Trade Infrastructure Subcommitee:
Progress Report

Executive Summary

December 4, 2002

Membership:

Bob Armstrong, AIAMC
Jonathan Hodges, AIAMC (alternate)
Gerry Fedchun, APMA
Vince Guglielmo, APMA
Bill Murnighan, CAW
David Adams, CVMA
Ed Brust, DaimlerChrysler Canada
Lori Shalhoub, DaimlerChrysler Canada
Caroline Hughes, Ford of Canada
Faye Roberts, GM Canada
Jean-François Gauvin, Government of Quebec (alternate)
Jim Miller, Honda Canada
Liana Daltoe, Industry Canada
Fernando Traficante, Ministry of Enterprise, Opportunity and Innovation
John Rodzik, Narmco (alternate-APMA)

Over the past couple of months, the Subcommittee has met on two separate occasions. At its first meeting, the Subcommittee met with the members of the Joint Management Committee. The Joint Management Committee discussed its role and criteria for the identification of potential transportation projects for investment. They were identified as:

• Concepts that increase efficiency and reduce congestion;
• Short and medium term solutions that would fit within a five (5) year horizon;
• Projects/concepts that have the potential for attracting other partners which would result in an added benefit to the $300M deliverable;
• Identification of proposed projects/concepts that are complementary and have potential for a long-term approach.

Within the framework of the above-noted criteria, the Subcommittee identified the border crossings at Windsor/Detroit as its major priority for the short to medium term and our discussions focused on this issue.

The underlying rationale for all of the recommendations noted below is that our industry is highly integrated with the United States and its economic success is dependent upon a "just-in-time" delivery system which requires an efficient and effective border, particularly at Windsor/Detroit. Attached is a copy of our report forwarded to the Joint Management Committee and dated November 20, 2002. Following is a summary of the recommendations made in the report:

• There is a strong need for additional funds in excess of the $300M to be secured and delivered for the Windsor Gateway from the Strategic Infrastructure Fund, the Border Infrastructure Fund and the SuperBuild Fund.

• The governments, upon receipt of the Joint Management Committee's recommendations, must move expeditiously to implement the $300M investment so that all necessary improvements are made in advance of the five-year time frame.

• A controlled uninterrupted access from Highway 401 through to the U.S. Interstate highway system is required so as to create a "seamless border". This acknowledges that the varying proposals may need to be combined in some fashion and sufficient dollars must be appropriated to ensure the proposed projects achieve this objective.

• The investment must improve current capacity by reducing congestion and enhancing or facilitating the infrastructure at the present Windsor/Detroit crossings by:
  

  Ensuring for low and high volume risk traffic and fast track or streaming pre-cleared traffic to dedicated access lanes and inspection booths.

  The establishment of commercial vehicle processing centres.

  Ensuring for timely and effective implementation of technology through marketing and publicizing the availability of customs programs including CSA, FAST, NEXUS, regional tolling, etc.

  The establishment of a joint Canadian and American authority to facilitate with communication and coordination of border issues.

• The Joint Management Committee should review and recommend short and medium term solutions that will provide a viable alternative for our industry. Alternative approaches need to be identified, approved and constructed as soon as possible to allow for alternatives and to accommodate incremental volume or capacity.

• The work of the Joint Management Committee and that of the binational planning process should be expedited so as to not compromise the integrity of the respective processes but to maximize, where possible, intergovernmental co-operation and coordination.

• An emergency plan for the industry needs to be identified and developed.

The Subcommittee will continue to interface with the Joint Management Committee and governments, on an as-required basis. The Subcommittee looks forward to receipt of the recommendations from governments in the near future.

The Subcommittee recognizes that its mandate is to identify and prioritize infrastructure issues for Ontario and Canada. Further, the Subcommittee believes that governments have a role to play in the development and coordination of investment and to create a climate conducive to future investments.

The Subcommittee has identified some medium to long term issues that will fit within the mandate. However, as it is premature to report on these issues at this time, they will form the basis for a subsequent report.