Detroit-Windsor bridge battle: Separating out the truth BY JOHN GALLAGHER AND CHRIS CHRISTOFFJOHN GALLAGHER CHRIS CHRISTOFF

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Presentation transcript:

Detroit-Windsor bridge battle: Separating out the truth BY JOHN GALLAGHER AND CHRIS CHRISTOFFJOHN GALLAGHER CHRIS CHRISTOFF

Do we need a new bridge over the Detroit River to Canada? ANSWER: Just about everyone agrees that a new bridge is needed to replace or supplement the 82- year-old Ambassador Bridge that connects Detroit and Windsor. The debate is more about who would own and build it -- either Manuel Moroun (who wants to build a replacement span next to his privately owned Ambassador) or a public consortium of Michigan, Ontario and the U.S. and Canadian federal governments.

Why do many people oppose Moroun's proposal? 1.They say there is a need for redundant spans in the event of unforeseen problems, repairs or a terrorist attack on one of the bridges. 2.Supporters of the public bridge predict traffic volumes will rise to new peak levels in the next 25 years, leading to congestion unless capacity is added. This is a hotly disputed point. Moroun points out that the volume of border crossings plummeted after the Sept. 11, 2001, terrorist attacks.

3.Ambassador Bridge doesn't connect directly to Canada's 401 expressway. 4.Modern inspection plazas have dedicated lanes for prescreened and automated inspections. Such a plaza would be more easily designed, built and operated with an entirely new bridge. Why do many people oppose Moroun's proposal?

What will it cost? The publicly owned bridge itself would cost an estimated $950 million. The customs and inspection plazas to be built on either end of the bridge and the connections to nearby expressways add major costs. In Windsor, connecting a new publicly owned bridge to Canada's 401 via the planned Windsor-Essex Parkway would cost about $1.7 billion. Add that to other pieces (bridge, plazas, connections to expressways, and the current cost of financing) and the price tag reaches about $3.8 billion. Moroun estimates that his replacement span for the Ambassador Bridge would cost about $500 million.

MC The Economics? Surprise! MB v. MC If MB > MC, build! If not, don’t Doesn’t matter how you’re financing it or who is running it. Traffic $ MB NEW SPAN, MC