By Daniel Brock
dbrock@scbiznews.com
Published Aug. 13, 2010

North Charleston Mayor Keith Summey’s commercial rail vision continues to gain momentum.

North Charleston City Council voted Thursday night to approve a controversial memorandum of understanding and move forward in seeking millions of federal dollars for a commercial rail plan study. Final approval came with little discussion.

With the memorandum approved, North Charleston will apply for $3 million in federal planning grants, while CSX Transportation and developer Shipyard Creek Associates will team up to provide $600,000 in matching funds.

The federal money application deadline is Aug. 23.

“We’ve got a long way to go,” said Shipyard Creek co-owner Robert Clement. “Now we’ve got to finish the plan, pursue that funding and see where we come out. But we’re thrilled.”

The S.C. State Ports Authority’s Review and Oversight Commission is planning a large meeting in early September in Charleston to discuss the plan, according to Sen. Larry Grooms, R-Bonneau, the board’s chairman.

Grooms said he hopes to give CSX, rival carrier Norfolk Southern Corp., North Charleston officials, the maritime community and statewide business interests a chance to voice their opinion on a port rail solution.

“The stars are aligning for the greatest economic leap in the state’s history, I guess since the invention of the train. But we’ve got to get it right,” Grooms said. He added that he thought Summey’s plan “falls short” but could be “added to and perfected.”

The approved agreement links North Charleston, CSX and Shipyard Creek Associates. Under the plan, the developer’s Macalloy property and CSX’s Cooper Yard would be transformed into a state-of-the-art intermodal rail yard and large-scale warehousing operation. The facility would provide near-dock rail access to the new SPA terminal under construction at the former Navy Base.

Proponents say the plan would knit together communities long divided by rail, facilitate green spaces and business development, and forever quash the threat of CSX’s bringing coal through the middle of numerous North Charleston neighborhoods

Those opposing the Macalloy plan, such as the Department of Commerce’s for-profit arm S.C. Public Railways and rail carrier Norfolk Southern, say it puts the Virginia-based carrier at a disadvantage because CSX owns the track that would service the intermodal yard. In turn, that would decrease the port’s competitiveness, according to those parties.

Commerce Department officials told the Business Journal last month that they were not entirely familiar with the plan and looked forward to learning more about it. It appears they’ll get their chance next week.

Summey and representatives of Shipyard Creek Associates are set to meet with Commerce officials on Wednesday to go over details of the agreement. Commerce has long held that any rail plan must allow dual access to the new terminal for CSX and Norfolk Southern, the leading rail lines on the East Coast.

“I want to ensure we have open dialogue and to answer any questions DOC may have about the MOU,” Summey said. “I hope we can leave the meeting with everyone on the same page.”

Reach Daniel Brock at 843-849-3144.