BIRMINGHAM, Ala. – Walter Energy, Inc. has reached an agreement in principle with the Alabama State Port Authority to sell both the Blue Creek Terminal located in the Port of Mobile and an additional parcel of more than 60 acres located less than a mile from the Blue Creek Terminal. The total consideration to be paid by the Port Authority for the properties is $25,000,000.
In addition, the company has agreed with the Alabama State Port Authority to amend the terms of the Coal Handling Agreement pursuant to which the Port Authority currently handles the company’s coal exports through the McDuffie Coal Terminal in Mobile, Alabama. As part of the amendment, the Port Authority has agreed to a long term extension of the existing coal handling agreement and to make certain improvements to the McDuffie terminal to ensure the company has the capability to export the coal that will be produced when the company’s Blue Creek Mine is completed. It is anticipated that the transactions will be consummated upon the satisfaction of usual and customary closing conditions.
James K. Lyons, director and chief executive officer of the Alabama State Port Authority, praised the deal as key to the Authority’s growth in the areas of container and intermodal.
“Strategically, these acquisitions will help us expand our container business,” said Lyons.
The purchase would include the 35± ac. former Mobile River Terminal (MRT) tract and the 63± ac. former Armstrong tract both located adjacent to the Authority’s Choctaw Point Complex.
During a Port Authority Board of Directors session held earlier Friday, May 2, Lyons advised the MRT tract would support much needed expansion land for its rapidly growing container terminal, while the Armstrong tract provided an additional 63± acres for warehousing, distribution and light manufacturing applications.