Status Report on Transformational and Major Crown Projects

Detroit River International Crossing

Development of a new crossing over the Detroit River between Windsor, Ontario, and Detroit, Michigan.

The project is known as the Detroit River International Crossing (DRIC) and is also known as the New International Trade Crossing in Michigan.  The project consists of four major infrastructure components: a Canadian port of entry (POE), the bridge, a U.S. POE, and a connection to Interstate 75 in Michigan.  Canadian, Michigan and U.S. governments are directly involved.  The Canada-Michigan relationship is governed by a Crossing Agreement, which was signed in 2012.  Transport Canada is the lead department for the Government of Canada but will transfer procurement and project oversight responsibilities to the Windsor-Detroit Bridge Authority, a Crown corporation established specifically for this purpose in 2012.  The project will be delivered through a public-private partnership (P3) arrangement.

The Windsor-Detroit corridor is Canada’s most important trade conduit with the United States.  In 2012, 2.5 million trucks carrying $105.6 billion in trade used this corridor.  The value of this trade exceeds the value of Canada’s trade with any other country and represents 31% of Canada-U.S. trade carried by truck.  More than 99% of trucks in the corridor use the Ambassador Bridge.  The Ambassador Bridge is 85 years old with two lanes in each direction.  A new crossing is required to handle forecasted traffic demand and to provide redundancy in case of adverse events.

The project is designed to achieve the following substantive objectives:

• Provide new border crossing capacity to meet increased long-term international trade and travel demand;
• Improve system connectivity to enhance the continuous flow of people and goods;
• Improve operations and processing capabilities at the border; and
• Provide alternative and secure crossing options (i.e., network redundancy) to mitigate risks of any disruptions or blockages of crossing facilities in the region.

Industrial

The investment in new border infrastructure will result in a number of positive economic effects.  Studies concluded that the direct and indirect (e.g., materials, equipment, services) effects of the entire border infrastructure project will lead to the creation of approximately 23,000 jobs, including approximately 13,000 direct and 10,000 indirect employment opportunities.  This is particularly noteworthy since Statistics Canada has reported that the Windsor-Essex region has maintained one of the highest unemployment rates in Canada.  Ancillary benefits of these jobs are expected to result in increases in consumer spending, as personal income and company profits improve in the region.

Additionally, the project will provide significant opportunities for local businesses to participate in construction-related aspects of the project’s implementation.

Transportation

This project will improve not only the efficiency of the border crossing in the region, but will also provide direct highway connections, thereby reducing costs associated with shipping, and greenhouse gas emissions and other pollutants resulting from idling vehicles.  The project will provide redundancy and additional capacity for the next several decades.  It will further support national security and public safety priorities in Canada and the United States and enhance initiatives in the Border Action Plan announced by Prime Minister Harper and President Obama in December 2011.

Economic

Given the significant interdependency of the Canadian and U.S. economies, industry groups that rely on the Windsor-Detroit corridor have been unanimous in calling for a new bridge to ensure that traffic at the border flows efficiently and that the international supply chain remains strong.

Security

Border inspection agencies in both countries are working with project proponents to ensure that the proposed border processing facilities meet future trade and travel demand and security requirements at the border crossing.  The POEs are being developed in consultation with the Canada Border Services Agency and the United States Department of Homeland Security, Customs and Border Protection Branch, to provide sufficient areas for primary inspection-lane booths and on-site secondary inspection of people and goods.  The designs will allow for dedicated NEXUS and Free and Secure Trade lanes and will provide for a substantial improvement in border processing capabilities, including areas for permanent gamma ray inspection equipment.

With almost $2 billion (Canadian) daily in cross-border trade with the United States, keeping the trade system open and flowing efficiently is critical to ensuring both countries’ economic prosperity.  It is equally critical to protect the border against potential threats to public health, security and economy.  Redundant infrastructure will help keep the border open in case of incidents at other crossings.

Transport Canada

Windsor-Detroit Bridge Authority

Canada Border Services Agency, Canadian Food Inspection Agency, Public Works and Government Services Canada, Fisheries and Oceans Canada, Environment Canada

Deloitte
1100-181 Bay Street
Toronto ON  M5J 2V1
Direct telephone: 416-643-8382, Fax: 416-601-6690

Investment Grade Traffic and Revenue Forecast
CDM Smith (formally Wilbur Smith Associates)
360-9500 Arboretum
Austin TX  U.S.A. 78759

Bridge Technical Advisor
Delcan
500-625 Cochrane Drive
Markham ON  L3R 9R9

Geotechnical and Foundation Investigations: 
Golder Associates Ltd.
309 Exeter Road, Unit #1
London ON  N6L 1C1

The project is currently in the implementation phase with Transport Canada acquiring land in Windsor and preparing to relocate utilities.  Land acquisition and utility relocation in Detroit is expected to begin in 2015.

• Environmental assessment launched with 15 options considered.  Achieved: February 2005.
• The U.S. Record of Decision was issued and Ontario and Canadian authorities determined that, with the implementation of mitigation measures, the project is not likely to cause significant environmental effects.  Achieved: January through December 2009.
• Commencement of construction to build the Ontario Access Road.  Achieved: August 2011.
• Crossing Agreement concluded by Canada and Michigan.  Achieved: June 2012
• Establishment of the Windsor-Detroit Bridge Authority.  Achieved: October 2012.
• Presidential permit for construction issued. Achieved:  April 2013.
• Appointment of the Chief Executive Officer and Board of Directors of the Windsor-Detroit Bridge Authority and the Board of Directors of the International Authority. Achieved:  August 2014.

• Approval and necessary authorities were provided in December 2006 to continue advancing the development of a new Detroit River crossing for the Windsor-Detroit Corridor.
• The 2007 federal Budget supported the development of a new Detroit River Crossing for the Windsor-Detroit Corridor and provided $10 million over three years for this purpose.
• The Detroit River International Crossing project has been identified as a Major Crown Project as the total value is beyond the $100-million threshold.  The entire project cost for Canada was estimated at $2.01 billion.  Preliminary project approval to provide authorization to expend resources to fully define the Detroit River International Crossing Project was sought and granted in December 2007.
• In 2008, Transport Canada received approval to enter into negotiations for the acquisition of properties in Windsor, Ontario, for the Canadian half of the new international bridge and its Canadian customs plaza.
• In 2009, Transport Canada sought approval for expenditure authority for Phase I of land acquisition.
• Budget 2010 provided $10 million to cover expenses related to moving the project from the planning to implementation phase.
• In 2012, Transport Canada sought approval of amended preliminary project approval and expenditure authority for Phase II of land acquisition.
• Budget 2013 provided $25 million for Detroit River International Crossing team funding and pre-procurement activities.
• Budget 2014 provided an additional $470 million for pre-procurement and procurement activities.