Matt Marchand, Port Authority CEO David Cree, Port Authority Chairman Charles Pingle, and Mike Rohrer stand by the current railway tunnel that leads to Detroit. They are part of a partnership that recently announced they are building a new rail tunnel through the Detroit River - 17 Jun 2010.

2 November 2011

Rail Tunnel Awaits Government Funds

Windsor Ontario - Backers of a proposed $400-million double-stack Detroit River rail tunnel say they are nearly ready to build, now they just need some government money to do it.
 
"Funding is critical," said David Cree, CEO of the Windsor Port Authority, a partner in the project.
 
"There are likely no issues related to the environmental assessment. We have been very well received politically in both the U.S. and Canada. They see the benefits economically and environmentally. It's win-win for everybody. We just need the funding."
 
Known as the Continental Rail Gateway, the new rail tunnel the existing tube constructed in 1909. Despite its age, the current Windsor-Detroit rail tunnel handles 400,000 rail cars and $22 billion in trade each year.
 
But it has become too small to handle the growing trend toward larger, double-stack rail cars, many coming from the Port of Montreal. For Windsor-Detroit to develop as a major logistics hub, a larger rail tunnel is essential, the project's proponents said during a meeting Tuesday with The Star's editorial board.
 
Backers of the private project include Borealis Infastructure, a division of the OMERS pension fund, CP Rail, and the port authority. They have determined that to get construction started they must secure at least 50 percent of the costs, $200 million from governments on both sides of the border.
 
"We do need significant funding from both sides to make this work," Cree said. "We have had good reception in Ottawa, Washington, and Toronto."
 
But so far, no dollars.
 
Rail tunnel officials have hired a lobbyist on the U.S. side to meet individually with politicians and bureaucrats to help secure the funds.
 
"Theoretically, we'd like $100 million from Canada and $100 million from the U.S," Cree said.
 
The project's environmental assessment is on target to be completed in the fall of 2012 and construction could begin almost immediately, if funding can be secured, he said. The rail tunnel will be located next to the current tunnel and take about three years to build.
 
There are hopes if a new Windsor-Detroit freight rail tunnel gets built, the current tunnel could be converted for passenger trains and create a Quebec City-to-Chicago link.
 
"Industry always follows infrastructure," said Marge Byington, executive director of corporate affairs for the rail tunnel project.
 
"We see this as a great opportunity to create jobs in Windsor and Detroit."
 
Should the rail tunnel project win the green light, backers of the project say it will create between 1,700 and 2,200 construction jobs.
 
Dave Battagello.