A study was prepared by Michael H. Belzer, Ph.D., President, Sound Science and and one of the world's most respected economic forecasting firms. This detailed and highly technical economic analysis probes the risk of having only one major border crossing point in the Detroit-Windsor region. This is a region that is economically integrated - particularly in the critical area of automotive production - and yet the region finds itself at a stalemate on the issue of how to add the physical capacity to keep the goods moving and to keep our regional economy growing.
The Detroit-Windsor region has carved a strategic economic niche by growing with and around the vital auto industry. In the next two decades hundreds of dollars added to the overall cost of production for vehicles and components produced in this region will diminish the region�s competitive advantage. These added costs will have substantial effects on the region�s ability to sustain or grow the automotive industry, which is so crucial to the region. Everyone now understands competitive advantage, and that global auto producers must weigh overall production costs very carefully when plants must be closed or new plants must be built. Ensuring adequate border crossing capacity and building the Jobs Tunnel must be our region�s response to this competitive advantage.
By building new border-crossing capacity with the Jobs Tunnel, the future economic costs can be offset or even reversed. First and foremost, the Jobs Tunnel is a unique public-private partnership, which brings US$419 million in new - and largely private - capital to improve border system capacity. With a planned construction time of five years for the Jobs Tunnel, positive impacts will be produced on both sides of the border. In southeast Michigan, the Jobs Tunnel will produce maximum employment of 547 full-time jobs during the peak year of construction and total construction expenditures of US$156.5 million (CN$218.4) would be pumped quickly into the southeast Michigan economy. Total output would average US$47.96 million (CN$66.95 million) annually, while the annual increase in value-added would average US$24.16 million (CN$33.73 million). Similarly, on the Ontario side, maximum employment of 893 full-time jobs would be created during the peak construction period. Total output would average US$80.43 million (CN$112.28 million) annually, while the annual average value-added would be US$40.51 (CN$56.55 million) per year.
The benefits of building the Jobs Tunnel are substantial and striking. The operation of the Jobs Tunnel will add US$10.14 million annually (CN$14.15 million), including labor and goods and services purchased and it will require 190 full-time positions for tunnel operations and Canadian Customs.
Perhaps most critical to those who live and work in the southeast Michigan and southwest
Ontario, the Jobs Tunnel will help this region retain automotive manufacturing jobs. The
capacity provided by the Jobs Tunnel could prevent the additional loss of nearly US$30 billion in transportation equipment industry output. This could save the region between 9,000 and 12,000 good jobs.
The Jobs Tunnel makes such good economic sense that the choice is clear. The Detroit River Tunnel Partnership is a partnership between two major private enterprises, Canadian Pacific Railway (CPR) and Borealis Transportation Infrastructure Trust (BTIT). The Detroit River Tunnel Partnership is committed to the design, financing, construction, operation and maintenance of modern, safe and efficient rail tunnels that improve North American trade flows through the Windsor-Detroit corridor.
CPR is North America�s first transcontinental railway, and is the only transcontinental carrier with direct service to the U.S. Eastern Seaboard. BTIT is owned by the Ontario Municipal Employees Retirement System (OMERS), one of Canada�s largest pension funds serving more than 300,000 active and retired local government employees, and a leading Canadian investor in infrastructure projects.
The Find more information and resources on The Jobs Tunnel at http://www.thejobstunnel.com
Detroit River Tunnel Partnership (DRTP) is poised to build a new, high-capacity rail tunnel under the Detroit River to provide improved freight service between the United States and Canada. The DRTP is an equal partnership between Canadian Pacific Railway (CPR) and Borealis Infrastructure Trust.
Find more information and resources on The Jobs Tunnel at http://www.thejobstunnel.com
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