A rural stretch of Johnston County has been the focus of intense interest since the Jan. 14 announcement by rail freight carrier CSX that it wanted to build an intermodal rail terminal near Selma. 

The proposed $272 million facility, called the Carolina Connector (CCX), would enable truck-to-rail and rail-to-truck transfers of containers coming from or bound to destinations in the Northeast, the upper Midwest and the Southeast.

Objections from Johnston County with regard to the chosen site, however, have brought up questions about the proposed project for now.

If built, the facility would be a coup for the state, say some officials, and could have a tremendous impact on the economy of eastern North Carolina in general. CCX would have particular benefits for the Port of Wilmington, 115 miles from the proposed site. 

The port is already served by CSX for bulk and break-bulk freight, but not container freight.

“Intermodal services are definitely needed for the port, and we … are hearing from other states, ‘How did you guys get this?’” N.C. State Ports Authority CEO Paul Cozza told the ports authority board at its Jan. 27 meeting.

Port and other state officials as well as the Wilmington Chamber of Commerce have voiced support of CCX. As part of its proposal, CSX has promised to create a rail link between the Port of Wilmington and the CSX intermodal terminal in Charlotte as a first step in spurring rail container transport from Wilmington to the critical Charlotte market.

U.S. Rep. David Rouzer, a Republican who lives in Johnston County and represents North Carolina’s 7th District, which covers a broad swath from his home county south to Brunswick and New Hanover counties, sees great potential for such a facility.

“It could be a real game changer for eastern North Carolina and southeast North Carolina in particular. The whole 7th District would benefit,” Rouzer said recently. “There is no question it would increase the amount of business the port was able to attract and [draw] new companies to southeastern North Carolina and eastern North Carolina in general.”

The economic impact to the lower Cape Fear area, Rouzer continued, would be akin to that of Interstate 40 when it was extended from the Raleigh to Wilmington in 1990. 

“Over a 10-year span you would have a tremendous amount of investment and business coming to southeastern North Carolina and really would give this section of the state, I think, a real shot in the arm from an economic and job development [perspective],” he said.

Major distribution centers would very likely locate in the vicinity of the CCX, offering employment beyond the workforce needed at the logistics hub itself. CSX estimates that terminal construction will create 250-300 short-term jobs, and the hub will ultimately spur up to 1,500 jobs statewide. In a Facebook post, CSX notes that the average salary for long-term company jobs is $60,000. 

“This is a good type of growth. These are good jobs, clean jobs with high pay,” Cozza said. 

He cited the “hub and spokes” kind of development that has taken place within 100 miles of Atlanta, which has become a Southeastern U.S. distribution center. 

So why are Rouzer and some state and Johnston County officials expressing reservations about CCX? 

There is opposition to the project from many Johnston County landowners near or on the proposed site. Some who have been approached by CSX officials about selling their property have said they were blindsided. 

Rouzer, who at first voiced his strong support for CCX because of its potential for major economic impact, has since said his support hinges on whether a site can be found that is amenable to everyone involved. 

“Can they find the right fit?” Rouzer said, referencing the need to identify landowners willing to sell to CSX. “It’s certainly not out of the question.”

Like Rouzer, Johnston County commissioners originally viewed the proposed CCX as a positive development, but at a meeting Jan. 20 they went on record as opposing the project unless a non-controversial site could be found. That stance has not changed, according to Johnston County manager Rick Hester. 

Citing strong support for the project, both in his area and elsewhere in the state, he said, “Hopefully a solution can be found for this project to land in our area.”

Gov. Pat McCrory, however, has said that the original site is “no longer in play.” He said the state is continuing to talk with CSX and hopes that the company will consider other locations.

Landowner opposition has taken to social media. Soon after the CSX announcement, county residents created a Facebook page, “Fight for the Farm,” that quickly gained about 9,000 “likes.” Some have posted their dismay over the loss of the rural landscape to development. Some fear the facility could bring noise and pollution.

Others, as well as the conservative advocacy group Americans for Prosperity North Carolina, have reacted to CSX officials’ suggestion the company might use the process of eminent domain to take the land. North Carolina law does not prevent a private entity from taking property through eminent domain if the resulting project will ostensibly serve the public good.

In a news release, the AFP’s North Carolina chapter urged Johnston County state senators Buck Newton and Brent Jackson to “take a stand for their constituents and pledge support for constitutional reform to eminent domain in North Carolina.”

The group advocates limiting eminent domain to public use projects.

Meanwhile, Wayne and Robeson counties have gone on record as requesting the project if CSX decides to look for another site along its existing rail lines with easy access to Interstate 95. 

But even if the site issue is resolved, CSX must find funding for the hub.

The company says it is prepared to invest $150 million in the project, and is looking for another $100 million from North Carolina’s Strategic Transportation Improvement (STI) program. The remaining $22 million would come from other sources, according to information from CSX.

McCrory’s announcement of the project, which followed on the heels of CSX’s own Jan. 14 announcement, was strongly supportive of it. The release quoted N.C. Department of Transportation secretary Nick Tennyson as saying the project would have “a major impact on the state’s ports and rail systems. 

“CCX will link the North Carolina State Port at Wilmington with businesses from the Piedmont to the coast, transporting shipping containers over the nationwide rail network,” he said in the release, adding, “The project will strongly compete in the STI.”

At the ports authority board meeting two weeks later, however, Tennyson was far more cautious, saying the project, which would have “major potential benefits to the state” also had a “certain amount of exposure to challenges” and those factors would have to play out.

“I remain hopeful,” he said.

CSX officials did not grant a request for an interview for this story, but did offer a statement on Jan. 27:

“CSX is committed to this infrastructure project which will create jobs, deliver a distinct competitive advantage for large and small businesses, and spur economic development. We look forward to working with all interested stakeholders to address concerns and move the project forward,” the response stated

The project website states that the CCX would generate an estimated $329 million in long-term public benefits for the state as a whole, including contributing $90 million to the state economy in the first year of operations. The website lists CCX’s additional public benefits.

“One intermodal train can carry the load of 280 trucks... Fewer trucks on the road improves safety and preserves the condition of broadly traveled routes like I-95 and I-85,” the website states. “Ultimately, this project is expected to save $20 million in state highway maintenance costs. Converting freight shipments from the highway to rail also reduces emissions and improves air quality. Rail is four times more fuel efficient than trucks, making it the most environmentally friendly form of land transportation. CCX is expected to produce a 400,000-ton reduction in carbon dioxide emissions in North Carolina.”  

Danny McComas, owner of Wilmington-based MCO Transport, whose trucks serve the ports of Wilmington, Charleston, Savannah and Norfolk welcomes the idea of an intermodal terminal, which he says will bring more freight to the region and spur distribution centers.

“I think that terminal will be a boon for North Carolina. It should have happened a long time ago, and the state needs to make it happen,” he said. “It’s going to be positive for my business, because trucks [represent] the ‘final mile.’ People think trucking is blown out of the water by rail, but it’s just the contrary.”