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CSX to develop new intermodal terminal near Raleigh, N.C.

The Jacksonville, Fla.-based Class I railway’s $272 million “Carolina Connector” project is contingent on securing $100 million in funding from the state of North Carolina.

   CSX Corp. plans to develop an intermodal rail terminal in North Carolina’s Johnston County near Raleigh that will “spur economic development in the region and help position eastern North Carolina as a major transportation logistics hub,” the company said in a statement.
   The estimated cost of what CSX is calling the “Carolina Connector” is $272 million.
   The Jacksonville, Fla.-based Class I railway said it is committed to investing $150 million toward for the project, but execution is contingent on securing $100 million in infrastructure investment funds that have been proposed in the state of North Carolina’s Strategic Transportation Investment (STI) process. The balance of the funding will come from other infrastructure and investment programs.
   CSX said it has begun “reaching out to landowners in Johnston County to secure options on property east of Selma and close to Interstate 95 where the proposed facility would be constructed.”
   In addition to serving Raleigh, the terminal would act as a southeast hub and be located on a 450 acre parcel located near CSX’s mainline and have direct access to I-95 to minimize traffic on local roads.
   The railroad proposed a timetable that would see engineering, design, and property acquisition take place this year, with completion of permitting next year, construction of the project in 2018-2019, and start-up of operations at the proposed terminal in 2019.
   Last week’s announcement of the plan to build an intermodal terminal in North Carolina follows the start of construction of a similar intermodal terminal in Stowe Township and the Borough of McKees Rocks near Pittsburgh, Pennsylvania in September 2015.
   CSX said the North Carolina facility will also be similar to terminals it has built in Northwest Ohio and
Chambersburg, Pennsylvania because it will have state-of-the-art,
sustainable technology such as electric cranes and environmentally-friendly equipment to reduce
noise, light and emissions.
   The Triangle Business Journal, however, quoted Louis Renjel, vice president of Strategic Infrastructure at CSX, who said saying the Carolina Connector hub would be “far bigger” than the Chambersburg terminal.
   As projected, the facility would have initial capacity for 250,000 lifts, and be expandable to 400,000 lifts. In comparison, the North Baltimore, Ohio terminal, which originally opened in 2011 with a capacity of 650,000 lifts has since been expanded to 900,000 lifts, and CSX facility in Winterhaven, Florida has capacity for 300,000 lifts.
   North Carolina Governor Pat McCrory said in a statement the project would bolster economic development in the eastern part of the state and is “precisely what was envisioned when I worked with the General Assembly to develop the STI law and scoring process.”
   Kristin Seay, a spokeswoman for the company, said the hub would provide improved intermodal access for cargo moving to and from the North Carolina State Ports Authority facilities in Wilmington and Morehead City.
   Some local farms and a local catering hall and concert business called “The Farm,” which are reportedly located where CSX wants to build the new intermodal terminal, have organized a campaign called “Fight for the Farm” to oppose the railway’s plans, according to a report from local television station WTVD.

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.