The state that put the world on wheels now believes that it needs to continue to be a transportation leader in order to stay competitive in today’s global economy as Gordon Feller reports.
According to a government representative “We (Michigan) need a modern transportation system that moves people and goods safely, reliably, and efficiently in order to increase productivity and our quality of life. We need a multi-modal system that will serve the movements of a new, more urban, more tech-savvy, and more active generation.” The challenge is simple. Michigan’s infrastructure is deteriorating from a lack of investment. If anyone is going to reinvent Michigan’s economy, the state’s leaders have to reinvest in Michigan’s infrastructure. Michigan currently invests about USD 16 million per year in rail programs, including funds for operation, grade crossing improvements, economic development programs and management of 540 miles of state-owned rail lines. With the completion of Michigan’s State Rail Plan, required by federal law, the state is now in position to receive additional federal funds. Rail investment and enhancement will mean that goods can move faster, cheaper, and more reliably, benefiting business productivity and helping create more jobs. In Michigan, railroads are critical to the success of agricultural production, whether they’re hauling inbound fertilizer or outbound grain. Freight rail is not a luxury for the agriculture and agri-business industries – it is a necessity. The Governor is now directing the Departments of Transportation and Agriculture & Rural Development to coordinate with the food and agriculture industry to ensure their infrastructure needs are included in economic expansion opportunities. There are a number of high-value rail freight projects ready and waiting to be implemented. The Detroit Intermodal Freight Terminal project is a public-private partnership that needs additional investment to become reality. The Detroit Railroad Tunnel expansion is a private sector project that is also ready to begin. Both projects will help increase the potential for rail shipping in Michigan, which will help remove trucks from freeways and reduce costly highway congestion, degradation, and pollution. These stand-alone projects could go forward at any time, but implementing them in combination with the New International Trade Crossing will accelerate Michigan’s development as a center of global trade.
Over the past two decades, Michigan has made more than USD 100 million in incremental investment to improve grade crossings, signals and rail equipment. That relatively small but positive action has paid off, laying the groundwork and encouraging additional investment that will pay off in an even bigger way in the future, by encouraging development, attracting businesses, and creating jobs. Michigan has already successfully garnered USD 440 million in US federal rail funds. This money will be used to improve train stations, acquire trains and accelerate rail speeds from Pontiac and Detroit to Chicago. Some of the money will be used to acquire and improve a deteriorating segment of the corridor between Kalamazoo and Dearborn where speeds have actually had to be decreased because of the poor condition of the infrastructure.
Making better use of ports
Making better use of Michigan’s ports by ensuring continued investment in those vital transportation systems is vital. The Great Lakes moves about 150 million tons of cargo each year, with more than a third of that – with a value of over USD 5 billion – handled at Michigan ports. They provide a vital service, particularly for the timber and mining industries in the Upper Peninsula. Michigan’s vast water resources are unique, and the Great Lakes shipping corridor provides a significant and easily undervalued transportation option. There are opportunities at the national level that the Governor will continue to pursue to improve Michigan’s ports. The national Harbor Maintenance Trust Fund currently has a USD 5 billion surplus that can be spent for port dredging. The Governor intends to work with Michigan’s Congressional delegation to make sure that some of those funds are spent to dredge ports in Michigan to maintain their productivity and their value to shippers. Unless those federal funds are used for their intended purpose, there are several ports in Michigan that may cease to function. The Soo Locks help make Great Lakes shipping opportunities possible. A new lock has been authorised by Congress, providing redundancy for the existing locks and enhancing the reliability of the whole system. Over the past few years the Army Corps of Engineers has completed work to dredge and deepen the approach to the potential new lock, as well as work to construct two coffer dams, a first step that will allow the old lock to be drained and construction of a new lock to begin. Construction of this new lock is vital to ensure the continued viability of Great Lakes shipping for the 1000’ freighters that make up two-thirds of the Great Lakes shipping fleet. As importantly, this construction project will create thousands of jobs in the eastern Upper Peninsula over the life of the project. Michigan knows that it needs a smarter and more strategic approach to investing in infrastructure, and it starts with a bold vision to become a global trade center and logistics hub. Michigan’s location between Chicago to the west, Toledo to the south, and Toronto and Montreal to the northeast puts Michigan squarely in the centre of a global economic corridor. By any measure, the strength of the Chicago – Detroit – Toronto mega region compares favorably with any other region in North America. Innovative and collaborative agreements like the Detroit Region Aerotropolis contribute to the vision of establishing the region as an international shipping and logistics hub by streamlining permitting processes and creating a welcoming business climate. The state has a deep pool of talented workers, plenty of usable land, and an abundance of natural resources that can be leveraged to help any industry flourish – provided the state has the transportation systems to get products to the international marketplace.
Michigan already has some of the busiest border crossings in North America. Detroit is the busiest crossing on the northern border and the busiest commercial crossing in North America. Today, it is also the biggest bottleneck in the entire Pan-American freeway system. With more than 8,000 trucks crossing the Detroit border on a daily basis, 99 percent of the truck traffic crosses a narrow, 83-year-old bridge that has no direct freeway-to-freeway connection. The continual congestion at the old bridge clearly demonstrates the need for more capacity at the border. Last spring, the Governor joined every living governor of Michigan (democrat and republican), nearly every job provider, and almost every private labor organisation in urging the completion of the New International Trade Crossing (NITC). It will provide a modern and direct freeway-to-freeway connection to speed international trade. With the commitment of USD 550 million from the Canadian government, the NITC will be completely paid for by the US and Canadian governments and private investors. The NITC will be built, financed and eventually managed by private businesses through a public/private partnership, with Michigan and Canada still owning th
is valuable infrastructure. This allows Michigan to better position itself as a worldwide leader in foreign trade without assuming any risk or financial obligation. Reinventing Michigan to become a centre of global trade requires developing an infrastructure that will meet the modern day demands of the international economy. The New International Trade Crossing is a unique opportunity for Michigan that will expand the economy, support new trade, create new jobs and provide additional funds for our roads without costing Michigan taxpayers anything.