South Carolina lawmakers are considering a plan to borrow up to $ 550 million to help pay for two projects that would help move cargo around Charleston Harbor and its new Leatherman Terminal.
The spending plan provides for up to $ 400 million for the construction of a railroad yard at the former Navy base in North Charleston. The State Port Authority would operate the rail yard on about 120 acres near Hobson Avenue and Viaduct Road. Palmetto Railways, a division of the state’s Department of Commerce, would own the facility, where the CSX Corp. and Norfolk Southern would transport cargo to and from the nearby Leatherman Terminal.
Another $ 150 million would pay for a barge program to move cargo containers by water between the Wando Welch Terminal in Mount Pleasant and the Leatherman Terminal. Containers can be transported to and from the rail yard via a private road. The work would include a 700-foot extension of the pier at Wando Welch and a second pier on the Leatherman website.
A joint resolution supporting the bond debt was presented on Wednesday by Senator Hugh Leatherman, chairman of the Senate Finance Committee and namesake of the new terminal. A hearing on the matter was held Thursday by the committee’s Natural Resources and Economic Development Committee. This subcommittee plans to make a recommendation to the Finance Committee on Tuesday.
Jim Newsome, president and CEO of the State Ports Authority, said the projects “are crucial to the continued competitiveness of the Port of Charleston, which supports the success of continued economic development and job creation for the people of South Carolina.”
Newsome said the barge project “would reduce the number of trucks on the roads and highways, complementing the long-term improvements on the roads and significantly improving air quality for the Lowcountry”.
The construction of both projects is expected to take about two years.
The railway yard has received approval from the Federal Railway Administration and the Army Corps of Engineers, but is having trouble getting financing. He and the barge facility would total about $ 2 billion in improvements the authority has made at its port, including new cranes and equipment, the new Leatherman terminal, deepening the port of Charleston to 52 feet and strengthening the pier at Wando Welch.
Like other legislation, a joint resolution must be passed by the House and Senate before being sent to Governor Henry McMaster for approval or veto. A McMaster spokesman did not respond to a request for comment, but the governor said in his State of the State speech that he is opposed to more loans.
Rick Harmon, research director for the state’s Joint Bond Review Committee, said the proposal is within South Carolina’s membership capacity of around $ 5 billion. These general obligation bonds for economic development have been approved in the past to provide incentives for companies like Boeing and Volvo Cars, since they were considering South Carolina for factories.
The Leatherman Terminal’s $ 1 billion first phase will include five 169-foot-tall shore ship cranes, 25 hybrid tire-powered gantry cranes and a face-recognition terminal operating system. The barge project has been under construction for some years as a way to help reduce traffic on Interstate 526.
Talk to David Wren at 843-937-5550 or on Twitter at @David_Wren_