New business: South Carolina rail route will see first trains since 2012
A 40-mile rail line in South Carolina is reactivating after 12 years, with Heidelberg Materials and Boise Cascade building facilities along the route. The state invested $3M in rehabilitation with $6.5M more planned over two years.
This creates new fulfillment center opportunities in a low-cost region with direct rail access to major ports and distribution hubs. Sellers should monitor this area for potential 3PL expansion or direct warehousing as infrastructure develops.
Regional infrastructure investments are creating new fulfillment nodes outside traditional coastal markets, potentially offering cost advantages as sellers diversify away from congested major hubs.
Research 3PL providers in Walterboro, SC area - new rail access may create cost-effective fulfillment options for heavy/bulk products
Monitor South Carolina industrial development announcements for potential supply chain disruptions or new sourcing opportunities
Bottom Line
SC rail reactivation creates new logistics hub opportunities for sellers
Source Lens
Industry Context
Useful background context, but lower-priority than direct platform, community, or operator intelligence.
Impact Level
medium
SC rail reactivation creates new logistics hub opportunities for sellers
Key Stat / Trigger
$3M invested in rail rehabilitation with $6.5M more planned
Focus on the operational implication, not just the headline.
Full Coverage
Palmetto Railways is reactivating operations on its 40-mile Salkehatchie Subdivision, a former short line through Hampton and Colleton counties in southwestern South Carolina that last served customers in 2012.
With two new customers building facilities along the line, the state-owned railway has invested more than $3 million in route rehabilitation including bridge improvements, tie replacement, track servicing, and upgrades to safety equipment. An additional $6. 5 million in infrastructure work is planned over the next two years.
The Salkehatchie Sub, which interchanges with CSX at Hampton, S. C. , is currently seeing training of train crews, along with continuing maintenance-of-way activities. Railcar movements are expected to begin later this month.
With train movements beginning late in March, Palmetto has begun a campaign to raise local rail safety awareness, working with county leadership, local law enforcement, and fire and emergency services.
Jennifer Brown, Palmetto’s director of industrial development, said in an email that Heidelberg Materials has begun development of its facility along the railway. Heidelberg, a supplier of cement, aggregates, ready-mixed concrete, and asphalt with more than 450 U. S. locations and about 9,000 employees, announced plans in 2025 to locate on the line.
Also, wood products company Boise Cascade will begin construction of a new facility this fall.
The railroad continues work with the state Department of Commerce, Colleton County Economic Alliance, and Southern Carolina Regional Development Alliance to recruit additional clients to rail-served locations including the Colleton Mega Site, a 1,481-acre industrial park, and the Stokes Tract, a 457-acre parcel adjacent to I-95 as well as the railroad.
Both are in Walterboro, S. C. The Salkehatchie Subdivision is the former Hampton & Branchville Railroad, which ceased operations in 2012 following the closure of the South Carolina Electric & Gas Co. (now Dominion Energy) Canadys Station coal-fired power plant.
Palmetto Railways and Colleton County purchased the line in 2017 through a partnership with the state of South Carolina. Since then, Palmetto has used the line for railcar storage.
Palmetto Railways operates four non-contiguous sections of right-of-way in the state, with a fifth – a new route to connect to the Camp Hall Industrial Park and its Volvo assembly plant – expected to be completed this summer. Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.
Original Source
This briefing is based on reporting from Freightwaves. Use the original post for full primary-source context.
Style
Audience