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Michigan State Rail Plan Has Been Prepared by HNTB Corporation with Assistance from the Following Firms

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Michigan State Rail Plan Has Been Prepared by HNTB Corporation with Assistance from the Following Firms Final Report September 2011 Prepared for: Prepared by: HNTB Corporation Acknowledgements The Michigan State Rail Plan has been prepared by HNTB Corporation with assistance from the following firms: • HDR Engineering, Inc. • Economic Research Development Group, Inc. • Prime Focus, LLC The staff of the Michigan Department of Transportation played an active role throughout the development of this plan. Key members of the MDOT staff involved in this Plan include: • Larry Karnes, Project Manager • Deb Brown • Lina Chapman • Aarne Frobom • Susan Gorski • Jesse Gwilliams • Tim Hoeffner • Kathy Hundt • Al Johnson • Nikkie Johnson • Dennis Kent • Bob Kuehne • Bob Parsons • Steven Rapp • Bill Stonebrook • Rob Abent • Susan Mortel • Jonathan Skiles • Melvin Williams Special thanks to Bob Chaprnka of the Michigan Railroads Association whose assistance in working with the railroad companies operating in Michigan was critical to the successful completion of this Plan. Published 50 copies at $16.29 each for a total of $814.50 in accordance with Michigan Executive Directive 1991-6. MICHIGAN State Rail Plan Acknowledgments | i Table of Contents 1 Introduction and Vision ...................................................................................................................................1 1.1 Historical Highlights of Rail in Michigan ..............................................................................................3 1.2 An Overview of Rail in Michigan Today................................................................................................4 1.3 The Benefits of Rail in Michigan .............................................................................................................5 1.3.1 Economic Benefits ................................................................................................................................5 1.3.2 Environmental Benefits........................................................................................................................5 1.4 Federal Requirements ...............................................................................................................................6 1.5 A Vision for Michigan Rail Service .........................................................................................................9 1.6 Goals and Objectives .................................................................................................................................9 1.7 Organization of the Plan ........................................................................................................................11 2 Existing Conditions .........................................................................................................................................12 2.1 Freight Rail System Profile .....................................................................................................................12 2.1.1 Summary of Current Freight Railroad System................................................................................14 2.1.2 State-Owned Rail Lines ......................................................................................................................17 2.1.3 Abandonments ....................................................................................................................................19 2.1.4 Intermodal Activity ............................................................................................................................19 2.1.5 International Border Crossings .........................................................................................................21 2.1.6 Port Access Facilities ..........................................................................................................................22 2.2 Freight Rail Traffic ..................................................................................................................................22 2.2.1 Economic Value-Chain Dependency on Rail .................................................................................22 2.2.2 Significance of Trans-Border Trade with Canada ..........................................................................27 2.3 Economic Conditions and Forecasts ....................................................................................................29 2.4 Passenger Service Profile ........................................................................................................................34 2.4.1 Passenger Rail Ridership ....................................................................................................................36 2.5 Federal and State Funding Programs....................................................................................................38 2.5.1 Federal Rail Funding Programs ........................................................................................................39 2.5.2 Rail Funding Programs in Michigan ................................................................................................42 2.6 Previous Studies .......................................................................................................................................49 2.6.1 Statewide Plans and Programs ..........................................................................................................49 2.6.2 Regional Plans and Studies ................................................................................................................50 2.6.3 Multi-State and National Plans and Studies ....................................................................................52 MICHIGAN State Rail Plan Table of Contents | ii 3 Organizational Opportunities ........................................................................................................................54 3.1 Public-Private Partnerships ...................................................................................................................54 3.1.1 Recent State Legislation Supporting Passenger Rail Projects........................................................55 3.1.2 Recent Federal Funding Supporting Passenger Rail Projects .......................................................56 3.1.3 Other Funding Sources ......................................................................................................................57 3.2 Divestiture Requirements.......................................................................................................................59 3.2.1 History ..................................................................................................................................................59 3.2.2 Divestiture Legislation........................................................................................................................59 3.3 Organization of State Rail Programs ....................................................................................................60 3.4 Rail Program Organization in Other States .........................................................................................62 4 Outreach Activities ..........................................................................................................................................65 4.1 Internet Connections and Resources ....................................................................................................65 4.2 Public Meetings - Round One ...............................................................................................................65 4.2.1 Comment Summary for Round One Public Meeting ....................................................................66 4.3 Public Meetings: Round Two.................................................................................................................69 4.3.1 Comment Summary for Round Two Public Meetings ..................................................................70 4.4 Stakeholder Involvement........................................................................................................................72 4.5 Coordination with Michigan by Rail ....................................................................................................74 5 Identification of Investment Needs ...............................................................................................................77 5.1 Development of List of Projects and Programs ...................................................................................77 5.1.1 Existing Plans and Studies .................................................................................................................77 5.1.2 Projects Identified by Railroads ........................................................................................................78 5.1.3 Public and Stakeholder Input ............................................................................................................78 5.2 Development of Project Investment Packages ....................................................................................79 5.3 Identification of Unmet Needs ..............................................................................................................83 5.3.1 Funding the Baseline Investment Package ......................................................................................83 5.3.2 Funding the Good Investment Package ...........................................................................................83
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