The economy of the NJTPA region is strong. During the economic expansion of the 1990s, the region gained more than 415,000 jobs. Since 1999, the economy of New Jersey has outperformed the national economy in each and every year. Transportation investment has contributed to this economic growth, but the extent of that contribution is very difficult to measure, because transportation is only one of many influences on the region?s economy.
Transportation investment can have an economic impact through multiplier effects. According to one study, $10 million invested in transportation in northern New Jersey would result in approximately $21.5 million in economic output. Transportation investment can also have an economic impact by reducing travel times and improving access to jobs. According to another study, for example, the introduction of "Midtown Direct" rail service in Morris and Essex counties contributed to a doubling of property values within walking distance of the affected rail stations.
Sea and Air Freight
Sea and air traffic has increased by more than 80 percent since 1991.
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Another way in which transportation contributes to the region's economy is by facilitating the movement of freight. Goods shipped by the region's manufacturers and wholesalers are valued at more than $250 billion annually. Statewide, there are more than 484,000 jobs in the freight industry itself, including jobs in freight transportation and freight warehousing.
Freight traffic in the NJTPA region is growing rapidly. At the region's seaport - the largest seaport on the east coast-the tonnage of cargo increased by 89 percent from 1991 to 2004 (see Figure 3 below). Similarly, air cargo at Newark Airport grew by more than 100 percent from 1991 to 2004. Though it declined in the wake of the September 11, 2001 terrorist attacks, air cargo is now growing once again.
The rapid growth in freight traffic is a sign of economic growth, but has the side-effect of leading to increased truck traffic. For surface shipping in the NJTPA region, roughly 90 percent of all freight moves by truck, while the remainder moves by rail. Rail use is growing, however, particularly as a means of transporting freight containers to and from the region's seaport. In 2004, more than 280,000 containers were shipped to or from the seaport by rail, up dramatically from only 28,000 in 1991. As a share of all containers handled at the seaport, the number of containers shipped by rail increased from two percent in 1991 to 11 percent in 2004. Moving a greater share of freight by rail, where possible, would help the region sustain further growth in goods movement while reducing the problems associated with truck traffic.
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| Figure 3, Annual Seaport Freight Traffic (Port of NY/NJ) |