DCTC announces tunnel renovations and arbitration against Windsor

DETROIT, Mich. (Aug. 26, 2002) — The Detroit & Canada Tunnel Corporation (DCTC), which operates the Detroit/Windsor Tunnel, has reported the beginning of a US$9 million electrical, mechanical and security upgrade to the portions of the Tunnel that are located within the U.S. DCTC has also instituted a toll increase for vehicles traveling from the U.S. to Canada, effective September 2, 2002, which will be used to pay for a portion of the upgrade.

“We have reached the point where the cost of maintaining our existing systems, especially in light of post-September 11 security concerns and decreased toll revenues, has become prohibitive,” DCTC president Gordon Jarvis said in a press release. “We need modern equipment and we are not prepared to wait any longer to begin the work on the Detroit side.”

The plan for Canadian upgrades, however, has stalled due to the City of Windsor’s commitment to a plan that was conceived prior to Sept. 11, and significantly underestimated the final cost when initially approved. DCTC has initiated arbitration pursuant to its Joint Operating Agreement (JOA) with the City of Windsor, which asks Windsor and the Windsor Tunnel Commission to take reasonable action on the needed electromechanical upgrades.

Jarvis said the WTC has declined to meet with his board, despite the fact both sides agree upgrades to the Windsor side are also needed. “We are concerned that Windsor’s plan fails to sufficiently address the post-September 11 environment and is unrealistic in terms of the projected cost. We hope that an impartial third-party arbitration panel will reach a resolution that is best for the thousands of people who depend on the Tunnel every day,” he said.

Twenty-five per cent of all Canada-U.S trade passes between Windsor and Detroit.