Carolina Southern Railroad
| Company type | Private |
|---|---|
| Industry | Rail transport |
| Founded | 1862 |
| Defunct | 2011 |
| Headquarters | Conway , United States |
Area served | South Carolina, North Carolina |
| Products | Freight rail services, passenger rail services (formerly) |
Number of employees | 11 locomotives, 10 freight cars (rolling stock) |
Carolina Southern Railroad was a shortline rail operator based in Conway, South Carolina, functioning from 1862 until it halted operations in 2011. Prior to its acquisition by R.J. Corman Railroad Group in 2015, it stood as one of the last remaining railroads in South Carolina.
The company oversaw more than 95 miles of track, including the Waccamaw Coast Line Railroad stretching from Conway to Myrtle Beach. Its rolling stock comprised 11 locomotives and 10 freight cars. Handling freight volumes between 16,000 and over 1.7 million tons, the railroad served industries such as agricultural chemicals, coal, timber products, and processed foods. It connected with CSX Transportation at Mullins and formed part of the Carolina Rails network that linked Whiteville, North Carolina, with Mullins, South Carolina.
In addition to freight operations, Carolina Southern operated passenger services like the City of Myrtle Beach Club Car, which ran along Highway 501 to the Myrtle Beach Train Station.
History
During the late 1980s, under the name Mid-Atlantic Railroad, the enterprise leased two former Atlantic Coast Line branch routes: one connecting Wilmington and Whiteville in North Carolina and another running from Conway to Myrtle Beach via the Waccamaw Coast Line. Horry County acquired the Conway–Myrtle Beach line in 1985 and leased it to Waccamaw Coast Line Railroad in 1987. By the mid-1990s, Carolina Southern began leasing this line but encountered difficulties in securing ownership as their bids were declined.
Significant infrastructure upgrades included a $4.2 million rehabilitation of the Pine Island Bridge over the Intracoastal Waterway by the South Carolina Department of Transportation in 1997 to accommodate prospective Amtrak High Speed Rail service. Subsequently, Carolina Southern invested approximately $900,000 to improve tracks east of the waterway for consistent freight operations, resuming service by 2001.
Downfall
Despite restoration initiatives during the 1990s, much of Carolina Southern Railroad’s infrastructure deteriorated over time, culminating in a voluntary suspension of operations due to unsafe bridge conditions. In May 2011, inspections conducted by the Federal Railroad Administration (FRA) identified seven critical defects among 52 bridges evaluated. The railroad ceased operations in May 2012 to address these safety concerns; several bridge repairs were completed by August 2011. Nonetheless, the FRA advised discontinuing service until all structural issues were fully resolved.
Horry County applied for $7.5 million in federal funds aimed at rail improvements but was unsuccessful in obtaining a TIGER grant. This setback led Carolina Southern to seek alternative financing sources and reapply for grants in 2012. The company also divested older passenger equipment to concentrate solely on freight services, signaling a strategic shift in its operational focus.
In August 2012, First Federal Bank initiated legal action against owner Ken Pippin over unpaid debts exceeding $1 million tied to a 2008 loan; Pippin maintained that these financial obligations had been settled. The railroad owned approximately 93 miles of track across counties in both South Carolina and North Carolina but faced financial pressure due to expensive infrastructure repairs. By late 2012, about $400,000 had been allocated toward critical bridge repairs with an estimated $1.5 million required for remaining restoration work.
A regional committee comprising multiple counties was established in September 2012 to investigate possibilities for resuming service. Owner Ken Pippin acknowledged that available funds were insufficient for necessary upgrades, estimating minimum repair costs at $1.5 million with potential additional expenses surpassing $12 million. Despite repeated federal grant denials and ongoing financial difficulties, Pippin emphasized the family-owned railroad’s dedication to resolving inherited challenges without relinquishing ownership, highlighting leadership focused on sustainable growth and strengthening its position within regional rail transportation markets.
