Alabama has authorized construction of the $3.2 billion first phase of the Mobile River Bridge and Bayway project, clearing the final procedural step before construction begins.
Governor Kay Ivey announced the authorization Tuesday, September 29, paving the way for a groundbreaking ceremony in Mobile on October 2. The project represents the largest transportation infrastructure project in Alabama history, according to the state.
The Alabama Department of Transportation (ALDOT), acting on behalf of the Alabama Toll Road, Bridge and Tunnel Authority, issued the notice to proceed to the Kiewit Massman Traylor (KMT) design-build team on September 25.
The authorization follows the completion of bond sales and federal financing earlier this month. The project received a $2.52 billion Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the U.S. Department of Transportation, which helped complete the financing needed for the first phase.
U.S. Transportation Secretary Sean Duffy is scheduled to join Ivey and other officials at the October 2 groundbreaking ceremony.
Six-Lane Mobile River Bridge Anchors Phase I
The first phase will center on a new six-lane cable-stayed bridge over the Mobile River.
The bridge will expand Interstate 10 capacity between Mobile and Baldwin counties while providing clearance for commercial vessel traffic using the river. The project will also improve traffic flow through key interchanges and intersections in both counties.
Rather than immediately replacing the entire Bayway, ALDOT will use the existing structure during Phase I. The agency plans to restripe the 7.5-mile Bayway to provide three lanes in each direction, creating six lanes of capacity across Mobile Bay.
The first phase will also include reconstruction of approximately one mile of the existing Bayway and improvements to the surrounding roadway network.
The broader project has been divided into two phases following changes to its engineering and financial approach.
Phase II calls for construction of a new Bayway structure. The project fact sheet states that the second phase would be paid for through toll revenues under the existing tolling framework.
The phased approach followed updated engineering analysis that found constructing a completely new Bayway at the same time as the new Mobile River Bridge would significantly increase costs.
The project has also faced higher labor and material costs, geotechnical and engineering challenges and federal regulatory requirements. Phase I now carries an estimated construction cost of approximately $3.2 billion.
$2.52B TIFIA Loan Supports Construction
The U.S. Department of Transportation lists the overall estimated project cost at approximately $5.3 billion. While the current Phase I construction program carries the $3.2 billion price tag.
The TIFIA program provided a $2.52 billion direct loan to the Alabama Toll Road, Bridge and Tunnel Authority. The credit agreement was executed on September 16, 2026. The USDOT funding profile also lists approximately $3.8 billion in bond proceeds, $113 million in ALDOT funds, $1.1 billion in federal funds and $351 million from other sources. The project uses a design-build delivery method.
The Alabama Toll Road, Bridge and Tunnel Authority serves as the project sponsor and borrower, while ALDOT is responsible for advancing the project on behalf of the authority.
KMT is delivering the project through the design-build approach. The team consists of Kiewit Infrastructure South Co., Massman Construction Co. and Traylor Bros., Inc., according to the project information provided for the development.
Tolling Starts After Bridge Opens
The project will use a user-pay financing model backed by toll revenues.
Motorists will not pay tolls during construction. Toll collection will begin only after the new bridge opens, currently projected for approximately 2031.
The project’s proposed toll structure includes a $60 unlimited monthly commuter pass and a $3 per-trip ALGO Pass rate. Drivers using interoperable transponders would pay $7.70 per trip, while motorists without a transponder would use pay-by-plate billing.
The project fact sheet also states that several existing routes will remain free, including the causeway, Wallace Tunnel, Bankhead Tunnel and Africatown Bridge.
All toll revenues generated by the project will be used to finance project costs and debt.
Project Targets I-10 Bottleneck
The Mobile River Bridge and Bayway project is designed to address capacity constraints along the I-10 corridor between Mobile and Baldwin counties.
Once completed, the project is expected to reduce travel times by up to 30 minutes and improve access to major destinations, including the Port of Mobile.
Phase I completion is currently projected for approximately 2031. The new bridge and expanded Bayway capacity will provide the initial increase in interstate capacity, while the future Phase II Bayway structure remains part of the broader project.
After decades of planning and funding challenges, the September 25 notice to proceed now moves the $3.2 billion first phase into construction, with the October 2 groundbreaking marking the formal start of the work.
Additionally; Mobile River Bridge and Bayway project is also part of a broader push to modernize critical transportation infrastructure across the U.S. In New Jersey, the Raritan River Bridge Replacement is advancing the replacement of an aging Northeast Corridor bridge, with the project designed to improve the reliability and capacity of one of the region’s major rail connections.
Mobile River Bridge and Bayway Project Factsheet
- Project: Mobile River Bridge and Bayway Project
- Location: Mobile and Baldwin counties, Alabama
- Project type: Roads and bridges
- Phase I construction cost: Approximately $3.2 billion
- Overall estimated project cost: $5.3 billion
- Mobile River Bridge: New six-lane cable-stayed bridge
- Bayway: Existing 7.5-mile Bayway to be restriped to three lanes in each direction
- Phase II: New Bayway structure
- Federal financing: $2.52 billion TIFIA direct loan
- Sponsor/Borrower: Alabama Toll Road, Bridge and Tunnel Authority
- State transportation agency: Alabama Department of Transportation
- Design-build team: Kiewit Massman Traylor (KMT)
- Delivery method: Design-build
- Notice to proceed: September 25, 2026
- Groundbreaking: October 2, 2026
- Expected Phase I completion: Approximately 2031
- Tolling: Begins after the new bridge opens
- Primary revenue source: Toll revenues
Leave a Reply