Rail freight traffic is expanding throughout North America, particularly to serve ocean ports. Assuring that transportation infrastructure capacity keeps up with demand is important for global trade competitiveness and national economic security.
A key growth area is in the Great Lakes Megaregion, where an industrial heartland route links Montreal, Toronto, Detroit/Windsor and Chicago. About 60% of Port of Montreal container traffic moves inland by rail, mostly to and from markets in Ontario and the U.S. Midwest - a corridor hampered by a bottleneck at the Detroit River, the world's busiest commercial border crossing. A century-old rail tunnel between Detroit and Windsor handles more than 400,000 rail cars each year. The Port of Montreal is doubling container-handling capacity by 2020. The current tunnel can't handle 9' 6" double-stacked container rail cars or Auto-Max vehicle carriers, the most efficient rail shipping modes.
The Continental Rail Gateway (CRG), formed in June 2010, unites Canadian Pacific the Windsor Port Authority and the Borealis Infrastructure investment firm in a replacement rail tunnel venture. The public-private partnership owns the existing tunnel and rail corridor. Project funding calls for $200 million from the partners and $200 million from government sources in each country.