ALABAMA’S DISTRIBUTION, LOGISTICS & TRANSPORTATION INDUSTRY

OVERVIEW Alabama is served by four major commercial airlines and several commuter air-

lines operating through seven commercial airports.

Alabama water corridors connect to over 15,000 miles (24,000+ km) of inland waterways in 23

states.

Port of Mobile offers carrier services and

shipping options between major global, US Gulf, Southeast and Midwest

Alabama is served by five Class I railroads and

several short lines, carrying cargo over 3,800 miles (6,100+ km) of track.

Six interstate highways (I-10, I-20, I-22, I-59, I-65, I-85) converge in Alabama,

allowing easy access to major markets.

Ace, Dollar General, Home Depot, Target, SYSCO, and Wal-Mart are among the nationally known companies with major distribution operations in the state.

Port

Interstates

Rail

Navigable Rivers

Regional Airports

General Purpose FTZs

www.edpa.org / (205)943-4700

Source: Trade Stats Express; Bureau of Labor Statistics, 2016, Quarterly Census of Employment and Wages, 2015

Alabama was ranked 22nd in the U.S. for exports. Companies in Alabama shipped products to nearly 200 countries.

Wholesale (NAICS 42) in Alabama accounted for 73,635 jobs and 9,336 establishments in 2015.

Transportation and Warehousing (NAICS 48-49) in Alabama accounted for 55,389 jobs and 3,408 establishments in 2015.

www.edpa.org / (205)943-4700

/ ALABAMA’S DISTRIBUTION, LOGISTICS & TRANSPORTATION INDUSTRY

UNPARALLELED ACCESS

Alabama’s interstate system allows companies to access over 160 metro

areas within a 600 mile radius.

Source: ESRI

Source: Google Maps

An eleven hour drive time from the center of Alabama reaches west to

Dallas/Fort Worth, north to Chicago, east to Charleston, and south to Fort

Lauderdale.

ALABAMA

Charleston

Atlanta

Charlotte

Richmond

Nashville

Memphis

New Orleans

Fort Lauderdale

Cleveland

Columbus

Chicago

Oklahoma City

Dallas / Fort Worth

Austin

Houston

St. Louis Kansas City

Aviation Transportation

Alabama is served by four major commercial airlines and several commuter airlines operating through seven commercial airports. International flights are easily accessible via direct flights from major connecting cities. In addition, Alabama is located between two of the country's largest air freight centers - Memphis and Atlanta.

Alabama has 92 public use airports. Through the Alabama Airport Improvement Program and the Federal Aviation Authority Airport Improvement Program, cities can develop airports for industrial and other civil use. Most public use airports are lighted and can accommodate corporate aircraft.

Source: Bureau of Transportation Statistics, National Transportation Atlas Database, 2015

Interstate Transportation

Six interstate highways (I-10, I-20, I-22, I-59, I-65, I-85) converge in Alabama allowing goods to be shipped to major markets.

Rail Transportation

Alabama is served by five Class I railroads and several short lines, carrying cargo over 3,800 miles (6,100+ km) of track. Excellent main line connections give shippers good access to all major market centers.

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UNPARALLELED ACCESS

Water Transportation

Alabama water corridors connect to over 15,000 miles (24,000+ km) of inland waterways in 23 states.

The Alabama Channel at the Port of Mobile bisects the 1,300 mile (2,090 km)Intracoastal Waterway, giving access to markets from Texas to Florida.

Port of Mobile

Since 2001, The Alabama State Port Authority has invested more than $700 million in port infrastructure. Investments include $110 million in enhancements and new equipment at McDuffie Coal Terminal, a $300 million container terminal, a $110 million steel terminal, a $26 million rail ferry terminal, a $33 million federal turning basin, and nearly $50 million in site development for a new intermodal container transfer facility (intermodal rail). These investments offer shippers improved carrier services and shipping options between major global, Southeast and Midwest markets.

At 45 feet (13.7 meters), the port’s main channel is one of the deepest channels in the South.

The Port is served by five Class 1 railroads and two short-lines:

o CN, CSX, BNSF/AGR, NS & KCS.

o CG Railway (4-day Rail Ferry Service between Mobile and Mexico).

o Alabama State Port Authority Terminal Railway (Switching and Terminal Rail Services).

Brookley Aeroplex, located adjacent to the port, offers immediate access to freight forwarding transportation services.

44 berths.

Adjacent to I-10 and I-65.

Cargo handling area: 4.5 million square feet (418,064 m2).

3 RO-RO terminals.

900T Barge Mounted Heavy Lift Crane Capable of Lifting 400T from the center of a Panamax ship.

Core business: coal, forest products, frozen poultry, iron & steel products, aluminum, oversized / heavy lift, and containers.

Foreign Trade Zone no. 89.

APM Terminals Mobile (350,000 TEU/Year Capacity – 800,000 TEU/Year Capacity at Full Build Out).

Set Aside Lands for Logistics / Warehouse / Distribution.

