You jogged my memory about something I'd seen somewhere else. This is the connecting track you're talking about that would solve some of this. That track is in blue, the existing track is crossed out in red, and they'd use the yellow track:
http://railroadfan.com/phpbb/downloa...2096&mode=view
I believe despite being a north-south railroad, that Grand Elk has to use part of the Amtrak Michigan Line to get to their yard in the east. This would eliminate a lot of turn-arounds that block the state highways. The only problem is that there are businesses in this area two that would be effected. Anyway, another solution is this one:
http://railroadfan.com/phpbb/downloa...2097&mode=view
Short of a hugely expensive project that would take the line under or over the streets, that's aout as good as it's going to get, but it still seems like a significant improvement. I guess it depends on whether the backs up are mostly Grand Elk trains trying to get to the yard east of the river, or if the problem is the through-line further west.