Thoughts and Opinions On Today's Important Issues

Thursday, September 10, 2009

BLOGextra: Why The Feds Don't Want Matty Around

The border file is becoming a worse mess than before if that is even possible. Take a look at my PS below and you will see what I mean.

If you want to see why the Feds need to get rid of Matty Moroun as the owner of the Bridge Company, take a look at this graph prepared by Lufthansa in their report.

I am sure that we all knew this but, when it is put out in such a simple graphic, it makes the case that I have argued on here for years even more compelling.

It makes it all so understandable now.

The four top border crossings for trucks are in Central Canada--now you know why the PM is directly involved too in talking about the DRIC Bridge with US Presidents Bush and Obama. Matty has an intimate role in each of the crossings.

Here are the concerns for Canada:
  1. He owns the Ambassador Bridge which the Government wants to own either by itself or with the US
  2. A DRIC Bridge cannot be built with his competition a mile away
  3. He competes successfully with the Blue Water Bridge and takes business from them even though they have twinned bridges... imagine if he did too!
  4. The Government may want to sell or P3 the Blue Water Bridge but now will have trouble getting a good price for them because of his competition
  5. He wants to build a truck bridge in the Fort Erie area and the obvious fear is that he will be too successful and take away too much business from the other truck crossings
  6. Canada wants shared border management there but if they do it there, they could not oppose Moroun having it on the US side here resulting in no need for a DRIC Bridge thereby undercutting Point #1
  7. I won't even talk about the Tunnel and that mess since its volume is so insignificant BUT the Tunnel plays a big role in the DRIC matter and SBM.
  8. Now we really know why the Feds would not allow the Bridge Company to become its manager.

As you can see, it is so much more in the Canadian Government's mind than merely building a new bridge in Windsor/Detroit.

PS...Canada has to be concerned about the decline in traffic too and whether a P3 can work for the bridge or road here now. Or in Sarnia. How will Sean O'Dell rationalize this to his political masters:
  • Research Update: Blue Water Bridge Canada Ratings Lowered Two Notches To 'A' On Deteriorating Financial Risk Profile; Outlook Negative

    from S&P Credit Research 1350 word report published Sep 09, 2009

    Abstract: We lowered the long-term issuer credit and senior unsecured debt ratings on Blue Water Bridge Canada two notches to 'A' from 'AA-'. The downgrade reflects our assessment of significant reductions in traffic volumes and a deteriorating financial risk profile. The negative outlook reflects our assessment of the operating and financial risks associated primarily with the near-term volume exposure to economic conditions. On Sept. 9, 2008, Standard&Poor's Ratings Services lowered its long-term issuer credit and senior unsecured debt ratings on Sarnia, Ont.-based Blue Water Bridge Canada (BWBC or the authority) to 'A' from 'AA-'. The outlook is negative.