Study Pegs Economic Impact of N. Charleston Rail Plan at $73.4 Million Statewide

NORTH CHARLESTON, SC – September 8, 2010 – An economic impact study released today by a public-private partnership concludes that an intermodal rail and warehousing complex at the Cooper Yard/Macalloy site would create hundreds of permanent jobs from the Lowcountry to the Upstate, as well as generate millions of dollars annually for the State of South Carolina.

The City of North Charleston, CSX Transportation, and Shipyard Creek Associates jointly released a comprehensive economic report by one of the nation’s leading research firms. The Perryman Group, based in Waco, Texas, has extensive experience evaluating major infrastructure projects, including research studies for the U.S. Department of Transportation and the Port of Houston, and has developed complex modeling systems to forecast all aspects of economic activity.

We knew our commercial rail plan would have a hugely positive economic impact on the region and the state, said North Charleston Mayor R. Keith Summey.

At a time when our economy desperately needs the best of what the public and private sectors can offer by working in harmony, this study gives hope to those of us who are worried about South Carolina’s economic future, Summey added.

The report estimates that during construction and development, the North Charleston rail plan would create $111.9 in additional output and 1,410 jobs. Ongoing annual operations stimulus across the state would translate into $73.4 in additional output and 869 permanent jobs.

The commercial rail plan calls for the construction of an intermodal rail hub and warehousing facilities to be jointly developed by CSX and Shipyard Creek Associates, primarily to serve the new container terminal being constructed on the former Navy base in North Charleston. It would also remove 3.2 miles of CSX rail lines running through the city, build about half a mile of new track, and renovate another half-mile of mostly unused track.

This study demonstrates with hard facts that the best plan for North Charleston is also the best plan for the entire State of South Carolina, Summey said.

The Perryman Group also studied the economy impact of the state rail plan being proposed by the Commerce Department and its for-profit division, S.C. Public Railways. Their rail plan would create a single intermodal facility to serve both Class I railroad operators.

The state agencies’ proposal would place the facility on land owned by the Clemson Restoration Institute, the City of North Charleston, the Noisette Company and several other private entities. Those tracts would have to be condemned through eminent domain, which would negatively impact the existing tax increment financing for improvements on the old Navy Base.

An additional hurdle the state rail plan faces is the City of North Charleston would have first right of refusal if the Clemson University tract was not developed by the university as a wind turbine assembly facility and research/ manufacturing cluster. The city donated the land to the university with that deed restriction in place.

The Perryman Group analyzed the state rail plan for the Noisette/Clemson tract and concluded it would result in $426 million in reduced output and 4,963 lost jobs once it is fully operational.

This project … requires substantial elimination of existing activity and serves as an impediment to other planned investments and community development, the report states. In fact, some 2,000 workers in 80 buildings (many of them historic) would be displaced, resulting in a reduction in public and private sector jobs and production.

The Perryman study did not examine the additional loss of jobs and economic output that would result from the condemnation of the Clemson tract because the wind turbine testing facility and manufacturing cluster have not been constructed yet. However, some experts have estimated the potential for the Clemson development to be equal to or greater than Boeing’s impact on the economy of South Carolina.

About The Perryman Group
Dr. Ray Perryman is founder and president of The Perryman Group, an economic and financial analysis firm headquartered in Waco, Texas. He is widely regarded as one of the world’s most influential and innovative economists. His complex modeling systems form a basis for corporate and governmental planning around the globe. He has authored several books, including Survive & Conquer, an account of the Texas economy during the turbulent 1980s, and The Measurement of Monetary Policy, a treatise on Federal Reserve activity. A popular speaker, he addresses hundreds of audiences throughout the world every year.

The Perryman Group’s practice areas include economic modeling and forecasting, litigation and regulatory support, business valuation, economic development and strategic planning, and impact assessment. The firm also provides market and industry analysis, statistical modeling and analysis, survey and demographic studies, economic research and information, and feasibility studies and business plans, as well as speeches, presentations, conferences, and assistance with capital acquisitions and transactions.