South Carolina lawmakers are considering a plan to borrow up to $ 550 million to pay for a North Charleston rail yard, which will move cargo to and from the new Charleston Port Leatherman Terminal, scheduled to open in March.
A joint resolution supporting the bond debt was presented on Wednesday by Senator Hugh Leatherman, the powerful 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.
The spending plan provides for up to $ 400 million for the construction of the rail yard at the former Navy base in North Charleston. Palmetto Railways, a division of the state’s Department of Commerce, would operate the rail yard on about 120 acres near Hobson Avenue and Viaduct Road. This would allow trains from CSX Corp. and Norfolk Southern to transport cargo to and from the nearby Leatherman Terminal.
Another $ 150 million would pay for a barge program to move cargo containers between the Wando Welch Terminal in Mount Pleasant and the Leatherman Terminal, from where they would be taken to and from the rail yard by a private road.
Jim Newsome, president and CEO of the State Ports Authority, said the projects “they 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 “it would reduce the number of trucks on the roads and highways, complementing long-term road improvements and significantly improving air quality for Lowcountry. “
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 immediately respond to a request for comment, but the governor said in his State of the State speech that he is opposed to more loans.
This is a developing story and will be updated
Talk to David Wren at 843-937-5550 or on Twitter at @David_Wren_