International Borders

Transcription

1 DRAFT TECHNICAL BACKGROUNDER Northern Ontario Multimodal Transportation Strategy International Borders Prepared for the Ontario Ministry of Transportation and Ministry of Northern Development and Mines Consulting Team: IBI Group Hemson Consulting Ltd. November 2016

2 This draft technical backgrounder was prepared for the Ontario Ministry of Transportation and Ministry of Northern Development and Mines by the consultant team to assist the ministries in developing the Northern Ontario Multimodal Transportation Strategy. The opinions and ideas in this backgrounder are those of the authors and do not necessarily reflect the positions of the ministries or of the Government of Ontario. Cette publication hautement spécialisée International Borders Technical Backgrounder n'est disponible qu'en anglais conformément au Règlement 671/92, selon lequel il n est pas obligatoire de la traduire en vertu de la Loi sur les services en français. Pour obtenir des renseignements en français, veuillez communiquer avec le Ministère des Transports au ou par courriel à contact@nomts.ca. November 2016

3 Table of Contents 1 Introduction Overview of Northern Ontario Border Crossings Facilities and Operations Ownership and Governance Facilities and Services... 6 Facility Improvement Plans... 8 Emergency Planning Border Wait Times Operational Issues Connections to Provincial Highway Network Travel Patterns Traffic Volumes Seasonal Traffic Variation Passenger Vehicle Travel Trip Purposes Passenger Vehicle Origin Destination Travel Flows Goods Movement Historic Traffic Volume Trends Influence of Currency Exchange Rates on Cross-Border Passenger Traffic Issues and Opportunities Issues Ownership Operations Wait Times Road Connections and Stopping/Parking Facilities Traffic Characteristics and Trends November 2016 i

4 Table of Contents (continued) 6.2 Opportunities Road Connections, Facilities and Operations Improved Communications Traffic Characteristics Alternate Text for Exhibits November 2016 ii

5 Table of Contents (continued) List of Exhibits Exhibit 2.1: Northern Ontario Transportation System Infrastructure and International Border Crossings... 3 Exhibit 2.2: Annual Two-Way Crossings at Northern Ontario International Bridges, Exhibit 2.3: Operational Characteristics of Northern Ontario Crossings... 5 Exhibit 2.4: Available Services by Northern Ontario Border Crossings... 7 Exhibit 2.5: Canada-Bound Border Wait Times by Day of Week, Time of Day and Quarter at Fort Frances International Bridge Exhibit 2.6: Canada-Bound Border Wait Times by Day of Week, Time of Day and Quarter at Sault Ste. Marie International Bridge Exhibit 3.1: Transportation Network in the Vicinity Northern Ontario International Bridges Exhibit 4.1: Northern Ontario International Vehicle Crossings by Vehicle Type and Registration, Exhibit 4.2: Northern Ontario International Vehicle Crossings by Vehicle Type and Registration, Exhibit 4.3: Monthly Variation in Northern Ontario Passenger Vehicle Border Crossings, Exhibit 4.4: Monthly Variation in Northern Ontario Commercial Vehicle Border Crossings, Exhibit 4.5: Passenger Vehicle Trip Purpose by Border Crossings, Exhibit 4.6: Passenger Vehicle Trip Purpose by Country of Residence, All Crossings, Exhibit 4.7: Passenger Vehicle Flows by Country of Residence, September 2011, Weekday All Crossings Exhibit 4.8: Passenger Vehicle Flows by Place of Residence, September 2011, Sunday All Crossings Exhibit 4.9: Cross-Border Passenger Vehicle Flows in Vicinity of Crossings, by Country of Residence, September 2011 Weekday Exhibit 4.10: Goods Transported by Sector and Crossing November 2016 iii

6 Table of Contents (continued) Exhibit 4.11: 2012 Weekly Commercial Vehicle Flows by Border Crossing Exhibit 4.12: 2012 Weekly Commercial Vehicle Flows by Commodity Exhibit 5.1: Traffic Volume Change by Crossings and Vehicle Types Exhibit 5.2: Historic Traffic Volumes by Crossing, Vehicle Type and Registration, Exhibit 5.3: Sault Ste. Marie Border Crossing Trip Purpose Trends, 2000 vs. 2011/ Exhibit 5.4: Canadian-Registered Passenger Vehicle Traffic at Northern Ontario International Crossings vs. the $CDN/$USD Exchange Rate, Monthly Exhibit 5.5: US-Registered Passenger Vehicle Traffic at Northern Ontario International Crossings vs. the $CDN/$USD Exchange Rate, Monthly November 2016 iv

7 1 Introduction Northern Ontario s international transportation connections to the United States are important for the economic and social health of the region and for Canada as a whole. This technical update provides an overview of the Northern Ontario international bridges, including operations, travel patterns, needs and opportunities. The federal Canada Border Services Agency (CBSA) is responsible for immigration enforcement and customs services that take place at the crossings. The Province of Ontario, however, has a role in influencing the operations of the crossings and assisting in the provision and maintenance of infrastructure supporting the crossings, and is also directly responsible for operations at two of the Northern Ontario border crossings. November

