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Intermodal hub solution to border tie-ups (04/04)

By IAN ROSS Border tie-ups due to truck inspections, homeland security issues and increased trade are costing the North American economy millions of dollars and are crippling border communities. Sault Ste.

By IAN ROSS

Border tie-ups due to truck inspections, homeland security issues and increased trade are costing the North American economy millions of dollars and are crippling border communities.

Sault Ste. Marie Mayor John Rowswell believes his city is well situated to relieve some of that grid-locked traffic by opening up some intermodal (rail-to-truck) opportunities that will benefit the North.

With a trend among Canadian and international shippers toward containerization and the growth of Trans-Pacific containerization trade on the West Coast, Sault Ste. Marie could be an essential and more easily accessible transportation corridor into the U.S. market.

Rowswell wants to investigate whether the Sault’s border location and extensive rail and highway connections make it feasible to establish itself as a freight redistribution centre.

“We think it will be just as affordable and (one day) faster, and relieve the congestion down south,” says Rowswell.

Every year, thousands of containers from Pacific Rim countries destined for the U.S. Midwest arrive in Canada via the Port of Vancouver. Once loaded onto rail cars, they are sent to large intermodal facilities in the Greater Toronto Area at Brampton (CN Rail) and Vaughan (CP Rail) where they are transferred to truck for shipment down Highways 401 and 402 through congested border crossings at Windsor-Detroit and Sarnia-Port

Huron.

Border slowdowns from idling trucks and traffic jams across spans like the Ambassador Bridge are costing the Michigan and Canadian economies $4 billion (US) a year, and another $6 billion (US) in adjusted production schedules and government expenses, according to a Grand Valley State (Michigan) University study last fall.

“We’re just saying that doesn’t make sense anymore and we have a solution. We have a northern solution to a southern Ontario problem,” Rowswell says.

Rowswell cautions the idea is only in the initial discussion stage. However, the concept of diverting some container traffic from the CN interchange at Oba (south of Hearst) to an “underutilized” border at the Sault for transfer into truck to various U.S. destinations makes sense for freight-handlers and their customers, he adds.

In 2003, 12,000 commercial vehicles crossed the Ambassador Bridge at Detroit daily.

Only 325 trucks cross daily at the Sault border crossing.

“Our bridge has a lot of capacity. Not only that, I-75 (the U.S. highway) is wide open.”

He plans to discuss the proposal with CN Rail officials in the near future. CN owns the former Algoma Central-Wisconsin Central railway which

runs from Hearst south to the Sault and into northern Michigan and Wisconsin to the Midwestern rail hub at Chicago.

The idea was conceived a few months ago when a Detroit-area company first approached the city about the possibility, says Rowswell.

The concept took shape after Rowswell’s January visit to the Winter Cities Conference in Anchorage, Ala., and his meeting withPrince Rupert, B. C. mayor Herb Pond, whose city has the second-largest Canadian port on the West Coast.

To handle the anticipated surge in Asian goods in the coming years, Prince Rupert is building a containerization cargo handling facility this year as part of a $60-million port upgrade with contributions from CN Rail and the B.C. government. It is scheduled for completion by the third quarter of 2005 and will initially move about a half-million containers per year.

The Port of Vancouver is bursting at capacity, handling 1.5 million TEUs (Twenty-foot Equivalent Units) of containers annually with more plans for expansion. Studies show that container traffic on the West Coast is expected to jump to 6.3 million TEUs by 2020. Those kinds of projections will put pressure on the entire Canadian logistics system, not just ports, but interior infrastructure as well, says Rowswell.

Currently, truck traffic tie-ups at the Windsor-Detroit border have become a major hot-button political issue where there are five proposals being

pitched for a new crossing, including twinning the 75-year-old Ambassador Bridge and converting a train tunnel that runs into southwest Detroit.

Business and community leaders in the two cities, considered the world’s busiest commercial border, say traffic jams from idling trucks backed up into residential neighbourhoods are decimating their local economies.

The Ambassador Bridge carries more commerce by truck into Detroit than any other U.S. border point with 3.25 million commercial crossings a year, generating $92 billion or a quarter of all the trade between Canada and the U.S. Rowswell says intermodal is among his top economic development priorities.

Chamber of commerce president Don Mitchell sent a letter Feb. 11 to Economic Development and Trade Minister Joseph Cordiano pointing out the

Sault’s uncongested border is within a day’s drive of many American cities in the heartland of the U.S. auto market.