Today, more than 80% of global shipping involves containers. They're packed with everything from personal storage items in dry containers to heavy machinery on flat rack containers. For business owners shipping products, getting a container from point A to point B requires precise planning and high-level tracking. But that's easier said than done when global supply chains become over-congested, leading to loading time issues and delays.
That's bad news for business owners who are already under a massive amount of stress. The truth is that container storage delays can cripple a business, but there's a viable solution: drayage brokers in Mobile, AL like RelyEx. Drayage companies provide unique solutions to minimize demurrage and help ensure the successful delivery of your freight.
With more than 30 combined years of experience and a solutions-oriented team, RelyEx has quickly become the first choice for streamlined, efficient drayage services. To understand the true value of RelyEx's offerings in the global logistics industry, it helps to understand first what drayage is and why it's used.
If you're a seasoned business owner who uses port drayage to transport your products, you know exactly how important the service can be. But if you were to poll a group of random people, you may get five different definitions of the term "drayage." That begs the question, how is one of the most crucial steps in the supply chain and most vital components of global trade such a confusing concept? When you break it down, it's not too difficult to grasp.
Drayage, by definition, means the transportation of freight from an ocean port to another destination. Today, drayage is also used to describe the process of transporting products and goods over short distances or over "the first mile."
While drayage often means short-distance movements during the supply chain process, it's primarily used in the container shipping space. Drayage loads usually have arrival and departure points in the same city and don't include long-haul, national transportation.
Because a drayage load can mean a few different things, confusion among carriers is common. Many carriers link drayage with going into a port, but that isn't always true. While all drayage loads typically originate from a port of entry, there are often several legs of a drayage journey before a container turns up at its final stop. Legs of a drayage load may include:
You may be thinking, what's so important about drayage? It's such a small step in the container storage transport process. In reality, it's an integral piece needed in the logistics industry and a crucial part of U.S. supply chain management.
To truly understand the importance of drayage, let's use flowers as an example. Most cut flower shipments enter the market from areas in South America until they end up at Dutch auction houses. Once there, wholesalers purchase flowers in bulk and send those products to retail outlets worldwide. Because flowers are perishable, they typically need to be refrigerated and are often shipped in reefer containers. These refrigerated vessels must maintain a certain temp to prevent loss.
Drayage companies like RelyEx allow flower shippers to send their products from Argentinian ports to airports in the Netherlands with peace of mind because their products are protected. The only way to accomplish this feat is with the help of swift, meticulous port drayage services. Drayage companies allow flower shippers to send their products from Argentinian ports to airports in the Netherlands with peace of mind, because their products are protected. The only way to accomplish this feat is with the help of swift, meticulous port drayage services.
If port drayage is compromised, it can cause delays and even fines. You know the packages you get delivered to your front door from apps like Amazon? Without drayage and drayage brokers, one or two-day shipping times wouldn't even be possible.
As a multi-billion-dollar industry in the U.S. alone, it seems like drayage shipping issues shouldn't exist. But the fact is inefficiencies and congestion are still major problems at ports. Whether it's a lack of carriers, absent chassis, or overburdened terminals, delays lead to missed deadlines, lost revenue, and worse.
But anytime challenges exist, so too do innovative solutions.QUOTE REQUEST
RelyEx was created because our founders saw a need in the logistics space for more reliability and efficiency. The reality of the shipping and logistics industry is that it has become very transactional. It's an odd evolution, because most businesses seek a third-party logistics partner that is accessible, transparent, and committed to providing solutions.
As the logistics space continues to grow, it creates newfound expenses and complexities. Clients like ours know that and need a supply chain partner who is genuinely interested in their business. By understanding the needs of our customers and carriers, we can provide the most reliable, effective drayage services possible.
Unlike some drayage companies in Mobile, AL, we begin managing your containers before they ever hit the ports by mapping out the most efficient pathways of delivery. That way, our team can discover the best drayage pathways to expedite delivery time and reduce fees that cut into profits.