8 2 Overview of Northern Ontario Border Crossings Northern Ontario is divided from the United States by waterways flowing into and out of Lake Superior. There are four international bridges providing road connections across these waterways, as shown in Exhibit 2.1, which also shows the crossings in relation to the Northern Ontario multimodal transportation system. From west to east, the four Northern Ontario international bridge crossings are as follows: Ontario-Minnesota Crossings in Northwestern Ontario: Rainy River - Baudette International Bridge: This bridge connects the town of Rainy River, Ontario (population 850) and Highway 11 to the slightly larger town of Baudette, Minnesota (population 1,000) and Minnesota State Highway 72; Fort Frances International Falls Bridge: This privatelyowned bridge connects Fort Frances, Ontario (population 8,000) and Highways 11 and 71 to the town of International Falls, Minnesota (population 6,500) and US Routes 53 and 71; and Pigeon River International Bridge: This crossing is approximately 60 km southwest of Thunder Bay and Fort William First Nation via Highway 61, and the closest US community is Grand Portage, about 10 km to the south along Minnesota Highway 61. Ontario-Michigan Crossing in Northeastern Ontario: Sault Ste. Marie International Bridge: This bridge connects Sault Ste. Marie, Ontario (population 75,000) and Highway 17 to a smaller town by the same name in Michigan (population 14,000) and Interstate 75. It is the busiest border crossing in Northern Ontario. With the exception of Pigeon River Bridge, each of these bridges is also associated with a rail crossing. November

9 Exhibit 2.1: Northern Ontario Transportation System Infrastructure and International Border Crossings November

10 Crossing volumes for 2000 to 2015 are shown in Exhibit 2.2, with passenger vehicle and commercial vehicle volumes shown separately. In total across the four bridges, there were 3.0 million passenger vehicle crossings and 125,000 commercial vehicle crossings in Sault Ste. Marie International Bridge has the highest traffic volumes of the four crossings. Traffic patterns and trends at the crossings are discussed in further detail in Sections 4 and 5. Exhibit 2.2: Annual Two-Way Crossings at Northern Ontario International Bridges, 2015 Source Data: CANSIM (providing volumes entering Canada only), multiplied by 2 to estimate 2-way flows 2.1 Facilities and Operations Operational characteristics of the crossings are summarized in Exhibit 2.3, including ownership, operations, bridge characteristics, tolls and provincial highway connections. November

11 Exhibit 2.3: Operational Characteristics of Northern Ontario Crossings Characteristic Ownership Canada Ownership US Ontario-Minnesota Crossings Rainy River International Bridge MTO Fort Frances International Bridge Minnesota Department of Transportation Operations MTO and MnDOT Minnesota Dakota and Western Railway company, a subsidiary of Boise Paper Holdings Nearest Provincial Highway Roads Connecting to Provincial Highway Highway 11 (2 lanes) Highway 11 ends at bridge Pigeon River Bridge Ontario Michigan Crossings Sault Ste. Marie International Bridge Produits forestiers Résolu MTO Federal Bridge Corporation Ltd. (Resolute Forest Products) Boise Paper Holdings None Michigan Department of Transportation Highway 11 to the east (2 lanes with parking); Highway 11 & 71 to the west ( 4lanes) Highway 71/Central Ave (4 lanes), linking to Highway 11 after 1 block MTO Highway 61 (2 lanes) Highway 61 ends at bridge International Bridge Administration (IBA), under supervision of Sault Ste. Marie Bridge Authority (SSMBA) Highways 17 and 550 (both 4 lanes with centre turn lane) and Highway 550 Carmen s Way serves as a truck bypass of the city connecting to the bridge; cars are directed to use municipal roads: Great Northern Rd, Bruce St, Queen St E/Bay St or Trunk Road/Wellington St E Bridge Length 400 m 300 m 110 m 3 km Total Bridge Lanes 2 2 auto lanes on concrete portion; lane on steel portion for commercial trucks, busses and rail Age 57 years (built 1959) 53 years (built 1963) Steel Portion: 108 years (built 1908, opened 1912) Concrete Portion: 37 years (built 1979) 56 years (built 1962) Tolls No Northbound only: $6 USD No Both directions: Car, light truck motorcycle - $3.50 USD / $4.70 CDN Commercial Truck 5 axles - $22.50 USD / $30.50 CDN Canada-bound Primary Inspection Processing Lanes 2 passenger lanes 1 commercial vehicle lane 3 passenger lanes 1 mixed traffic lane All passenger lanes serve NEXUS travellers Monday to Friday 7:30 a.m. to 8:30 a.m. 3 passenger lanes 1 commercial vehicle lane 3 passenger lanes 1 mixed traffic lane November

12 2.2 Ownership and Governance The ownership and governance structure of the four international road bridges in Northern Ontario vary by bridge: The Rainy River/Baudette Bridge is jointly owned by the US State of Minnesota and MTO and is therefore partly funded by the Province; The Fort Frances International Bridge is jointly owned by private businesses: the owner of the Canadian half of the bridge is Resolute Forest Products based in Montreal and the owner of the American portion of the bridge is Boise Paper Holdings Company based in Chicago. The bridge is managed and operated by the Minnesota Dakota and Western Railway Company, a subsidiary of Boise Paper Holdings; The Pigeon River International Bridge is the only international border crossing that is fully owned and funded by the Province of Ontario; and The Sault Ste. Marie International Bridge is jointly owned by the US State of Michigan and the Canadian Federal Bridge Corporation Ltd., with no provincial ownership. Different ownership and operational structures can result in different maintenance and service standards at the bridge and surrounding property. Different governance and ownership also means that implementing uniform improvements and/or changes to the crossings can be more difficult. In discussions with stakeholders to date, no issues associated with the difference in governance and ownership at each bridge have been noted, and there are no plans to standardize the governance models of the bridges. 2.3 Facilities and Services Exhibit 2.4 summarizes the available services of each bridge in Northern Ontario. The two busiest crossings in Northern Ontario Sault Ste. Marie and Fort Frances are the best equipped in terms of border facilities, providing a range of services for passenger and commercial traffic. Rainy River, the lowestvolume crossing, provides only basic facilities and services. November

