Editor’s note: Second span to Windsor needed

Nolan Finley, The Detroit News

Hopefully, Michigan’s congressional delegation was paying attention Tuesday to what was not happening on the Ambassador Bridge.

Traffic was not moving over the lone bridge across the Detroit River to Canada because a vehicle fire shut down the span.

The delay was short-lived, but created a traffic back-up that inconvenienced motorists and cost truckers and the factories they supply money. Imagine if the accident had been more serious and the bridge had to be closed for days instead of hours.

Back-up capacity is one reason Metro Detroit needs a second bridge across the Detroit River. And yet some Republicans in the state’s congressional delegation aren’t on board.

Rep. Candice Miller of Harrison Township wants money first for an expansion project at the Blue Water Bridge in Port Huron, which is in her district. Rep. Mike Bishop of Rochester says he supports Miller, but he also has benefited from campaign donations from Ambassador Bridge owner Manuel “Matty” Maroun, who opposes the second span. Outstate GOP Reps. Tim Walberg and John Moolenaar have yet to endorse the new bridge.

Relying on one bridge in an era in which global trade is so vital to the local economy is reckless. Miller and Bishop should join the rest of the state delegation in setting aside parochial interests and work for the good of the entire state.

Originally posted by The Detroit News

New $2.1 Billion Detroit-Windsor Bridge Promises Boon to U.S. Trade

Fiscal Times | Eric Pianin

Amid the gloom over the partisan deadlock in Washington over an infrastructure program and the Keystone XL pipeline, the U.S. and Canadian governments have quietly cut a deal on a new $2.1 billion bridge linking Detroit and Ontario designed to eliminate a massive bottleneck in the flow of goods between the two countries.

With more than $650 billion in goods exchanged each year between Canada and the United States, Canada represents this country’s largest trading partner, overshadowing China, Mexico and Japan. Nearly half of all goods that are transported between the two countries by truck each year – or roughly $131 billion worth – currently pass over the Ambassador Bridge or through an adjacent  tunnel.

The 85-year-old Ambassador Bridge is swamped by over 8,000 trucks daily. A combination of heightened border security and persistent traffic jams is creating a drag on potential growth in U.S. exports and imports along the Detroit-Windsor border. Some experts say construction of a new bridge would pave the way for a significant increase in trade in coming years.

“Among all the border crossings between Canada and the United States, Detroit is really the most emblematic of the infrastructure problems that need to be addressed,” Joseph Kane, a senior policy specialist on U.S. metropolitan areas, said in an interview on Monday. “There’s a huge scale of value really going across the border, and it’s not just a local issue where it’s just benefiting local workers and business establishments in Michigan itself.”

The U.S. State Department approved the bridge in 2013, but the project has been dogged for years by financial and legal problems and challenges from community residents.

The new bridge is to be constructed about two miles south of the  Ambassador Bridge, a privately owned suspension bridge that currently is the busiest international border crossing in North America in terms of trade volume. The project also will include construction of new highway interchanges in downtown Detroit and Windsor to handle more easily the crush of traffic. Officials have said they hope to open the bridge in 2020, although construction hasn’t started yet.

The deal was finally sealed after the Canadian government agreed recently to pick up the $250 million to $300 million cost of a customs plaza for the New International Trade Crossing on the U.S. side. The Department of Homeland Security says that a “public-private partnership” will use tolls to reimburse Canada for the plaza’s construction. In return, the U.S. will pay for the workers, operations and maintenance of the plaza in Detroit – with a first year cost of about $100 million.

Much of the $131 billion worth of cargo transported by truck between Detroit and Windsor annually is high-value transportation and electronic equipment that is destined for regions well beyond Detroit and Ontario.  By comparison, the next highest volume border crossing, in Buffalo, N.Y., handles about $151 billion of truck traffic a year, or one third of what is trucked across the Ambassador Bridge, according to data prepared by Brookings.

Click here to read the entire article from msn.com.