Our valued drayage customers choose RelyEx because:
At RelyEx, we like to consider ourselves problem solvers. The nature of the container drayage industry presents new challenges every day, but we're firm believers that there's a solution to every hurdle we encounter. And while some drayage businesses implement a reactive approach, RelyEx customers choose us for our proactive mindset. We take pride in solving your company's drayage challenges to help you avoid frustrating fees, missed expectations, and delayed shipments. We strive to make every transaction successful and streamlined by partnering with shippers who prioritize transparent, prompt, and accurate communication.
RelyEx approaches your business from the customer's perspective - a unique approach that helps us provide high-quality, effective drayage services. We've been in the customers' shoes, know their pain points, and because of that, provide first-hand solutions to stressful supply chain issues. With over 30 years of collective knowledge, our team excels in:
Our varied, high-level drayage shipping experience helps us achieve our overarching goal: expertly managing your freight movement needs. That way, you can direct your time and focus on growing the core aspects of your business while we handle the heavy lifting. Throw in proactive planning to avoid bottleneck situations and strong communication for transparent customer relations, and you can see why so many companies trust RelyEx.
When it comes to shipping logistics, it only takes one mistake by a mediocre worker to disrupt your business. That's why, at RelyEx, we pride ourselves on forming and nurturing relationships with carriers who match our standards of care. Our founding partner started his career transporting freight for companies as an on-demand carrier. He uses that knowledge to maximize the resources of our carriers so that our customer's expectations aren't just met - they're exceeded.
Based in the port city of Mobile, RelyEx has a keen understanding of the challenges of managing the inbound and outbound flow of containers. Our team of container drayage experts provides your business with unique solutions to nuanced shipping problems, minimizing demurrage and ensuring the successful delivery of your freight.
Customers choose RelyEx because:
Some drayage brokers don't care how customers feel about their service as long as they sign a contract and get paid. As a solutions-oriented team, RelyEx takes the opposite approach. We're motivated by the opportunity to overachieve for our customers and to provide them with the best logistics experience possible. With professional experience as carriers and shippers ourselves, we know the roadblocks and challenges you're facing. We excel at mapping out the best plans of action to solve those problems. But that's just the start.
Our tracking experts monitor and manage every aspect of your drayage shipment from booking to delivery, 24/7. Once booked, we look for the availability of your containers hourly once they're at port. When they arrive, our team acts quickly to access your storage containers when they're available.
Plus, RelyEx ensures your company's requirements are met by the carrier during loading and delivery and provide necessary documentation as fast as possible. With real-time tracking updates and access to our customer service professionals, your team has complete visibility throughout the shipping process.
Over the years, RelyEx has built a strong network of drayage carriers, transloading locations, and container storage spaces to provide you with the best possible options to match your drayage service needs. We know that searching for quality service presents an added layer of complexity and stress to our customers. That's why we work hard to take that off your plate by connecting you with our reliable shipping partners.
With a background moving freight as an on-demand carrier, our founding partner understands how to maximize the resources and equipment of our carriers to match your needs.
Like other industries, the global logistics space is complex. Mistakes will be made, and problems will happen. With those truths in mind, RelyEx has built its reputation as problem solvers. Unlike other drayage companies, we don't shy away from this industry's complexities because we take pride in solving problems. Even better, we aim to do what's needed to avoid those problems altogether.
As your logistics partner, we will provide your company with accurate, transparent, and prompt communication. If there are unexpected issues, we'll notify you immediately and will provide several options to remedy the problem. We even offer custom reporting for large clients who need at-the-moment updates and quick access to shipment documentation.
Why let the unpredictability of your industry dictate your success? With a background working in manufacturing, our founders are familiar with the demands of managing production schedules and sales orders. That experience makes it abundantly clear to us that every business and industry is different. If you struggle with seasonal surges or other factors, our team supports your business with a mapped-out plan and schedule, so you stay ahead of the game.QUOTE REQUEST
Based in the port city of Mobile, RelyEx has a keen understanding of the challenges of managing the inbound and outbound flow of containers. Our team of container drayage experts provides your business with unique solutions to nuanced shipping problems, minimizing demurrage and ensuring the successful delivery of your freight.