13 Exhibit 2.4: Available Services by Northern Ontario Border Crossings Type Designated Export Office (EXPORT) Highway/Land Border Office (HWY/B) Designated Commercial Office (DCO) HUB/Central Office (HUB) Accounts Receivable Ledger Office (ARL) Electronic Data Interchange (EDI) NEXUS/Highway (NEXUS/HWY) Duty-Free Shop (SHOP) Railway Depot (RAIL) Direct Reporting Site for Marine Private Vessel (DRS/M) Facilities/Services Description A designated office for the reporting and processing of export declarations and permits. A CBSA highway port of entry for the processing of travellers, crew and/or for the reporting and clearing of commercial goods. A designated port of entry which provides 24 hour service - 7 days a week, for the reporting and clearing of commercial goods. A CBSA office responsible for providing service to Inland Alternate Service (IAS) sites and other service locations reporting to the Central Office. Designated office that offers commercial accounting and payment. Importers and brokers can obtain a paper copy of their daily notice, statement of account and view their account balance. A CBSA office that provides for the electronic transmission and interchange of cargo, release, and accounting data. An authorized point of entry for members of the joint Canada/U.S. NEXUS Highway Program only. A location at which a duty free shop is located within close proximity to the CBSA port of entry. An authorized point of entry for the reporting of travellers and/or freight arriving by rail. A CBSA-staffed marine port of entry where private pleasure craft MUST report directly. Source: < Rainy River Availability by Crossing Fort Frances Pigeon River Sault Ste. Marie November

14 Facility Improvement Plans Some of the Northern Ontario crossings have improvements planned or in progress: Rainy River. MTO and MnDOT are planning to replace the bridge structure at this crossing 1. The new bridge will have 2 vehicle lanes, 2 bike lanes, and a sidewalk on the east side. Construction is planned to being in Fort Frances. There are no facility improvement plans at this crossing. Pigeon River. There are no facility improvement plans at this crossing. Sault Ste. Marie. A Canadian plaza redevelopment project is currently underway, with all phases anticipated to be completed by early Recently-completed components include the widening and connection of the plaza ramp to Carmen's Way, improving the flow of commercial and general traffic at the plaza, as well as a new Duty Free building and maintenance garage. At the current plaza, secondary inspections of commercial traffic are conducted off-site while the updated plaza will have room for these inspections on site. The next phase of the project involves the construction of new traveller and commercial facilities and bus lanes designed to support NEXUS and FAST 2. Emergency Planning CBSA has emergency plans in place and review them regularly through tabletop exercises and drills that involve other agencies such as law enforcement and the Canadian and US coast guards. The scenarios covered in the emergency plans include a variety of natural disasters and criminal acts NEXUS and FAST are joint Canada-US trusted traveller programs that allow pre-approved, low-risk travellers to cross the Canada-US border quickly. November

15 2.4 Border Wait Times Long border wait times delay the shipment of commercial goods and are an inconvenience to drivers and passengers. The Canadian Border Services Agency (CBSA) publishes forecasted wait time information for its 28 busiest crossings, which includes the Sault Ste. Marie and Fort Frances crossings, but not the Rainy River and Pigeon River crossings. However, anecdotal reports indicate that motorists are rarely delayed at the latter two crossings. The CBSA wait times are broken down by quarter, day of the week, time of day, and holidays. Exhibit 2.5 and Exhibit 2.6 are plots of forecasted wait times at Fort Frances and Sault Ste. Marie crossings, respectively, showing Monday-Thursday, Friday, Saturday and Sunday wait times separately by time of day. Wait times variations are largely due to variations in traffic volumes. At the Fort Frances crossing, wait times are anticipated to be 10 minutes at minimum, increasing to up to 30 minutes at peak times and seasons, such as Saturday mornings in spring, and almost as high Friday late afternoon/early evenings in spring. At the Sault Ste. Marie, wait times are also anticipated to be 10 minutes at minimum. The longest border wait times tend to be on Sundays late afternoon/early evenings in spring (34 minutes) and at the same times on Saturdays and Sundays in summer (26 minutes), Both crossings experience higher wait times weekday afternoons year round (up to 14 minutes at the Fort Frances crossing and up to 20 minutes at the Sault Ste. Marie crossing), as same-day return travellers return to Canada. November

16 Exhibit 2.5: Canada-Bound Border Wait Times by Day of Week, Time of Day and Quarter at Fort Frances International Bridge MONDAY TO THURSDAY FRIDAY SATURDAY SUNDAY Source: IBI analysis of CBSA data from < November

17 Exhibit 2.6: Canada-Bound Border Wait Times by Day of Week, Time of Day and Quarter at Sault Ste. Marie International Bridge MONDAY TO THURSDAY FRIDAY SATURDAY SUNDAY Source: IBI analysis of CBSA data from < November

18 2.5 Operational Issues The following potential issues have been raised by stakeholders with respect to border crossing operations. Rainy River Bridge: There is difficulty accommodating wide loads because of tight turns approaching the crossing on the US side of the bridge. Fort Frances Bridge: There is difficulty accommodating wide loads because of tight turns approaching the crossing immediately at the entry/exit point of the Canadian side of the bridge. Train activity on the nearby CN rail line blocks vehicle access to the crossing at times. November

