How Public Authorities Keep Tolls Low

I really do find it amusing when Brian Masse and others complain about tolls in Windsor. I also find it hilarious when a Government official talks about how a new DRIC bridge will be paid for:

• "Shreck wanted to correct any perception the new DRIC bridge would drain funds from other Michigan road projects: "Any bridge that is built will be financed with bonds and paid for by tolls, not state and federal gas tax funds, so it will not affect any other road projects."

Of course that assumes that someone will use the bridge since their tolls will be several times higher than that of the Ambassador Bridge unless Government subsidizes its operations.

They really want to be able to slam the Ambassador Bridge Company for having the highest tolls in Canada but can't do so because the round-trip tolls at the Cities-owned Tunnel are higher.

Of course we know why the Ambassador Bridge tolls are high... the owner reinvests in his bridge so that he can build Customs booths to end traffic backups, increase the number of booths on both sides of the border in advance to minimize traffic slowdowns and to pay for maintenance and upkeep. He does not want to be caught again as he was along with other border operators after 9/11. Then there are these tiny projects like the Ambassador Gateway and Enhancement Project that he has to finance.

Before I get another outraged letter from a Public Authority official, they look after their crossings too. However, it is a lot easier to keep tolls down when one does not have to charge the actual user for all the costs for changes as a private operator has to do. As examples:

• $30 million, $10 million from each level of Government, for Tunnel Plaza Improvements (which have now been delayed for years since the costs have escalated I believe and the City does not appear to have the money to pay for its share according to its Documents)
• an application to the Province by the City of Windsor for Government funds for at least $75 million so that it may enter into some kind of unknown transaction with the City of Detroit with respect to its half of the Tunnel
• $90 million dollar “earmark” the Peace Bridge is seeking from FHWA – complimenting the $76 million Canadian contribution
• $430 million plus for the Port Huron Plaza improvements (Note that not all of the money is plaza related but is bridge related)
• who knows how much the new DRIC Bridge will require even after P3 money and how much taxpayer money will be required to subsidize this bridge and the other crossings since there is not sufficient traffic to support all of them.

Remember what I wrote about the Soo bridge. Guess who will ultimately have to come up with the money:

• "When we consider all of the combined costs for scheduled projects to keep the aging bridge and support facilities structurally sound and safe, we are looking at expending over $60 million in the next 15 years," says Becker. "Given that nearly $4.5 million of the $6 million annual toll revenue goes into the day-to-day operation and maintenance of the bridge, we have little opportunity to put funds in reserve to meet these future needs."
  
  Becker also noted that the $60 million capital project program does not take into account the $40 million cost to replace the Canada Border Services Agency plaza, for which federal funding is being pursued."

Here is what prompted this BLOG:

• Federal Government Delivers Support for Improvements to Queenston Plaza at Queenston-Lewiston Bridge Crossing

NIAGARA-ON-THE-LAKE, ON, June 25 /CNW Telbec/ - The Government of Canada and the Niagara Falls Bridge Commission are pleased to announce funding for the second phase of the redevelopment of the Queenston Plaza at the Queenston-Lewiston border crossing.

Funding for several improvements to the bridge complex and facilities was announced today by the Honourable Rob Nicholson, Member of Parliament for Niagara Falls, Minister of Justice and Attorney General of Canada, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities, and Ms. Janice Thomson, chair of the Niagara Falls Bridge Commission (NFBC). Contributions to this cost-sharing initiative include up to $62 million from the Government of Canada and $12.9 million from the NFBC.

Phase One of the redevelopment commenced in March 2007 and entailed the construction of new toll, parking and commercial inspection facilities. Phase Two includes the construction of a commercial vehicle secondary inspection warehouse, additional passenger primary inspection lanes, a new central building for the Canada Border Services Agency, a new animal inspection
facility and the installation of a wall to separate traffic bound for Canada and for the United States.

"Since 2006, our government has taken swift action to improve our border crossings and gateways to enhance the flow of vehicles, people and goods between our country and the rest of the world," said Minister Nicholson.

"Today I am proud to announce funding for the Queenston-Lewiston bridge that will relieve traffic congestion, and make the flow of goods and passengers across the border more efficient and secure."

"The Queenston Plaza initiative is a critical component of the rebuilding of the Queenston-Lewiston border crossing, the most significant project that the Bridge Commission has undertaken in recent history," said Ms. Thomson. "We believe that the complete rebuilding of the Queenston Plaza complex is of vital importance to the binational trade relationship between Canada and the U.S., and to the expansion of trade in the future."

She added, "We are pleased that the Government of Canada shares our commitment to building infrastructure that supports efficient movement of commercial and passenger traffic at the border. Today's announcement continues the successful partnership between our agencies and reflects the responsiveness of the government to the critical need for substantial improvements in infrastructure."

The Queenston-Lewiston bridge is the fourth-busiest Canada-United States commercial and land border crossing. In 2007, bridge traffic accounted for approximately 920,000 two-way commercial vehicle crossings, or approximately 2,500 commercial vehicles per day, representing Canada's fourth-busiest commercial border crossing. Improving the existing plaza will allow the NFBC to take advantage of additional capacity provided by the recently constructed fifth bridge lane.

This project is funded under the $33-billion Building Canada plan through the Gateways and Border Crossings Fund. Building Canada, which will support a stronger, safer and better country, was established to provide long-term, stable and predictable funding to help meet infrastructure needs across Canada.

The $2.1-billion Gateways and Border Crossings Fund works to improve the flow of goods and people between Canada and the rest of the world and is a key element of this government's Building Canada infrastructure plan.

Federal financial support for the expansion of the Queenston Plaza is conditional on the initiative meeting all applicable federal eligibility requirements under the Gateways and Border Crossings Fund, a federal due diligence review of the project and meeting all other federal requirements, such as an environmental assessment required under the Canadian Environmental Assessment Act and the signing of a contribution agreement for the project."