Demurrage is a charge issued by a port, carrier, or railroad company for storing containers that do not load and unload their cargo promptly. Once the daily limit of free time is exceeded, shippers are charged daily demurrage fees until their cargo is shipped. Though different ports have different policies, charges can range from $75 to $150 per container, per day, for a set number of days. Additional demurrage fees are incurred if a shipper exceeds the port's parameters.
Even when shippers maintain a tight schedule for unloading freight, external factors can play an uncontrollable part. Typically, shipping mistakes caused by human error trigger the most demurrage charges. Some of the most common causes of demurrage include:
Typically, shippers need four specific documents to clear shipments through customs: A Bill of Lading (or BOL), a commercial invoice, a packing list, and an arrival notice. Seasoned drayage brokers like RelyEx are used to preparing these documents, but new shippers tend to miss this step due to inexperience.
If a shipper only pays for part of their shipment, a vessel operator may refuse to release their freight until their bill is fully paid. Payment delays lead to cargo detention at the port of entry, which triggers demurrage charges.QUOTE REQUEST
Paperwork is needed when you're shipping goods with a drayage company. When documents like the Certificate of Origin or Bill of Lading arrive at their destination late, you can expect demurrage fees. RelyEx avoids this situation entirely by being proactive when submitting paperwork.
Additional causes for demurrage fees can include:
At RelyEx, we know first-hand how stressful supply chain problems can be for business owners. Though drayage shipping might seem minor on the surface, it affects every stage of your shipping process. And when inevitable hurdles manifest, RelyEx propels you over the proverbial roadblocks with a proactive mindset and a passion for challenging projects. We believe that all problems have a solution, and our unique vantage point allows us to provide first-hand solutions to customers in a wide array of industries.
When it comes to your business, don't settle for anything less than RelyEx. Contact our office today to learn more about how we make your shipping experience streamlined and stress-free.843-885-3082
Download ImageMOBILE, Alabama — Two companies are launching growth projects in the Mobile area, bringing a combined $98 million in new capital investment and almost 240 jobs, according to the Mobile Chamber.The companies are:Keith Chatten, CEO of Superior Air Parts, said ...
MOBILE, Alabama — Two companies are launching growth projects in the Mobile area, bringing a combined $98 million in new capital investment and almost 240 jobs, according to the Mobile Chamber.
The companies are:
Keith Chatten, CEO of Superior Air Parts, said the company considered many factors in its decision and found the Mobile area offered many advantages.
“The transportation system that is in place and expanding in the Mobile area is very impressive. The area has invested heavily in education including high school programs, technical schools with the recent addition of manufacturing programs at Bishop State and the extensive growth at the University of South Alabama,” Chatten said.
“All of that certainly helps us find the various skill sets needed, such as machinists, operators, test technicians, engineers, and various other professionals,” he added.
Superior Air’s Mobile County facility will host research and development, engineering, a test cell, machining and manufacturing. Its operation, including the corporate headquarters, will be located on Radcliff Road in Creola.
The company plans to break ground by the end of 2023. Operations for phase one are set to begin in 2024, according to the Mobile Chamber.
“As a leading manufacturer of FAA-approved aftermarket parts for piston-engine aircraft, Superior Air Parts will be a strong addition to the growing aviation cluster in the Mobile region,” said Greg Canfield, Secretary of the Alabama Department of Commerce.
“Superior’s decision to relocate its manufacturing operation and headquarters to Mobile County clearly reflects the company’s confidence in the area’s workforce.”
As part of its new project, Chart purchased the former Standard Concrete manufacturing facility, located along the Theodore Industrial Canal.
The cryogenic containers that will be manufactured at the new facility will be up to 30 feet in diameter, 100 too 200 feet long, and weigh close to 1 million pounds. This location will allow the company to directly load the containers, which are too heavy to transport on roadways, directly onto barges.
Chart’s expansion project builds on its Alabama presence, which began in 2020 when it acquired the cryogenic and hydrogen trailer business of Worthington Industries, which operated the Theodore site.
