PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

Report: High-Speed Rail Will Accelerate Economic Growth in Surveyed Cities

  • June 15, 2010
  • Mark Reutter

A report released yesterday concludes that high-speed trains would significantly boost economic activity and job creation over sped-up conventional Amtrak service. Released by the U.S. Conference of Mayors, the report examines how the introduction of different types of train service would impact business activity and jobs in two midsized cities – Albany, N.Y., and Orlando, Fla. – and a regional hub, Chicago.

Its findings clarify that the current debate over train speeds is not a dispute over “complementary means to the same end,” but a basic question of national aspirations that goes straight to the heart of 21st-century transportation and economic development.

Simply put, does the country want to pay less for an infrastructure that will make marginal improvements or does it want to spend more in order to multiply its gains?

Incremental vs. High Speed

Incremental improvements on existing railroad rights of way would cost about $15 million-$20 million a mile to build, whereas full high-speed rail (HSR) – with a dedicated right of way – might cost $40 million or more a mile.

Currently only Florida and California are pursuing the full HSR option. Some 15 states are developing projects that would result in what can best be called “higher speed rail” or “improving Amtrak on-time-performance rail.”

Joseph Szabo, head of the Federal Railroad Administration, has thrown his weight behind incremental improvements, saying in recent congressional testimony that trains that operate at 200 mph aren’t really necessary.

The calculations of the Boston consultancy, Economic Development Research Group, who prepared the new report, point to a different conclusion.

For Albany, the report looked at three scenarios in year 2035 – the introduction of marginally improved train speeds (79-90 mph), medium speeds (maximum of 110 mph) and full high speeds (maximum of 220 mph).

The report estimated that annual business sales would increase in the range of $358 to $534 million a year (in 2009 dollars) for incremental and medium-speed service, but would jump five-fold to $2.5 billion a year with full high-speed service.

The employment impact similarly varied, from 3,200 to 4,700 permanent jobs added for incremental and medium-speed service, compared to 21,360 jobs with HSR. Because the quality of jobs would increase with a more mobile workforce, roughly $1 billion a year would be added to Albany wages by 220-mph service.

Transformative Effect

The report attributed fast rail’s transformative powers on Albany to the fact that it would bring the region within the orbit of New York City. The two cities are separated by 140 miles, but Amtrak service currently takes 2 hours 35 minutes.

Reducing travel time to under an hour – possible when reaching a maximum 200 mph balanced with slower speeds in the urban districts – would spark a huge travel flow and make Albany a destination for commuters as well as tourists and business travelers. Connecting Albany to Buffalo, Boston and Montreal with fast trains would create additional opportunities.

This in turn would “support the growth of office activities and services that support state government, emerging nanotechnology, clean energy and computer chip-related industries,” the report concluded.

Growth projections for the three other cities studied:

  • In Chicago, 220-mph trains radiating to St. Louis, Detroit and St. Paul-Minneapolis would nearly triple yearly business activity to $6.1 billion and more than double employment to 42,200 new jobs compared to 110-mph service.
  • In Orlando, 220-mph trains from Tampa-St. Petersburg and Miami would bring $2.9 billion in yearly business sales, including 27,500 new jobs, compared to $2.1 billion in sales and 19,900 jobs from service operating at 168 mph.
  • In Los Angeles, 220-mph service to San Diego and San Francisco would generate $7.5 billion in new sales, including 54,000 new jobs. Because California is only planning a high-speed line, there was no economic comparison to slower service.

The economic benefits of HSR would grow over time as the new service was fully implemented and savings in travel time, expenses and congestion reduction were realized.

The new report is titled “Connecting America with High Speed Rail” and can be downloaded at https://www.usmayors.org/highspeedrail/.

Photo credit: Beto’s Photostream

Related Work

Publication  |  May 5, 2025

How Trump’s BBB is Shaping Up to Be an Even Bigger Mess Than Biden’s

  • Ben Ritz
Budget Breakdown  |  April 4, 2025

Trump’s “Liberation Day” Comes at Great Cost to Taxpayers

  • Ben Ritz Alex Kilander
Blog  |  April 4, 2025

The AI Investment Surge and Manufacturing

  • Michael Mandel
Budget Breakdown  |  February 27, 2025

IRS Layoffs Threaten to Inject Chaos Into Tax Filing Season and Cost Taxpayers Billions

  • Ben Ritz Alex Kilander
Blog  |  February 26, 2025

Child Opportunity Accounts Would Expand Opportunity and Financial Capability for American Children

  • Alex Kilander
Budget Breakdown  |  February 21, 2025

Republicans Reckon with the Costs of Their Tax Cuts

  • Ben Ritz Alex Kilander
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2025 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings