Intercity Passenger Rail
Why the economic benefits MATTER to CONEG Governors

Gubernatorial Summary: The Northeast Corridor (NEC) is home to more than 50 million Americans who travel throughout the region relying on an extensive network of 29,500 miles of Interstate and other major highways, 13 major airports, more than two dozen rail stations, and 11 major seaports. A key element to their mobility is the rail line which links hundreds of major cities and smaller communities. This Northeast Corridor and its feeder lines is a $3.2 billion asset which serves intercity passengers, over 10 million commuters, and moves freight in one of the nation's premier transportation corridors.
   Efficient use of the NEC and its feeder system dramatically affects the overall effectiveness of this multimodal transportation network. Investments which improve the quality of intercity passenger service contribute to better performance by other modes. For example, reduced travel time on intercity passenger rail between Boston and New York City can draw travelers out of cars and airplanes, thus helping reduce congestion on highways and lessening the need for air shuttle flights.
   Prudent investments in intercity passenger rail contribute to the economic well-being and competitiveness of the Northeast states in ways which extend beyond congestion mitigation. Investments in these technologies and systems help revive the region's substantial railroad supply industry, as well as offer opportunities for defense conversion. Ready access to urban cores can lead to higher value and use of commercial and industrial buildings.
   Traditional ways of measuring the benefits of improvements to intercity rail have focused on direct construction dollars and the value of time saved by the rail passenger. Yet these are only a portion of the full range of investment impacts. An effective investment strategy must be predicated on the best analytical techniques available -- techniques which look at the additional benefits of improvements in intercity rail -- the change in income growth, property values, tax base and long term job creation.
   Federal and state government have partnered with the private sector to own and operate various parts of the rail systems in the NEC. In changing economic times, these financial and institutional interrelationships must be carefully re-examined. The outcome of these processes, including decisions on how to invest in intercity rail, will have major transportation and economic development impacts for the Northeast.
   Governors need to play a major role in the development of strategies that can bring an economic development return on investment in the region's passenger rail system.