News Releases

KU passenger rail study details Amtrak economic benefit

Monday, January 10, 2010

Jayhawk Consulting of Kansas University's School of Business has released a study showing that renewed passenger rail service running between Kansas City, Wichita, and Oklahoma City would produce a regional economic benefit of $3.20 for every $1.00 invested, and is likely to pay for itself within the first year of operation. The landmark study identified increased travel, tourism, and employment figures as a basis for the economic benefits which would accrue to the Kansas and Oklahoma region. This study differs from one currently underway by Amtrak in that the Amtrak study will not include an associated economic impact statement.

Deborah Fischer Stout, Northern Flyer Alliance, Inc. President commented, "This is a landmark study as Amtrak does not quantify economic impacts. We have intuitively known that Amtrak generates economic benefit in the region served. The missing element has always been quantified economic benefit. We encourage the Kansas, Oklahoma, and Texas legislatures to quickly pass funding measures to support operations. We further encourage the state departments of transportation to apply as a group of states for federal High Speed Intercity Passenger Rail (HSIPR) program funding."

Eight billion dollars in Federal stimulus funding is available through the Federal Rail Administration's HSIPR program for fiscal year 2010. The HSIPR program resembles the Federal Interstate Highway program developed in the 1950's and 1960's. It is believed that the program will revitalize national passenger rail at speeds between 90MPH and 150MPH over the next decades.

Evan Stair, Northern Flyer Alliance, Inc. Vice President - Oklahoma commented, "We consider the entire Kansas City, Wichita, Oklahoma City, Fort Worth rail corridor ripe for development. The study conducted by KU's Jayhawk Consulting, available federal capital dollars, and need for economic development make the time right. If this route is not implemented the region stands to miss important economic benefits when needed so desperately."

The KU Business School's Jayhawk Consulting group was created to provide students with an experiential learning opportunity via projects which directly contribute to the economic development and employment enhancement of Kansas and the Midwest region.

The study used a four component approach beginning with the Kansas Department of Transportation's estimates of rider ship and costs, updated to today's dollar values, projected increased rider ship due to improved marketing programs, cost avoidances of providing rail service as a passenger transportation alternative and a sophisticated model which predicts the direct and indirect economic benefits of investing in passenger rail service in eastern KS and northern OK. Copies of the report are available at www.northflyer.org.

The K. T. Wiedemann Foundation, Inc. of Wichita, Kansas provided essential support and guidance for the study.

Written byNorthern Flyer Alliance, Inc.