Canada to build new $1,000,000,000 bridge to U.S.

[oneh2obabe]

The Canadian Press
June 15, 2012

WINDSOR, Ont. - Prime Minister Stephen Harper has formally announced construction of a new bridge linking Windsor, Ont., and Detroit.

The $1-billion link over the Detroit River will help alleviate congestion at Canada's busiest border crossing.

Canada is financing the construction, and will recover Michigan's share of the cost through state tolls.

The new span will be a few kilometres south of the existing Ambassador Bridge.

The two governments, auto makers and other industries have argued for years for another crossing to end truck gridlock and provide an alternative if the existing bridge is shut down.

Harper was joined for the announcement, ahead of a formal signing ceremony later Friday in Detroit, by Michigan Gov. Rick Snyder.

"Our government is taking the measures necessary to facilitate trade and investment between Canada and the United States," Harper said.

"This new bridge will reduce congestion at this critical Canada-U.S. crossing."

[GordonH]

We will recover Michigan's share of the cost through state tolls, that will only take what 50+ years. Oh if only the new bridge has tolls, that would double the amount of time. Looks good :smt023

[GenesisGT]

Below is a piece from the news release that actually explains how the bridge will be paid for. The state of Michigan will not have any tolls for going from the states to Canada, but a toll will be charged going from Canada to the USA. I noticed a lot of different news sites have not clearly reported on how this would be handled.

http://www.cbc.ca/news/business/story/2 ... troit.html

Under the agreement, Michigan wouldn't be obligated to pay any of the anticipated $1-billion cost of the bridge.

A Canadian entity would handle design, construction and operation of the new span, which will connect Windsor’s west end to the Delray community in Detroit.

Also under the agreement:

Ottawa will make annual “availability payments” to fund the design and construction of the crossing as well as for the operation and maintenance expenses during the terms of the public-private partnership agreement.
No tolls will be charged in Michigan for use of the bridge. Canada will charge tolls, which will be used to reimburse the Canadian government for the funds it spent to build the span.
Canada will pay all costs of the required land acquisition in Canada and Michigan. It also will pay to construct an interchange to connect the crossing to I-75.
The public-private partnership agreement and the request for proposals must contain provisions for community benefit plans and for the involvement affected communities in Michigan and Canada.

[GordonH]

So Canada pick-up the total cost of this bridge, toll are only collected on Canada side going into US.

Something smells really bad here, and this benefits Canada how?????? :137:

Oh right......... it those masses of Americans that come north to shop.

[logicalview]

Something smells really bad here, and this benefits Canada how?????? :137:

It doesn't benefit Canada at all. It won't create thousands of jobs or spin off jobs.

It certainly won't relieve the bottlenecked Ambassador Bridge (that is privatley owned by a US citizen).

It certainly won't help manufactured goods in Canada's heartland get to consumers, like the 600 truck loads of unionized auto parts every day.

It won't help the $120 billion in annual Canada-U.S. trade across the Detroit River.

Yep, something smells really bad here.

[noneofyourbiz3]

Should read. Bankers told Harper we arent collecting enough compounded daily interest from the PIGS and you guys are doing good...so..spend! Do it now!

[logicalview]

Should read. Bankers told Harper we arent collecting enough compounded daily interest from the PIGS and you guys are doing good...so..spend! Do it now!

Na. Not enough umph!

How about....

So how much is Steven hitler and his regressive conservanazis going to pocket on this one. They've never missed an opportunity to screw taxpayers.

[noneofyourbiz3]

One is the result of the other.

[coffeeFreak]

Since when has any project contracted by the government stayed on budget, and especially one not expected to be completed until 2017 or so. Also, by the Michigan side wearing "badges touting 10,000 jobs", it doesn't look like Harper ensured that because "WE" are taking the greatest risk, we should be guaranteed a majority of the jobs required for this project.

...Details of the deal show Canada takes on all the risk of the bridge project with Michigan under no risk for its taxpayers — thanks to Canada’s offer to pay up to $550 million toward the state’s share of the project.

Snyder expressed gratitude to the Canadian government for offering financial help to get the bridge built given the economic realities of his hard-hit state which is rife with unemployment and low income levels.

“That is what partnership is all about,” he said. “Stepping up to help someone because we’ve been through many difficult years. We weren’t in a position to do this bridge.”

The Michigan contingent attending Friday’s announcement were wearing badges touting “10,000 jobs” the bridge project will help create.

