service in 2022 [see “Amtrak seeks to start New Orleans-Mobile service …,” News Wire, Feb. 26, 2021], then went to the STB in an effort to compel cooperation by the host railroads [see “Amtrak asks STB to require CSX, NS to allow Gulf Coast service,” News Wire, March 16, 2021].

4 thoughts on “Mobile, port, and Alabama strike tentative deal to equally fund $3 million Gulf Coast grant: Analysis

  1. This ain’t over with yet folks. The politics of Alabama and specifically Mobile have historically been a mess. Our Governor MeeMaw hasn’t for one second changed her mind about Amtrak. She simply sees the federal money that will be spent on the rail infrastructure for a relatively low down payment. Trust me, once the track improvements have been completed they’ll be no more money from the state or city to keep the train running no matter how popular it may or may not be.

  2. Sure would like to know whose pocket took so long to pad in this adventure. Still would like to know how an agreement to spend public dollars is not allowed to be shown publicly through a FOIA.

    I had to submit a FOIA request just to get a court record of a hearing my grandfather attended in 1891 as a 9 year old over a water dispute.

  3. Glad this soap opera is coming to an end. It has been irritating. I hope that the $223 Million in capital improvement is worth it, to Amtrak and/or CSX freight and/or Alabama State Docks. Because it ain’t cheap.

    I just noticed that my computer’s copy of this web page includes a pop-up advert for the screws and the lumber I bought at Rockler last week. Not even anything to do with being a railfan, they’re for the support racks for my potted pepper plants. Moral of the story: if you patronize an adult sex toys store (I don’t), pay cash.

    1. Or, you could spend the lousy seven bucks a month for Trains Unlimited and not have any ads at all.
      I resisted for over a year because I felt like I was being extorted to eliminate the incessant pop-ups. I finally caved in and glad I did. The other benefits make the paltry cost well worth it.

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