Ports of the Americas
Special Report
Craig Lee / SC Ports
Costly delays
Postponed Charleston rail yard project faces major budget overruns
By Michael Angell
The opening of a major project to add on-dock rail to the Port of Charleston has been postponed by about six months and will only handle CSX Transportation trains initially due to design changes Norfolk Southern Railway( NS) requested. Inflation, redesigns, stalled permits, missed grants and even port crane tariffs have resulted in $ 232 million of cost overruns, making the project’ s troubles a likely factor in the recent resignation of the port’ s chief executive.
The Navy Base Intermodal Facility was originally budgeted at about $ 550 million. The brownfield development, adjacent to Charleston’ s Hugh K. Leatherman terminal, is designed to handle 1 million container lifts per year and aimed to build upon Charleston’ s development of inland ports at Greer and Dillon, South Carolina.
Since its original proposal in 2021, cost estimates have risen to $ 782 million, now-former South Carolina State Ports Authority( SC Ports) CEO Barbara Melvin told a state legislative committee in July. South Carolina appropriated $ 550 million over 2021 and 2022 for the project.“ We are seeing challenges in materials, labor and equipment to build these types of projects,” Melvin told the committee.“ All of those have escalated over the last three years of this project.”
The Navy Base project, which includes a barge service for moving containers to and from Charleston’ s Wando Welch Terminal for rail service, was expected to open this summer. The rail yard will now open in January 2026, with some features not yet ready until 2027.
Melvin, who was the port’ s chief operating officer before becoming CEO, announced her resignation from SC Ports in August, without citing a reason.
South Carolina State Sen. Sean Bennett, one of the members of the fiscal oversight committee briefed on the project, said in a statement in late August to the Journal of Commerce the rail yard“ remains viable and essential, but the execution has clearly fallen short.”
“ Cost overruns can’ t simply be dismissed as inflation; they reflect deeper issues,” Bennett said.“ The port authority’ s board must step up its responsibilities and provide the
50 Journal of Commerce | October 6, 2025 www. joc. com