Ports of the Americas
Special Report
Craig Lee / SC Ports
leadership and accountability this project requires.”
SC Ports said in a statement to the Journal of Commerce it is still moving forward with the project as originally envisioned. Most of the yard’ s construction is complete and its six gantry cranes have been installed. Cost overages for the remaining parts of the project are now part of the port’ s 2026 capital plan.
“ This project will boost SC Ports’ already robust intermodal connectivity between the Port of Charleston and inland port markets in the Southeast and beyond,” the authority said in the statement.
NS needs more access
The rail yard itself, originally budgeted at about $ 400 million in 2021, is now expected to cost $ 544 million. Improvements to Charleston’ s two terminals for barge service, originally budgeted at $ 150 million, have since increased to $ 237 million.
SC Ports faces higher material and labor costs for all those projects, Melvin told the committee, adding that Leatherman terminal improvement costs have risen 44 % since its initial construction in 2019, while nationwide warehouse and concrete construction costs have increased 25 % and 32 %, respectively, between 2021 and 2023.
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Construction costs on the rail yard itself, a former naval base, have also risen due to unexpectedly soft soil, environmental remediation and buried infrastructure that was not foreseen.
Key features of the project will also not be ready in time for the January opening. A one-mile dedicated drayage road between the rail yard and the Leatherman terminal was redesigned after SC Ports did a land swap with a nearby US Coast Guard base. Until that road opens in November 2026, containers will be drayed on 2.5 miles of another industrial road near the port.
“ Cost overruns can’ t simply be dismissed as inflation; they reflect deeper issues.”
Some 80,000 feet of rail track connecting to the rail yard from the south to CSX and NS’ s main tracks also won’ t be fully ready until March 2027, Melvin said, citing the extensive design challenges involving both railroads and various public entities. The tracks have eight streetlevel crossings through North Charleston. A construction award for the trackage is expected in October.
October 6, 2025 | Journal of Commerce 51