Palmetto Railways To Reactivate 40-Mile Salkehatchie Subdivision

Published: April 8, 2026

HAMPTON, S.C. — In a significant boost to freight rail infrastructure and economic development in South Carolina’s Lowcountry, Palmetto Railways has announced plans to reactivate its long-dormant Salkehatchie Subdivision, a 40-mile line running through Hampton and Colleton counties that has been out of service since 2012.

The project marks the return of rail operations to a corridor that once served as a vital industrial link in the region, with officials touting the move as a catalyst for new business investment and long-term growth.

Palmetto Railways GP20 #2005 (originally built as CB&Q #924 in 1961) pulls paper boxes from the Kapstone papermill in North Charleston on November 5, 2016. Mike Derrick photo.

Return of Service After More Than a Decade

The Salkehatchie Subdivision—formerly operated as part of the Hampton & Branchville Railroad—last handled regular freight traffic in 2012 following the closure of a major coal-fired power plant that had been one of its primary customers.

Now, more than a decade later, Palmetto Railways is restoring service along the route, with train operations beginning in phases during late March and early April 2026.

Initial activity has included:

Crew training runs
Infrastructure rehabilitation
Early railcar movements

Regular freight service is expected to ramp up as improvements continue and new customers come online.

Infrastructure Investment and Upgrades

Reactivating the Salkehatchie line has required a substantial financial commitment. Palmetto Railways has already invested more than $3 million into the corridor, focusing on critical upgrades such as:

Bridge repairs
Tie replacement
Track rehabilitation
Safety system improvements

An additional $6.5 million in infrastructure spending is planned over the next two years, signaling a long-term commitment to the line’s viability.

The railroad has also launched a safety awareness campaign across the route’s 82 public and private grade crossings, emphasizing the return of train traffic to communities that have not seen regular rail service in years.

Economic Development

Unlike many reactivation projects driven solely by existing traffic, the revival of the Salkehatchie Subdivision is closely tied to regional economic development initiatives.

Palmetto Railways—working alongside state and local partners—acquired the line in 2017 specifically to preserve it for future industrial use.

Now, that vision is beginning to materialize.

At least two major industrial customers are already developing facilities along the route:

Heidelberg Materials, a global supplier of cement and aggregates
Boise Cascade, a major wood products manufacturer

In addition, the line will serve large industrial sites including:

The 1,481-acre Colleton Mega Site
The Stokes Tract, a 457-acre property near Interstate 95

Local and state agencies are actively marketing these sites to attract additional rail-served industries, positioning the line as a key logistics asset in the region.

Strategic Importance to South Carolina’s Rail Network

Palmetto Railways, a state-owned short line operator under the South Carolina Department of Commerce, plays a unique role in linking industrial development with rail transportation.

The Salkehatchie Subdivision connects with the national rail network via an interchange with CSX Transportation at Hampton, enabling access to major markets across the eastern United States.

The reactivation also complements broader infrastructure efforts across the state, including expansions tied to port activity and inland industrial growth.

Palmetto Railways currently operates multiple non-contiguous rail segments statewide, with additional expansions planned, underscoring its growing footprint as a development-focused rail provider.

Historic Roots: The Hampton & Branchville

The Salkehatchie Subdivision traces its roots to the historic Hampton & Branchville Railroad (H&B), one of South Carolina’s long-lived short lines. Chartered in 1891 as the Hampton & Branchville Railroad and Lumber Company, the line was originally built to support the region’s thriving timber industry, moving logs and finished wood products across the Lowcountry.

By the early 20th century, the railroad had expanded beyond lumber into general freight service, linking rural communities with larger rail systems. Its route ultimately stretched roughly 40 miles between Hampton and Canadys, connecting with the national rail network via a junction at Hampton.

A 1929 timetable of the Hampton & Branchville from the 1930 Official Guide.

The H&B became particularly important in the mid-20th century as industries diversified. It dieselized in the early 1950s and retired its last steam locomotives by 1958, reflecting broader trends across American railroading. In its later years, the railroad’s traffic became heavily dependent on a single customer: the Canadys Station coal-fired power plant. Unit coal trains moving from interchange with CSX at Hampton to the plant sustained the line for decades.

However, when the power plant closed in 2012–2013, the railroad lost its primary source of revenue. Freight service ceased, and the line fell dormant after more than a century of continuous operation. Recognizing its strategic importance, Palmetto Railways, along with state and local partners, acquired the line in 2017 to preserve it for future industrial development—ultimately renaming it the Salkehatchie Subdivision.

Today’s reactivation effort represents not just a return of service, but the continuation of a railroad legacy dating back over 130 years.

Facebook X Pinterest Tumblr Reddit WhatsApp Messenger