Latest deal on Detroit-Canada bridge a huge boost for metro trade

Brookings |

Over the past decade, the New International Trade Crossing (NITC)—a proposed bridge between Detroit and Windsor, Ontario—has been in the works to improve connectivity at one of the world’s busiest border crossings and sites of commerce. Supported by an innovative, binational public-private partnership between the United States and Canada, the $2 billion-plus project will not only relieve pressure on the increasingly congested, 85-year-old Ambassador Bridge, which handles over 8,000 trucks daily, but also reinforce Michigan’s role as a global trading hub.

Uncertainties over funding and vocal opposition have long stalled the NITC’s progress, but the project just cleared a major hurdle toward completion when Canada agreed to pick up a $250 million tab for the bridge’s customs plaza. In addition to the thousands of local workers and industries that stand to benefit from this latest move, metropolitan areas across the United States and Canada will reap economic rewards for years to come.

Protecting the U.S.-Canadian trading relationship is of vital significance to both countries’ economies and facilitated by key infrastructure investments. With over $650 billion in goods exchanged each year, Canada represents the largest trading partner for the U.S., outranking China, Mexico, and Japan. At the same time, those goods flow to an impressive amount of places on both sides of the border, from Seattle and Houston to Vancouver and Montreal, helping explain why Canada has taken a lead role investing in the NITC.

Detroit is easily the most important of these trading depots, especially when it comes to truck movement. Last year, more than 1.6 million trucks passed through the metro area, which represented the busiest border crossing between the U.S. and Canada and the second-busiest in North America next to Laredo (1.9 million trucks). An upcoming release in our Metro Freight series will reveal a similar result, showing how Detroit funnels approximately $131 billion, or nearly half, of all goods that move by truck between the U.S. and Canada. By comparison, the next highest border crossing, Buffalo, transports about one-third this value by truck ($51 billion), followed by several rural regions.

Source: Brookings analysis of EDR data.
Note: “Rest of” designations refer to nonmetropolitan portions of each state. For instance, the “Rest of Washington” includes all rural regions outside metropolitan areas such as Seattle and Spokane.

In turn, a variety of markets across the U.S. rely on Detroit to profit from Canadian trade. For example, only 4.7 percent of the $131 billion carried on these trucks ($6.2 billion) is produced or consumed locally in Detroit. Instead, the vast majority of this value travels to and from large markets like New York ($4.7 billion), Chicago ($4.4 billion), and Los Angeles ($2.5 billion), including anything from electronics to metals to agricultural products.

As policymakers look to target more freight investments in the future, the NITC clearly assumes national importance. The U.S. already faces an enormous backlog of infrastructure projects along the border, and it’s time for a more coordinated, proactive approach—through a national freight investment program— that can further support trade in particular regions.

Originally posted by Brookings

Editorial: Build the Detroit River bridge

Latest legal setback should end the challenges to new Detroit River crossing

Piece by piece, preparations for the new Detroit River bridge are falling into place. This week, the U.S. Supreme Court cleared a potential major legal hurdle by refusing to hear a lawsuit brought by community activists and the owner of the Ambassador Bridge.

The challenge came from Latin Americans for Social and Economic Development, Citizens with Challenges, Detroit Association of Black Organizations and other community groups, along with the Detroit International Bridge Co., owner of the Ambassador Bridge.

The parties claimed the Federal Highway Administration, in approving the Delray neighborhood of southwest Detroit as the site of the new crossing, violated the social and environmental justice provisions of the National Environmental Protection Act, the Administrative Procedures Act and other federal laws.

Federal District Court Judge Avern Cohn rejected the lawsuit, and his decision was upheld by the 6th Circuit Court of Appeals. Now, the Supreme Court has put the matter to rest.

It is the latest in a string of legal victories for Gov. Rick Snyder and other backers of the new Detroit River International Crossing.

Last summer, the appellate court also rejected the contention that the federal government had bowed to pressure from Canada in denying a permit for Ambassador Bridge owner Matty Moroun to build a second span adjacent to his current bridge.

