July 09, 2008
Eastern Michigan University College of Business | Marvin Shaouni
Blog

Post No. 2

Posted By: Melissa Trustman, 10/5/2007
Moving the Goods 

Borders & Valuable Freight

Visually, anyone can see lots of trucks and people crossing our borders everyday. If there’s a back up, it’s more of a headache than a reminder of how important our daily cargo is to our local economy and to the country’s GDP. It doesn’t make the papers on a regular basis and it’s not something we hype to the nation or even visiting out-of-towners to impress them.   

Conversely, anyone who visits the Port of Los Angeles or Savannah is simply aghast at the huge ships pulling in and out of port on a regular basis.   

While size is impressive, value is what counts. The latest appraisal on the amount of trade crossing our borders in Detroit and Port Huron is over $160 billion. Alone, that number seems pretty impressive. Compared with the Port of Los Angeles, which stands at just over $120 billion and is ranked as the largest water port of entry, it really underscores how important this region is to the country.

While those numbers are amazing, they still don’t capture the 150,000 jobs that result from the existence of our border crossings and the number of employees making the daily trek into our hospitals, universities and automotive companies.  

Transportation Attracts Attention

Even more disappointing than the lack of recognition locally, is the lack of recognition federally. Over the last year, the federal government designated a number of High Priority Trade Corridors, which corresponded to supportive funding. The only recognized corridor even remotely related to Michigan and the trade coming in from Canada was the I-69 corridor…and the dollars paled in comparison to the other corridors. If you look at a national map of trade by volume, our region looks relatively small and insignificant. There are simply massive amounts of goods moving out of Los Angeles into Louisville, Kansas City and Chicago.  

Again, size is impressive, but value makes our GDP. It’s vital for our region to communicate the importance of our border to ourselves, the national business community and the federal government. There might be millions of Barbie dolls, Nikes and pants moving along the east-west corridors, but the products pumping out of Detroit are worth billions. 

Comments:
Friday, October 05, 2007 3:37 PM by Marge Byington
It's refreshing to see Melissa acknowledge Metro Detroit's national importance as a hub for industrial and agricultural commerce with America's largest trading partner across the Detroit River. That role can grow if capacity keeps up with market demand.

In addition to trucking corridors, the Detroit-Windsor rail tunnel is a vital part of this trade network – carrying more than 460,000 rail cars annually. It's a direct link between the Port of Montreal, the rest of Canada and the American Midwest. Canadian Pacific Railway and other railroads also use this rail tunnel to reach southern states and Mexico.

With intermodal container shipments to and from Montreal's expanding port expected to double in the next 10 years, we at the Detroit River Tunnel Partnership are working to replace our 100-year-old tunnel with a larger diameter design that can handle double-stacked containers and high-capacity vehicle carriers.

The replacement rail tunnel, a private project that doesn't require any Detroit or Michigan public funds, will bring more freight to our region and help create a logistics hub. And with that will come more jobs.

Supporters include the Detroit Regional Chamber, Detroit Renaissance and MDOT. Our tunnel is out of sight, but should not be out of mind as a key part of keeping Metro Detroit competitive as an international trade corridor.

Thanks, Melissa, for recognizing why it's "vital for our region to communicate the importance of our border."

-- Marge Byington
Director of Communications and Government Relations
Detroit River Tunnel Partnership


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