Thoughts and Opinions On Today's Important Issues

Monday, April 30, 2007

A Border Solution Now---Perhaps


My, my, my..... the Windsor/Detroit border and more particularly, the Ambassador Bridge and its owner, hit the big-time on Saturday.

Did you see the huge coverage in the Toronto Globe and Mail? If not, go out and buy a copy before it is too late to see the actual hardcopy of it to get the dramatic effect or go online to http://www.reportonbusiness.com/ to read the story.

A half page, full colour, front page, artist rendition of the enhanced bridge above the fold in the Business Section. Then two full pages inside with a half-page picture of the "reclusive" Matty Moroun who does not seem so reclusive after all.

You know that every senior politician and business leader in Canada will read the story. It's in the Globe after all. And if you don't think it will get results then you do not understand the world of Canadian politics and business! It seems that Matty Moroun does.

Clearly the Bridge Co. is ready to move forward. If this story is not the signal that it is, then I cannot think of another sign other than actually starting to dig. It is a challenge to the Federal Government and Transport Minister Cannon, in particular, who does not seem to know where Windsor is yet to get onboard or get out of the way notwithstanding Bill C-3 passing.

In my opinion, the Globe and Mail story is a huge positive that came out at exactly the right time for potential discussions with the Governments for a final border resolution.

It is NOT the words in the story that are all that important at first. It is the photos, the positioning of the story, the layout, the "white space" and the size that gives the story its importance. All of that will grab the attention and force people to start reading even if our border has no interest to them up until Saturday.

Here is my interpretation of what the Globe story means:

The Globe is the New York Times and Wall St. Journal in one in Canada. Every major business and political leader in Canada will have the weekend to read the story. It will be circulated by the PR types in Government and industry on Monday as part of their "media" circulation routine as a key story. Frankly, those who do NOT know Matty Moroun and the Ambassador Bridge will by Monday and will want to read about the "most powerful U.S. businessman most Americans and Canadians have never heard of."


No doubt that it will also be read out of the country as well, especially by investment types and bankers. A number of Legslators and bureaucrats in the US who are involved one way or the other with the border crossing will also see it. I expect the Bridge people to be inundated with lunch offers by those who chase infrastrucutre projects too.

A half page, full colour, front page, artist rendition of the new bridge and 2 pages internally including a half-page photo of the "reclusive" billionaire make this an IMPORTANT story with a capital "I." The Globe deemed it so.

There is no doubt but that Transport Canada will understand this. The Senior Level politicians involved will be impressed as well. Those not quoted including Eddie and the Provincial Ministers will be furious at the slight, especially Eddie. It certainly makes the federal role pre-eminent.

Obviously the story was a very positive one for the Bridge Co. since it got its message out. It will pressure Transport Canada to deal more seriously with Moroun. They understand now that he is not going away but intends to build the bridge. There may have been some doubt of that before notwithstanding the small fact that Moroun has already spent $500 million on property acquisition and work on the Ambassador Gateway Project.

Transport Canada has no choice now but to deal with the Bridge Co. immediately or become irrelevant as it moves forward. I would make the comparison with Eddie who could have negotiated a good deal 4 years ago but now has no power at all except as an insignificant irritant. Notwithstanding Eddie the politician's trip to the Senate hearings in Ottawa, Bill C-3 hurt the City. It has many positive features for the Bridge Co., seemingly unknown to Brian Masse who will find it in the future ironically a powerful Bridge Co. tool.

I have to wonder if Eddie Francis was even interviewed. If he was, why were his quotes not included or were they taken out. That confirms my own view of how much Eddie has cost this City from the time he became Mayor until now. There was nothing about the Province either. I am pleased to note that my role in Windsor was recognized since I at least merited a tiny quote! Ahhhhh, not so lonely any more.

This story will not be viewed in isolation but will be considered as part of an extensive and aggressive campaign by the Bridge Co. that started when its Executives went to the Lansing hearings and then to Ottawa with the Commons and Senate hearings. More importantly, it will be viewed in the context of the Estrin lawsuit, the public EA hearings, the attack on DRIC and the fight with the Mayor and Council.

The 2-page ad in the Windsor Star, the recent Press Release and news conference, the Youtube animation, the change in the Bridge website and the soon to be run TV interview will be viewed as part of a well-orchestrated campaign to gain favour culminating in 2 ½ pages in the Globe!

Frankly, what it means is that the Bridge Co. finally woke up and understood that being the #1 border operator is not enough. You get nowhere by good works alone these days. You have to go out and blow your own horn so you will be heard above the din. Look how well DRTP did with spending PR dollars until the reality of its plans caused it to fall apart. The Bridge Co. proposal actually has merit. Now everyone will know it!

There are some key points that should be considered in the story that were very strong for the Bridge Co.:

  • "the 79-year-old billionaire has decided to lift the veil on his high-stakes battle…But Mr. Moroun is letting his guard down, at least a little…" [People should now understand that the Bridge Co. is not fooling about the enhanced bridge since going so "public" seems so foreign to their nature. They misjudged Moroun and the "family" connection and now should understand the real reason why his son went to Ottawa. CenTra and the Bridge Co. is NOT just a one-man show].