And earlier this month, the United States and Canada reached agreement for the Canadians to front the money for building out the customs plaza on the Detroit side of the crossing. As with the entire $2 billion cost of the bridge, which Canada is also putting up, the $300 million for the plaza will be repaid with revenue from tolls.

By now, the inevitability of the new bridge should be evident. Continuing court battles and other blocking moves is pointless.

Moroun, as well as the community groups, should stand down and let the process of building the bridge proceed.

Instead of continuing a futile fight, they should work with the state and federal governments to mitigate the community’s concerns.

There is no reason the crossing should be a negative for the devastated Delray neighborhood. The international trade expected to be generated by the bridge should create opportunities for warehouses and other logistic industry investments, and with them much needed jobs. The focus now should be on training local workers for those jobs, and making sure development unfolds in a manner that benefits the neighborhood.

As for Moroun, he should accept that he’s lost this battle. Further legal maneuvering is pointless. He has a major investment in the Ambassador Bridge, and it is natural that he would want to protect it.

But the government has no compelling interest in damaging Moroun’s business. He should be working with the state to assure there’s enough traffic to sustain both spans. Increasing trade traffic is the objective, after all.

Once construction begins, it will take five years to complete the crossing. There should be no further needless delays. This is a project vital to the region’s economy.

Originally posted by The Detroit News

Moroun loses another court decision in attempt to block the NITC

Foes of new bridge won’t be heard by U.S. Supreme Court

David Shepardson
The Detroit News

Washington — The U.S. Supreme Court said Monday it will not review a June decision by a appeals court that upheld the Federal Highway Administration’s decision to select the Delray neighborhood of Detroit as the preferred location for a new international bridge crossing to Canada.

Without comment, the Supreme Court let stand the Sixth Circuit Court of Appeals’ affirmation of a 2012 ruling by U.S. District Judge Avern Cohn dismissing a lawsuit by the Latin Americans for Social and Economic Development, Citizens With Challenges, Detroit Association of Black Organizations and other community groups — along with the Detroit International Bridge Co., which owns the privately held Ambassador Bridge and wants to build one next to it.

The court’s decision comes five days after Canada and the United States reached a deal in which Canada will put up the hundreds of thousands of dollars to build a U.S. Customs plaza at the new Windsor-Detroit bridge and be repaid through tolls. The bridge could open as early as 2020.

Sara Wurfel, press secretary to Gov. Rick Snyder, praised the ruling last year: “The decision affirms the exhaustive work and public transparency that went into the siting decisions. This is the latest round of great news regarding the NITC.”

A panel of the appeals court wrote that the federal agency used a “a lengthy, reasoned process based on an objective analysis subject to public scrutiny throughout.” The panel also rejected the contention the United States yielded to Canada’s opposition to adding a second span to the Ambassador Bridge, writing the United States did not “rubber stamp” the decision.

Mickey Blashfield, director of governmental relations for the Ambassador Bridge, last year criticized the appeals court ruling. He did not have an immediate response to the U.S. Supreme Court’s decision.

The highway administration “refused to consider the Ambassador Bridge Twin Span even though it was the highest ranked alternative in most of the environmental tests the (agency) was required to apply. The (agency) supposedly based its decision on the unsupported claim that Canada objected to the environmental impacts the Twin Span would have in Canada, despite no evidence of any such impact,” Blashfield said.

Opponents argued the highway agency’s review and 2009 approval violated the National Environmental Protection Act, Administrative Procedures Act, principles of environmental justice and other federal laws.

The ruling is the latest setback to foes of a bridge crossing known as the New International Trade Crossing, which is to be two miles from the Ambassador Bridge.

In June, the U.S. Coast Guard issued a required permit for a publicly owned bridge from Detroit to Canada — clearing another key hurdle in the high-profile project. A federal judge in Washington, also in June, rejected a legal motion to force the Coast Guard to issue a permit to Ambassador Bridge owner Manuel “Matty” Moroun for his proposed six-lane span alongside the Ambassador Bridge.

