The South Carolina State Ports Authority’s Navy Base Intermodal Facility in North Charleston is facing significant delays and cost overruns. The project, which broke ground in October 2022, was initially scheduled to open on July 1, but it is now behind schedule and over budget.
Project Delays and Budget Overruns
The Navy Base Intermodal Facility, a crucial cargo hub designed to transfer containers between trucks and trains, was initially estimated to cost $349 million. However, the project’s cost has now ballooned to $545 million, resulting in a $196 million overrun. Due to these financial issues, the $550 million in taxpayer funding that was originally designated for two separate projects—this rail-based cargo hub and a $150 million barge facility—will now only be used for the intermodal facility.
Impact on the Barge Facility Project
The barge facility, which would have provided an alternative way to move containers between port terminals via the river, will no longer be funded with taxpayer dollars. Instead, the funding for the barge project will need to come from grants or the Ports Authority’s own operations. Some initial work on the barge facility has already begun.
The remaining $51 million from the 2022 general fund appropriation is being used to pay off a loan for early planning documents related to the cargo hub.
Construction Challenges and Delays
Several factors have contributed to the delays and cost overruns. Disagreements between CSX Corp. and Norfolk Southern railroads regarding how their trains will access the site have been a major hurdle. Additionally, factors such as tariffs, trade uncertainties, a changing business climate, and a U.S. Supreme Court ruling requiring union labor at new terminals have further delayed the project.
Despite these setbacks, the Navy Base Intermodal Facility is about 80% complete. Significant progress has been made, including the installation of three out of six electric, rail-mounted gantry cranes and the completion of concrete paving and several buildings.
Expected Completion and Future Impact
The project is expected to dramatically improve the Port of Charleston’s cargo capacity, especially for rail transport. Currently, about 300,000 containers are moved by rail each year, representing one-fourth of the port’s annual traffic. The new facility will have the capacity to nearly triple that number, potentially eliminating thousands of tractor-trailer trips along local roads and highways.
The project also includes the Cosgrove Avenue Extension, which will connect North Charleston to the city’s Waterfront Park via an overpass and pedestrian bridge, opening in July. This extension will help alleviate the impact of rail traffic on local roads.
Upcoming Review
In July, the Joint Bond Review Committee’s fiscal accountability subcommittee will meet with Ports Authority leaders to get an update on the projects. However, it’s still unclear what lawmakers will say regarding the barge project’s status. While the $550 million in funding was provided without a mandate to complete both projects, any further cost increases for the cargo hub will be covered by the Ports Authority’s funds.
While the Navy Base Intermodal Facility is making progress, the delays and budget overruns highlight the challenges faced by the South Carolina State Ports Authority. Despite these setbacks, the project holds the potential to significantly improve the Port of Charleston’s rail access, increasing capacity and reducing road congestion in the area.
