The Matty Factor

There’s a new plan that has folks from both Windsor and Detroit hopeful the mess at this crucial Ontario-Michigan border crossing may finally be fixed.

That’s because “Gridlock” Sam Schwartz came, he saw, and he definitely delivered. As you can read in this week’s TodaysTrucking.com online feature, Schwartz — a NYC traffic engineer and transportation consultant — unveiled his long-awaited proposal to Windsor officials and citizens at the Chrysler Theatre there recently.

The plan, commissioned by the beleagured Ontario city, suggests a new river crossing as well as ways to get trucks off the border town’s crowded streets.

Schwartz concluded that a new “central” bridge needs to be built 3 km downstream of the Ambassador. He also designed an elaborate horseshoe bypass that takes trucks from Hwy. 401 onto a new route splitting southwest Windsor and Lasalle, but avoiding congested local streets.

Finding solutions to the Windsor-Detroit border mess has been an arduous chore. There always seem to be too many needles and even more haystacks. I’m not saying that Schwartz’s plan won’t get stuck in the same bureaucratic gridlock that’s choked earlier proposals. I’m saying that more investment, more support, and more hopes are riding on this plan than any other I’ve seen — and that counts for something.

It has the unanimous backing of Windsor City Council, industry groups, and — judging by the theatre applause that rivalled what a presidential State of the Union Address receives — a large piece of Windsor citizenry too.

While the routing plan should get fast-tracked, the bridge idea is still contingent on a bilateral agreement. The ownership question also arises. I’ve asked many government officials, and it seems no one at this point wants to discuss the issue of private or public control of the new bridge.

The Ambassador is the only privately-owned international gateway in North America. It belongs to Manuel “Matty” Moroun — A Detroit-based industrialist and the most powerful man on that side of the Detroit River. Moroun’s a powerbroker and billionaire whose empire stretches into trucking, logistics, banking, insurance, and real estate all over the world. He’s said to be the second largest landowner in Michigan, only behind the state itself.

A recent Forbes magazine article illustrated just how much control Moroun has over the corridor. Not only does he have unfettered rights to set bridge tolls and a monopoly on duty-free retail, but amazingly, he also operates the bridge with impunity from federal regulation and local law enforcement. Apparently, not even government engineers and inspectors, nor the police, are allowed on the bridge without permission.

While Moroun has publicly opposed a new bridge, his company –Detroit International Bridge Co. — has filed an application to build and operate a new crossing.

Can Moroun get rights to build and own the new bridge as well? It’s very likely. Various reports say Moroun pretty much owns, or is in the process of acquiring, the entire riverfront corridor on the Detroit side. Moreover, he also has building rights for overhead and bridge piers in the area where the new central crossing is supposed to land. He could theoretically start digging now, and get the bridge by default.

Even in the event that the new bridge would be contracted to another party, how would it compete with the Ambassador? Any new bridge would be heavily reliant on toll revenue just to keep above water for the next 30 years. If the Ambassador slashed rates (and Moroun could run for years at a loss), it would deter volume from spilling over to the new crossing and keep a large chunk of truck traffic right where it is. Then, with the new bridge desperate for revenue to pay off debt, can you guess who comes to the rescue?

As one source told me, “He’s not at checkmate yet. But he’s pretty close.”

Of course, another option is to have a public bridge. Could it be? Public control of the world’s most important trade corridor? Before leaving his post, former U.S. Ambassador to Canada Paul Cellucci lent weight to such a plan, saying Washington is prepared to split the bill similiar to a bridge being built between New Brunswick and Maine.

This, or at least some degree of government regulation, would obviously be the best option for truckers, although you can bet the governments would have to face Moroun in court at some point. In the 25 years he’s owned the bridge, Moroun has battled the U.S. government, the Canadian government, the City of Detroit, private industry stakeholders, even his own family — and he’s come away victorious in pretty much all of those standoffs.

Bush and Martin vs Moroun? Well, we know Matty has the stomach for it.