The Detroit Regional Chamber re-affirms its standing policy in support of transportation infrastructure plans or proposals which seek to provide additional rail freight capacity in the region. Consistent with that position, the Chamber supports the proposal by the Detroit River Tunnel Partnership (DRTP) to construct a new, high-clearance rail tunnel with the capacity to provide the region with additional rail freight service to meet current and future demand.

Until additional study information becomes available, the Chamber’s support for the rail tunnel project does not extend to references in the DRTP proposal to expand future service in the DRTP rail corridor to include passenger rail service.                                                         

Background

The Detroit River Tunnel Partnership (DRTP) has asked the Detroit Regional Chamber to endorse their proposal to improve rail freight service between the United States and Canada through construction of a new, high-clearance rail tunnel in the Detroit-Windsor corridor. The new, larger tunnel is proposed to be built next to the existing tunnels.

The DRTP is an equal partnership between the Canadian Pacific Railway (CPR) and Borealis Infrastructure Trust, a part of the Ontario Municipal Employee Retirement System (OMERS).

The partnership owns and operates the existing rail tunnels under the Detroit River. The  DRTP reports that it operates over 450,000 rail cars a year in the rail corridor that runs from Highway 401 in Canada to I-75 in Detroit. This volume of traffic is equivalent to 25 trains per day moving between Toronto and Chicago via the tunnel in Detroit. However, the infrastructure of this 100 year-old immersed “twin-tube” tunnel is outdated and unable to accommodate the next-generation rail cars that are taller and wider than the diameter of the existing tunnels.  Without a new tunnel, DRTP will be unable to provide competitive, cost-effective service to its current and future customers who use double-stacked containers or the taller AutoMax rail cars.

The need for additional rail capacity in this corridor is not a new issue to the Chamber or this region. In fact, in 1992, the Detroit Regional Chamber played a lead role in facilitating the community debate regarding the cost-benefits of constructing a new rail tunnel in Detroit or the Port Huron-Sarnia area.

Based on available information at that time, the Chamber’s Transportation Committee recommended and the Chamber board concurred that the need exists for additional rail capacity in the Detroit-Windsor corridor, and that the Detroit River Rail Tunnel should pursue efforts to upgrade and improve its existing freight tunnel.

Then, as well as today, the region stands to benefit from the construction of the additional rail capacity in the Detroit-Windsor Corridor that the DRTP rail proposal would provide. In addition, plans for construction of the Detroit Intermodal Freight Terminal (DIFT) in southwest Detroit are also moving forward which will further improve and consolidate existing intermodal freight activity in the region. With the completion of both of these projects, Detroit will be better positioned to handle the projected increase in intermodal freight traffic over the next 20 years.

Benefits for the Region

The proposal by the Detroit River Tunnel Partnership reports the following benefits to the region from construction of the new rail tunnel:

• Generate 1,700 construction jobs over the course of the 4-year project.
• Stabilize and help secure future rail service in Detroit for years to come.
• Expands opportunities to grow and attract new business in Detroit and the region.  
• Provides the region with the first new international infrastructure crossing built in Detroit in over 78 years.

Status of the Project

Project Funding: DRTP states that the project will be privately financed, and is estimated to cost $300 million. DRTP does not plan to seek any funding from MDOT, SEMCOG or the city of Detroit.  

Community Support:  A representative group of public and private sector leaders are on record in support of the project, including Wayne County Executive Robert Ficano, the Michigan Department of Transportation, Detroit Renaissance, American Axle & Manufacturing, Teamsters Canada and UAW International.

Approvals/Permits Required: DRTP has stated that roughly 60 permits must be obtained before they can proceed with construction of the project; To-date, DRTP has not applied for or obtained any of these permits. 

EIS: An Environmental Impact Analysis of the project has not been conducted to-date.

Cost-Benefit Analysis: A detailed cost-benefit analysis of the project has not been made available to support the project benefits outlined in the rail tunnel proposal.

Additional Information Required

In order for the Chamber and other interested organizations to conduct a comprehensive review and analysis of the DRTP’s proposal, the following additional information would be required:

• Detailed information regarding plans for the design, construction, proposed alignment highway and rail access and egress, etc. for the proposed new high clearance rail tunnel.
• Updated planning data and statistics that document the demand for additional rail capacity in the Detroit-Windsor corridor. Similar data which documents the projected future increase in intermodal freight traffic in the nation. 
• Statistics from MDOT on rail traffic volume in Michigan indicating that the majority of Canadian Pacific (CP) rail traffic is pass-through from Toronto to Chicago via Detroit at their Oak Yard facility. 
• A potential area of concern is spin-off development. Historical planning data indicates that spin-off development typically occurs not where the tunnel traffic flows, but where the freight is actually handled and processed, i.e. at intermodal freight facilities.  
• What information and data are available to document the cost-benefits to the region of this project – i.e. new economic activity or the generation of new jobs? 
• Specifically, how will the local business community and industry benefit from the tunnel project, and who are potential customers?   
• How will this project impact current plans for development of the Detroit Intermodal Freight Terminal (DIFT), and what is being done to coordinate those plans with MDOT? 
• How will this project impact the environment and local transportation infrastructure in the region, i.e. adjourning streets and roads?
• What other state and local planning agencies are you working with to obtain support for the project, i.e. Corps of Engineers, SEMCOG, etc.? 
• What approvals or permits are required for CP to move forward with this proposal?
• What municipal or other political support is required to move forward?

Recommendation

The Detroit Regional Chamber has been on record since 1992 in support of efforts to improve intermodal freight service in the region. At that time, Detroit was poised to become among the top ten regions in intermodal freight traffic in the country if proposed improvements in regional rail service were implemented.

There appears to be no question that improvements to the 100-year old Detroit River Rail Tunnel are necessary to meet the current and future demand for rail freight service in Detroit and the region. And the DRTP’s existing customers will certainly benefit from the long-overdue improvements to the rail tunnel.

The Detroit Regional Chamber re-affirms its standing policy in support of plans or proposals which seek to provide additional rail freight capacity in the region. Consistent with that position, the Chamber supports the DRTP’s proposal to construct a new, high clearance rail tunnel with the capacity to provide the region with additional rail freight capacity to meet current and future demand.

Until additional study information becomes available, the Chamber’s support for the Detroit River rail tunnel project does not extend to references in the DRTP proposal to expand future service in the DRTP rail corridor to include passenger rail service.