Moroun’s bridge company has been fighting efforts by the state of Michigan and the Canadian government to build the bridge it insists will harm the Ambassador’s business. In court filings, the company argued it needs to build a second span across the Detroit River to handle traffic while it repairs the Ambassador so it can compete with the publicly financed bridge.

Originally posted by The Detroit News

Thank goodness for the Canadians

Canada has agreed to cover all construction costs of the U.S. customs plaza, and with the deal removed the last political hurdle Wednesday for the planned $2.1-billion Detroit River bridge.

The Canadian government has agreed to pay the $250 million cost for the inspection plaza in Detroit under a deal agreed to by both countries.

It had been hoped the Obama administration and Washington would pay for construction of its own customs plaza, but that will not happen under the newly signed agreement.

Canada along with a private sector partner soon to be selected by the Windsor-Detroit Bridge Authority — which is overseeing the project’s completion — will now be paying the Detroit River International Crossing project’s full construction costs.

The public-private partnership is expected to recoup construction costs in the years ahead through tolls and other potential revenue generators such as duty-free goods and gas.

“I am pleased to confirm that following significant discussions with the United States and Michigan, Canada has now signed an arrangement to ensure the new publicly owned bridge between Windsor and Detroit can proceed without further delay,” said Lisa Raitt, Canada’s transport minister on Wednesday.

The U.S. inspection plaza will be procured as part of the public-private partnership assigned to design, finance, construct, operate and maintain the DRIC bridge project, she said.

Taxpayers will not be on the hook for any of the costs, Raitt said.Under the agreement, the U.S. Department of Homeland Security has agreed to cover all U.S. customs staffing costs for the new bridge.

“This arrangement is good for Canada and for Canadians,” Raitt said. “It also allows Canada and Michigan to move the project forward immediately to its next steps which include further design work and property acquisition on the U.S. side of the border.”

Canada’s top political leaders, including Prime Minister Stephen Harper, have listed the DRIC bridge project as the nation’s No. 1 infrastructure priority and promised it will open to traffic by 2020.

The new international bridge will link the downriver industrial communities of Brighton Beach and Delray.

A Homeland Security spokeswoman in an email statement Wednesday indicated there is a commitment from Washington to spend about $100 million in the first year of the customs plaza operations for equipment, staffing and setup costs in Detroit, plus up to $50 million for staff in each of the following years.

“This arrangement results from several months of productive discussions among the U.S. Department of State, U.S. Customs and Border Protection, U.S. General Services Administration, State of Michigan, Windsor-Detroit Bridge Authority and Transport Canada,” said Marsha Catron.

She said although the U.S. government is not paying any construction costs, it is very supportive of the DRIC bridge project. Catron cited numerous U.S. federal approvals to date including issuance of a President’s permit from the Obama administration.

“The United States will continue to support (DRIC) as it is built and following its completion,” Catron said.

“The United States and Canada are vital economic partners and steadfast friends. Canada is the largest trading partner of both the United States and Michigan. Many U.S. and Michigan jobs depend on the vitality of U.S.-Canada trade.”

The Windsor-Detroit corridor is the largest commercial crossing in North America.

In 2014, annual Canada-U.S. trade in goods was approximately $658 billion with over one-quarter of that trade travelling through the Windsor-Detroit corridor.

“The arrangement announced today ensures we can continue to build momentum on this much-needed trade and transportation link,” Catron said.

Michigan Gov. Rick Snyder — a driving force to get the DRIC bridge approved and constructed — applauded the agreement.

“I’m appreciative of the work of our partners in Congress and the Canadian government to ensure the (bridge) — important to both of our countries — continues to move forward,” Snyder said.

Finding a resolution on the U.S. customs plaza had been one of the last unresolved hurdles slowing construction of the DRIC bridge, said Sen. Gary Peters (D—Detroit) another leading advocate of the project.

