BENEFITS TO THE BUSINESS COMMUNITY-$8,104,000 Time Savings To Truckers: The trucking industry, which operates many of its trucks during peak periods, will save a considerable amount of time as congestion is reduced. This should amount to $4,620,000 in 1990. Parking Facility Savings To Suburban Employers: Suburban employers, who must provide parking facilities for their employees, will save a portion of this expense as their employees utilize Metro instead of autos. These savings should equal $3,484,000 in 1990. BENEFITS AND COSTS COMPARED The benefits discussed in the previous section are those which accrue in the study year (1990). Clearly, Metro will produce benefits before and after the study year. Thus, it is necessary to "annualize" the benefits over the entire study period so that the full scope of Metro's impact can be evaluated. The first leg of Metro is scheduled to be operational in 1972; therefore, this date was selected as the date for initial benefits. Thus, 1990 benefits were scaled down to 1972 and forward to 2020 on the basis of Metro's estimated patronage. As indicated previously, the identification and “annualization" of costs was relatively uncomplicated. DRA considered only "net project costs"-total costs less those that can be covered through operating revenues. For the purpose of this report, it was assumed that the federal government would contribute twothirds of these costs in the form of grants during the construction period; the local share was assumed to amount to one-third of net project costs, financed through bonds issued as construction costs were incurred. Since the benefit and costs "flows" were staggered-with costs being incurred at the beginning of the study period and dropping off quickly once construction is complete, while benefits begin in 1972 and continue for the remainder of the study period-both benefits and costs were converted to their present value. In present value terms, benefits amounted to nearly $3 billion over the study period. Costs totaled approximately $950 million. The benefit-cost ratio then is in excess of 3:1. This means that for every dollar invested in Metro, more than three dollars will be returned in quantifiable benefits alone. FOR EVERY DOLLAR OF INVESTMENT THE COMMUNITY WILL RECEIVE $3.00 OF BENEFITS As indicated earlier, many of the potential benefits to the National Capital Region cannot be given dollar magnitudes (i.e., "quantified"). Nevertheless, these benefits are important and should be identified. Facilitating Regional Growth: Washington's rapid growth has served to increase the distance between its suburbs and downtown. Metro will help coordinate the growth of these areas more closely by increasing the accessibility of the downtown as well as employment centers in the suburbs. In short, it will help to link the two and encourage an efficient growth pattern. Providing Access To Employment Opportunities For The Disadvantaged: As retail and industrial firms have decentralized, many lower-income residents of Washington's inner city have suffered from economic immobility. Without the use of a car, their journey to work is often burdensome and sometimes impossible. Metro will help to alleviate this problem by making employment opportunities more accessible. In addition, future employment opportunities will tend to develop around Metro stations, and this will further increase job accessibility. Providing Adequate Transportation For The Transit Dependent: The youth and aged, an increasingly larger proportion of Washington's population, are dependent on public transportation for much of their mobility. Metro's rapid service will assist those dependent on transit in their travel needs. Increasing Accessibility To Educational Opportunities: Washington's colleges and universities as well as its primary and secondary schools will also be well served by Metro. In fact, the new Washington Technical Institute and Federal City College may be dependent on the comprehensive public transportation which Metro will provide. Increasing Accessibility To Cultural And Recreational Activities: Washingtonians seeking cultural and recreational activities often face severe traffic congestion and parking shortages. These problems are compounded by the large numbers of auto-driving tourists attracted to these same activities. Metro will reduce this problem through comprehensive service to the heavily traveled areas downtown and to sites such as the Zoological Park and Robert F. Kennedy Stadium where many thousands of persons gather. CONCLUSIONS The intensive fourth-month investigation of the benefits and costs of Metro revealed that the National Capital Region is ideally suited for rapid rail transit. Its unique combination of characteristics results in benefits that are perhaps unmatched by any other city in the nation. In this analysis Metro has been evaluated in terms of a balanced transportation system involving rapid rail transit, bus service, and an efficient freeway network. All of the benefits identified in this analysis accrue from a "balanced" system. Clearly, the impact of Metro would be greatly reduced without adequate highways and buses. Viewed in this context, the economics of Metro are sound. Benefits exceed costs by a substantial margin, supporting the conclusion that transit is not only a desirable investment, but a profitable one for the National Capital Region. Economic Consultants: Development Research Associates, 731 South Flower St., Los Angeles, Calif. Transportation and Planning Consultants: Alan M. Voorhees & Associates, Inc., 7670 Old Spring House Road, McLean, Va. |