Container Carrier Service to the Port.

o Providing shippers with world-class container carriage in major global trade lanes.

o Maersk, CMA CGM, MSC, APL, HMM & ZIM.

Waterways of Alabama

Intermodal Facilities of Alabama

Source: Bureau of Transportation Statistics, National Transportation Atlas Database, 2015

/ ALABAMA’S DISTRIBUTION, LOGISTICS & TRANSPORTATION INDUSTRY

www.edpa.org / (205)943-4700

Wholesale (NAICS 42) in Alabama accounted for 73,635 jobs and 9,336 establishments in 2015.

Transportation and Warehousing (NAICS 48-49) in Alabama accounted for 55,389 jobs and 3,408 establishments in 2015.

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages, Annual Avg 2015

Alabama Industrial Development Training (AIDT) –

AIDT was established to help new and expanding Alabama companies recruit and train an outstanding workforce. AIDT is consistently recognized for its excellence.

WORKFORCE

Median Distribution/Warehouse Hourly Wages

SOC Description Alabama US

11-3071 Transportation, Storage, and Distribution Managers $40.53 $41.85

43-5071 Shipping and Receiving Clerks $13.76 $14.81

53-3032 Heavy and Tractor-Trailer Truck Drivers $18.08 $19.51

53-3033 Light Truck or Delivery Services Drivers $12.57 $14.60

53-7062 Laborers and Freight, Stock, and Material Movers, Hand $10.94 $12.32

53-7064 Packers and Packagers, Hand $9.96 $10.57

Source: EMSI 2016

LOW OPERATING COSTS

No inventory tax.

Sales and use tax abatements for qualifying companies.

Low property taxes.

Property tax abatements for qualifying companies.

Alabama has one of the lowest overall corporate income tax burdens in the U.S.

Alabama is one of only a few states to allow federal income tax paid or accrued to be deducted from state income tax.

Right-to-Work state.

Source: Federation of Tax Administrators

Top 5 U.S. Training Agency

The Alabama higher education system consists of 30 four-year

colleges and universities and 24 two-year community and technical colleges strategically located

throughout the state providing Alabamians with educational

opportunities to meet the emerging needs of industry.

/ ALABAMA’S DISTRIBUTION, LOGISTICS & TRANSPORTATION INDUSTRY

www.edpa.org / (205)943-4700

Company  County  Product  Jobs Created 

Investment (Millions) 

2016

Big Lots Stores, Inc. Montgomery Consumer goods warehouse/distribution - $6.4 (Expansion)

Glovis America Montgomery Logistics 30 N.A. (Expansion)

Merchants Foodservice Chilton Food service distribution 60 $8.0 (Expansion)

American Tire Distributors Madison Tire merchant wholesalers 25 $7.0 (New)

Next Level Apparel Houston Apparel distribution 100 $4.7 (New)

Total Quality Logistics Jefferson Logistics 100 $0.158 (New)

2015

Fed Ex Ground Mobile Distribution center 100 N.A. (New)

Jo-Ann Store Distribution Lee Distribution center - $2.0 (Expansion)

LogisAll USA Macon Freight warehouse for automotive parts 60 $4.0 (New)

Publix Distribution Jefferson Grocery distribution 200 $3.4 (New)

SCOSCHE Industries Franklin Distribution of consumer electronics 27 $8.0 (New)

Southeastern Freight Lines Jefferson Transportation and logistics 25 $20.0 (Expansion)

United Parcel Services Montgomery Distribution center - $14.0 (Expansion)

2014 

Gulf Coast Produce Distributors  Baldwin  Food distribution  100  $1.0 (New) 

Total Quality Logistics Baldwin Logistics 80 N.A. (New)

2013 

HD Supply Facilities Maintenance  Shelby  Maintenance and repair product distribution center  50  $7.0 (New) 

Home Depot  Jefferson  Distribution and warehousing for home-improvement chain  150  N.A. (Expansion) 

Industrial Service & Supply  Chambers  Third-party warehouse logistics  4  $1.9 (Expansion) 

Saddle Creek Logistics, Inc.  Jefferson  Warehousing, transportation, packaging, and other services  25  $1.6 (New) 

US Foods  Montgomery  General line grocery merchant wholesalers  N.A.  $1.7 (Expansion) 

2012 

Alabama Crown Distributing  Shelby  Distribution of liquor, wine, beer, and other beverages  70  $16.0 (Expansion) 

Ashley Furniture Home Stores  Baldwin  Furniture distribution  26  N.A. (New) 

Children's Place  DeKalb  Distribution of children’s apparel -  $4.05 (Expansion) 

Hibbett Sports  Shelby  Distribution center and warehouse for sporting goods retailer  170  $25.0 (New) 

/ ALABAMA’S DISTRIBUTION, LOGISTICS & TRANSPORTATION INDUSTRY

RECENT EXPANSIONS & NEW PROJECTS (PARTIAL LIST)