Thoughts and Opinions On Today's Important Issues

Wednesday, February 07, 2007

Fire The Windsor Tunnel Commission Chair



Do they have any guts?

Councillors Brister, Marra and Valentinis have been appointed as members of the Windsor Tunnel Commission recently.

Take a look at the operation of the Detroit/Windsor Tunnel. It's a disgrace. Cost overruns at the heritage Ventilation building, last-minute postponement of the Public Information session concerning Tunnel Plaza improvements, a "unique" security risk that has not been dealt with, loss of its $6.6M dividend and no one yet hired to "breathe" Tunnel business. I won't even get into the issue of scrubbers and dirty air downtown.

What is happening now with the Tunnel? Eddie has tried for a year to do something with it. It is about the one year anniversary of the Joint Councils meeting in Detroit after all. I wonder when we the taxpayers and owners of the Tunnel will find out what is going on. Do the other Commissioners know or are they in the dark too? I am hearing a lot of stories about some corporate machinations involving the Tunnel or DCTC but that is all I know.

Boards of Directors of Companies are taking a much stronger role in the operations of their business. Why I bet a corporate governance expert like Remo Mancini could teach the WTC Commissioners a thing or two. Just take a look at OMERS the other day.
  • "Mr. Haggis... clashed with the board over their differing view of the CEO role.

    Mr. Haggis argued the CEO was responsible and accountable for all aspects of the pension fund's business, according to a source familiar with events at the pension fund, who asked not to be named. This contrasted with the view of some board members, who wanted to get more involved in the management of the company."
Haggis was ousted by the Board so guess who won and whose views prevailed. Where is the WTC Board?

Let me be direct about it. January was another disaster for the Tunnel.

The volume of vehicles compared with last January was down again. Car volumes compared with last January were down over 75,000 cars. How much more traffic can the Tunnel afford to lose?

It has been that story month after month since rates were increased. I laughed so hard at what George Wilkki said, picking up the Eddie mantra from the Senate hearings
  • "City lawyer George Wilkki disagrees and says the two border crossings are not in competition.

    "Their primary traffic source is trucks and very few trucks use the tunnel."

It's true, they do not compete...the Tunnel is not in the Ambassador Bridge's league as a business operation. The Bridge Co is in the Big Leagues not the minors, the best border crossing operator between Canada and the US. Where the Tunnel had 47% of the car business in January 1999 and the Bridge only 37.7%, the Bridge now has 41.6% compared with the Tunnel's 36.8% in January.

I hate to disagree with such distinguished City officials but if the Tunnel is NOT primarily in the truck business, then why did the City's Plan 3A at the last public session propose to build a new "on-site Canada-bound truck secondary inspection area."

Is this another example of management not even knowing what they are proposing? By the way, the Tunnel lost over half of its volume in trucks in January 2007 compared with January 1999 while the Bridge Co. was up a few percentage points.

Why is the Tunnel being run into the ground? Is there an ulterior motive, a hidden agenda, that we do not know about? When and if we ever do decide to deal with it, it will only be able to be sold/leased/revenue securitized at distress pricing. A far cry from the $2-300M that Eddie said it was worth at one time! I have heard the number of between $25-30M being bandied about even as late as last year. A huge percentage drop in such a short time! What is it worth now with volumes dropping like a stone!

If the price goes down any more, then expect the Duty Free Shop to be allowed have it as an item for sale beside the duty-free booze, cigarettes and watches in its showroom! When will Mr. Taqtaq get angry because his revenues are decreasing with reduced volumes and demand a lower rent too? Or has he already done that and we just don't know about it?

As a taxpayer, my asset is being devalued and my taxes will have to be increased to cover the dividend lost. It has not been and is not getting the attention it deserves. There are major problems there that clearly have not been addressed.

The WTC Board no longer has a choice. They must call an immediate meeting and replace Eddie Francis as the Chair!

I have made this plea before and will make it again if required. I have lost my confidence in him! Haven't you?