A new rail tunnel connecting Windsor and Detroit is expected to be announced by the end of the year.

The project has been in the works for years and the plans seem to now be falling into place, reports CBC Windsor's Gino Conte.

The Windsor Port Authority has been working with CP Rail and Borealis Infrastructure on the approximately $400 million project.

"If everything works well, we should have some pretty good announcements, I'd say within three to six months," said Charlie Pingle, chairman of the port authority's board of directors. "It's going to mean a great boost for the port and [its] long-term participation."

The new rail tunnel is expected to attract more investment in Windsor. One report suggests $660 million to $1 billion in new commercial-industrial investment.

David Cree, president of the port authority, says that investment would create more than 1,000 new jobs.

He called it "some really significant benefits for the city."

"We're going to be perfectly situated to become really a multi-modal centre for the North American Midwest," Cree said.

The existing rail tunnel cannot handle double-stacked containers.

It would remain operational. There is a proposal that it be used for a high-speed rail service.