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Portal Bridge Rendering
March 15, 2017

Cost Benefit Analysis of Gateway Program Shows Nearly 4:1 Return on Investment

A formal economic analysis of the Gateway Program conducted on behalf of Amtrak highlights the significant and wide-ranging economic benefits to be derived from the program and suggests investment is a wise use of public resources.  According to the report, implementation of the full Gateway Program could generate $3.87 worth of economic benefit for every $1 spent.

“Skilled workers are increasingly taking advantage of less expensive housing options in communities west of the Hudson River," the report finds.  "As a result, continued economic growth depends on the region’s mass transit systems’ ability to transport a more dispersed workforce to and from Manhattan.  The Gateway Program would result in decades of extensive benefits for the economies of the New York Region, the Northeast Megaregion and the United States.  Those benefits would far surpass the costs that would be incurred during the Program’s construction.”

The Benefit Cost Analysis compares the economic benefits of a project over an extended time period to the costs incurred to design, construct and operate the project over the comparable time period.  The analysis is seen as essential to understanding the likelihood that a project represents a wise use of resources. 

A benefit cost ratio that exceeds 1.0 indicates that a project is a good investment because the value of the benefits received over time exceeds the costs incurred by the project.  Benefit cost ratios in excess of 2.0 can be considered extremely robust. 

The complete report is available here.  

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