Real Estate & Property Law

Governments and Railroads Battle Over New Terminal

By Alan Ackerman

Again and again, private companies heavily influence public agency decisions on major projects. However, despite the backing of the city of North Charleston, CSX Corp. failed to persuade the South Carolina Commerce Department to abandon its plan to build a new rail terminal that would offer equal access to freight operators. The Department claimed CSX's alternative plan would have given it a competitive advantage over Norfolk Southern Railroad. Regardless of who benefits in the end, hopefully the State will make fair offers to property owners as it continues to acquire land. 

Charleston Regional Business Journal 

The S.C. Commerce Department has moved to condemn about 100 acres of publicly and privately owned land at the former North Charleston Navy base in an effort to advance its plan to build a rail yard near the Port of Charleston's new terminal.

But as the state racks up costs for the project, it still lacks backing from the two rail lines that the controversial project is meant to serve.

Fees from rail lines would pay the $70 million cost of land acquisition and rail yard construction, state officials have said. But at least one of the rail lines, CSX Corp., isn't sold on the project, a spokeswoman said Wednesday.

'CSX is still reviewing the preliminary plan from the Department of Commerce and has requested more detail to better understand exactly how the facility would be funded, constructed and operated,' spokeswoman Carla Groleau said.

But the Commerce Department and other opponents contend that, by controlling the yard it proposed to build and limiting access from the north, CSX would have had an advantage over competitor Norfolk Southern.

The state's plan is meant to provide 'equal dual access' for both rail lines to the new terminal. State officials have said a level playing field for the rail lines is essential to the Port of Charleston's competitiveness.

Full post as published by National Eminent Domain Blog on January 18, 2011 (boomark / email).