Washington CO., Va.
Inland port update cites cost concerns; changes to keep project moving
David McGee
Dec 20, 2024
Higher than expected estimates for site work costs prompted some design changes to the inland port project proposed for a site in the Oak Park industrial park in Washington County, Va.
The Virginia Port Authority’s December report includes information about a “topographic survey, geophysical study and geotechnical investigation” performed at the project site in conjunction with the proposed development.
“Refinement of the initially preferred concept revealed a significant cost driver and risk associated with extensive earthwork, which jeopardized the financial viability of the project,” according to the latest report.
A 2022 feasibility study by the Virginia Economic Development Partnership and Port of Virginia identified Southwest Virginia’s Mount Rogers Planning District region as meeting “enough market-driven and physical conditions to warrant additional assessment” to potentially establish a port in this area.
An inland port is an intermodal site where freight is transferred from truck to rail or vice versa.
Washington County’s IDA offered the land and the port authority has continued to evaluate the site and the concept. In response to the cost concerns the project design team considered deferring some aspects of
the work both at the site and away from it.
“Onsite deferrals involve initially limiting track and container storage to match early project demands, which avoids underused infrastructure and provides adaptability for potential future needs,” according to the report.
“Offsite deferrals involve implementing a simpler, interim rail service model with shorter trains and a more basic mainline connection until higher throughput warrants a full upgrade. These deferrals are being coordinated with Norfolk Southern and stakeholders to ensure the service
meets operational needs,” according to the report.
Work is continuing and the next steps involve more engineering work and other steps to reach 60% of the project design.“Engineering work will advance to a 60% design stage to strengthen cost projections and
enhance planning accuracy for the proposed inland port. Reaching this design milestone will provide essential details on construction sequence, material requirements and property impacts, all of which are necessary for improving the confidence of the project budget, according to the report.
That will include preparing wetland surveys and storm water management reports to support permitting.
“Commercial analyses will be expanded to better understand the economic potential of the inland port and its potential impact on regional trade and development. Continued, targeted outreach to potential customers will help clarify the operational value of this facility to thesurrounding community and businesses and provide essential insights into job creation, supply chain efficiencies, and long-term growth opportunities that this inland port could stimulate,” according to the report.
In addition, a comprehensive economic impact study will be performed, including a detailed analysis regarding job creation, the site’s potential to increase further investment in the region, plus impacts on local and state tax revenues.
All of that work is expected to be completed by September 2025, along with an updated opinion of probable cost and — if the project is recommended to proceed — a schedule for delivery of
the inland port.