19 3 Connections to Provincial Highway Network Exhibit 3.1 shows the transportation network in the vicinity of the four Northern Ontario border crossings. For the three Northwestern Crossings, the provincial highway system connects directly to the border crossing, while municipal streets connect Sault Ste. Marie International Bridge to Highways 17 and 550. Rainy River. Highway 11 runs directly to this crossing as a two-lane arterial highway with reduced speeds through Rainy River. Fort Frances. Highway 11 s alignment runs east-west through the town of Fort Frances. In the vicinity of Fort Frances Bridge, Highways 11 and 71 are urban arterial roadways. Approaching from the east, Highway 11 is a 2-lane roadway with on-street parking. Highway 71 links directly to the bridge as Central Ave; one block north Highway 71 connects with Highway 11 and is co-signed with Highway 11 from that point for 40 km to the west until Highway 71 branches north and Highway 11 continues west. The Fort Frances Bridge plaza has limited parking for commercial trucks, and no parking for oversized traffic, often relying instead on nearby Church Street. A CN railway line divides the town of Fort Frances between north and south; the line carries goods to and from the US via an international rail bridge at the east end of Fort Frances, approximately 4 km east of the road bridge crossing. This line is the busiest of the Canada-US international railway lines. The rail line has a grade-separated crossing at Portage Ave near the town centre, and an atgrade crossing at McIrvine Road at the west end of the community. The CN rail line also has an at-grade crossing with Highway 11 and 71 approximately 10 km west of Fort Frances International Bridge. (The railway continues west roughly parallel to Highway 11 the entire distance to Rainy River with one more at-grade crossing.) As the rail trains using the CN line can be extremely long, delays of up to several minutes can result in trying to access the Fort Frances border crossing from Highway 11 and 71 or from McIrvine Road while the trains pass the at-grade crossings. The railway line on the road crossing itself has very low traffic volumes, and is only used to serve local industries on the Minnesota side. Pigeon River. Highway 61 runs directly to this crossing as a two-lane arterial highway. There are few amenities for tens of kilometres north of this highway, but there is a store and fuel station immediately south of the border crossing on US Highway 61. November

20 Exhibit 3.1: Transportation Network in the Vicinity Northern Ontario International Bridges A. Rainy River International Bridge B. Fort Frances International Bridge November

21 Exhibit 3.1: Transportation Network in the Vicinity Northern Ontario International Bridges (continued) C. Pigeon River Bridge D. Sault Ste. Marie International Bridge November

22 Sault Ste. Marie International Bridge. Built by the Ontario government and opened in 2006, Carmen s Way serves as a truck bypass of the city connecting the bridge to Highway 17 at the north end of the city. When coming westbound to the city on Highway 17, cars are directed to travel on Trunk road then Wellington Road East to read the bridge. Coming northbound from Highway 17, cars are directed to use Great Northern Road, Bruce Street, Queen Street East (one-way eastbound)/bay St (one-way eastbound) to reach the crossing. November

23 4 Travel Patterns This section provides an overview of travel patterns by crossing, by vehicle type, and by vehicle licence plate registration. 4.1 Traffic Volumes Exhibit 4.1 summarizes in tabular form 2015 traffic volumes for each of the four Northern Ontario border crossings by vehicle type and by country of vehicle registration, while Exhibit 4.2 is a bar chart of these figures. Total traffic across the four crossings was 3.1 million vehicles in The majority of passenger vehicles are Canadian-registered vehicles, while commercial vehicles are close to evenly split between Canadian and US-registered vehicles. Sault Ste. Marie International Bridge is by far the busiest crossing in Northern Ontario, with total traffic volumes almost as high as the other three crossings combined, at 1.1 million vehicle crossings in The popularity of this crossing stems from its location, as it is the only border crossing in Northeastern Ontario and in northern Michigan, and provides the shortest route for travel between Northeastern Ontario, Eastern Ontario or Quebec and the US Midwest. The Sault Ste. Marie crossing also has a very high proportion of local travel between Sault Ste. Marie, Ontario and Sault Ste. Marie, Michigan. Fort Frances International Bridge is the next-busiest crossing, with 811,000 vehicle crossings in Like Sault Ste. Marie, there is a high proportion of local traffic. This crossing has the lowest proportion of trucks (1.3% of total traffic), but the highest proportion of US travellers (30% of passenger vehicles). Pigeon River has the highest proportion of Canadian travellers at 84% of passenger vehicle traffic; most of these are from the Thunder Bay area. Of the three Northwestern Ontario international border crossings, Pigeon River has the highest volume of trucks 17,700 truck crossings in Rainy River International Bridge is the most westerly crossing. Traffic volumes totalled 338,000 in 2015 approximately 11% of the total across the four Northern Ontario crossings. November

24 Exhibit 4.1: Northern Ontario International Vehicle Crossings by Vehicle Type and Registration, 2015 Vehicle Type Passenger Vehicles Rainy River Fort Frances Pigeon River Sault Ste. Marie All Crossings Vehicles % Vehicles % Vehicles % Vehicles % Vehicles % Canadian-Registered 269, % 555, % 385, % 1,115, % 2,324, % US-Registered 59, % 241, % 75, % 291, % 666, % Total Passenger Veh. 328, % 796, % 460, % 1,406, % 2,991, % Commercial Vehicles Canadian-Registered 6, % 5, % 8, % 42, % 62, % US-Registered 3, % 4, % 9, % 44, % 61, % Total Commercial Veh. 9, % 10, % 17, % 87, % 124, % Other Vehicles Bus, taxi, etc % 3, % 2, % 3, % 11, % Total Vehicles All Vehicles 338, % 810, % 481, % 1,497, % 3,127, % Source Data: CANSIM Table (volumes entering Canada) multiplied by 2 to estimate 2-way flows Exhibit 4.2: Northern Ontario International Vehicle Crossings by Vehicle Type and Registration, 2015 Source: IBI Group Analysis of CANSIM Table (volumes entering Canada) x 2 November

