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CSX Transportation, the city of North Charleston, S.C., and Shipyard Creek Associates L.L.C. recently reached an agreement to address ongoing rail issues at the former Charleston Naval Base and in the city’s southern portions.

The city long has planned to terminate northern rail service to the Navy base in favor of a new southern route. The parties agreed to a long-term, multi-year plan under which CSXT would abandon certain rights of way and discontinue operations on old routes, and instead use a new southern access route and rail yard.

North Charleston is considering whether to contribute certain city-owned property to the project. The city would help CSXT acquire other property for the southern route and purchase rights of way from the Class I for between $3 million and $5 million.

Additional project funding would come from federal grants, which would help the city purchase about 40 acres of industrial land along the Stromboli Corridor. A new overflow rail line would run through the corridor.

Under the agreement, North Charleston also would redevelop the Cooper Yard/Macalloy site into an intermodal yard and warehouse facility.

The city council plans to consider adopting the pact sometime in August.