“As a longtime advocate for the (bridge), I am pleased the United States and Canada have reached an agreement on construction of a new customs plaza removing a significant obstacle that has delayed this critical infrastructure project from moving forward,” he said.

Peters in his role as a member of the Senate’s Homeland Security committee will work with the Obama administration to “ensure the U.S. fulfills our commitment to fully staff and operate this border crossing,” he said.

The project’s next steps include ramping up property acquisition in Detroit to make room for the new bridge plaza and a feeder road in Delray that will link to I-75 freeway.

Nearly all required property on the Canadian side is already in the hands of the federal government, with land clearing in Brighton Beach just recently completed.

The WDBA is in the midst of hiring blitz to staff its support office in Windsor with about three dozen employees whose first task will be to assemble a request for proposal to find a contractor and project partner to build the bridge.

A new border highway in Windsor to link with the bridge — the $1.4-billion Herb Gray Parkway — is expected to be fully open to traffic by the end of this year.

“The new DRIC bridge is of vital importance to the economic prosperity of communities and businesses on both sides of the border,” Raitt said. “It will also bring new jobs, opportunities and continued prosperity to communities in both countries.”

Originally posted by The Windsor Star

It appears we have a deal

Detroit-Windsor bridge plaza deal expected within days

David Shepardson, The Detroit News

U.S. and Canadian officials are expected, as early as Wednesday, to announce a deal to pay for a U.S. Customs plaza at a new bridge linking Detroit and Windsor, American and Canadian officials briefed on the plan said Tuesday.

The issue is one of the largest lingering hurdles for the $2.1 billion bridge over the Detroit River. The deal is expected to include a commitment by the Obama administration to staff and equip the plaza, which is estimated to cost between $250 million and $300 million.

The Canadian government has offered to fund construction of the bridge and be repaid for the U.S. share through toll revenue. The public-private partnership overseeing the bridge is expected to announce it will pay for construction of the customs plazas on both sides of the border and that the United States will staff, operate and maintain the customs plaza in Detroit.

It was not clear Tuesday how much the U.S. government will contribute.

The Detroit News first reported this month that an agreement was close after several months of talks. Homeland Security Secretary Jeh Johnson told The News that a deal between the two countries on funding the customs plaza was close.

The publicly financed bridge is scheduled to be built two miles south of the privately financed and operated Ambassador Bridge.

Gov. Rick Snyder’s spokeswoman, Sara Wurfel, didn’t comment Tuesday on any deal. But she reiterated “how strongly we feel about what a critical infrastructure project this is for the state of Michigan, the city and region, our country and Canada.”

“Discussions are ongoing between Canada and the United States. Transport Canada will not speculate on the outcome of the ongoing discussions,” said Transport Canada spokesman Mark Butler.

In January 2004, a joint U.S.-Canada study concluded that additional border-crossing capacity was needed for reasons including increasing traffic volume, economic security and national security concerns. The State Department approved a permit for the new bridge in 2013.

Manuel “Matty” Moroun, who owns the Ambassador Bridge, has been fighting efforts by Michigan and Canada to build the bridge, insisting it will harm the Ambassador’s business. In court filings, the company argued it needs to build a second span across the Detroit River to handle traffic while it repairs the Ambassador so it can compete with the publicly financed bridge.

U.S. Sen. Gary Peters, D-Bloomfield Township, said Saturday negotiations have centered on the Canadians fronting money for construction of the plaza and then be repaid by tolls.

“My focus right now has been to ensure that … when the plaza is built that it is fully staffed” with customs and border patrol agents, Peters told The Detroit News.

He expressed frustration that the Obama administration and Congress have resisted appropriating tax dollars toward building the customs plaza to be “a partner in this border crossing.”

“To me, it’s an embarrassment to the United States government,” Peters told The News.

Staff Writer Chad Livengood contributed.

Originally posted by The Detroit News