Economic Opportunities
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Why is it important for Texas to remain viable and competitive in the area of transportation? In order to thrive and grow, Texas needs to continue attracting business and industry to our state. The result will be more employment opportunities, improved economic climate, and a source of tax revenue for the state.
Chief Executive Magazine recently surveyed 543 CEOs to evaluate states to conduct business. For the fourth consecutive year, Texas was named the “Best State to do Business.” Among the more than 40 categories examined, Texas placed first in the area of transportation.
To continue to attract new business, expand existing business and keep pace with a growing population, we must increase highway capacity and provide routine maintenance on existing roads. This task will be a challenge in the face of increasing infrastructure cost and a stagnant fuel tax.
If Texas were a nation, the state’s economy, measured by Gross Domestic Product, would rank 12th largest in the world, according to the Texas Comptroller of Public Accounts in 2008.
Research
TxDOT has looked at the effects of congestion on mobility for individual travelers and freight transporters. The findings revealed a direct correlation between investments in roads and increased economic opportunities, personal income, employment and property values. Inadequate investment in transportation is not an option.
The average Texas commuter spends more than 32 hours annually stuck in traffic, 60% more than a decade ago.1 This condition is often referred to as “highway parking lots.” Congestion leads to increased business cost, time lost from family activities and increased cost of goods. According to the 2007 Urban Mobility Report, the study concluded that annual travel delays and extra fuel consumed in gridlocked traffic by Texans was $6.7 billion per year, or an average cost of $570 per commuter.
Growth patterns suggest that the population of Texas, 24 million in July 2008 is predicted to grow to almost 36 million by 2040, an increase of 47%.2 Our state continues to struggle with how to pay for transportation infrastructure in the face of increasing cost of construction and a stagnant gas tax. Mobility cost!
Freight
Freight transportation is the backbone of national, regional and local economies by supporting job creation, consumer activities and global business opportunities.
Every item used in our daily lives is a result of the multimodal ship, truck, train or airplane workings of the U.S. freight transportation system. Imports and exports are doubling every 10 years, and freight traffic within the United States borders will increase 100% by 2020. According to the Federal Highway Administration, by 2020 the volume of freight is expected to increase to 25 billion tons worth or about $30 trillion with the surge of import/export capabilities, goods production and consumption.3 Movement of goods by freight allows America to experience a complex, yet seamless system, and enjoy a better quality of life. The houses we live in, the cars we drive, the computers we use and the food we eat, are all possible through the movement of freight.
Based on 2008 data, the U.S. Department of Commerce named Texas the top exporting state in the nation for the seventh year in a row, with more than $192 billion in goods exported.
Innovative Connectivity in Texas
Much preparation is required to meet the demand for increased capacity and an improved transportation system to accommodate the mobility needs of the state.
To that end, in January 2009, the Texas Department of Transportation unveiled its vision for the development of a transformed infrastructure system. Innovative Connectivity in Texas/Vision 2009 reflects the anticipated and changing needs of Texans, taking into account recommendations from the I-35 and I-69 Corridor Advisory Committees, as well as other citizen advisory groups. The choice of transportation routes will largely be influenced by recommendations of local communities and advisory committees. In the end, it is all about connecting people and places and providing access to airports, ports, population centers, and resources. The evolved plan is to design and build facilities that meet growing needs of each region of the state, including roads, freight, rail and commuter rail, as TxDOT seeks to integrate each mode into a comprehensive statewide transportation network. The department plans to incorporate the use of existing roadways and rights of way whenever possible, furthermore, TxDOT recognizes the need to preserve the environmental assets and economic vitality of an area.4
Planning, adequate funding and vigilance are necessary if we are to meet the transportation needs of Texas’ burgeoning population and global economy.
Partnering to expand economic opportunity by:
- working with local and regional entities to implement area transportation decisions,
- assisting in certifying Disadvantaged Business Enterprises and Historically Underutilized Businesses to ensure diversity in TxDOT contracts,
- expanding road capacity to reduce travel time and minimize congestion, and
- co-operating with prospective businesses to facilitate timely and safe access to and from places of employment and distribution centers.
- Texas Transportation Institute, 2007 Urban Mobility Report
- Texas State Data Center and Office of State Demographer
- Coalition for America’s Gateways and Trade Corridors
- Texas Department of Transportation, Innovative Connectivity in Texas/Vision 2009
