From an MDOT press release:

October 5, 2011 — The Michigan Department of Transportation (MDOT) today announced an agreement with Norfolk Southern Railway (NSR) to purchase a critical 135-mile segment of railroad track between Kalamazoo and Dearborn. The track is part of Amtrak’s Wolverine passenger rail service and also provides freight services to major Michigan companies, including Ford Motor Co. The $140 million purchase was made using Federal Railroad Administration grant funds, which includes an affordable state match.

The purchase will enable MDOT to stabilize and upgrade the track for both passenger and rail freight services. NSR will retain an exclusive freight easement to preserve and grow its freight business.

“Investing in rail service will spark economic development in communities along a corridor linking Detroit and Chicago, two vital Midwest cities,” said Gov. Rick Snyder. “A faster, reliable passenger rail system is a priority for younger generations and vital to Michigan’s ability to compete globally as businesses look to locate or expand. The rail improvements will also hasten the transport of freight, a priority for Ford Motor Company and other Michigan businesses along the route.”

MDOT ownership of the Kalamazoo-Dearborn segment, combined with Amtrak ownership between Kalamazoo-Porter, Ind., will ensure that nearly 80 percent of the Chicago-Detroit/Pontiac Accelerated Rail Corridor will be in passenger-friendly ownership, giving greater control over the services.

“This important rail infrastructure upgrade will lead to long-term economic benefits for Michigan,” said State Transportation Director Kirk T. Steudle. “We plan to work with Norfolk Southern and the Michigan Economic Development Corporation to grow the freight business along this corridor, while supporting intercity passenger rail travel, which has shown remarkable growth in Michigan in the past several years.”

“Norfolk Southern is pleased to support Governor Snyder and Secretary LaHood in this important transportation infrastructure improvement project,” said CEO Wick Moorman. “Ensuring capacity for freight operations while improving service for passengers will help the Detroit to Kalamazoo rail line reach its highest, best use. Norfolk Southern will continue to serve freight customers on the line.”

MDOT has been working in cooperation with the FRA and Amtrak in planning for implementation of 110 mph passenger service over this route. The FRA had selected for award approximately $350 million in American Recovery and Reinvestment Act (ARRA) funding and High-Speed Intercity Passenger Rail Program funding to MDOT for the acquisition and upgrade of the line.

In addition to the purchase and upgrades, MDOT agreed to build a double track on the busiest freight segment of the line east of Ypsilanti to ensure adequate capacity for both freight and passenger operations. The new track will benefit the production operations of Ford Motor Co., among others.

“We believe this investment in intercity passenger rail will reduce travel times, improve service reliability and allow for future increases in services, which will increase ridership and revenue,” said Timothy Hoeffner, administrator, MDOT Office of Rail. “It will set the stage for additional passenger rail service after the completion of the accelerated rail project. And, because NSR retains the freight business, Michigan has a nationally recognized Class 1 operator willing to grow and enhance freight business, which is critical to Michigan’s economic growth.”

FAST FACTS:

– Record 480,000 passengers on the Wolverine in FY 2010, with FY 2011 ridership exceeding those numbers by 13 percent (one month left to report.)
– Improvements will allow speeds up to 110 mph on nearly 80 percent of the route between Detroit and Chicago, resulting in a 30-minute reduction in travel time, improved reliability and on-time performance.
– $140 million purchase price, using FRA High-Speed Intercity Passenger Rail Program grant funds, which includes a state match.

Source: http://www.michigan.gov/mdot/0%2c4616%2c7-151-9620_11057-263585–%2c00.html

Press release from U.S. DOT:

U.S.  Transportation Secretary Ray LaHood today awarded a $196.5 million grant to the Michigan Department of Transportation (MDOT) for track and signal improvements between Detroit and Kalamazoo, MI.  These improvements will allow for speeds up to 110 mph on 77 percent of Amtrak’s Wolverine and Blue Water services between Detroit and Chicago, resulting in a 30 minute reduction in travel time between those destinations.

“This is an important investment that will reduce travel time, improve reliability and on-time performance, and attract more passengers,” said Secretary LaHood. “We are creating jobs in Michigan, building our rails with American-made materials and growing the regional economy.”

Dollars for this 135 mile segment between Detroit and Kalamazoo will support preliminary engineering, final design and construction.  The project includes new, continuously welded rail and ties, fiber optic lines and infrastructure to support a positive train control system, rebuilding 180 highway-rail grade crossings, and gates and flashers at 65 private highway-rail grade crossings.  The project will create approximately 800 new jobs during the construction phase, which is expected to begin late spring 2012, and will facilitate service to current and future freight rail customers, including major shippers like Ford Motor Company.

“Investing in rail service will spark economic development in communities along a corridor linking Detroit and Chicago, two vital Midwest cities,” said Governor Rick Snyder. “A faster, reliable passenger rail system is a priority for younger generations and vital to Michigan’s ability to compete globally as businesses look to locate or expand. The rail improvements will also hasten the transport of freight, a priority for Ford Motor Company and other Michigan businesses along the route.”

“This funding will help move Michigan and the nation forward by making high-speed rail a part of our economic infrastructure,” said Senator Carl Levin. “Our economic competitors around the world have long enjoyed the benefits of high-speed rail service between their cities. They have demonstrated that high-speed service can create jobs and promote economic growth, and that it can provide a more energy-efficient alternative.”

“Construction of new high-speed lines will create jobs and generate more business activity in Michigan,” Senator Debbie Stabenow said. “This effort will not only boost our economy, it will provide residents with more transportation options. With gas prices as high as they are it is critically important that travelers have more choices in addition to driving.”

“The obligation of Michigan’s rail funding is a critical step forward for high-speed rail service from Detroit to Chicago,” said Congressman John Dingell.  “As a co-author of legislation that created one of the first high-speed rail assistance programs in the country, I believe rail is essential to maintaining and improving the economic competitiveness of the United States.  The development of rail and transit creates immediate and needed construction jobs, retains and recruits local businesses, and reduces our Nation’s dependence on foreign oil.  I thank Secretary LaHood, FRA and the Michigan Department of Transportation for their hard work on this project.”

In addition, MDOT is designated to receive $150 million DOT grant later this year to purchase this 135 mile segment of track, when grant conditions are met.  This will allow for the implementation of 110 mph service along the corridor that will bring improved passenger service, ensure capacity for freight operations through double tracking on the busiest freight segment and deliver long-term economic benefits to the State of Michigan.

The Wolverine and Blue Water routes are part of the Midwest rail network, which has a population base of about 29 million people 100-500 miles from one another.   Midwestern states have been working cooperatively together to plan and further develop an integrated, multi-state passenger rail network.   In addition to the goal of expanding service to new cities, trains in the system will travel at 110 mph on the primary routes and 90 mph on secondary lines, reducing travel time, and increasing reliability and on-time performance.

Source: http://www.fra.dot.gov/roa/press_releases/fp_FRA%2030-11.shtml