25 4.2 Seasonal Traffic Variation Traffic volumes at Northern Ontario s border crossings, as with all Ontario border crossings, experience summer passenger vehicle traffic peaks. Exhibit 4.3 and Exhibit 4.4 show the monthly traffic variations for passenger vehicles and for commercial vehicles, respectively, for 2015 and include trends for Canadian-registered and US-registered vehicles separately. Cross-border travel by US-registered passenger vehicles is much more seasonal than that of Canadian-registered vehicles at all crossings. Crossborder travel by US residents travelling to Canada, such as hunting, fishing, and visiting cottages/lodges are far more seasonally dependent (e.g. hunting and fishing seasons run from approximately May through October) than certain common Canadian trip purposes, such as casino-going and shopping, which can be done year-round. Overall, monthly cross-border travel by US-registered passenger vehicles ranged from 13,500 in February to 51,700 (a 3.8-fold increase) in July 2015, and averaged 27,800 monthly over the year. The highest summer peaks for passenger vehicles are especially pronounced, and start earlier in the year, at the Ontario-Minnesota crossings compared to the Sault Ste. Marie crossing. Overall, the much higher proportion of Canadian-registered vehicles than USregistered vehicles have a dampening effect on the amount of seasonal variation. Total monthly passenger vehicle crossings range from 92,900 in February to 166,000 in July, and averaged 125,000 per month over the course of the year 3. Unlike passenger vehicle traffic, commercial vehicle traffic shows less regular seasonal traffic variation across the four crossings and by vehicle registration jurisdiction. In part, this may be due to random variation from a smaller sample size. Overall across the four crossings, the monthly variation of commercial vehicle traffic is not very pronounced. 3 In September (the month most of the early Fall 2011 border surveys by MTO were conducted), US-registered passenger-vehicle traffic was at 130% of annual average monthly values and at 70% of summer peak monthly traffic while Canadian-registered passenger vehicle traffic was at 97% of annual average monthly levels and at 82% of summer peak monthly traffic levels, compared to other 2015 monthly traffic levels. November

26 Exhibit 4.3: Monthly Variation in Northern Ontario Passenger Vehicle Border Crossings, 2015 Total Passenger Vehicles Canadian-Registered Passenger Vehicles US-Registered Passenger Vehicles Source: IBI Analysis of CANSIM Table November

27 Exhibit 4.4: Monthly Variation in Northern Ontario Commercial Vehicle Border Crossings, 2015 Total Commercial Vehicles Canadian-Registered Commercial Vehicles US-Registered Commercial Vehicles Source: IBI Analysis of CANSIM Table November

28 4.3 Passenger Vehicle Travel Trip Purposes Cross-border travel purposes are shown for weekday and Sunday early fall travel across the Northern Ontario border crossings in Exhibit 4.5 in chart form and in table form in Exhibit 4.6, distinguishing between US residents and Canadian residents. As can be seen from these exhibits, Canadian and US residents tend to make cross-border trips for different reasons. Although Canadian residents do travel for vacation and to visit specific tourist attractions south of the border, shopping is by far the most common passenger vehicle trip purpose, especially at Sault Ste. Marie and Fort Frances, followed by casino trips and other recreation purpose. Casino trips are common on both weekdays and Sundays at the Sault Ste. Marie and Pigeon River crossings, with casinos close-by on the US side in both cases. Shopping is a trip purpose that can lend itself to being done frequently. Overall, approximately 60% of Canadians crossing the border to shop reported doing so at least once per week. Casino trips are made almost as often as shopping trips. Vacation-related trips are of course much less frequent. By contrast, US residents do not engage in cross-border shopping or gambling to any significant degree. Instead US residents commonly cross the border for a specific tourist attraction, general vacation, or fishing/hunting in Northern Ontario. About three quarters of US residents who come to hunt or fish in Northern Ontario do so at least annually. November

29 Exhibit 4.5: Passenger Vehicle Trip Purpose by Border Crossings, 2011 Source: IBI Group analysis of MTO consolidated border survey dataset (2016). Note that in incorporating the Northern Ontario border survey data, some additional data processing was conducted and expansion weights were re-assigned, which may result in some small variations in results between this exhibit and the NOMTS Part 1 study results. November

30 Exhibit 4.6: Passenger Vehicle Trip Purpose by Country of Residence, All Crossings, 2011 Trip Purpose Trips % by Res. % of Total Trips Avg. People/ Vehicle Average Distance (km) Trip Frequency In Canada In USA Total November Daily 1x/ Week 1x/ Month 1-4 x/ Year 1 Time Only WEEKDAY Canada Resident Work/Business/School % 9% % 22% 4% 6% 6% Visit friends or relatives 374 5% 4% % 32% 11% 20% 20% Shopping 3,819 52% 42% % 63% 22% 8% 2% Fishing/Hunting % 0.02% 4.00 * * * * * * * * Casino % 11% % 61% 26% 10% 1% Tourist attraction/recreation 434 6% 5% % 37% 11% 33% 4% Vacation 162 2% 2% % 8% 11% 35% 44% Medical 114 2% 1% % 33% 22% 41% 2% Other 609 8% 7% % 36% 13% 31% 9% Total 7, % 80% % 51% 18% 13% 5% United States Resident Work/Business/School % 2% % 20% 6% 13% 10% Visit friends or relatives % 3% % 32% 12% 20% 20% Shopping % 2% % 36% 15% 21% 10% Fishing/Hunting % 4% % 11% 78% 9% Casino 13 1% 0.1% 2.00 * * * * * * * * Tourist attraction/recreation % 4% % 15% 5% 32% 44% Vacation % 3% ,065 1% 7% 8% 37% 47% Other 107 6% 1% % 22% 5% 39% 15% Total 1, % 20% % 16% 9% 39% 24% SUNDAY Canada Resident Work/Business/School 325 4% 3% % 21% 16% 13% 4% Visit friends or relatives 667 8% 6% % 38% 14% 23% 12% Shopping 3,598 41% 34% % 57% 20% 13% 2% Fishing/Hunting % 0.02% 1.00 * * * * * * * * Casino 1,564 18% 15% % 46% 31% 17% 3% Tourist attraction/recreation 1,353 16% 13% % 46% 15% 22% 7% Vacation 383 4% 4% % 21% 8% 38% 32% Medical % 0.3% % 9% 56% 0% Other 779 9% 7% % 26% 13% 35% 21% Total 8, % 82% % 46% 19% 19% 7% United States Resident Work/Business/School 67 4% 1% % 6% 22% 10% 28% Visit friends or relatives % 4% % 31% 20% 30% 5% Shopping 73 4% 1% % 13% 9% 40% 37% Fishing/Hunting % 4% % 5% 8% 74% 13% Casino 25 1% 0.2% % 29% % Tourist attraction/recreation % 3% % 17% 37% 28% Vacation % 3% % 12% 18% 32% 37% Other % 2% % 49% - 24% 25% Total 1, % 18% % 19% 14% 41% 21% * Statistics not shown when trips total less than 25. Work/Business/School includes Primary workplace, Business Travel, and School. Shopping includes Shopping, Parcel pick-up/drop-off, and Restaurant/coffee. Other includes Home, Airport - Unknown Activity, Mode Change, Airport passenger pick-up/drop-off, and In transit/stop en route. Surveys were conducted in 2011 on Sunday and weekdays only across all crossings (Saturday data also available for Sault Ste. Marie) Source: IBI Group analysis of MTO consolidated border survey dataset. See note for Exhibit 4.5.

