CHARLESTON, S.C. – South Carolina lawmakers allocated $550 million in taxpayer funds for two major port projects at the Port of Charleston, but that amount will now be used for just one project—a rail-based cargo hub adjacent to the Leatherman Terminal in North Charleston. The Navy Base Intermodal Facility, designed to transfer cargo between trucks and trains, has seen cost overruns and delays that have affected the scope of the original plan.
Cost Overruns and Project Shifts
Initially, the Navy Base Intermodal Facility project had a $349 million price tag when it was first proposed three years ago. However, this figure has now ballooned to $545 million, a $196 million increase. As a result, the second project, a $150 million barge facility to move containers between terminals by river instead of trucks, will not be funded with the remaining taxpayer dollars. The port authority now needs to secure funding for the barge facility through grants or from its own operations.
The remaining $51 million from the original taxpayer allocation will be used to pay off a loan taken for early planning documents related to the cargo hub.
Ongoing Delays and Construction Progress
The construction of the Navy Base Intermodal Facility has faced multiple setbacks, including disagreements between CSX Corp. and Norfolk Southern railroads regarding train access to the site. Additionally, factors such as trade uncertainties, a U.S. Supreme Court ruling requiring the use of union labor, and tariffs have also contributed to the delays.
Despite these challenges, the project is making progress. The facility is about 80% complete, with miles of new tracks installed, along with three of the six planned electric, rail-mounted gantry cranes. Other construction milestones, such as concrete paving and the completion of new buildings and canopies, have also been met.
The Cosgrove Avenue Extension, which will provide an overpass and pedestrian bridge linking North Charleston to the city’s Waterfront Park, is set to open in July. This extension will help minimize the impact of rail traffic on local roads.
The Importance of Rail Access at the Port
The Navy Base Intermodal Facility is crucial for the Port of Charleston, which has long lobbied for a rail-based cargo hub near its waterfront terminals. Currently, Charleston is the only major East Coast port without on-dock or near-dock rail access. As a result, the port is at a disadvantage compared to others that have direct rail links.
Currently, around 300,000 containers, or roughly 25% of the port’s annual cargo, are moved by rail, while the rest is transported by truck. Once the intermodal facility is completed, it is expected to nearly triple the number of containers moved by rail, which could significantly reduce tractor-trailer traffic on local roads and highways, improving congestion and safety in the area.
Next Steps
The South Carolina Joint Bond Review Committee’s fiscal accountability subcommittee is scheduled to meet in July to receive an update on the project’s progress and discuss the future of the barge facility. While it is unclear how legislators will respond to the changes in funding and project timelines, the Port of Charleston remains an essential part of South Carolina’s economy, and efforts to improve its infrastructure will continue.
