News Summary
The budget for the S.C. State Ports Authority’s Navy Base Intermodal Facility has surged by $196 million due to construction delays, bringing the total to $545 million. Originally set to open on July 1, the facility is now facing setbacks caused by disputes and labor issues. Lawmakers allocated $550 million for projects at the Port of Charleston, but excess costs beyond this budget will fall on the authority. Despite the challenges, the facility is 80% complete and aims to enhance rail capacity and reduce truck traffic.
North Charleston – Construction delays at the S.C. State Ports Authority’s Navy Base Intermodal Facility are pushing the budget up by $196 million, raising the total to $545 million from an initial estimate of $349 million three years ago. Initially slated to open on July 1, the facility will not meet this deadline due to various complications.
Lawmakers in South Carolina allocated $550 million in taxpayer funding to support two projects at the Port of Charleston; however, only the rail-based cargo hub will utilize this allocation. The second initiative, aimed at establishing a $150 million barge facility for moving containers by river, must now seek other funding sources, such as grants or revenue from the ports authority’s operations. Of the initial funding, $51 million is still reserved from the 2022 general fund to pay off a loan related to preliminary planning documents for the cargo hub.
To ensure accountability for the increased costs, the Joint Bond Review Committee‘s fiscal accountability subcommittee will convene with ports authority officials in July, although an exact date for the meeting is yet to be confirmed. No mandate has been laid out for completing both projects under the initial funding allocation. Any excess costs incurred beyond the $550 million budget will be absorbed by the ports authority itself.
The delays in the construction project stem primarily from disputes between CSX Corp. and Norfolk Southern over train access to the container transfer site. Various factors are contributing to the overall delays, including trade uncertainties, imposed tariffs, labor issues, and a recent U.S. Supreme Court ruling that mandates the use of union labor in relevant projects. Despite these setbacks, the 118-acre facility is currently around 80% complete, having already established miles of new tracks and three out of six planned electric, rail-mounted gantry cranes, along with concrete paving and new buildings.
To improve connectivity, the Cosgrove Avenue Extension, which links North Charleston with the city’s Waterfront Park, is set for completion in July. This overpass and pedestrian bridge aims to facilitate better transport to and from the cargo hub.
The intermodal facility is critical for South Carolina’s ports as it addresses the deficiency of on-dock rail access, which has hindered Charleston’s competitive edge. Currently, Charleston stands out as the only major East Coast port without on-dock rail access. Approximately 300,000 containers, equating to 25% of the port’s total annual container traffic, are moved by rail. The completion of the new facility is anticipated to significantly enhance rail capacity, potentially allowing for a tripling of rail movements and a substantial decrease in truck traffic, which, in turn, could lower vehicle emissions.
The project also aims to consolidate rail traffic to minimize disruptions on local roads. The importance of this facility cannot be overstated, as it is positioned to transform cargo handling in Charleston, ensuring that the region can better compete with other ports on the East Coast.
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Additional Resources
- South Carolina Daily Gazette: As Taxpayer Funds Deplete, SC Ports Puts Sole Focus on Rail Project
- Index Journal: SC Ports Puts Focus on Rail Project
- Post and Courier: SC Ports $400M Rail Yard Speeding Toward Completion
- Google Search: South Carolina Ports
- World Cargo News: SCP to Expand Leatherman Terminal
- Encyclopedia Britannica: Port of Charleston
Author: HERE Greenwood
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