31 Passenger Vehicle Origin Destination Travel Flows Exhibit 4.7 and Exhibit 4.8 show the Canada-bound and US-bound passenger vehicle border-crossing flows for an early fall 2011 weekday and Sunday, respectively, for all four Northern Ontario border crossings. Flows are based on road network assignments of MTO s origin-destination survey data, and are distinguished in the plot by country of residence. Local flows are not always evident in these crossings, so weekday flows in the vicinity of each of the crossing are also shown in Exhibit 4.9. Exhibit 4.7 and Exhibit 4.8 show larger long-distance volumes crossing at Pigeon River than at Fort Frances, though the detailed view in Exhibit 4.9 shows Fort Frances to be the busier crossing when local flows between Fort Frances and International Falls are more clearly visible, as these make up 80% of trips through the Fort Frances crossing. The flows are described for each crossing from west to east below. Rainy River International Bridge. Trips through the Rainy River crossing are mostly between the Rainy River area in Ontario and the nearby towns of Baudette, Minnesota (Lake of the Woods County) and Warroad (Roseau County); a small number of trips were to/from other parts of Minnesota. Some trips using the Rainy River crossing were taking a short-cut through Minnesota between the Rainy River area and Winnipeg area, rather than taking the significantly longer route entirely within Canada. Fort Frances International Bridge. Approximately 80% of all trips through the Fort Frances crossing were between Fort Frances, Ontario and International Falls, Minnesota. Approximately 10% of the travel was between Kenora District and Minnesota, and the remainder of the trips extended farther into Northern Ontario and/or Minnesota (e.g. Duluth and Minneapolis). A significant proportion of US-registered passenger vehicles at this crossing were recorded pulling trailers with boats, attesting to the prevalence of Canadabound fishing trips at this location. Pigeon River Bridge. At the Pigeon River crossing, 90% of the trips started or ended in the Greater Thunder Bay area, with most trips to Minnesota Highway 61 locations such as the Grand Portage casino and Ryden s border store. About 250 km south of the border, Duluth is also a significant origin/destination for Pigeon River crossing trips, as well as other Minnesota locations. The Northwestern Ontario international border crossings are typically used only for travel to/from Northwestern Ontario, given their location on the broader highway network and the geographic barrier of Lake Superior. November

32 Exhibit 4.7: Passenger Vehicle Flows by Country of Residence, September 2011, Weekday All Crossings Rainy River Fort Frances Pigeon River Sault Ste. Marie Source: IBI Group analysis of MTO consolidated border survey data November

33 Exhibit 4.8: Passenger Vehicle Flows by Place of Residence, September 2011, Sunday All Crossings Rainy River Fort Frances Pigeon River Sault Ste. Marie Source: IBI Group analysis of MTO consolidated border survey data November

34 Exhibit 4.9: Cross-Border Passenger Vehicle Flows in Vicinity of Crossings, by Country of Residence, September 2011 Weekday A. Rainy River International Bridge B. Fort Frances International Bridge November

35 Exhibit 4.9: Cross-Border Passenger Vehicle Flows in Vicinity of Crossings, by Country of Residence, September 2011 Weekday C. Pigeon River Bridge D. Sault Ste. Marie International Bridge November

36 Sault Ste. Marie International Bridge. Compared to the Ontario-Minnesota border crossings, the Sault Ste. Marie crossing has larger volumes of passenger-vehicle trips with origins and destinations at longer distances from the border on the Canadian side, with trips to/from as far as Eastern Ontario and Quebec via Highway 17. The bulk of border crossings at the Sault Ste. Marie crossing, however, are to/from Canadian locations very close to the border. Trips to/from Sault Ste. Marie, Ontario accounted for 79% of trips on weekdays and 76% on Sundays in early fall Including the broader Algoma District (e.g. Wawa and Elliot Lake), these local trips accounted for approximately 90% of the weekday travel and 85% of the Sunday travel. Other notable Canadian origins and destinations include the Sudbury area and Manitoulin Island. In addition, some 100 weekday vehicle trips travel between Southwestern Ontario and Northeastern Ontario via the United States, as the route through Michigan on Interstate 75 is the shortest distance between these locations, with more of this trip type occurring on weekends. On the US side, approximately 80% of Sault Ste. Marie border-crossing trips started or ended in the Sault Ste. Marie, Michigan area, with the rest of the origins and destinations spread across Michigan, Wisconsin, Ohio, Indiana, and Illinois. The travel flows on summer Sundays followed similar patterns to the fall Sundays, but with a greater number of origins and destinations at a greater distance from the crossing. 4.4 Goods Movement Exhibit 4.10 shows 2012 weekly the value of trade at the four Northern Ontario border crossings. Total trade across the crossings totals $3.5 billion in trade annually. Overall there is an imbalance of trade, with approximately $2.1 billion in goods shipped annually to Canada, but $1.4 billion in goods shipped to the United States across the international road bridges. The most significant import from the US is Machinery and Electrical Goods, at approximately $0.5 billion imported in 2012 through the Northern Ontario crossings, and the most significant export from Canada via the Northern Ontario crossings is forest products, at $0.4 billion. Exhibit 4.11 shows goods movement flows in terms of weekly truck trips assigned to the road network, distinguishing flows by border crossing. Similarly, Exhibit 4.12 shows assigned truck flows by commodity carried. November

