SC Ports Gives Private Update on $550M Rail Yard Project

Legislators hear confidential negotiations with railroads for new North Charleston facility

Published on Feb. 25, 2026

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The South Carolina State Ports Authority provided a private update to state legislators on a $550 million rail yard project in North Charleston, with much of the discussion happening behind closed doors due to confidential negotiations with the railroads expected to use the facility. The project has faced cost overruns, construction delays, and reluctance from Norfolk Southern and CSX to utilize the new rail yard.

Why it matters

The new rail yard is seen as crucial for the Port of Charleston to compete with other East Coast ports like Savannah that already have on-dock or near-dock rail access. However, the project's rising costs and delays have drawn legislative scrutiny, especially after the abrupt resignation of the former ports leader.

The details

The 118-acre rail yard, dubbed the Navy Base Intermodal Facility, was originally supposed to open in July 2025 but now has no set opening date. The $550 million in taxpayer funds was also supposed to pay for a barge system to move cargo, but that project has been put on hold. So far, the ports authority has committed $485 million to the rail yard and paid $380.3 million to vendors. The authority says it needs the rail yard to boost the percentage of cargo containers moved by train rather than truck, which currently stands at 25%.

  • The rail yard was originally supposed to open in July 2025.
  • The ports authority expects negotiations with the railroads to be completed by June 2026.
  • A road connecting the rail yard to the adjacent Leatherman Terminal should be finished by late 2026.

The players

Micah Mallace

The head of the S.C. State Ports Authority.

Norfolk Southern

One of the railroads expected to use the new rail yard facility, but has expressed reluctance to do so unless the authority spends an additional $27 million on unrelated rail improvements.

CSX Corp.

Another railroad expected to use the new rail yard facility, but has also been involved in contentious negotiations with the ports authority.

Barbara Melvin

The former ports leader who resigned abruptly in August, prior to the legislative scrutiny over the rail yard project.

Joint Bond Review Committee

The legislative committee that received the private update on the rail yard project from the ports authority.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.