Months after the N.C. Department of Transportation approved a $100 million subsidy for CSX to build an intermodal rail terminal in Johnston County near Selma, the railroad — amid local opposition at every North Carolina location CSX has considered — says it continues looking for sites in North Carolina and other states.

CSX approached the Rail Division of the N.C. Department of Transportation in 2014 with a plan to build the rail hub outside Selma, contingent on getting a taxpayer subsidy of at least $100 million.

But opposition of the proposed project developed in Selma and at an alternative site near Four Oaks. Opponents of the project from Four Oaks say that when they contacted the governor’s office to express their objections, they were told that the Department of Commerce was handling the project. Even so, NCDOT gave initial authorization to the subsidy in April.

Carolina Journal asked Commerce spokeswoman Kim Genardo about the status of the project, but she would not acknowledge it existed. “NC Commerce is always looking for opportunities to recruit new companies to North Carolina and work with existing employers on expansion,” Genardo said in an email. “However, North Carolina Commerce does not discuss whether it is or isn’t working with any company in any capacity. We are happy to provide information if and when a project is publicly announced.”

While Commerce officials may not want to discuss the project, on April 19 Commerce provided a state-owned aircraft to fly a group of Johnston County business leaders and elected officials to tour a CSX intermodal terminal near North Baltimore, Ohio.

Governor rejects Selma

In a Jan. 14 press release, Gov. Pat McCrory announced plans for the 450-acre site near Selma, saying he was “enthusiastic that CSX, with support from local governments and planning organizations, has proposed this project for North Carolina.”

Twelve days later, however, after news reports revealed that CSX was prepared to use eminent domain to acquire property from unwilling landowners in order to assemble the property it needed for the project, McCrory reversed his position. He said the Selma plan “does not appear to be a viable option.”

CSX, based in Jacksonville, Fla., has 1,800 miles of track and employs 1,120 workers in North Carolina. In June 2014 CSX began quietly working on the project with NCDOT’s Rail Division. The Rail Division paid $377,413.71 to a consulting firm to evaluate CSX’s proposal.

Named the Carolina Connector, or CCX, the potential project is still alive. “CSX continues to evaluate a number of sites inside and outside of NC for the proposed CCX intermodal terminal,” spokeswoman Kristin Seay told CJ on June 16.

One alternative site near (but outside the corporate limits of) the town of Four Oaks has been offered by Four Oaks Mayor Linwood Parker, but it too has generated considerable opposition from landowners who would be affected by the project.

$100 million subsidy

CSX says the Selma project would cost $272 million and the company’s share would be $150 million. It is counting on taxpayers to make up the difference of $122 million.

The transfer station would allow CSX to provide additional shipping options for its customers. More containers would travel using a combination of rail and truck instead of just by truck only.

CSX claims there will many tangible benefits. “This critical infrastructure project will bring tangible economic benefits to eastern Johnston County and the state of North Carolina by expanding market reach and reducing logistics costs for existing business and the state’s ports,” stated information on CSX’s website.

But like any for-profit company, CSX has a goal of increasing profits. The company competes with Norfolk Southern Railway and trucking companies. In 2015, the company had net earnings of $2 billion from $11.8 billion in revenue.

On Jan. 21, CJ reported that CSX’s new Ohio terminal did not receive a subsidy from the state and that CSX did not have to use eminent domain to acquire the Ohio property.

On April 6, NCDOT released a list of transportation projects it had evaluated through the Strategic Transportation Investments program. The list contained 69 proposed rail projects. The CCX project, including the $100 million cost to NCDOT, scored the highest in all three categories – statewide mobility, regional impact, and transportation division needs.

Selma still featured

While CSX says it is looking at sites elsewhere, its website continues to feature the Jan. 14 press release announcing the project as planned for the Selma location.

“CSX is planning to develop a new intermodal rail terminal in eastern Johnston County, North Carolina called the Carolina Connector, or CCX. CSX is committed to investing $150 million — the majority of funds needed to complete the project. The development of the terminal is contingent upon securing an additional $100 million through the state of North Carolina’s Strategic Transportation Investment[s] program,” the release stated.

The release added that CSX officials already had 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.”

On Feb. 10, CJ reported that CSX had sent letters to some Johnston County landowners canceling purchase agreements that both parties had signed.

Four Oaks site

In addition to the governor, the Johnston County Board of Commissioners dropped its support for the Selma site after hearing from a substantial number of citizens who were opposed to the project. Commissioners later announced they supported a CSX project and would help locate another site within the county.

After noting the initial opposition to the Selma location, on Jan. 22 Four Oaks Mayor Parker told reporters he was working with Johnston County to secure another site. Parker proposed a location a mile southwest of Four Oaks and 16 miles southwest of the Selma site.

When details of Parker’s selected site became public, a group of citizens organized to oppose the project. They set up a Facebook page named “Four Oaks Does Not Want CSX Here.”

Randy Johnson owns a home and farm that sit in the middle of the area outlined by Parker as the Four Oaks site. Johnson and family members own approximately 200 acres that would be taken for the project.

“I live outside the city limits,” he told CJ. “The most disturbing thing about this is that Mayor Parker has offered my land to CSX without getting my approval. He has offered the whole community to CSX, and they don’t want it either.”

Another outspoken opponent is local pharmacist Jack Austin. His home would not be taken for the project but he told CJ that the increase in train traffic would be very disruptive to the town. “I understand that the 12 daily trains that pass through Four Oaks would increase to 40. That is a big problem because we have three crossings that will be blocked off a lot more than they are now,” he said.

“But the main thing that bothers me is the pollution. I have seen several reports of significant health risks to those that are living within five miles of such a facility. The particulate matter produced from the burning of diesel fuel is hazardous to anyone’s health,” he said.