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By Jeff Stagl, Managing Editor
Two major developments that occurred in late 2023 and early 2024 have positioned Palmetto Railways to implement a motive-power plan that’s unusual for a short line: the transformation of diesel locomotives into more modern, emission-free units.
In September 2023, the South Carolina short line learned it will receive a nearly $4.2 million Consolidated Rail Infrastructure and Safety Improvements (CRISI) program grant from the Federal Railroad Administration (FRA) to convert two diesel switchers to battery power. Palmetto Railways — which is a division of the South Carolina Department of Commerce — will provide a 35% funding match for the project.
Then in February 2024, the short line contracted Innovative Rail Technologies (IRT) to perform the conversions. A rail solutions provider that offers proprietary propulsion technology, IRT is conducting or completed similar locomotive conversions for Cando Rail & Terminals, U.S. Steel and NUCOR.
Retrofitting the two switchers will make the units less expensive to operate while providing superior locomotive performance and significantly reducing carbon emissions, Palmetto Railways officials say. The switch to locomotives powered by lithium-ion batteries will reduce diesel usage by 40,000 gallons annually per locomotive, the short line estimates.
The retrofitted locomotives will provide a cleaner and more energy efficient transfer and shipment of goods through the short line’s existing North Charleston facilities, and support the Navy Base Intermodal Facility that’s under construction with the South Carolina Ports Authority, Palmetto Railways officials say.
Established in 1969 and located in Charleston, Palmetto Railways serves the Port of Charleston and a number of industries based in a five-county region, and interchanges with CSX and Norfolk Southern Railway.
The locomotive conversions support the short line’s commitment to adopting advanced technologies that not only help reduce the railroad’s environmental impact, but help prioritize safety, efficiency and service reliability for current and future customers, says Palmetto Railways President and CEO Patrick McCrory.
“We are doing something exciting and unique — something that’s somewhat cutting edge,” he says. “We as short lines are not as innovative at times because we don’t have the same means as larger railroads. This is the right opportunity and the right set up to do something next-step.”
The two switchers are EMD GP-20 units manufactured in the 2000s. The conversion work will involve air compressors, battery racks and racking systems. The physical retrofits won’t be very complicated or high-tech, McCrory says.
“The technology is in the software and the battery distribution,” he says.
The retrofits will take about two years to complete, but not because of factors under Palmetto Railways’ control. The project is under the FRA’s more drawn-out timeline because of the federal CRISI grant process, says McCrory.
“We have to do an environmental process just as if this was a bridge project — it’s the same process,” he says.
Going forward, it’ll help that IRT’s locomotive retrofit option is available rather than speculative, McCrory says. A locomotive the company helped modernize currently is in operation for U.S. Steel in Pittsburgh.
IRT offers the ATLAS (Advanced Technology Li-Ion Adaptive System) as a scalable propulsion and control package that can be customized to a customer’s operations. Paired with an automated and high-speed charging system, an ATLAS-powered locomotive can maintain availability 24/7, according to IRT.
“IRT is the right vendor. They are former operators,” says McCrory.
Palmetto Railways currently operates 13 locomotives, which predominantly feature four axles. The short line’s long-term plan calls for eventually employing an even mix of four- and six-axle units. Plus, the railroad aims to eliminate any SW1000, SW1200 or similar units.
“We are getting away from SWs,” says McCrory.