Burning Bridges? U.S. Businessman in International Dispute Over Detroit Bridge
From trade to turmoil, plans for a new cross-border bridge are in dispute.
July 30, 2010 -- It's a tale of bridges that has caused an international dispute.
For 81 years, the privately-owned Ambassador Bridge that connects Detroit to Windsor, Ontario, has facilitated cross-border movement and trade. It is one of the top five cross-border passenger vehicle crossings and one the busiest international crossings in North America in terms of trade volume, comprising more than a quarter of all U.S.-Canada trade.
When it was built in 1929, the four-lane bridge topped the list as the longest suspension bridge in the world. The U.S. - Canadian trade that crosses the bridge equals all U.S. exports to Japan, according to the U.S. embassy in Ottowa.
But the famous four-lane crossing, which is in need of repair, is now at the center of a heated international disagreement over its future as the Michigan Senate prepares to vote on a new billion dollar project that could make the Ambassador Bridge a thing of the past.
The Ambassador Bridge's inspection report released last year showed that while its structure is sound, much work is needed to be done to fix the bridge's cracked concrete, rusted railings and corrosion.
Its owner, 83-year-old trucking tycoon Manuel "Matty" Moroun -- one of only a handful of individuals to privately own a United States border crossing -- has volunteered to invest between $400 and $500 million of his own money to build a new, six-lane bridge adjacent to the Ambassador. Moroun purchased the Ambassador Bridge in 1979.
But Michigan, Canadian and U.S. governments are pushing to instead build a new, public bridge two miles downstream from the Ambassador, called the Detroit River International Crossing (DRIC).
Canada has agreed to loan Michigan $550 million for the project, which enjoys the support of Michigan Gov. Jennifer Granholm, Detroit Mayor Dave Bing and other local heavy hitters. But it has run into opposition from Moroun and his Detroit International Bridge Company (DIBC), who charge that the project will be a taxpayer burden and will hurt traffic on the Ambassador.
"[The DRIC Bridge] gives folks who had been in power ... an opportunity to talk smoke and mirrors about jobs and investment and a new bridge instead of the reality of where Michigan is today," DIBC President Dan Stamper told ABC News. "Better to talk about jobs and investment and pie-in-the-sky projects than to talk about the reality."
The Michigan House of Representatives has already approved the project, and Granholm has spoken widely in its support, but some state lawmakers are wary of the billion-dollar investment.
State Senate Majority Leader, Republican Mike Bishop, said at a conference last month that he was concerned about the issue of sovereignty, given Canada's hefty investment.
"My main concern is that it constrains the power of the Michigan Legislature and gives away our legislative power and oversight," Bishop said at the event, according to Crain's Detroit Business. "They say they're going to give us $550 million. I say, 'Show us the money' ... I don't have faith or confidence this plan is ready for prime time, but I'm willing to try to bring the parties together."
Supporters of the project fear Moroun's influence will deter state senators from voting for it. Moroun, ranked No. 701 in Forbes' 2009 billionaires list, holds considerable sway in Michigan's political circles.