Palmetto Railways is preparing to restart operations on its 40-mile Salkehatchie Subdivision in southwestern South Carolina, marking the first return of rail service on the route since 2012.
The line, which runs through Hampton and Colleton counties, is being brought back into use as two new customers develop facilities along the corridor. To support the relaunch, the state-owned railway has already invested more than $3 million in rehabilitation work, including bridge upgrades, tie replacement, track maintenance and improvements to safety equipment. A further $6.5 million in infrastructure investment is planned over the next two years.
The Salkehatchie line connects with CSX at Hampton and is currently being used for crew training and continuing maintenance-of-way work. Railcar movements are expected to begin later this month. With train traffic now returning, Palmetto has also launched a local rail safety awareness effort in coordination with county officials, law enforcement and emergency services.
Jennifer Brown, Palmetto’s director of industrial development, said Heidelberg Materials has already started developing its site along the railway. The building materials company, which operates more than 450 locations across the US and employs around 9,000 people, announced plans in 2025 to locate on the line. Wood products firm Boise Cascade is also due to begin construction of a new facility this autumn.
Palmetto Railways is continuing to work with the South Carolina Department of Commerce, the Colleton County Economic Alliance and the Southern Carolina Regional Development Alliance to attract additional customers to other rail-served sites, including the 1,481-acre Colleton Mega Site and the 457-acre Stokes Tract near Interstate 95 in Walterboro.
The Salkehatchie Subdivision is the former Hampton & Branchville Railroad. Operations ended in 2012 after the closure of the Canadys Station coal-fired power plant, then owned by South Carolina Electric & Gas, now Dominion Energy. Palmetto Railways and Colleton County acquired the line in 2017 through a partnership with the state, and since then it has mainly been used for railcar storage.
Palmetto Railways currently operates four non-contiguous rail sections in South Carolina. A fifth route, designed to connect Camp Hall Industrial Park and Volvo’s assembly plant, is expected to be completed this summer.