In March 2021, Chart announced a $2.5 million expansion project, which tripled its employee roster at the Mobile County facility. It currently employs 165 people at the existing facility
“We are thrilled to see Chart’s continued confidence in the Mobile area by expanding their operations in Theodore,” Mobile Chamber President & CEO Bradley Byrne said. “Expansions like this are made possible by support from Partners for Growth investors and Team Mobile.”
Chart is a publicly traded company based in Ball Ground, Georgia, just outside of Atlanta. It was named one of Fortune’s “100 Fastest Growing Companies” in 2020 and has customers on six continents.
“The expansion of Chart Industries is another reflection of the great workforce and thriving business environment that exists in the Mobile area,” said Mobile Mayor Sandy Stimpson.
“We are excited to be a partner in the future success of Chart Industries and are grateful for their continued investment in Mobile.”
Mobile County Commission President Connie Hudson echoed those comments.
“This substantial capital investment and the creation of these new jobs will greatly benefit and further diversify our local economy,” she added.
Editor’s note: This story originates in the Lede, a daily curated news product for local readers. For more information, visit https://www.alabamalede.com.On Thursday, the city of Mobile announced its new “Homeownership Provides Equity” (HoPE) program, which w...
Editor’s note: This story originates in the Lede, a daily curated news product for local readers. For more information, visit https://www.alabamalede.com.
On Thursday, the city of Mobile announced its new “Homeownership Provides Equity” (HoPE) program, which will provide Mobile County residents who qualify for housing choice vouchers (sometimes called Section 8 vouchers) a path to homeownership.
Here’s how city officials say it will work: the city will provide a mortgage for a new home on an empty lot in one of the city’s infill neighborhoods. The resident will use the voucher for mortgage payments, paid to the city, instead of rent. Once the mortgage has been paid off, the voucher holder will own the home outright.
There’s no down payment required on the home, as the city will forgive part of the mortgage in place of the down payment, part of an existing down payment assistance program the city has in place.
The interest rate on the mortgage is at 2%, below market rate. As is typical with housing choice vouchers, the voucher holder will pay no more than 30% of their income toward the mortgage payment; the voucher will cover the difference. And the city will work with the voucher holder to lower the interest rate if it’s needed, James Roberts, senior director of the city Neighborhood Development Department, says.
Anyone in Mobile County who receives a housing choice voucher is eligible to apply for the program. However, not every housing authority allows housing choice vouchers to be used for homeownership; check with the housing authority that you receive your voucher from to see if it’s allowed. The Mobile Housing Authority and the Prichard Housing Authority allow vouchers to be used for homeownership programs such as this.
In order to be eligible for the program, you must be able to pay one percent of the mortgage, to be used for building the home. In addition, you must also have a satisfactory payment history.
Once the city underwrites the loan, the developer, Affordable Homes Gulf Coast, will then build the home on an available lot. The lots are provided by the city or a partner, such as a church or nonprofit. The homes will be built to “Fortified Gold” standard, which means they are built to withstand natural disasters. This lowers insurance costs on the home, developer Terry Harbin says. The city pays the developer fee.
There will be 50-75 homes built in the next three years through this program. The program is being paid for through $10 million from the federal American Rescue Plan Act (ARPA). The city hopes to continue the program once that money runs out through residual funds from the program and additional federal funds, Roberts says.
If you are interested in applying for this program, contact your housing authority case manager. For more information on the program, you can contact the city of Mobile Neighborhood Development Department, either online or by calling (251) 208-6294.
If you purchase a product or register for an account through one of the links on our site, we may receive compensation.
Every year around the carnival season, a familiar and playful argument breaks out between New Orleans, Louisiana, and my hometown of Mobile, Alabama. Amid an online discussion about who does it better and why, I saw one comment that said something like, “At our house, we have to put a dollar in the jar every time someone says that Mardi Gras started in Mobile.” If each Mobilian followed this household rule, we could probably pay for the new Bayway in a year. All jokes aside, we do take our revelry seriously, especially from the n...