“It’s time for a new crossing because trade demands it and it’s an opportunity to create jobs,” Snyder said.

Flanked by Canadian and U.S. dignitaries that included Harper and U.S. Secretary of Transportation Ray LaHood, Canada’s Transportation Minister Denis Lebel and Snyder later signed the formal bridge agreement during a second ceremony at Detroit’s Cobo Center.

Outside that event in Detroit more than 100 protesters representing both sides of the bridge debate staged a demonstration.

Given likely legal challenges by Moroun, there is no projected start date for the DRIC bridge.

Even if all goes smoothly, it will take at least a year for expropriation on the Detroit side, financing to be finalized and tenders issued, officials said.

Once a shovel is in the ground, the bridge project, which includes new plazas on both sides and a new feeder road connecting to I-75 on the U S. side, will take four to five years to complete.

In a best-case scenario that puts the finish date at least into 2017 or 2018 when 8,000 truckers crossing the local border daily will finally have another option.

“It’s been a long road to get to this day, with even more stops and starts than on Huron Church Road,” said David Bradley, president of the Canadian Trucking Alliance. “So, we are thrilled the new crossing will become a reality.”

Canada is to be repaid the $550 million through bridge tolls and will carry all the financial risk if there is not enough revenue to cover those costs.

A private contractor will be retained to finance, build and manage the bridge and Canada will owe payments under the planned public-private partnership.

There will be creation of a new six-member bridge authority with equal representation from Canada and the U.S. All tolls will be collected on the Canadian side.

Also in the agreement is a clause which indicates that after 40 to 50 years once the $550 million loan money is repaid, the tolls will then be split evenly between Canada and Michigan...

Read more: http://www.windsorstar.com/news/official+Harper+Snyder+sign+agreement+bridge/6790619/story.html#ixzz1xySC4cgI

[logicalview]

Since when has any project contracted by the government stayed on budget, and especially one not expected to be completed until 2017 or so. Also, by the Michigan side wearing "badges touting 10,000 jobs", it doesn't look like Harper ensured that because "WE" are taking the greatest risk, we should be guaranteed a majority of the jobs required for this project.

Yep, that *bleep* Harper. He really, really screwed Canada's manufacturing heartland on this one. What the hell is a $1 billion bridge going to do to help the flow of $120 billion in trade? What a con.

(Think bigger.

Silly, the bridge is being built to serve the economy not for construction jobs.)

[noneofyourbiz3]

We are borrowing this from private bankers so tack on the compounded daily interest. Win, win. He's going nuts with our American Express card.

[logicalview]

We are borrowing this from private bankers so tack on the compounded daily interest. Win, win. He's going nuts with our American Express card.

Yep, it's an epic cash cow for greedy corporations and for the rich to get even sick richer. The needy and the poor should occupy this concrete konservative trojan horse monolith and make a last stand for Canada! What' left of it anyways.

[coffeeFreak]

Yep, that *bleep* Harper. He really, really screwed Canada's manufacturing heartland on this one. What the hell is a $1 billion bridge going to do to help the flow of $120 billion in trade? What a con.

(Think bigger.Silly, the bridge is being built to serve the economy not for construction jobs.)

Your sarcasm is duly noted logicview but how long federal government going to subsidize Ontario's existence? Why is this not a partnership between federal, provincial and business sectors? As far as I'm concerned this is the epitome of corporate welfare, and as well, is buying the loyalty of many of the voters in the most heavily populated province in Canada.

[GordonH]

I'd be curious to how much of our trade with US is done via freight trains vs transport truck. Since trains are a more efficient way transporting goods (plus less wear on highway system).

[Corneliousrooster]

Yep, that *bleep* Harper. He really, really screwed Canada's manufacturing heartland on this one. What the hell is a $1 billion bridge going to do to help the flow of $120 billion in trade? What a con.

The 120 billion in trade exists whether there is a new bridge or not. Having a new bridge does not increase the 120 billion, only 'possibly" expedites the process of traded goods arriving at their destination. Kinda an expensive gamble with Canadian taxes IMO. This is nothing more than Harpers legacy bridge.

Being the 120 billion in trade already exists, you have to question the real motivations as to why we (Canadians) are taking all the risk and paying the tab on bridge that the Americans need just as badly (that 120 billion quoted is not just Canadian goods going south). It is equally beneficial to both parties involved and should be a shared "beneficial expense".