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Industry Insider

By Mike Johnston
VP of Government Affairs
Michigan Manufacturers Association
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Newspapers and airwaves across the state have been buzzing about a proposed bridge over the Detroit River to Canada. Many in West Michigan are asking, “So why do I care about a bridge in Detroit?” This is a legitimate question, and the answer is simple: because the Detroit International River Crossing will benefit the entire state.

Background
The Detroit-Windsor corridor is the busiest commercial land border crossing in North America, handling approximately 25 to 30 percent of all trade between the United States and Canada.

Every day, close to $2 billion in trade and more than 8,000 trucks and 68,000 travelers cross the border between our two countries. Since the Free Trade Agreement was signed in 1988, two-way trade between Canada and the United States has tripled. More than 10,000 businesses throughout the state rely on the corridor to transport goods, supporting more than 220,000 Michigan jobs; jobs that have to rely on a stand-alone 81-year old bridge that is undersized and in desperate need of replacement.

In 2004, the Detroit River International Crossing Commission (DRICC) was formed to explore potential sites for a new border crossing in the Detroit-Windsor corridor. This joint partnership with Canada, Ontario, Michigan and the U.S. government looked at more than 20 possible locations. The area where Delray currently exists (on the Michigan side) was chosen as the ideal site for the new crossing, which is intended to add redundancy (as an alternate route for industrial traffic), increase security (in case something happened to the current border crossing), and provide a direct connection to reduce the truck traffic pouring into downtown Windsor and residential areas.

The proposed DRIC project would provide six new lanes, bringing the total to 10 from Detroit to Windsor. By comparison, the Buffalo New York/Niagara crossing (the third busiest crossing in North America and our competitor for jobs and investment) has 14 lanes.

The U.S. and Canadian governments have approved the DRIC’s environmental permits. They are ready to proceed with construction plans once the Michigan legislature grants its approval.

Cost
The Canadian government has pledged up to $550 million to cover the cost of the Federal Highway Administration and Michigan’s portion of construction of the I-75 interchange and Michigan’s share of the customs plaza. The bridge would be financed through a Public-Private Partnership funding mechanism, also known as P3, with private investors contributing approximately $1 billion to the construction of the bridge.

There would be no cost to the state of Michigan, as the Canadian investment would be repaid through bridge tolls. Canada would take full responsibility and financial risk for the project, and Michigan would not incur any future financial liability.

Public-Private Partnerships (P3)
Public Private Partnerships (P3s) provide an innovative and creative method to bring private investment and public ownership together to finance, design, build and operate new transportation projects in Michigan — without the need to raise taxes. Twenty-five other states use them to finance public works projects. MDOT has identified about a dozen other potential P3 projects including M-231 in Ottawa County.

Jobs for Michigan
Construction of the bridge and plaza on the Michigan side of the border will support 10,000 much needed direct construction jobs and more than 30,000 other related jobs during the five-year construction process. Once constructed, the bridge will protect the 220,000 Michigan jobs that are dependent on the crossing and support 25,000 new jobs that will be developed as trade continues to expand.

Broad base of support
Groups and organizations representing more than 15,000 businesses — including MMA — support the DRIC project.

As a large manufacturing state, we need a 21st century transportation infrastructure system to move our goods internationally and bring income and jobs throughout Michigan. The need for a second crossing between Detroit and Windsor is indisputable. The opportunity to have it built without costing state taxpayers a single dime is a once-in-a-lifetime gift that Michigan cannot afford to pass up.

The Michigan legislature should approve the DRIC project to help secure our state’s economic future. The necessary legislation to allow the project to proceed (HB 4961) passed the Michigan House of Representatives on May 26, 2010; the bill is now pending in the Michigan Senate.

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