R.J. Corman Leases Former Heartland Intermodal Gateway Property (UPDATED)

Pictured: Central Appalachia Inland Port at Prichard (CAIPP) in Wayne County, W.Va. (R.J. Corman Photograph)

The Wayne County Commission has signed a contract to lease the former Heartland Intermodal Gateway property in Prichard, W.Va., to private railroad company R.J. Corman Railroad Group.

R.J. Corman took over the lease on Oct. 16. It plans to use use a portion of the 65-acre facility, now called the Central Appalachia Inland Port at Prichard (CAIPP), as a car repair hub, which The Herald-Dispatch reported entails working on auto racks that haul automobiles from plants. Fourteen employees, including mechanical specialists, quality control, administration, and management, will work at the facility, which is served by Norfolk Southern’s Kenova District. R.J. Corman offers mechanical car repair services at 12 other sites nationwide.

In additional phases of the project, R.J. Corman said its switching company will seek to “expand operations to grow services and increase economic impact for the region.”

According to The Herald-Dispatch report, these planned future phases could “return the facility to its original purpose when it was created in 2015.” When the Heartland Intermodal Gateway opened in 2015, it was meant to provide a truck-to-rail transfer option along a 530-mile stretch of railway from the Port of Virginia in Hampton Roads through West Virginia to Chicago, according to the report.

In 2019, however, it was deemed “unsuccessful” and put up for auction. In 2022, the facility was deeded to Wayne County after a lengthy pursuit led by local officials, according to the report.

R.J. Corman Railroad Group Vice President of Commercial Development Michael Robinson said the signing of the lease contract “kicks off the 90-day process of making the facility operational,” according to The Herald-Dispatch.

According to Robinson, and as reported by The Herald-Dispatch, “around 70% of automobiles leave the plant by rail, so it is critical to make sure they can make it to the dealerships to deliver those cars. This means a site is needed to send those racks for regular maintenance—which is what would be performed at the Prichard location initially.”

Robinson said the hope is to “get a foot in the door with that mechanical work and maximize the services that can be performed in that aspect, then look at expanding,” according to the report.

According to the report, “other phases will be evaluated to see what can continue to bring revenue to Wayne County along with R.J. Corman.” This, The Herald-Dispatch reported, “could include storage in transit, which is when a facility wants to store product while also continuing to manufacture product and needs a place for those materials to go.”

“Instead of having all that on site, they will use the rail car as storage due to the abundance of space. Each railcar can store up to four trucks,” Robinson said. “This would make Prichard an origin for those materials to be shipped,” according to the report.

Next, The Herald-Dispatch reported, “R.J. Corman will look at the possibility of transloading, which entails taking material from truck to rail or vice versa. The best customers for this service are those who send out large amounts of material but do not have access to rail service at their facility. This would be a shuttle service in essence for those without access to rail. This could be anything large and heavy that needs to be shipped long distances of at least 300 miles.”

According to the report, intermodal possibilities, which the yard was built for, will “continue to be evaluated.”

“Initially, Prichard was to become a place for those containers to stop and be taken off the rail and on truck. Looking ahead, it will be evaluated as to whether that is a viable use for the property,” according to the report.

“We are excited to extend our footprint in West Virginia and revitalize the Central Appalachia Inland Port at Prichard,” R.J. Corman Railroad Group President and CEO Ed Quinn said in a statement. “We see great potential for growth in this site, and we look forward to providing best-in-class service to our customers and becoming a key supply chain partner for businesses in the area.”

“Through the cooperation of the Wayne County Commission, the Marshall University College of Business and Economic Research, and the Huntington Area Development Council, a plan was established to determine the best use of the facility and identify the most qualified operator to ensure its future success,” said Jeff Maddox, Wayne County Commission President, in a statement. “After an exhaustive search, we are beyond pleased to partner with R.J. Corman Railroad Group for the future growth of the CAIPP. We could not have found a better, more qualified partner based on their reputation, industry standing, and established record of success. Special thanks to Governor Jim Justice, Senator Bob Plymale, and Delegate Matt Rohrbach for helping us realize this vision. We are optimistic about the future of the CAIPP facility and excited to see its potential finally realized.”

“R.J. Corman’s decision to locate here serves to underscore the status of the Central Appalachian Inland Port at Prichard (CAIPP) as a key regional asset,” said Bob Plymale, Associate Vice President of Marshall University, Center for Business and Economic Research, in a statement. “It also reflects the diligence and hard work on the part of Governor Justice’s administration, the U.S. Economic Development Administration, the Wayne County Commission, and their many strategic partners over the last several years. The Center for Business and Economic Research at Marshall University is excited to continue engaging with R.J. Corman and the Commission to support their operations at CAIPP and to identify future opportunities with regional firms.”

Railway Age Executive Editor Marybeth Luczak contributed to this report.