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Detroit River International Crossing Study

Detroit River International Crossing Study. IRWA’s 55th Annual International Education Conference. June 29, 2009 Mohammed Alghurabi Senior Project Manager. Economic Importance of Michigan Border Crossings. Why a New Crossing at Windsor-Detroit?.

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Detroit River International Crossing Study

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  1. Detroit River International Crossing Study IRWA’s 55th Annual International Education Conference June 29, 2009 Mohammed Alghurabi Senior Project Manager

  2. Economic Importance of Michigan Border Crossings

  3. Why a New Crossing at Windsor-Detroit? • Busiest commercial land border in North • America. Each year at Detroit-Windsor: • More than 3.5 million trucks and 12 million cars cross both ways. • More than $122 billion in trade (28% total Canada-U.S. trade) flows through.

  4. Economic Issues • Canada / U.S. trade is over $500 billion annually. • Detroit/Windsor is the largest land commercial port of entry. • Canada is the leading market for 39 states. • 1 in 3 Canadian jobs is tied to border trade. • Half of the total U.S. trade with Canada comes from Michigan. • U.S. / Canada trade larger than U.S. / European Union trade. • Trade with Canada supports 7.1 million U.S. jobs and more than 221,000 jobs in Michigan.

  5. Project Status 2000 – Border Transportation Partnership formed 2004 – Partnership identified border capacity needs 2005 – 2008 U.S. and Canadian environmental documents completed 2009 – U.S. DOT/FHWA issues project approval (ROD) Canadian approval is expected this summer Initiate Preliminary Design and ROW acquisition

  6. The DRIC is an End-to-End Solution The DRIC (Detroit River International Crossing) is a project to construct a new border crossing system, including international plazas and connections from the interstate freeway network in the U.S. to the Highway 401 in Canada, to meet long-term needs.

  7. DRIC Views

  8. U.S. Cost(in millions of dollars) Construction: $800 - $864 Design/Construction Engineering: $160 Inflation: $172 - $173 Property Acquisition/Remediation: $417 General Services Administration Plaza cost: $200 Grand Total Cost: $1,809 - $1,814

  9. Financing • The bridge will be paid for like all other international bridges – by tolls. • The cost of the Federal inspection station will ultimately be the responsibility of the U.S. General Services Administration. • The interchange will be paid for with 80 percent federal/20 percent state funds.

  10. How will the private sector be involved? • Procurement • Owners to engage in a Public Private Partnership (P3). • Design • Build • Finance • Maintain • Operate • Long-term Concession (30 to 45 years).

  11. Private Sector

  12. Key Steps • Secure Canadian Approval of EA—2009. • Secure the Presidential Permit in U.S.—2009. • Secure Required Legislation—2009/2010, to: • Form a Public Private Partnership • Allow us to enter into an agreement with Canada • Allow tolling on the new crossing • Form the Public-Private Partnership—2010.* • Secure Additional State/Federal Funding-- Continuous. *Subject to legislative approval and funding

  13. Support for the DRIC • Governor Granholm • Oakland County Executive L. Brooks Patterson and Numerous Elected Officials at State and Local Levels • United Auto Workers • Detroit Regional Chamber/Ontario Chamber of Commerce • Michigan Manufacturers Association • Alliance of Automobile Manufacturers/Canadian Vehicle Manufacturers’ Association • National Assoc. of Manufacturers/Canadian Mfrs. & Exporters • Automation Alley • Ontario Trucking Association • Michigan Association of Counties • SE Michigan Council of Governments • Numerous Local Community Governments & Organizations

  14. DRIC Challenges • Legislation • Near Term Funding • Legal Challenges

  15. Questions?

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