  • "handing over the business to his son Matthew, now 33…Leaving a family legacy is vital to the transport tycoon. His son Matthew is CenTra's vice-chairman…When asked his opinion, Matthew Moroun, the son being groomed to inherit the business empire, throws down the gauntlet, challenging DRIC to make an offer for the Ambassador Bridge itself…If they don't want our business, get out of the way and let us do the right thing." [They misjudged Matthew and now know differently especially given what Matthew said in Ottawa re ownership]

  • "Mr. Moroun has spent a half-billion dollars building a land portfolio in the region to make possible his dream to add a new link to the corridor" [Buy-out costs just escalated to more than the $500M quoted as to bridge value!]

  • "he is in danger of being elbowed aside by a competing proposal backed by governments on both sides of the border." [The Bridge Co. called the Governments regulators and competitors and the Globe provides confirmation for the Legislators and others. Is it that obvious?]

  • "Much of the focus has centred on the bridge being a potential terrorist target — an invaluable link that if attacked, would devastate merchandise trade between Canada and the United States, slamming the economies of Ontario and Michigan…. [See below re Transport Canada position]

  • "During the next two hours, the secretive Michigan businessman steps out from the shadows, lashing out at his opponents and serving notice that he intends to effectively twin the 2.3-kilometre Ambassador Bridge, aiming to start construction as early as mid-2008." [The key reason why the interview was given, loud and clear]


  • "He doesn't mince words about DRIC's proposal to build a competing span. "It's a frontal attack…They're slowing things down and confusing people." [Basis of a possible lawsuit especially because of the DRIC drawing. Moroun fought the Government for 12 years on FIRA and supposedly finally settled their differences. Have they or are both sides gearing up for more affidavit battles?]

  • If the DRIC bridge forges ahead, both sides will lose, he warns. The Ambassador Bridge would lose business to the new structure and neither could eke out any profit, he argues. [So much for some P3 investor being interested in the DRIC bridge. The P3ers generally want a monopoly, not competition, to protect their investment. Hmmmm are the investors the ones who really want the Bridge Co. out of business or to sell out and are forcing the Government to do so if they want their money!]

  • "Spearheading DRIC on the Canadian side is Sean O'Dell, a veteran Transport Canada civil servant based in Ottawa who was born and raised in Windsor." [How will a Windsor boy treat his home-town. Better than Paul Martin I hope]

  • "Mark Butler, a senior policy adviser at Transport Canada, asserts that a new gateway that distances itself from the Ambassador Bridge is essential to Canadian and U.S. economies…DRIC has "rejected the twinning of the Ambassador Bridge," Mr. Butler says, citing concerns that Mr. Moroun's twinned structure would hurt neighbourhoods and also be vulnerable to a terrorist attack that could wipe out both bridges at once…."What we do know is that any new crossing must be safe and secure and be managed and maintained for the long-term benefit of both countries," Mr. Butler argues." [If this is the best and, it seems, only argument that Transport Canada has now, they have a major problem opposing the enhanced bridge. Did you notice that traffic volumes as a justification has disappeared? The "neighbourhood" issue has already been negated by the plaza footprint not changing and security and redundancy are handled by reverse customs and the old bridge. The terrorist tactic is nothing more than fear-mongering and failure to acknowledge the terrorists’ multi-target actions in other cases]

  • " Gregg Ward, who operates a ferry that transports trucks with hazardous waste across the Detroit River, questions whether a private citizen should control such an important bridge of commerce…Borders should be controlled by government. We need that for economic security," Mr. Ward says. [Oh I forgot, another private operator at the border. I wonder why he was ignored by the bureaucrats in the Ottawa hearings since he is a competitor who is the only one who can carry hazardous goods it seems. Is he going to be put out of business too or will he sell out to the Government or will he be allowed to continue to carry on business?]

  • "In the process, he fended off opposition from the Canadian government over concerns about private foreign investment in such a crucial asset to the economy." [The FIRA issue solved forever??? I don't think so with the "ownership" sections of Bill C-3]

  • "Citigroup Global Markets Inc. is the financial adviser to Mr. Moroun's Detroit International Bridge Co., which would float the bonds in the United States and Canada… Royal Bank of Canada is among the Canadian financial institutions that have held talks to be part of the bond syndicate, sources say…Mr. Moroun would like to see the financing get the go-ahead within a year. [Another signal of moving forward and recognizing the role of Canadian banks as a partner. They should expect dozens of inquiries]

  • "If we get our environmental approvals, we would move quickly," [Another signal and encouragement to businesses concerned with the border and a boost for the Gazelle feeders in the region]

  • "The Canadian government would only be able to buy the Canadian half, and the U.S. government isn't interested in buying the American portion, industry observers say. [A roadblock to DRIC that is new to me]

  • "if DRIC builds a competing bridge, the Ambassador Bridge's value would plummet." [Is this is the real purpose of DRIC….to force a sale at a low price by using threats of a new Bridge amongst other tactics against the Bridge Co.?]

  • "any rival will have to deal with him to get anything done, given his land holdings." [Does Transport Canada get the idea, finally!]

In my opinion, this article can be a turning point that should get all of the key parties talking. Let's hope that it does!