LRT boosts Salt Lake City economy: Study

Salt Lake City’s TRAX LRT has generated 1,300 new jobs that have spurred an estimated $225 million in value to the local economy, according to a study conducted by the Economic Development Research Group, a Boston-based research company LRV supplier Siemens retained to assess the system’s economic impact.

The study results were announced in conjunction with the American Public Transportation Association (APTA) Rail Conference in Salt Lake City. “Results indicate that light rail reduced residents’ dependence on private vehicles and spurred high-density development, thereby decreasing the region’s carbon footprint, improving local air quality and proactively managing traffic congestion,” Siemens said. “The study looked beyond well-documented short-term spending effects to also examine long-term economic benefits like spatial efficiency, private sector investment, and cost savings that are reinvested elsewhere. For instance, major companies including Adobe, eBay, Goldman Sachs, Overstock.com, and Workday have made office location decisions based, in part, by proximity to the TRAX and FrontRunner [regional/commuter rail] stations.”

Researchers prepared the study using IMPLAN, an economic modeling system used by more than 500 U.S. public and private agencies. The system uses economic data specific to certain industries and regions to translate direct economic effects into spinoff effects.

Since 1996, Siemens has manufactured and delivered 117 LRVs for the Utah Transit Authority TRAX system. The company is building the vehicles at its 800-person rail manufacturing hub in Sacramento, Calif. “We’re proud that our long-standing technology partnership with the UTA has resulted not only in economic growth but job creation throughout the Salt Lake City region,” said President, Siemens Rolling Stock Michael Cahill. “Rail projects like these are proof that when you spend on infrastructure, you get a multiplier effect that boosts productivity and attractiveness for investment. Siemens provides sustainable technologies for metropolitan areas to help move people and goods safely and efficiently, while improving the environmental footprint. Siemens’ portfolio for infrastructure includes complete traffic and rail transportation systems, efficient energy supply and environmentally compatible building technologies. Siemens also provides ways to modernize how power is transmitted and distributed to enhance the smart utilization of electric power.”

“The Siemens cars that form the backbone of our TRAX light rail system and recently opened S-Line Streetcar here in Salt Lake City are reliably getting tens of thousands of our residents where they need to go every day,” said Salt Lake City Mayor Ralph Becker. “Siemens technology is integral in our efforts to get cars off the roads, address our local air quality challenges and continue to improve the livability, and sustainability, of our community.”

“Siemens has been a great partner for our TRAX light rail system,” said UTA President and CEO Michael Allegra. “TRAX has been reliable and a success by any measure with some of the highest ridership numbers in the entire UTA system. The economic development along our lines has been steady and a huge benefit to the entire community.”

“Utah’s economy is leading the nation, and this reports shows part of our success can be attributed to our commitment to transportation investment as a state,” said Abby Albrecht, Director of Utah Transportation Coalition. “As we look to the future, building on these investments wisely will ensure we continue to economically prosper.”