Palmetto Railways cargo yard in North Charleston inching closer to construction permit
David Wren — The Post and Courier
More than a decade after it was first announced, a North Charleston transportation hub where freight would be transferred between rail cars and container ships is moving closer toward getting its construction permits.
The Army Corps of Engineers said this month it hopes to finish an environmental impact study for the $130 million project at the former Navy base by this spring. That would trigger a 30-day public comment period for the Palmetto Railways initiative that would provide rail access for the nearby Leatherman Terminal being built by the State Ports Authority.
A draft of the environmental study was completed nearly two years ago, and that document drew dozens of people to a public hearing and 190 written comments.
"We don't have an estimate as to when the final (study) will be issued other than we plan and hope to have it ready by spring," said Army Corps spokesman Sean McBride. "We are currently waiting on some additional information from Palmetto Railways before we can take our next steps."
Completion of the study is another step in the process toward issuing a permit for the project, officially known as the Navy Base Intermodal Container Transfer Facility. The Army Corps must then prepare a record of decision documenting whether a permit should be issued. That could take several more months.
State-run Palmetto Railways initially hoped to have the record of decision in hand last August, putting the center on track for a 2018 opening. The long permitting process has put that timeline in question.
The Army Corps isn't the only regulatory agency that must give its go-ahead. The Federal Railroad Administration also is reviewing the project's plans because Palmetto Railways is seeking funding through one of that agency's loan programs.
Patrice Legrand, spokeswoman for the federal agency, said the process is ongoing.
"We've requested additional information from Palmetto in order to complete our review," she said.
Palmetto Railways spokesman Chris Drummond said the railroad also might use revenue bonds and public-private funding to pay for the center.
"Once the permit from the Army Corps is issued, Palmetto Railways will be able to use the permit and its scope as part of the supporting documentation for funding," Drummond said.
The 135-acre site is near the intersection of Hobson Avenue and Viaduct Road. The facility would let trains from Norfolk Southern and CSX Corp. move cargo to and from the $762 million Leatherman Terminal along the Cooper River. The aim is to reduce highway congestion, with one train able to carry as much cargo as 280 trucks.
The project's design has morphed a bit since the draft study was issued in April 2016 to address some of the local traffic, noise and neighborhood concerns. And Palmetto Railways, a division of the S.C. Department of Commerce, has agreed to give $3 million toward a new recreation center for those neighborhoods impacted by the project and another $1 million for affordable housing, educational and work training initiatives.
But some issues remain unresolved. North Charleston and Charleston officials say the rail route will result in potentially unsafe traffic delays. Historic preservationists aren't happy that some buildings within the Charleston Naval Hospital Historic District will be demolished for the intermodal center. And both CSX and Norfolk Southern have said they aren't particularly interested in using the facility because they have their own rail yards in the area with plenty of capacity.
Once completed, the intermodal facility will include multiple railroad tracks, wide-span gantry cranes, container stacking areas and administrative buildings. Palmetto Railways says it will develop the site with environmentally friendly technology, such as electric cranes to reduce noise and emissions and partial automation to eliminate some truck traffic on nearby roads.
