Wednesday, November 16, 2016

Where Is The Windsor/Detroit New Border Crossing Already


Seriously, why should I do any writing on this topic since it is obvious, at least to me, that in this area the only group that can build a 2nd border crossing bridge legally is the Ambassador Bridge Company. As far as I'm concerned, that is the legal relationship between that Company and the Governments based on what I think I know which is based on prior legal documents.

In fact, in my opinion, it is so obvious. The Governments have not really built anything for so many years with respect to another border crossing notwithstanding the apparent need to do so. Moreover, the Bridge Company has already submitted their plans for a 2nd crossing and could start building such a crossing very quickly once the Governments give their approval for them to do so.

The big news that I saw in the media that has necessitated this article was that the Governments were going to be having 3 engineering companies bring forward their plans for a new crossing in their tender operation competition. The expectation was that it would take many months for them to undertake and finish their work and then the Governments would have to spend time to make a decision on which one of the companies they would select. This whole process is supposedly going to take about 18 months from now.

In its Press Release, the following was written on November 10, 2016 by the Organization involved:

"Windsor-Detroit Bridge Authority (WDBA) announced today that it has issued the Request for Proposals (RFP) inviting Proponents to submit formal proposals to design, build, finance, operate and maintain the Gordie Howe International Bridge project.

The Gordie Howe International Bridge project will address four regional transportation needs at the busiest trade corridor between Canada and the United States. It will provide a new crossing option, highway-to-highway connections, modernized border processing facilities and capacity for future traffic growth. The new bridge will make it faster, simpler and safer for both people to travel and goods to flow between Canada and the United States, enhancing trade and tourism.

The 18-month RFP stage is the second phase in WDBA’s competitive procurement process to select a private-sector partner. The three Proponents – Bridging North America, CanAm Gateway Partners and Legacy Link Partners – were pre- qualified through the Request for Qualifications (RFQ) stage. The entire procurement process is overseen by an independent fairness monitor."

Yawn, what is the purpose of this silliness by the Government of Canada? Oh wait, I think I understand the reason for it. I almost forgot. You see, dear reader, what has been said before, for reasons I do not understand, is that there is a need for 2 new bridges to be built in this area. One by the Ambassador Bridge Company and a 2nd one to be built by the Governments on both sides of the river.

Of course, this is completely ridiculous as far as I'm concerned especially considering that the volume of trucks crossing the border has dropped significantly by a huge percentage. Only the Ambassador Bridge Company project makes any sense of being built because of the financial costs involved. For the Ambassador Bridge Company project, the dollar cost is around $500 million. For the Government Bridge, it can be over $4 billion based on some numbers given out previously! If volumes have gone down so much and costs have gone up so much, then please tell me why the Governments are looking at building a bridge at all.  The Government Canada who would be paying for just about everything would lose a huge fortune considering that it will have to put up a good chunk of the costs which may never be recovered.

In case you forgot, dear reader, this construction competition between the 3 companies should have started almost a year ago. It did not and was only started recently. Even more interesting is that the Government bridge will not be built until about a year or 2 after it was supposed to be built. In other words, 2021 or 2022 rather than 2020. Another delay in this project that is stretching it out even longer now:

"The federal government delayed issuing the request for proposals from the bidders because it wanted to “mitigate all risks” before moving ahead on the long-awaited project, Sohi said." (Dave Battagello, Windsor Star, November 10, 2016)

With all due respect, this is so absurd to learn about that it makes me so angry with the Canadian Government who is acting so foolishly. Why they won't just do a deal with the Ambassador Bridge Company already is beyond me. Just take a look at this last line in the Battagello article:

"Sohi called the Howe bridge project “one of our highest infrastructure priorities” but wouldn’t say where it ranks among other major construction projects involving the federal government."

Gee, I thought that this project was the most important one for the future of this country. Hasn't the Government Canada suggested the need for a better crossing in this area for so many years!

Clearly, it is not that vital it seems anymore. The real problem is the inability of the Ambassador Bridge Company and the Government Canada to somehow sit down at this exact moment and negotiate a deal that makes sense for both of them and then to get the new bridge started already. To be honest about it, I can tell them both what makes sense now so that they can complete a transaction now. Trust me, what I would suggest would absolutely work especially because there is no need for a 3rd bridge which supposedly the Government of Canada wants to build.

The timing of this announcement by the Government people is laughable. It came out a couple of days before the meetings that were scheduled between the Government of Canada and outside parties. Those meetings were very interesting as well considering the projects for which lots of money was going to be needed:

"Prime Minister Justin Trudeau pitched fund managers from around the world on the merits of investing billions in Canadian infrastructure projects Monday, earning praise from some but leaving others with questions about how such deals would work.

Ottawa is setting up a new entity — the Canada Infrastructure Bank — to promote large national and regional projects, including revenue-generating ones it hopes will draw the interest of big institutional investors, including domestic pension funds.

Monday’s meetings in downtown Toronto — a morning session with Canadian pension funds managers and top bankers, and an afternoon discussion with international investors — brought the prime minister and key cabinet ministers face-to-face with some of the money managers they will need to attract to make the bank a success.

Ron Mock, chief executive of the Ontario Teachers’ Pension Plan, said Trudeau and his cabinet have “got their head in the right place” in creating projects that would draw on government money and investment from institutions, such as pension funds.
(Barbara Shecter, Drew Hasselback Financial Post, November 14, 2016)


Hmmm. I did not see in the news articles that I read about this venture anything to do with the Government border crossing bridge in Windsor/Detroit. I would have thought that it would be something very important that would have been discussed not only for the future of our country but because so much outside money was needed to build the Government bridge here. Maybe there were discussions about it but I did not see anything in the stories in the various media outlets that I read that mentioned the Windsor/Detroit new proposed crossing.

Oh well, why mention the project in Windsor/Detroit when legally only the Ambassador Bridge Company can be involved in it and its cost in building its project is a tiny fraction compared with the Governments' cost to build their project.

Let me be serious, dear reader.  I just cannot stand this foolishness any further. In my opinion the one day jail time that was spent by Matty Moroun and Dan Stamper in one of the disputes in one of the trials over the border file changed dramatically the attitude of Matthew Moroun in how he became involved much more seriously in the future of the Ambassador Bridge. Given how often he has been involved publicly since that time in matters involving the border crossing, it is clear to me how important his role is in the future of his family's border crossing. Given his father's age, what Matthew has learned has made him an extremely important person in dealing with the border crossing in Windsor/Detroit. I expect that what he wants will help determine ultimately what will happen in this area.

Given how long this file has been going on, and how long it will go on considering the project that has been started now, you should know, dear reader, that even more time will be taken if the Ambassador Bridge Company and the Governments cannot resolve their differences. Expect even more massive litigation to be started in both Canada and the United States over whether the Ambassador Bridge Company is the only exclusive party which can build a bridge in this area. I expect it will take at least a decade or longer to finish.  In my opinion, the Ambassador Bridge Company would be the winner anyway.

Do you really think that the Governments and/or their private partners will come up with $4 billion to build a bridge in competition with the new Ambassador Bridge even if they were successful in their litigation? Don't be silly. There is no way that is going to happen because it will not work out financially.

To be serious, all that needs to happen is for the Ambassador Bridge Company and the Governments to get together in a meeting and resolve their problems to get the new border crossing built now. As far as I'm concerned, putting in a few dollars from the Governments and giving them some shares in the border crossing Company built in this area is an easy solution that must be done now so that the new bridge can be built now!

It's really that easy to do to get the "Windsor/Detroit New Border Crossing Already".


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