Every year around the carnival season, a familiar and playful argument breaks out between New Orleans, Louisiana, and my hometown of Mobile, Alabama. Amid an online discussion about who does it better and why, I saw one comment that said something like, “At our house, we have to put a dollar in the jar every time someone says that Mardi Gras started in Mobile.” If each Mobilian followed this household rule, we could probably pay for the new Bayway in a year. All jokes aside, we do take our revelry seriously, especially from the night before Thanksgiving through Fat Tuesday. Here, I’ve rounded up some of my personal favorite Mobile spots, plus a few touristy (but only mildly cheesy) things to do on your first visit. Pro tip: If you want to blend in with the locals, it’s a “hugger,” not a “koozie” and a “wharf,” not a “dock.” And for the love of Joe Cain, it’s pronounced Mo-BEEL, not like “mobile phone.”
This coffee shop, which lives in a historic home in the heart of the Spring Hill area of Mobile, is extremely special to me. My mom and I have made countless “Carpe runs” in my lifetime, and I can promise you’ll enjoy whatever you order and feel right at home. After you get your fill, head across the street to walk around the historic Spring Hill College campus. Don’t miss a photo opp at the Avenue of the Oaks.
This cool downtown institution serves so much more than coffee, including Italian gelato and fresh breakfast and lunch options.
This funky little coffee shop near the University of South Alabama campus also has incredible sandwiches if you stop in around lunchtime.
Long before brunch got trendy and Bloody Mary toppings got out of hand, Spot of Tea was gracing downtown Mobile with an incredible menu that includes Deadly Hashbrowns (you may really die…and go straight to heaven) and a strawberry tea so good you’ll need a personal pitcher of it.
On your first visit to The Dew Drop, you may wonder, “Is that hot dog supposed to be bright red? And is it cooked?” Yes, and yes. Even if you’re not from Mobile, stepping into this restaurant will feel like a time machine back to your childhood via the decor, the classic comfort food, and the staff’s Southern hospitality.
Repeat after me: “When I go to Callaghan’s, I will order the burger.” Say it one more time just in case. After that, grab a beer and enjoy this 1946 bar and grill in Mobile’s gorgeous Oakleigh Garden District.
This precious eatery has plenty of options for lunch and a lovely patio for enjoying a nice day. It’s also the ideal location to grab a pre-dinner cheese board and glass of wine.
Whether you get the famous Butch Burger, a plate of wings, or a po’boy, we can assure you you’ll be full leaving this Midtown Mobile mainstay.
A newer addition to the Midtown restaurant scene than its across-the-street neighbor The Dew Drop Inn, Nixon’s has established itself as a go-to site for sandwiches and sports-watching.
The Meat Boss’s ordering instructions are simple: “Choose your meat, choose your bread, choose your sauce, choose your toppings and choose your side.” Do those things, and you will leave incredibly happy (and satisfied).
Noja is the perfect downtown venue for fine dining in a comfortable yet chic atmosphere. Be sure to make a reservation!
As the name suggests, Pour Baby is a wonderful wine bar to try a new bottle, but the dinner can’t be overlooked.
Craving pasta? Call Via Emilia and get a table ASAP. You won’t believe the caliber of Italian food being served at this cozy little cottage.
No offense to Ruth, but I normally wouldn’t include a chain restaurant in a roundup like this. However, Mobilians know that our location of the steak house is special. Not only are several of the walls lined with photos of the past kings of Mardi Gras, but the real treat is a cocktail-milkshake mashup called the Chrissy.
If you don’t come for the seafood, come to this restaurant for the best view of Mobile Bay and downtown from the top of the Trustmark Building.
Sure, you know that Mobile is the birthplace of Mardi Gras in America, but there’s so much more to learn, and class is in session at the Mobile Carnival Museum. While you’re in a Mardi mood, check out a newer addition to the city, Mardi Gras Park.
If you have little ones or are a history buff yourself, a trip down to the USS Alabama Battleship is an essential part of a Mobile stay.
