What were the reasons South Carolina abandoned the canals?

At the end of the U.S. Civil War in 1865 with slavery abolished, South Carolinians had no cheap labor supply for the construction of new canals, and those that were already operational saw a long period of decline in usefulness. Some fell into complete disrepair and are no longer used.

Because of railroad competition in the mid-1850's, investors pulled out of the project, and the General Assembly canceled the canal company's charter in 1853. The South Carolina Encyclopedia explains that portions of the canal were used sporadically until about 1865 and then were abandoned entirely.

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