Whitmer Announces Michigan Rail Enhancement Grants; $1.1 Million For U.P.

Today, Governor Gretchen Whitmer and the Michigan Department of Transportation (MDOT) announced the first round of recipients for the new 2023 Michigan Rail Enhancement Grant Program (M-REP) that will invest $19 million towards freight rail projects across Michigan. The twelve projects that were competitively selected, make strategic investments in freight rail corridors and facilities to improve rail safety, operational efficiency, accessibility, capacity, and condition.

"With approximately 3,600 miles of rail corridors in Michigan operated by 29 freight railroads, freight rail keeps our diverse economy rolling," said Governor Whitmer. "From farmers depending on rail to haul their crops to market to auto manufacturers shipping finished products across North America, rail creates jobs and serves communities across our state. The 2023 Michigan Rail Enhancement Grant will invest $19 million across Michigan, ensure our rail system is safe, efficient, and meets Michigan's economic and transportation needs. Let's continue working together to keep Michigan's rail economy on track."

M-REP grants reimburse up to 70 percent of project costs associated with railroad track, bridges, grade crossings, rail scales to weigh freight cars on mainline corridors and at rail yards, intermodal facilities, and transload facilities. Movable equipment or freight rail rolling stock may be considered if plans are submitted that provide adequate controls for Michigan-specific use.

"This is a fantastic opportunity for growth in West Michigan and the agriculture industry," said Sen. Roger Victory, R-Georgetown Township. "Making these types of smart investments in our rail systems will unlock new levels of production and improve logistics across the board."

"We are excited to participate in the first round of the Michigan Rail Enhancement Grant Program awards, said John Rickooff, chief executive officer and president of the Lake State Railway Co. "Lake State Railway looks forward to working with MDOT to complete these projects."

"We are honored to be selected to partner with MDOT as they work to improve, expand, and rehabilitate freight rail corridors throughout Michigan, said Mike Hnatiuk, director of Marketing for the West Michigan Railroad Co. and the Hamilton Northwestern Railroad Co. "Once completed, these projects will deliver an immediate benefit to local communities and the region. These infrastructure enhancement projects will significantly minimize the amount of time railroad crossings are blocked, as well as provide public access for companies to utilize rail, who currently do not have access to freight rail services. The new public access site is expected to take as many as 8,000-10,000 long haul trucks off Michigan roads each year, which will reduce congestion and road deterioration on Michigan highways, as well as eliminate unnecessary truck CO2 emissions. The Michigan Rail Enhancement Grant Program is a perfect example of public private partnerships that deliver true lasting benefits to Michigan communities."

In 2022, funds were dedicated for rail-related economic development projects and rail freight system preservation projects. The grants will leverage approximately $48 million in other investment in the rail system.