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:
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/.
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