So You Want A Public Bridge Eh

You really do need to read this story when you hear Brian Masse whinging about private enterprise running a border crossing. The concept of the "public" bridge acting in the public interest and keeping tolls down low has such a strong appeal. Except look at the negatives.

And we can sympathize as taxpayers seeing how our "public" Tunnel has deteriorated so rapidly in traffic volumes, dividend payments have almost ended and how long it takes to do anything and with such secrecy. Never mind its unique security risk that has never been dealt with and its unscrubbed Tunnel Ventialtion building that sends out unclean air all over the downtown and further.

Ahhh public enterprise. Low toll costs to keep users so happy are great until traffic falls and you run out of money to do proper maintenance and capital projects. Heck who needs reserves anyway. Look at the Soo revenues ($4.1M) compared with costs ($3.4 for operations and maintenance only), factor in their miniscule reserves ($5M) and then try and figure out how they will pay for their massive upgrading ($70M).

Don't you find it re-assuring that "hoping" is a great way to run a business rather than marketing to try and build up traffic. I an thrilled that they are "somewhat concerned." It's better than not concerned at all. That's the public authority way.

Remember when I told you that public authorities recognize that the private enterprise model is the way to go [June 05, 2007 "Is V-DRIC Day Near"]. My question for Windsor/Detroit:

• Why do we need wannabees, when we have the real thing with the best border operator in North America with the #1 crossing!
  

Truck tailspin puts dent in International Budget coffers

By Brian Kelly, The Sault Star
Local News - Sunday, July 15, 2007

An ongoing slump in commercial truck traffic could cost the International Bridge as much as $400,000 US in anticipated toll revenues this year.

For an operation that largely depends on crossing fees to pay for maintenance and capital projects and receives no government support, that's potentially very costly news.

Transport volume slumped 7.1 per cent in 2006 and is down another 10.2 per cent during the first half of 2007.

If the trend continues, fewer than 110,000 trucks could cross between the Twin Saults this year. That would be the smallest number since 1993.

Commercial traffic represents about seven per cent of bridge traffic, but contributes nearly half of all toll revenue.

In 2006, total toll revenue was $4,153,000 US. Of that amount, 48 per cent, or $1,998,000 US, was paid in commercial tolls.

"I'm somewhat concerned that this will have a significant impact on our financial resources," said Phil Becker, general manager of Joint International Bridge Authority.

"It may impact our ability to operate and maintain the bridge."

Truck traffic has headed one way, down, since June 2005. October 2005 marked the only month in the past two years that commercial traffic increased.

The slump is the worst since an 11-month period that stretched from July 2000 to June 2001.

In June 2007, commercial numbers slumped 14.2 per cent compared to June 2006.

Becker blames a slumping American house market for the continued downturn in commercial traffic.

An estimated 40 per cent of transports crossing between the Twin Saults haul building materials such as sheeting material and softwood lumber.

The American housing market is grappling with spreading troubles in the riskier subprime mortgage market which targets buyers with tarnished or low incomes. Plus, sales are down and prices have fallen in many formerly red-hot markets.

A toll increase introduced in April is not aggravating the transport tailspin, said Becker. An average 20 per cent hike faced by truckers, he said, is passed on to the customer.

"Commercial truck traffic is usually not so price sensitive," he said.

The International Bridge has recorded the steepest drop in commercial traffic of all 11 members of the Bridge and Tunnel Operators Association.

Those other crossings between Ontario, Michigan and New York have seen an average 3.2 per cent dip in commercial traffic so far this year.

Other association members such as the Ambassador Bridge between Windsor and Detroit and the Peace Bridge between Buffalo and Fort Erie carry significantly less building materials than the International Bridge, said Becker.

The commercial traffic freefall is a far cry from the 1990s when transport numbers between the Twin Saults nearly doubled from 76,000 vehicles in 1991 to an all-time peak of 146,000 in 1999.
The signing of the North American Free Trade Agreement by Canada, United States and Mexico in 1994 helped drive those numbers, said Becker.

Trade magazines he has read suggest the building slump will ease late this year or in early 2008.
"We're hoping an end is in sight," he said.

The International Bridge receives no state, provincial or federal operational subsidy.

A bridge redecking, to be done in the next 10 to 15 years, is expected to cost $70 million US.

An estimated $3.4 million US is spent on bridge operation and maintenance costs.

IBA has a reserve of about $5 million.

JIBA's board of directors will receive a report from bridge staff during their next quarterly meeting Aug. 16 in Port Huron, Mich.

• Bridge traffic was up slightly in June.

There were 172,628 one-way crossings last month. That's an increase of 2.3 per cent compared to June 2006, a JIBA release said.

Full-fare and passenger care traffic were up 6.4 and 2.4 per cent respectively. Car pulling trailers and commercial trucks were down.

During the first half of 2007, 877,797 vehicles crossed the bridge. That's a drop of 1.75 per cent compared to January to June 2006;