Auto plants credited for local intermodal center's rail growth

Sunday, July 09, 2006
By GINA HANNAH
Times Business Writer ginah@htimes.com

The International Intermodal Center at the Port of Huntsville saw a sharp increase in rail traffic during the past fiscal year, but not necessarily because it's cheaper to ship by train these days.

International trade is growing in North Alabama, said Jim Hutcheson, accounts manager for the International Intermodal Center. Thanks to new and expanded automotive plants, the port saw a 35 percent increase in rail shipments - more than 41,000 container lifts - during the fiscal year ended June 30. That's the biggest year on record, Hutcheson said.

In June, the rail yard saw 4,046 lifts, a 71 percent increase over the same month last year.

Hutcheson said higher gas prices are somewhat to thank for the increase in rail traffic, but so is North Alabama's economic growth.

"A lot of our increase is also tied to the automotive industry," he said, noting the production launch at Hyundai's 2-million-square-foot assembly plant in Montgomery and recent expansions at plants operated by Mercedes, Honda and Toyota, all within reach of the Intermodal Center's rail yard.

Despite the rising price of aviation fuel, the intermodal center's air cargo is up about 21 percent this year over last, Hutcheson said. Much of that is due to increased international trade, particularly with China, he said.

Unlike some rail yards around the country, the one at Huntsville's intermodal center has been able to absorb the new business without bottlenecks or backlogs, Hutcheson said, thanks to an expansion completed in 2004 that made room for more than 100,000 lifts annually, more than twice the number recorded this year.

The intermodal center has also expanded its hours by two hours per day, now operating from 6 a.m. to 8 p.m.

"We've got room to handle growth here," he said. "We've added more personnel as we needed to and we're able to keep the flow going."

Hutcheson said he expects cargo traffic to grow for the next several years, although perhaps not at the rapid pace the past year has brought.

"It's a very busy operation," he said. "There's not much room for down time."


© 2006 The Huntsville Times
© 2006 al.com All Rights Reserved.