37 Exhibit 4.10: Goods Transported by Sector and Crossing Indicator Rainy River Fort Frances- International International Bridge Falls Bridge Pigeon River Bridge Sault Ste. Marie International Bridge 2012 WEEKLY Value of Goods Shipped from US to Canada via Crossing (Millions) a Agricultural Products/Food - - $3 $56 $58 Forest Products $8 $73 $7 $167 $255 Minerals $1 $2 $11 $148 $162 Metals and Products - $75 $34 $99 $208 Machinery and Electrical Goods - $71 $206 $244 $520 Other Manufactured Products b - $34 $65 $123 $222 Transportation Sector $0 $3 $309 $33 $345 Other Goods $2 $63 $41 $252 $358 Total $11 $338 $675 $1,121 $2, WEEKLY Value of Goods Shipped from Canada to US via Crossing (Millions) a Agricultural Products/Food - - $43 $75 $117 Forest Products - $85 $111 $226 $422 Minerals - $8 - $3 $12 Metals and Products $302 $302 Machinery and Electrical Goods - $25 - $129 $154 Other Manufactured Products b - - $20 $103 $122 Transportation Sector - - $29 $55 $85 Other Goods - $63 $10 $70 $143 Total - $182 $212 $963 $1,357 Annual Commercial Vehicle Trips c 2012 Trips 12,000 16,500 13,700 96, , Trips 9,300 10,500 17,700 87, ,500 Sources: a IBI Group Analysis of MTO 2012 Commercial Vehicle Survey data; weekly values multiplied by 52 to obtain annual values. Values may differ slightly from IBI Group (2013a), as Northern Ontario border data were processed further and re-expanded to reflect 2012 annual border crossing totals for includes in the province-wide dataset. Note that in 2012, the Canadian and US dollars were virtually at parity. b Does not include Petroleum and related products or Chemicals and related products; these are included as Other Goods. c CANSIM Table Total November

38 Exhibit 4.11: 2012 Weekly Commercial Vehicle Flows by Border Crossing Rainy River Fort Frances Pigeon River Sault Ste. Marie Source: IBI Analysis of MTO 2012 Commercial Vehicle Survey Data November

39 Exhibit 4.12: 2012 Weekly Commercial Vehicle Flows by Commodity Rainy River Fort Frances Pigeon River Sault Ste. Marie Source: IBI analysis of MTO commercial vehicle data for MTO workshop with FHWA. Note that the plot includes flows for all Ontario-US border crossings, including, for example flows in Minnesota to Southwestern Ontario border crossings. November

40 Among US-bound trucks crossing at the Northern international borders, about 44% are returning empty, and almost half of the loaded trucks are carrying relatively raw wood products to US markets. At the Sault Ste. Marie Bridge, trucks carrying metal products from the steel industry in Sault Ste. Marie, Ontario account for about a quarter of loaded trucks. Among Canada-bound trucks, 27% are returning empty, Loaded trucks commonly carry wood products, though these tend to be more finished compared to the Canada-US direction, such as paper products. At Pigeon River and Sault Ste. Marie, cement and glass for construction are common commodities, and Sault Ste. Marie also receives scrap metal being shipped from the US for recycling in Ontario. A significant 20% of truck trips crossing at Sault Ste. Marie travel to/from Quebec, as Highway 17 provides the shortest travel distance between the Montreal area and several US trade locations (IBI Group, 2013). November

41 5 Historic Traffic Volume Trends Historic traffic volume information by crossing and vehicle type is summarized in table form in 5-year intervals in Exhibit 5.1, while plots of annual crossing volumes by vehicle type and by licence plate registration country are shown in Exhibit 5.2. Overall across the four crossings between 2000 and 2015, traffic volumes passenger vehicles decreased 27% and commercial vehicle volumes decreased by more than half, 57%, for a 29% decrease in vehicles overall. Exhibit 5.1: Traffic Volume Change by Crossings and Vehicle Types Annual Volumes Growth Rate Borders Vehicle Type Rainy River Passenger 408, , , ,702-20% -3% -3% Commercial 18,994 15,214 15,554 9,330-51% -39% -40% Other 1, , % -53% -56% Total 428, , , ,488-21% -5% -5% Fort Frances Pigeon River Sault Ste. Marie All Crossings Passenger 841, , , ,260-5% 9% -4% Commercial 45,138 38,338 20,156 10,464-77% -73% -48% Other 12,430 2,640 5,760 3,982-68% 51% -31% Total 899, , , ,706-10% 5% -5% Passenger 462, , , ,718 0% 7% -6% Commercial 90,730 68,638 17,840 17,712-80% -74% -1% Other 1,132 1,358 2,990 2, % 104% -7% Total 554, , , ,200-13% -4% -6% Passenger 2,375,464 1,671,632 1,608,754 1,406,062-41% -16% -13% Commercial 132, ,006 98,040 87,040-34% -30% -11% Other 4,246 4,240 2,722 3,898-8% -8% 43% Total 2,512,040 1,800,878 1,709,516 1,497,000-40% -17% -12% Passenger 4,088,128 3,172,594 3,268,860 2,991,742-27% -6% -8% Commercial 287, , , ,546-57% -50% -18% Other 19,022 9,206 12,500 11,106-42% 21% -11% Total 4,394,342 3,428,996 3,432,950 3,127,394-29% -9% -9% Source Data: CANSIM (volumes entering Canada), multiplied by 2 to estimate 2-way flows November

