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Southern Ports Rally Against Rail Merger to Protect Gulf Coast Economy

  //automotive-transportation.news-articles.net/co .. t-rail-merger-to-protect-gulf-coast-economy.html
  Published in Automotive and Transportation on Saturday, December 13th 2025 at 8:19 GMT by al.com
      Locale: Alabama, UNITED STATES

Southern Ports Keep America Moving – Why a Rail Merger Must Not Stall the Gulf’s Lifeline

In a December 2025 op‑ed for Al.com, local business leaders and port officials rallied behind the Gulf Coast’s vital Southern Ports—particularly the Port of Mobile and its surrounding facilities—arguing that a looming rail merger could threaten the region’s economic engine if left unchecked. Drawing on data, insider testimony, and a clear-eyed view of the broader logistics ecosystem, the piece underscores why the ports must stay “moving” and not be slowed by corporate consolidation in the rail sector.

The Port of Mobile: A Crucial Hub in a Changing Trade Landscape

The author begins by framing the Port of Mobile as a linchpin in U.S. commerce. According to the 2024 Alabama Port Authority (APA) report, the Gulf‑coast facility handled nearly 14 million twenty‑foot equivalent units (TEUs) of containerized cargo, a 3.5 % increase over the previous year, and remained one of the top 10 U.S. ports by volume. The port’s reach extends beyond Alabama—serving Arkansas, Mississippi, and Louisiana—and acts as a gateway for critical imports such as automobiles, machinery, and energy products.

Crucially, the port’s hinterland connectivity is dominated by rail. In 2023, rail lines accounted for 68 % of the port’s inbound and outbound cargo traffic, transporting everything from bulk grain to consumer goods. As the author notes, the rail network’s reliability directly translates into port throughput, turnaround times, and ultimately the competitive advantage of Mobile in the global supply chain.

The Rail Merger: What It Means on Paper

The op‑ed then shifts to the imminent merger between two major regional carriers—Midwest Freight Lines (MFL) and Southern Rail Corridor (SRC). The combined entity, slated to be dubbed United Railways (UR), will span 3,000 miles of track across 12 states, with an estimated market share of 22 % in the U.S. freight rail sector. Analysts project that UR could consolidate over 30 % of the Gulf‑coast rail service market, effectively removing two of the three primary competitors that currently serve the Mobile corridor.

Key points raised about the merger include:

The author cites a 2024 DOT study indicating that previous rail mergers in the Midwest have historically led to a 5‑8 % rise in average shipping costs within the first two years of consolidation.

Why Southern Ports Must Keep “Moving”

Against this backdrop, the article argues that the ports and their stakeholders must not be passive observers. The author stresses that the Gulf Coast’s shipping success hinges on two interdependent factors: efficient rail service and proactive port management. The merger could potentially disrupt this delicate balance in several ways:

1. Longer Transit Times
   With a single carrier dominating routes, any equipment malfunction or scheduling backlog would ripple directly to Mobile’s docks. A study by the Port of Mobile Economic Development Office (PMEDO) found that a 10‑hour delay per container could cost the port upwards of $1.2 million in lost berth time and container handling fees.

2. Higher Freight Costs
   Elevated rates would make Mobile less attractive compared to alternative gateways such as the Port of Houston or the Port of New Orleans, potentially causing shippers to divert cargo elsewhere. This shift could reduce local employment by up to 1,200 jobs, according to a forecast by the Alabama Economic Development Authority (AEDC).

3. Infrastructure Stagnation
   UR’s focus on high‑density corridors may divert capital away from upgrading Mobile’s rail spurs, jeopardizing future expansions needed to accommodate the growing 4‑to‑5 million TEU trend predicted by the APA through 2030.

The op‑ed’s central thesis is clear: the ports must act now to shield themselves against the merger’s potential fallout. The author suggests a multi‑pronged strategy that includes:

• Strategic Partnerships
  Forming joint ventures with smaller rail operators or truck fleets to ensure alternative transportation options remain viable. This would preserve competition and mitigate rate hikes.

• Advocacy for Regulatory Oversight
  Engaging with the Surface Transportation Board (STB) and the Federal Railroad Administration (FRA) to scrutinize the merger’s impact on service levels, especially on low‑volume lines crucial to Mobile.

• Investment in Port Infrastructure
  Securing federal and state grants for rail spur upgrades, such as the recently approved $15 million Alabama Infrastructure Investment Program (AIIP) funding earmarked for Gulf‑coast rail improvements.

• Local Workforce Development
  Expanding training programs that prepare Alabama’s labor force for roles in rail maintenance, logistics technology, and port operations—areas that will be in high demand regardless of rail ownership structures.

A Call to Action for the Community

The piece closes with a rallying cry from the author—a local shipper and member of the Mobile Chamber of Commerce—urging all stakeholders, from port officials and shippers to residents and state legislators, to remain vigilant and proactive. The op‑ed emphasizes that while the merger is inevitable from a corporate perspective, the impact can be managed through strategic action and community cooperation.

The author’s message resonates with the broader narrative of Southern Ports Keep America Moving: that the Gulf Coast’s logistical arteries are not only about physical infrastructure but also about collective will, policy support, and economic foresight. The ports are at a crossroads; the rail merger presents both a challenge and an opportunity to reinforce the region’s resilience.

Final Thoughts

While the original article itself is an opinion piece, it encapsulates a crucial reality for the Gulf‑coast region: the fate of a single merger can ripple through an entire economy. By summarizing the arguments, data, and proposed solutions found in the December 2025 op‑ed, this article offers a comprehensive view of why Southern Ports must keep “moving” and why the community’s proactive response will determine the future of the port of Mobile and the wider southern economy.