By Daniel Brock
dbrock@scbiznews.com
Published Aug. 18, 2010

A group backing an intermodal rail yard and warehouse facility proposed for the southern end of the former North Charleston Navy Base met today in Columbia with numerous state officials.

It was the first contact in months between the pro-south-end trio of the city of North Charleston, CSX Corp. and developer Shipyard Creek Associates and officials from the S.C. Department of Commerce and its S.C. Public Railways division.

The powwow, which lasted more than an hour, was hosted by Commerce at its offices. More than 20 people attended, including several state legislators and representatives from Wilbur Smith Associates, the engineering firm that updated the state’s rail plan in 2008.

Those involved in the meeting said that, while no final resolution was reached, the summit was a step forward in a situation that has stalled in recent months.

“Now at least the secretary of Commerce, Sen. (Hugh) Leatherman (R-Florence), those folks that were there from South Carolina Public Rail have a better understanding of our plan,” North Charleston Mayor Keith Summey said. Leatherman also serves as chairman of the Senate Finance Committee.

The plan Summey referenced would see Shipyard Creek’s Macalloy property and CSX’s Cooper Yard 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 State Ports Authority terminal under construction at the former Navy Base.

Commerce Secretary Joe Taylor did not provide a timetable for a review of the plan but said his agency appreciated Summey’s efforts and would take his proposals into consideration as the process moved forward

“With the port now having set an opening date of 2017 for the new terminal,” Taylor said, “we have time to ensure the right regional rail solution is developed that will maximize the benefits for both North Charleston and the entire state.”

A memorandum of understanding approved last week by North Charleston City Council gave the trio the go-ahead to seek a $3 million federal planning grant to further study the project.

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

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

The issue of dual access to the new terminal has become the central issue in constructing an intermodal yard on the former Navy base. Such a yard would provide near-dock service to the new SPA terminal and become the region’s de facto rail hub.

“Commerce and Public Railways continue to believe that the regional rail solution must provide equal access for both CSX and Norfolk Southern,” Taylor said.

Summey said that both rail carriers would still have to transport cargo from the terminal to their rail yards, though under the Macalloy plan, Norfolk Southern’s “dray” would be several miles longer, as the company would have to haul containers to its existing facility on Goer Drive in North Charleston.

“I think it became clear that there was no exclusivity to that (Macalloy) terminal, and I think that getting those kinds of things out on the table was very positive,” said Shipyard Creek Associates co-owner Robert Clement.

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. Clement said the agency now has the opportunity to do that.

“The people who wanted to ask questions, asked questions and got the answers. At the end of it, it was ‘We’re going to go study it some more,’” Clement said.

North Charleston and Shipyard Creek officials agreed that no concrete solution was reached Wednesday but that they accomplished what they wanted to with the meeting: clearly laying out their plan for commercial rail in North Charleston.

“We may end up having some disagreements, it doesn’t mean we have to be completely disagreeable,” Summey said. “At the end of the day, I think they understand where we’re coming from, and I think that’s important.”

Reach Daniel Brock at 843-849-3144.