A Physical & Fiscal Bridge to the Motor City’s Fiscal & Physical Future

eBlog

October 1, 2018

Good Morning! In this morning’s eBlog, we report on the commencement this week of a new international bridge connecting Detroit to Canada–a bridge no longer too far.

Not a Bridge Too Far. Construction of the Gordie Howe International Bridge connecting Detroit to Canada is scheduled to begin Friday, with a projected completion in six years at a cost of $4.4 billion. The bridge will be jointly owned by the State of Michigan and Canada, with Canada fronting the funding, and Michigan paying its share via tolls collected on the U.S. terminus over the next few decades. CEO Windsor-Detroit Authority CEO Bryce Phillips described the new bridge as one which will be a “stunning addition to the Windsor and Detroit shared skyline.” The 1.5-mile span will be the longest cable-stayed bridge in North America—likely adding to what is already the busiest U.S.-Canada commercial crossing. The opening will mark the final public victory over the Moroun family, which owns the Ambassador Bridge—and which has long fought—and even requested support from President Trump—to bar the publicly funded project, not set to become one of the most vital pieces of infrastructure between the United States and Canada.

Canada is the largest market for U.S. exports, taking in 15 percent of American goods and services worth $337 billion annually, according to the U.S State Department. Together the quasi twin cities of Detroit and Windsor constitute the busiest trade crossing along the U.S.-Canada border, with more than one-fourth of all goods exchanged between the countries crossing the Detroit River to get to its final destination. On average, 7,000 trucks daily cross the Detroit River. It is the busiest link in the North American auto industry whose supply chains span both countries.

Notwithstanding this week’s commencement of construction, the Moroun family will continue to fight the project, adding to the twenty-five legal challenges they have already made—all rejected, as was a 2012 Michigan ballot measure, to which the Morouns devoted an estimated $50 million—a portion of which was to purchase a commercial on Fox News, urging President Trump to revoke the permit to build the publicly owned bridge based on The President’s “America First” policies.

The new bridge, expected to open by 2020, is expected to make the Motor City an international freight hub—or, as some note, it will define a new reawakening of a city which has emerged from the largest chapter 9 municipal bankruptcy in American history. The six-lane bridge will add to the nearby Ambassador Bridge’s four lanes, allowing trucks access to a streamlined route at the Canadian side and creating more logistics opportunities in both nations due to more direct access to rail, highway, and air transportation. As part of the project, there will also be two state-of-the-art customs centers, with the opportunity to attract more private investment on both sides of the border.

To date, land acquisition in Canada is nearly complete: about 130 acres in Windsor, southwest of the Ambassador Bridge, will be used for the largest Canadian Port of Entry along the U.S. border. Meanwhile, on the U.S. side, acquisition is underway for the 300 houses and 45 businesses located within the 145 acres in southwest Detroit, which will be used for inspection facilities for both inbound and outbound vehicles at the U.S. Port of Entry. Also included in the Detroit portion of the project is a new I-75 interchange which will include four new crossing road bridges, five new pedestrian bridges, four long bridges crossing the railway and connecting I-75 to the US Port of Entry, and service roads and local road improvements.

Among the issues and details to be included in the RFP are the community benefits expected for the Delray neighborhood in Detroit as the host community for the project—benefits which will matter, because, according to Assistant Professor of Urban and Regional Planning Zeenat Kotval-Karamchandani at Michigan State University, while pockets of Detroit are experiencing economic growth, Delray is not among them; rather, he notes, the neighborhood, near downtown, and south of Mexicantown, is “completely surrounded by industry.” Nevertheless, the Professor notes, about 2,500 people make it home—and, of those, about one-third of the households are in poverty.

Thus, this could be a unique moment of not just physical connections and public infrastructure, but also neighborhood recovery—after all, the value of freight traveling between the U.S. and Canada fell to $575.2 billion in 2015, a 12.6% drop, according to the U.S. Department of Transportation; yet about $69.1 billion came through Michigan, the most of any state. Data also shows that trucks carried the most freight to and from Canada, at 58.3%, while rail accounted for 15.7%. Unsurprisingly, the most common freight is auto-related: vehicles and vehicle parts.

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