Potential Sale
Several months afterward, Doug Wendel, co-chair of the committee, announced interest from a prospective purchaser for the rail line, while criticizing the Pippin family for allegedly abandoning it—a point contested by Ken Pippin. Wendel highlighted the railroad’s vital role in supporting the local economy and its capacity to attract manufacturing businesses if it remained operational.
In May 2013, Norfolk Southern initiated legal action against Carolina Southern for nearly $180,000 in unpaid railcar leasing fees, a sum that escalated beyond $740,000 due to the failure to return the cars. Horry County declared Carolina Southern in breach of contract and terminated its agreement, citing outstanding debts exceeding $150,000. Despite defaulting on a $400,000 loan secured by one condominium, Ken Pippin owned three additional properties valued collectively at $879,000. By February 2015, a federal court mandated Carolina Southern to pay Norfolk Southern $103,826 plus relocation expenses.
By March 2014, reports surfaced that Palmetto Railways—a division within the state Department of Commerce—was considering acquiring Carolina Southern; however, negotiations over pricing remained difficult. Wendel expressed a preference for a private-sector buyer. In April 2014, the state conducted an appraisal for Palmetto Railways’ potential purchase but withheld the results from the committee that was pursuing its own valuation. Meanwhile, Pippin sought to maintain ownership of seven miles of track near Mullins, proposing tolls on freight traffic accessing the national rail network.
In May 2014, Carolina Southern’s proprietors delayed plans to abandon track segments to provide time for state and local officials to secure funding for acquisition. By July, an agreement was reached to abandon all but seven miles of track spanning South Carolina and Columbus County. The settlement permitted sale through either negotiation or pricing set by the Surface Transportation Board; associated federal complaints were subsequently dismissed.
In August 2014, prospects emerged for new management within six months, with planned meetings involving key county officials who were responsible for most of the funding. However, legislative coordination challenges between North and South Carolina postponed progress until at least January 2015.
By September 2014, most terms of purchase were finalized with an anticipated closing before year-end. The arrangement envisioned joint ownership by both states with operations leased to a private firm. In October 2014, Santee Cooper entered negotiations regarding utilization of railroad easements for natural gas pipeline projects crossing North and South Carolina.
Early October 2014 saw Columbus County approve $1.8 million in incentives spread over ten years to support the rail line. Shortly thereafter, Horry County Council matched this commitment with tax incentives but did not disclose specific funding sources; Marion County declined financial involvement despite the line passing through its jurisdiction. These investments aimed to restart Carolina Southern Railroad operations by spring 2015.
Acquisition by R.J. Corman Railroad Group
In January 2015, R.J. Corman Railroad Company submitted filings with the U.S. Surface Transportation Board confirming its intent to acquire nearly all of the Carolina Southern rail line near Whiteville, anticipating resumption of service by summer.[1] A legal conflict arose in March 2015 when Corman sought a court order compelling Ken Pippin to sell Carolina Southern; Pippin denied any agreement existed despite assertions from state committee members.[2]
The transaction valued at $13.9 million targeted completion by August 2015, with Corman planning approximately $2 million in infrastructure upgrades and requiring six months prior to reopening.[3] Employing 1,600 personnel across 23 states and possessing construction capabilities, Corman was well-positioned to invest in necessary improvements. Pippin retained ownership of the Conway depot property while Carolina Southern would continue as an independent company focused on expanding its customer base.[4]
On August 17, 2015, R.J. Corman formally closed on the purchase and had equipment strategically positioned to facilitate swift restoration of service.[5][6]
By April 6, 2016, following $3 million invested in upgrades, rail operations resumed on the former Carolina Southern line within Horry County; however, initial train speeds were limited to just 10 MPH.[7] In February 2019, a groundbreaking ceremony launched an additional $17.5 million in improvements supported partly by a $9.8 million TIGER grant aimed at increasing speeds up to 25 MPH by 2022.[8]
External links
- [Operations discontinued in 2012]
- American Short Line & Regional Railroad Association: CALA