Amtrak Says CP Will Allow Passenger Expansion

Amtrak said in a brief filed with the U.S. Surface Transportation Board that Canadian Pacific has agreed to back the passenger carrier’s efforts to expand service in several locations, including Michigan.

The brief was the final filing by Amtrak in the proposed merger of CP and Kansas City Southern.

CP has agree to allow Amtrak to institute new service between Detroit and Windsor, Ontario, that would connect at the latter with trains of VIA Rail Canada. The service would use a tunnel under the Detroit River that is owned by CP.

No details about that proposed service have been released nor is there a timeline for its implementation.

Amtrak’s current Wolverine Service between Chicago and Detroit continues northward to suburban Pontiac. One or more of those trains would have to be diverted to Windsor.

The existing Detroit Amtrak station is not located on the route into Windsor.

Amtrak’ s brief described CP as a “reliable partner in working with Amtrak to provide safe, efficient and effective passenger-rail services.”

The brief said CP also agreed to allow Amtrak to add other additional or new services including:

• Expansion on the CP-owned portion of the Hiawatha Service route between Chicago and Milwaukee;

• Between Chicago and Minneapolis-St. Paul, Minnesota, on lines owned by CP; 

• Between New Orleans (IC Junction) and Baton Rouge, Louisiana, on a KCS line.

CP also has agreed to participate in a study with Amtrak, Norfolk Southern, Union Pacific and various governmental agencies of implementing new service between Dallas and Meridian, Mississippi.

CP Completes Purchase of Detroit Tunnel

Canadian Pacific has completed its transaction to buy a majority ownership stake in the Detroit River Tunnel.

The carrier said this week it bought the shares of an Ontario municipal employees pension fund, which constituted 83.5 percent of the tunnel ownership.

CP previously had a 16.5 percent ownership share in the 1.6-mile tunnel, which was built by the Michigan Central and links Detroit with Windsor, Ontario.

In a news release, CP said the purchase price of the Ontario pension fund shares was $312 million, subject to closing adjustments.

CP said the acquisition will reduce its operating costs of traffic movements through the tunnel.

CP to Fully Own Detroit River Tunnel

Canadian Pacific said this week it will acquire full ownership of the Detroit River Rail Tunnel for $312 million under an agreement with Ontario benefit pension plan.

The two have an ownership partnership in which CP has a 16.5 percent share. The 1.6-mile tunnel links Detroit with Windsor, Ontario.

In a news release, CP said full ownership will reduce its operating costs related to movements through the tunnel.

OMERS initially invested in the tunnel partnership in 2001.

The sale, which is subject to regulatory and customary closing conditions, is expected to be finished by the end of the year.

Michigan Rail Passengers Advocates Pushing for Detroit-Windsor Bus Connection for Amtrak-VIA

Michigan rail passenger advocates are working with Amtrak and VIA Rail Canada to revive connecting service between Detroit and Windsor, Ontario, although that might not necessarily be rail service.

In a campaign that has been dubbed “mind the gap,” the advocates are talking with both railroads about establishing a direct bus connection.

Passengers who now want to connect between Amtrak and VIA must either take a cab or ride three local transit buses.

The advocates noted that the border crossing at Detroit is the busiest between the two countries.

Until 2003, Amtrak and VIA hosted a Chicago-Toronto train known as the International that operated via Flint and Port Huron, Michigan.

A Detroit-New York train, the Niagara Rainbow, operated via Windsor between October 1974 and January 1979, ending when the states of New York and Michigan ended their funding of the train.

An article posted on the website of the National Association of Railroad Passengers said that VIA is in active discussions with bus companies to provide a “bus bridge” between the VIA station in Windsor and the Detroit Amtrak station.

The service may begin by late 2017. The Michigan advocates hope that if the bus connection proves successful that it might provide an impetus for resuming rail service between Detroit and Windsor.