Windsor-Detroit rail tunnel promises 2,200 jobs

Backers of a proposed $400-million Detroit River rail tunnel announced June 17 they have launched the first steps toward construction, The Windsor Star reports. CP Railway, Borealis Infrastructure and the Windsor Port Authority have joined together to work on building a new double-stack high-clearance tunnel to replace the existing rail freight tunnel constructed in 1909.

Formerly known as the
Detroit River Tunnel Project and Jobs Tunnel, the new name for the project is
the Continental Rail Gateway. An environmental assessment description has been
filed with the Canada federal Transportation ministry. Once environmental
approvals are in place — proponents expect them to take about 18 months — the
project will take three years to build and promises 2,200 direct and indirect
construction jobs.

"A larger replacement
rail tunnel is critical to creating jobs and turning Windsor-Detroit into one
of the most significant logistics hubs in the Midwest," said David Cree,
president/CEO of the port authority.

A new rail tunnel for
Windsor has been touted for nearly 10 years, but the former DRTP got bogged down
by controversy and neighborhood opposition when the plan included conversion of
a South Windsor rail corridor and tunnel into use by trucks. That plan was
pulled off the table several years ago and CP and Borealis have since focused
on building a larger rail tunnel next to the existing tube to handle CP’s
growing fleet of double-stacked, three-meter-high rail containers and multi-level
rail cars.

The existing tunnel —
which annually carries 350,000 cars and $21.5 billion in trade — was enlarged
in 1994, but cannot be expanded further.

The number of larger cars
— many originating out of the Port of Montreal — has reached the point where
a new tunnel is a necessity in Windsor to get freight into the U.S., said rail
tunnel proponents. The tunnel will allow CP Rail to better compete for business
with a larger Sarnia-Port Huron rail tunnel owned by competitor CN Rail. That
tunnel was constructed in the mid-1990s.

"It’s a great
development for us," said Mike LoVecchio, spokesman for CP. "From our
perspective, this would enhance our operations. We will be able to run all rail
cars through the new tunnel. The existing tunnel is fully functional, but
cannot accommodate double-stacked containers. This gives us more flexibility so
there is merit there."

But it was premature to
estimate how much added business might be created, he said. LoVecchio could not
say where the project ranks on CP’s list of infrastructure priorities. The
railway will spend C$750 million on infrastructure improvements in 2010.

The fate of the old tunnel
is not yet decided, although some observers suggested it might play into growing
efforts to build a high-speed rail passenger network or simply handle surplus
freight service.

"One step at a
time," LoVecchio said. "It’s a discussion that will fuel a lot of
debate, but no decisions are made at this stage."

Marge Byington, the rail tunnel’s
project leader in Michigan since its inception, said this step forward shows a
border crossing can happen through co-operation on both sides of the border. She
said the rail tunnel could be open by 2015.

The announcement reflects
the latest border investment in Windsor following the launch of the C$1.6-billion
Windsor-Essex Parkway and recently completed C$8.8-million improvement project
for the Windsor-Detroit truck ferry.

The port authority is a
welcome addition to the CP-Borealis rail tunnel team because it provides a
local connection and also a public body that can help guide through the
government approval process. The port authority is not a financial partner, but
will provide support and assistance.