Even if you don’t stay at The Battle House, it’s a gorgeous piece of Mobile history to see, especially for those who love architecture. The 1852 building has whisper arches the kids will be tickled with, and the family can enjoy a meal at one of three on-site restaurants.
Gardeners should this historic estate for fantastic azaleas in the spring, and families can’t miss the Magic Christmas in Lights event every holiday season.
I know—who wants to spend time in a dark theater while on vacation? I get it. But if you happen to catch a rainy day (which, let’s be honest, is quite likely in Mobile), a showing at this independent theater should be your first move. Before each movie, a staff member will tell the audience a bit about the film, making for a more meaningful viewing experience. Plus, it’s right in the heart of downtown’s entertainment district, so there’s plenty nearby to see, eat, and drink afterward.
If it’s pleasant outside, you can’t beat sitting on the BLUEGILL patio, listening to live music, and enjoying a cold beer and hot fried seafood. The Flaming Oysters are a requirement, and I don’t want to hear any ifs, ands, or buts about it.
Mobilians know that if you want crawfish, there is no place better than R&R. Trust me and order them spicy.
Felix’s is the slightly dressier cousin to the more casual seafood dives on the Causeway, making it an ideal date spot with the prettiest sunset views.
These locales range from a swanky speakeasy to a dive bar with live music and everything in between. Find the vibe you’re looking for, sit back, and enjoy the people watching.
A goose mascot wearing Mardi Gras beads and leading a second line of elected officials through the foyer of the Mobile Chamber can only mean one thing: Wawa has landed in southwest Alabama, and lots of people are very happy about it.Executives with the convenience store chain, an East Coast company that spread down into Florida over the last decade, announced back in April that they had set their sights on a major expansion campaign across the Florida Panhandle and into coastal Alabama. Friday morning, they held a press conference in ...
A goose mascot wearing Mardi Gras beads and leading a second line of elected officials through the foyer of the Mobile Chamber can only mean one thing: Wawa has landed in southwest Alabama, and lots of people are very happy about it.
Executives with the convenience store chain, an East Coast company that spread down into Florida over the last decade, announced back in April that they had set their sights on a major expansion campaign across the Florida Panhandle and into coastal Alabama. Friday morning, they held a press conference in Mobile followed by another Friday afternoon in Spanish Fort to lay out some details of that plan and to reveal where Alabama’s first Wawas will be built.
Related: Wawa is coming to Alabama. So what’s a Wawa?
So who gets the area’s first Wawas? In Mobile, it’s some lucky folks out in west Mobile. Company officials revealed Friday that the first two Mobile stores will be built at the intersection of Cottage Hill and Sollie Roads, and the intersection of Schillinger Road and Old Government Street Road. (The latter site is near the Walmart supercenter on Schillinger south of Airport Boulevard.)
In Baldwin County, the four locations announced Friday are at U.S. 98 and Baldwin 44 (Twin Beech Road) in Fairhope; Ala. 181 and Ala. 104 in Fairhope; U.S. 98 and Johnson Road in Daphne; and Ala. 59 and Baldwin 48 in Robertsdale. The Alabama locations follow two Pensacola sites announced Thursday.
And when will they open? The first should be in business within a year from now, company representatives said.
When it comes to expansion, Wawa doesn’t play: Robert Yeatts, senior director for store operations in Florida and new markets, said the company decided to enter Florida about 10 years ago. Now it has 250 stores there, employing more than 10,000 associates.
The scheme for the Mobile-Panhandle region is a little more modest: 40 stores over the next eight to 10 years. In the Mobile area, the two confirmed sites soon will be followed by three to four that are now under consideration, Yeatts said.
The impacts add up: Company officials said Wawa will invest about $6.5 million per store, with about 140 contractors employed on each site. Each store will employ around 35 associates, with salaries starting at $15 per hour. Multiply that by the 40 stores planned for the region and it adds up to an investment of around $260 million and 1,400 new jobs.
