Two recent reports from the federal government highlighted California High Speed Rail’s (HSR) economic impact. The US Department of Transportation recognized the impact that federal dollars have had on CA High Speed Rail in its final report on the American Recovery and Reinvestment Act (ARRA). The report, Shovel Worthy: What the Recovery Act Taught Us About Investing in Our Nation’s Infrastructure, showed how the Central Valley region is seeing the early benefits of the progress being made on the nation’s first high-speed rail system through job creation and business participation both large and small.
The Recovery Act provided funding for the preliminary engineering and environmental clearance for the corridor. It also provided funding for the final design and construction of the 119-mile-long Central Valley construction package that US Secretary of Transportation Anthony Foxx toured last year. This investment in the Central Valley has led to an economic turnaround in the region. The ARRA report focuses on the economic benefits that the City of Fresno has received from Recovery Act funds. Through strategic investments, including high-speed rail construction, Fresno’s unemployment rate went from 18 percent in 2011 to 9.3 percent in 2016.
The report also highlighted the work that HSRA is doing with Small and Disadvantaged Business participation in the construction of the project. Two small businesses were highlighted in the report, Outback Materials and Valverde Construction. Valverde Construction is a certified Hispanic Owned Small Business that is has a contract for utility relocation. Valverde expanded their business through the contract, opening an office in Fresno and hiring additional workers.
Outback Materials is a certified small business based in Fresno that provides concrete for construction in the region. Outback Materials invested $3 million to build a state-of-the art plant in Fresno and hired 25 new employees. Hear owner Curtis Lovett describe how Outback Materials has benefited and expanded as a result of work for high-speed rail:
The other report, commissioned by the US Department of the Treasury on behalf of the Build America Investment Initiative, identified 40 proposed transportation and water infrastructure projects of major economic significance that face challenges to their completion. The aim was to show the public the economic benefits of completing these projects.
According to the study, HSR ranked third in net economic benefit and cost ratio and would have projected net economic benefit of $130-260 billion. Project benefits included:
- Travel time, reliability, travel cost and productivity benefits for users transferring from auto to HSR.
- Travel time, reliability, safety and emission benefits for highway users traveling in less congested conditions due to mode shift from auto to HSR.
- Passenger delay, operating cost and emission savings in the aviation sector due to mode shift from air to HSR.
With more than 119-miles of active construction in the Central Valley, construction of a high-speed rail line between the Silicon Valley and Central Valley is planned to be complete by 2024, with passenger service beginning in 2025. More on the project: http://hsr.ca.gov/