New Windsor-Detroit bridge opening July 27 with new profit arrangement
The Gordie Howe International Bridge will open on July 27 after U.S. President Donald Trump refused to open it earlier this year. / TWITTER PHOTO
The Gordie Howe International Bridge, which will finally open July 27 between Windsor and Detroit, is expected to be an important economic driver for Canada.
By reducing truck backups and streamlining access across the Canada-U.S. border, the $6.4-billion bridge will improve the movement of essential goods, strengthen North American supply chains and support manufacturing, the Canadian government noted.
Overall, improving the busiest international land border crossing in North America is expected to generate billions of dollars in economic activity for decades to come.
An academic study commissioned by the Windsor-Detroit Bridge Authority said the new span will:
Save billions of dollars for the trade movements that currently pass through the Windsor-Detroit corridor;
Improve cross-border accessibility throughout the Great Lakes and St. Lawrence
region;
Provide the level of certainty necessary to induce investments in productive assets in both Canada and the United States;
Create a zone of high cross-border accessibility and freight flow, providing the opportunity to build a cluster of transportation, distribution and logistics activities that can expand the economic base and employment level in Southeastern Michigan and Southwestern Ontario.
Under an agreement established by former prime minister Stephen Harper in 2012, Canada paid for construction of the bridge, with plans to recoup the cost through bridge tolls over several decades.
But, after U.S. President Donald Trump held up the opening of the new structure and demanded a better financial arrangement, Ottawa agreed this week that, for the first 15 years, Canada will only get half the net profit from tolls, with the other half going into a U.S.-run regional development project.
Defending the new deal with the U.S., Prime Minister Carney played down the benefits that will now accrue to the Americans. After subtracting expenses and debt costs, the net profit available to the U.S. will not be large, he said: “There’s not going to be a lot of net to split. So look, it’s a good deal for Canada, and what’s really good is getting the bridge done on time, on budget and to build out together.”
