Status Report on Transformational and Major Crown Projects

Description:

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: the bridge, Canadian port of entry (POE), 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, signed in 2012. Transport Canada is the lead department for the Government of Canada, but will transfer procurement and project oversight responsibilities to a newly established Crown corporation, the Windsor-Detroit Bridge Authority. The DRIC is expected to 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 2013, 2.4 million trucks carrying $100 billion in trade used this corridor. The value of this trade exceeds the value of Canada’s trade with any other country. That represents 31 percent of Canada-U.S. trade carried by truck. More than 99 percent of trucks in the corridor use the Ambassador Bridge. The Ambassador Bridge is over 80 years old with two lanes in each direction, and it will be difficult for this bridge to handle forecasted traffic demand.

Project Phase:

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 2014.

Sponsoring and Participating Departments and Agencies
Sponsoring Department Transport Canada
Contracting Authority Windsor-Detroit Bridge Authority
Participating Departments Canada Border Services Agency, Canadian Food Inspection Agency, Public Works and Government Services Canada, Fisheries and Oceans Canada, Environment Canada
Prime and Major Subcontractors as of January 2014

Prime Contractor

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

Major Subcontractors

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

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

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

Major Milestones
Major Milestone Date
Environmental assessment launched with 15 options considered 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. January through
December 2009
Commencement of construction to build the Ontario Access Road August 2011
Crossing Agreement concluded by Canada and Michigan June 2012
Establishment of the Windsor-Detroit Bridge Authority October 2012
Presidential permit for construction issued April 2013

Project Outcomes:

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.

Project Approvals:

  • 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 March 2007 Canadian 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 DRIC project was identified as a Major Crown Project as the total value was 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 DRIC 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 DRIC team funding and pre-procurement activities

Progress Report and Explanations of Variances:

The DRIC project continues to advance. The financial and public-private partnership business case for the entire DRIC project was created over the last year. Other accomplishments include an update of the traffic and revenue forecast study and the advancement of technical work, which includes U.S. title searches for over 1,000 U.S. properties, geotechnical work in both the United States and Canada, species at risk relocation (which includes monitoring and maintenance), and the installation of snake fences on the Canadian plaza site.

The 2013–14 fiscal year also included the completion of the governance and transition planning for the Windsor-Detroit Bridge Authority and the ongoing defence of numerous legal challenges.

Benefits:

Industrial

The investment in new border infrastructure will result in a number of positive economic outcomes. Studies concluded that the direct and indirect (e.g., materials, equipment, and 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 in that 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.

In addition, 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 demands and security requirements at the border crossing. The POEs are being developed in consultation with the Canada Border Services Agency and the U.S. 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 of border processing capabilities, including areas for permanent gamma-ray inspection equipment.

With almost $2 billion (Canadian) weekly in cross-bordaer 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 our health, security and economy. Redundant infrastructure will help keep the border open in case of incidents at other crossings.

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