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Yesterday, Alabama Gov. Bob Riley, local dignitaries, and executives from International Shipholding Corp. and CG Railway Inc. dedicated a new ferry terminal in Mobile, Ala.

CG Railway will use the $27 million facility to transport loaded rail cars to and from the Alabama State Docks port in Mobile and Mexican ports without rehandling freight on either side.

The rail ferry service will handle exported forest products, metals, chemicals and durable goods, and imported beer, forest products, chemicals and plastics. The service will provide local and regional shippers a faster and more cost-effective transportation option to Mexico than land-based rail, according to the Mobile port.

“This project will add an entirely new dimension to what the port can do,” said Riley in a prepared statement. “It allows our port to be more competitive going forward.”

An International Shipholding subsidiary established in 2000, CG Railway serves as a connection between railways in southern Mexico and railroads in the United States and Canada.