Gateway Program could generate $445B in economic benefits, study says

The Gateway Program, a multibillion effort to expand rail service along the Northeast Corridor (NEC) by rebuilding and upgrading critical infrastructure, could generate $445 billion in economic benefits according to a study by the Regional Plan Association and consulting firm WSP USA.

Over the period of 2023-2060, the program will create and sustain 46,100 in jobs on average, according to the study.

The Gateway Program is a series of projects along a 10-mile rail segment between Newark, New Jersey, and New York Penn Station. The Gateway territory is critical to the NEC, connecting the nation’s busiest rail hubs and strongest economic engines. Much of the NEC, which stretches from Washington to Boston, is characterized by four to six tracks, yet the critical section between Newark and New York City, which carries over 200,000 passengers on 450 daily trains, is served by only two tracks, one track carrying passengers in each direction.

The segment between Newark and New York City includes bridges and tunnels in desperate need of repair; the aging infrastructure, much of which dates to the early and mid-20th century when the tracks were owned by the Pennsylvania Railroad, leads to delays in service. Ultimately, the infrastructure improvements will enable a dramatic growth of commuter and intercity service, through the introduction of new NJ Transit and Amtrak service as well as increased frequencies, thus expanding the role of rail in the region’s transportation network.

By expanding the regional labor market, increasing the reliability of daily commutes, reducing travel times and boosting business productivity, the results of the Gateway Program will create tens of thousands of jobs and stimulate billions of dollars in economic growth, according to the study.

During the construction phase, the Gateway Program will generate $42.8 billion of economic activity in the region. When the construction is completed and the Gateway Program improvements are implemented, the Program will stimulate $230 billion worth of economic activity in the region and another $170 billion in the national economy, in the first 15 years of operation.

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