The Cost of Highway Limitations and Traffic Delay to Oregon's Economy
Economic Development Research Group for the Oregon Business Council, 2007.

Oregon, like other states across America, is facing increasing needs for highway and other transportation infrastructure. Most importantly, businesses across the state are becoming concerned about increases in traffic delays and highway system limitations, which are being felt in rural areas as well as urban areas. Concerned about the nature of future highway needs and their impact on the statewide economic competitiveness for the 21st century, the Oregon Business Alliance and other private and public organizations banded together to sponsor a study of these needs and their economic importance for the state's economy in the future.

Economic Development Research Group (EDRG) was selected to conduct the study sponsored by the Oregon Business Council, in conjunction with Associated Oregon Industries, the Port of Portland, Oregon Department of Transportation and the Westside Economic Alliance. EDRG assessed the economic impact of growing highway congestion and its stakes for the statewide economy.

The project team first examined how the nature of the state economy, and found that Oregon’s economy is particularly transportation-dependent because of the state's role as an international gateway and domestic distribution hub. Working with transportation models and projections by Oregon Dept. of Transportation, the study examined the nature of traffic conditions across Oregon and how they are forecast to change over the next 25 years. It found that the state has particularly strong rail, marine, highway and air connections to national and international destinations, yet projected growth in freight and general traffic cannot be accommodated on the current system.

The analysis showed that a variety of trends -- growth in business markets and delivery trip lengths, trends toward larger trucks, greater use of intermodal connections, vehicle weight and size changes, and seasonal tourism -- are all affecting future transportation needs and conditions in the state. Using the Transportation Economic Development Impact System (TREDIS), the study showed that these changes in transportation conditions will have important impacts on business operating costs, household costs and market access, leading to additional implications for future economic productivity, competitiveness and growth in the state. TREDIS was used in tandem with Oregon DOT's Gen1/TRANUS transportation and land use modeling system.

The study evaluated future scenarios representing alternative levels of investment in highway and transit transportation infrastructure across the state. It found that investment as called for in the Oregon Transportation Plan can have substantial positive impacts on statewide economic competitiveness and growth. It also concluded that failure to maintain a well-functioning transportation system can reduce the quality of life for Oregon residents and reduce the competitiveness of the state for attracting business investment, affecting future job growth and income for Oregon residents, as well as the income tax base.

The study received extensive coverage by local television and newspaper channels, as well as broader coverage by the associated press.
 

coverage by Portland Tribune

coverage by Daily Journal of Commerce

coverage by the Reason Foundation Surface Transportation Newsletter

Oregon Business Plan: transportation element

Oregon Business Council web site