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Detroit River Detroit River International Crossing StudyInternational Crossing Study

June 29, 2009

Mohammed Alghurabi Mohammed Alghurabi Senior Project ManagerSenior Project Manager

IRWA’s 55th

Annual International Education Conference

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Economic Importance of Michigan Border Crossings

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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.

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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.

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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

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The DRIC is an End-to-End SolutionThe 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.

INTERNATIONALCROSSING

U.S. INSPECTIONPLAZA CDN INSPECTION

PLAZA

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DRIC Views

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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

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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.

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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).

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Private Sector

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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 PartnershipAllow us to enter into an agreement with CanadaAllow tolling on the new crossing

Form the Public-Private Partnership—2010.*Secure Additional State/Federal Funding--

Continuous.

*Subject to legislative approval and funding

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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

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DRIC ChallengesDRIC Challenges

Legislation

Near Term Funding

Legal Challenges

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Questions?