Michigan Freight Economic Development Program boosts rail access for businesses

In a recent meeting of the Michigan House of Representatives, lawmakers discussed the Freight Economic Development Program (FEDP), a key initiative aimed at enhancing rail access for shippers across the state. This program is designed to fund up to 50% of the infrastructure costs necessary for companies to connect to rail lines, which can significantly boost their shipping capabilities.

Since its inception in fiscal year 2020, the FEDP has supported approximately 40 projects, resulting in the generation of around 25,000 new rail carloads annually. This initiative benefits a wide range of industries, including agriculture, automotive, and plastics, by facilitating a more efficient and sustainable mode of transportation. Notably, one rail car can carry the equivalent of four truckloads, which not only improves safety on the roads but also reduces wear and tear on Michigan's highways.

A recent success story highlighted during the meeting involved a box manufacturing facility in Holland, Michigan. With a $1 million grant from the FEDP, the company expanded its rail access, leading to the creation of 58 new jobs and an increase of 450 rail carloads per year. This project exemplifies the positive impact of the FEDP on local businesses and the economy.

The discussions underscored the importance of rail transportation in Michigan's logistics landscape, emphasizing its role in promoting sustainability and resilience. As the state continues to invest in its transportation infrastructure, the FEDP is poised to play a crucial role in supporting economic growth and enhancing the efficiency of freight movement throughout Michigan.