42 Exhibit 5.2: Historic Traffic Volumes by Crossing, Vehicle Type and Registration, All Passenger Vehicles Canadian-Registered Passenger Vehicles US-Registered Passenger Vehicles Source Data: CANSIM Table (volumes entering Canada) x 2 to estimate 2 way flows November

43 Exhibit 5.2: Historic Traffic Volumes by Crossing, Vehicle Type and Registration, (continued) All Commercial Vehicles Canadian-Registered Commercial Vehicles US-Registered Commercial Vehicles November

44 In terms of passenger vehicle volumes, the largest decrease in volumes from 2000 to 2015 (41%) is at Sault Ste. Marie. Origin-destination surveys were conducted by MTO at the crossing in both 2000 and 2011/2012; a summary of trip purposes for Canadian vs. US residents for these two survey periods is shown in Exhibit 5.3. It can be seen that much of the decrease in travel is due to a decrease in casino trips and other recreational trip purposes by Canadians, as well as a decrease in work trips. Meanwhile, shopping, recreation and vacation trips by US travellers have decreased considerably at this crossing as well. November

45 Exhibit 5.3: Sault Ste. Marie Border Crossing Trip Purpose Trends, 2000 vs. 2011/2012 Activity on non-home side of crossing Source: IBI analysis of MTO Consolidated border surveys dataset (2016) Meanwhile, passenger vehicle volumes have been steadier at the Northwestern crossings, and at Pigeon River, 2015 passenger traffic volumes were essentially the same as 2000 levels. In terms of commercial vehicle traffic, Pigeon River Bridge has seen the sharpest decrease in volumes since 2000, when much more significant volumes of goods related to the paper industry were transported between Duluth, Minnesota and Thunder Bay. Commercial vehicle volumes at Pigeon River Bridge were 80% lower in 2015 compared to 2000 levels. Commercial vehicle traffic at Fort Frances International Bridge has decreased at almost the same November

46 rate (77%) since 2000, while at Sault Ste. Marie International Bridge, they have decreased approximately by one third only. Passenger and commercial vehicle crossings have generally decreased across all of Ontario s international border crossings, not just in Northern Ontario, for a variety of reasons, including increased entry requirements since the events of September 11, Another factor is the effect of currency exchange rates, discussed below. Influence of Currency Exchange Rates on Cross-Border Passenger Traffic Currency exchange rates have a significant impact on cross-border passenger vehicle travel. Exhibit 5.4 and Exhibit 5.5 Northern Ontario cross-border trips by Canadian-Registered and US-registered vehicles, respectively, vs. the respective exchange rate. The exhibits show the seasonal variation in travel discussed earlier, especially for US residents. Canadian travellers seem to be more aware of currency exchange rate fluctuations and adjust their cross-border travel behaviour quickly in response, whereas American travellers appear to take longer to adjust to differences in currency exchange rates. Since 2013, the US dollar has seen significant increases in value compared to the Canadian dollar, but cross-border travel at Northern Ontario crossings has not seen an increase in response. Part of this reason could be because Canadians tend to make a higher proportion of same-day trips to the US and can be quickly planned or adjusted in response to changes in currency exchange rates, while US travellers to Northern Ontario tend to make longer trips that take more time to plan and may be more cautious to respond to currency fluctuations. November

47 Exhibit 5.4: Canadian-Registered Passenger Vehicle Traffic at Northern Ontario International Crossings vs. the $CDN/$USD Exchange Rate, Monthly Source: IBI analysis of CANSIM Table Exhibit 5.5: US-Registered Passenger Vehicle Traffic at Northern Ontario International Crossings vs. the $CDN/$USD Exchange Rate, Monthly Source: IBI analysis of CANSIM Table November

48 6 Issues and Opportunities 6.1 Issues Ownership Differing ownership and operational structures among the four Northern Ontario border crossings can result in different maintenance and service standards at the bridge and surrounding property, which could potentially create issues of non-uniform improvements and or standards. Discussions with stakeholders, however, have revealed no issues in this regard, and there are therefore no plans to standardize the governance models of the bridges. Operations There is difficulty accommodating wide loads at the Fort Frances Bridge because of tight turns approaching the crossing immediately at the entry/exit point on the Canadian side of the bridge. A similar difficulty is experienced on the US side of the Rainy River crossing. Train activity on the nearby CN rail line, which has been having increasing volumes in recent years, temporarily blocks vehicle access on Highway 11 to the Fort Frances Bridge on the Canadian side, creating intermittent delays. Wait Times Long border wait times sometimes experienced at the crossings delay the shipment of commercial goods and are an inconvenience to drivers and passengers of all vehicles. At the Sault Ste. Marie crossing wait, times tend to be 10 minutes at minimum, increasing to up to 34 minutes on Sunday evenings in spring and 26 minutes on Friday and Saturday afternoons in summer. Similar minimum and maximum waits are experienced at the Fort Frances crossing: up to 26 minutes on Friday afternoons and 30 minutes on Saturday mornings in the spring. Published reports are not available for the Rainy River and Pigeon River crossings, but anecdotal reports indicate that motorists are rarely delayed at these two crossings. November