Like Buc-ee’s, Wawa has legions of zealously enthusiastic fans, though the two companies’ business plans are considerably different. Where Buc-ee’s store are megasites beckoning interstate travelers with scores of gas pumps, Wawa doesn’t prioritize highway locations. Its stores are built on the scale of many other gas and convenience chains. But it has built its reputation by standing out in several categories, including cleanliness, the quality of its fresh foods and groceries, and the appeal of its hoagie sandwiches, ordered through a sophisticated touchscreen system that lets customers order exactly what they want. Other deli foods include a breakfast menu that also has some hard-core fans.
“Hoagie” might not be a term that comes naturally to Alabama residents, said Director of Store Operations Steve Hasher, but “we’re here to sink the sub, that’s for damn sure.”
Wawa was founded as a dairy market in a small Pennsylvania town of that name in 1964 and now has 1,000 stores in six states, employing 45,000 associates, Hasher said.
Other aspects of its operation that set it apart are an employee-ownership plan, under which associates own about 40% of the company; and philanthropy that includes an emphasis on fighting hunger. In Mobile, the company has opted to partner with USA Health Children’s and Women’s Hospital and with the Coast Guard foundation.
Chamber President and CEO Bradley Byrne said Wawa’s decision to come into the region was “the ultimate affirmation” that the Mobile area has a promising economic outlook. Mobile Mayor Sandy Stimpson told company representatives that “you can count on us to deliver” needed support.
Information about jobs can be found at https://www.wawa.com/careers. The company site also presents extensive information about site selection.
The University of South Alabama Health Care Authority is buying Providence Hospital from St. Louis-based Ascension and its clinics in an $85 million transaction expected to be completed later this fall.The transaction was approved by the USA Board of trustees during its meeting Tuesday in Mobile.“This is a very exciting day for health care in the Mobile region,” said Owen Bailey, CEO with USA Health. “We’re excited about what Providence Hospital brings to the table. Our goal is a smooth transition of ser...
The University of South Alabama Health Care Authority is buying Providence Hospital from St. Louis-based Ascension and its clinics in an $85 million transaction expected to be completed later this fall.
The transaction was approved by the USA Board of trustees during its meeting Tuesday in Mobile.
“This is a very exciting day for health care in the Mobile region,” said Owen Bailey, CEO with USA Health. “We’re excited about what Providence Hospital brings to the table. Our goal is a smooth transition of services with little disruption.”
The acquisition will allow the healthcare authority to acquire the 349-bed, 11-story Providence Hospital facility on Airport Boulevard and its related sites of care, including physician practices of Ascension Medical Group. Providence is a full-service facility with 24/7 emergency care, a Level III trauma center, an outpatient diagnostic center, and a freestanding rehabilitation and wellness center.
USA and Providence Hospital will continue to operate independently until the transaction is finalized.
Dr. John Marymont, vice-president for medical affairs and dean of the Frederick P. Whiddon College of Medicine at the University of South Alabama, said there are no plans for layoffs. Providence currently employs around 2,100 employees, he said.
“Quite the contrary,” Marymont said. “We welcome them to our family. We have great aspirations of a smooth transition and offering more services and opportunities of health care needs for Alabama and the Gulf Coast. I think this will enhance both hospitals.”
Marymont said that USA Health and Ascension had been in talks for the past six years about a possible partnership, and said he was confident about the transaction. Ascension Health, a 138-hospital system in 19 states, closed its last fiscal year with a $1.8 billion net loss, amid soaring operational costs.
“We have done an extreme amount of due diligence and we are confident in the evaluation of the opportunity,” Marymont said.
Bailey said for USA Health, the past five years have been “a period of explosive growth,” which he said has seen the health system grow from approximately seven locations in 2016 to 30 or so within the Mobile area.
USA Health is the only academic health system along the upper Gulf Coast, and operates University Hospital in Mobile, Children’s & Women’s Hospital, and the Mitchell Cancer Institute.
“We are at and exceeding capacity at our hospitals at USA Health,” said Bailey. “This (transaction) is about having three hospitals instead of two and what that means about more options to place patients. Instead of being a negative, it will be a positive.”
He added, “When you are growing at a rate we are growing, you need to make key decisions on what is best for patients.”