The $400-million Detroit River rail tunnel project is being put on hold, pending future review.
Michael Rohrer, director of corporate affairs for the project, confirmed the status on Monday.
“The Continental Rail Gateway replacement tunnel project is being idled, pending a review by the partners Canadian Pacific Rail and Borealis Infrastructure,” says Rohrer. “At present, the business case and economics of this project are not sufficient to proceed with a majority privately-funded development.”
The project has been in the works for at least 12 years, he says. Senior management at CP Rail and Borealis has changed, along with the economics of the project.
Rohrer says there are three things that would have to change in order for it to go forward – the economics of tunnel, significant government funding or significant volume.
“When we look at the horizon none of these options appear likely,” says Rohrer.
The only money pledged by government was $10 million from Michigan.
