CHARLESTON, S.C. — A rail line to serve Volvo’s new auto plant in South Carolina has received initial approval from a state panel.

The Post and Courier of Charleston reported the Joint Bond Review Committee approved plans Tuesday for Palmetto Railways buy land to link the Volvo plant with a CSX rail line.

Palmetto Railways is part of the South Carolina Commerce Department. It plans to spend $3.5 million for a 23-mile (37-kilometer) rail line.

The South Carolina Fiscal Accountability Authority could issue final approval next week.

The proposed 100-foot (30-meter)-wide railroad would run through the property of 21 owners.

The state-built rail link is among $200 million worth of incentives South Carolina promised Volvo in 2015 to get the Swedish automaker to build its $1 billion plant in Berkeley County.

Information from: The Post and Courier,

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