COLOMBIA – State lawmakers, still suffering from the multi-billion dollar failure of the expansion of the VC Summer nuclear plant, years ago, agreed to send a proposed $ 550 million debt agreement for improvements to Charleston Port infrastructure to the full Senate for consideration, but only after adding a series of financial controls.
The Senate vote on the deal for the State Port Authority and Palmetto Railways has not yet been scheduled.
South Carolina bond debt oversight has typically been “a matter of trust with the agency that manages the construction project,” Rick Harmon, Senate research director, told members of the Senate Finance Committee this week.
“I think a little bit of oversight is important in the future,” said Sen. Kent Williams, D-Marion. “As my father always told me, there is not much education on the second kick of a mule.”
Senator Nikki Setzler, a Democrat from Lexington, said he agreed that the amount of the debt required “more accountability and transparency than you are normally used to.” To that end, he amended a resolution to require SPA and Palmetto Railways to submit quarterly financial and progress reports with legislative oversight groups as a condition of obtaining the money.
The amendment also requires the SC’s Joint Securities Review Committee to approve the deal before any financing is granted. And it requires that the audited financial statements be published for the public to view on the SPA and Palmetto Railways websites.
In addition, SPA and Palmetto Railways must finalize a detailed written contract, defining the responsibilities of each agency for the projects before the securities agreement can obtain final approval from the General Assembly.
The plan calls for expenditures of up to $ 400 million to build a railroad yard at the former Navy base in North Charleston. The SPA would operate the rail yard on about 120 acres near Hobson Avenue and Viaduct Road, on land owned by Palmetto Railways, a division of the SC Department of Commerce.
Norfolk Southern and CSX Corp. would transport cargo moving through the Port of Charleston to and from the rail yard, officially known as the Navy Base Intermodal Container Transfer Facility.
Another $ 150 million would pay to set up a barge system to move water containers between SPA’s Wando Welch Terminal in Mount Pleasant and Leatherman Terminal in North Charleston, which is scheduled to open in March. The containers could then be taken to and from the rail yard, reducing the number of trucks carrying cargo on the roads in the area.
The Leatherman Terminal was named after Senator Hugh Leatherman, a Republican from Florence and chairman of the Senate Finance Committee. Legislator Pee Dee is also the sponsor of the title resolution.
“Our port is competing with other ports on the East Coast and the Gulf Coast and, if we do not follow them, we will be left out,” Leatherman said during a hearing. He said the projects paid for the bond debt would give Charleston rail availability close to the pier, putting it on an equal footing with the Port of Savannah and other rivals in the maritime industry.
The construction of the railway yard and the barge project would take about two years. The debt of the bonds would be paid with the collection of taxes that go to the general budget of the state revenue.
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 installation would total about $ 2 billion in improvements to the Charleston port, including the new terminal, equipment and the deepening of the Charleston port’s navigation channel.
Like other legislation, this joint title resolution must be passed by the House and Senate before being sent to Governor Henry McMaster for approval or veto. The governor said in his recent speech to the State of the State that he is opposed to more loans.
Reach David Wren at 843-937-5550 or on Twitter at @David_Wren_