SC Ports’ Rail Infrastructure: Future Growth with CSX & NS

SC Ports Invests $294 Million in Critical Infrastructure for Future Growth

South Carolina Ports (SC Ports) is embarking on a significant infrastructure investment, signaling a commitment to long-term growth and resilience in the face of economic uncertainty. The SC Ports Board this week approved a $294 million capital plan for fiscal year 2026. This financial commitment, which answers the “What” and “When,” will facilitate the completion of key projects at the Navy Base Intermodal Facility, the Leatherman Terminal, and the Columbus Street Terminal. SC Ports President and CEO Barbara Melvin emphasizes the strategic importance of this investment, stating, “Regardless of short-term economic fluctuations, the port is a long-cycle business. We are investing today to have the capacity to support our customers for decades to come.” This article explores the key elements of this capital plan, explaining the “Where,” the “Why,” and a glimpse into the “How” of SC Ports’ vision for the future.

Strategic Infrastructure Expansion

The core of the 2026 capital plan centers on expanding and modernizing existing infrastructure to enhance capacity and efficiency. A key project is the completion of the Navy Base Intermodal Facility. This intermodal yard is crucial for efficiently transferring cargo between the Port of Charleston and inland markets via rail connections to CSX and Norfolk Southern Railway. Currently, the facility is over 80% complete. This project allows for increased capacity to quickly get cargo onto rail lines to be transported throughout the country. The other major infrastructure component of this investment plan is the expansion of the Leatherman Terminal. This expansion is a multi-phased project that is scheduled to be completed by 2032 and demonstrates SC Port’s commitment to investing in new terminals to increase capacity.

The Intermodal Advantage: Connecting Ports to the Rail Network

The central element of SC Ports’ strategy lies in bolstering intermodal capacity, using rail lines as a primary mover of cargo inland. This approach minimizes reliance on over-the-road trucking, offering significant environmental and operational benefits. The Navy Base Intermodal Facility is the centerpiece of this strategy. By directly connecting the Port of Charleston to the CSX and Norfolk Southern (NS) rail networks, SC Ports can streamline cargo movement, reduce congestion on highways, and lower transportation costs for shippers. The efficiency of the rail network allows for faster and more reliable transportation of goods to inland destinations. This reduces the impact of delays and increases the overall efficiency of supply chains that serve SC Ports.

Optimizing Terminal Operations and Efficiency

Beyond infrastructure expansion, the capital plan includes critical upgrades to existing facilities, such as the Columbus Street Terminal. These upgrades will involve investments in technology, equipment, and operational processes designed to improve throughput and reduce turnaround times. Investing in advanced terminal technology is critical for streamlining operations and improving overall efficiency. This optimization will also include strategic investments in improved port equipment, such as cranes and automated systems, to improve productivity and reduce the time it takes to move cargo from ship to rail or truck. These upgrades not only improve operational efficiency but also make SC Ports more attractive to customers, promoting further growth and competitiveness in the market.

Conclusion

SC Ports’ $294 million capital plan represents a significant investment in the future of the South Carolina economy. The plan’s focus on completing the Navy Base Intermodal Facility, expanding the Leatherman Terminal, and upgrading the Columbus Street Terminal highlights SC Ports’ commitment to strengthening its position as a major player in the maritime industry. The emphasis on boosting intermodal capacity, especially the direct links to the CSX and Norfolk Southern Railway networks, underlines the strategic importance of rail transport in the port’s long-term strategy. This proactive investment is crucial in attracting cargo and securing partnerships in the coming decades. In the broader industry context, SC Ports’ initiative is a reminder of the need for proactive infrastructure development and strategic planning to prepare ports and supply chains for the ongoing challenges and growth within the industry.

Company Summary: South Carolina Ports

South Carolina Ports Authority (SC Ports) operates multiple port facilities, including the Port of Charleston, and is a crucial hub for international trade on the US East Coast. SC Ports handles a wide range of cargo, from containerized goods to breakbulk and vehicles. The organization’s long-term strategy emphasizes infrastructure investment and operational excellence, aimed at serving the needs of their customers and the greater regional economy. Their efforts include strategic partnerships with key railway operators like CSX and Norfolk Southern Railway, which is core to the successful operation of the Navy Base Intermodal Facility. They aim to connect South Carolina with key inland markets.