Study puts NCRR impact on North Carolina economy at $794 million

Written by Jenifer Nunez, assistant editor
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The North Carolina Railroad Company (NCRR) had a direct impact on the North Carolina economy of an estimated $794 million during 2013, according to a recently completed study conducted by RTI International (RTI).

 

The study makes the assumption that without the 317-mile NCRR rail corridor between Charlotte and the Port of Morehead City, freight currently being carried on NCRR tracks would be moved solely by other means at greater cost.

The study’s results were announced during the fifth annual Progress in Motion Rail Forum attended by more than 250 rail and economic development experts, along with lawmakers and other public officials.

“The fact that our rail corridor is pumping more than three-quarters of a billion dollars a year in cost savings into our economy makes a dramatic statement about the value of the North Carolina Railroad and the value of the state’s entire rail system,” said Duane Long, chairman of the NCRR board.

The study, conducted by RTI economists Katherine Heller, Zachary Oliver and analyst Sara Lawrence, concluded that due to cost savings that the NCRR corridor provides compared to the alternative means, North Carolina companies generate an estimated $499 million in additional revenue.

The balance of the cost savings of $794 million, according to RTI, is derived from related supply chain effects and household income effects. The analysis relied on 2013 figures.
A similar study in 2007 showed NCRR making an annual direct impact of $388 million, a 104 percent differential.

Scott Saylor, president of the NCCR, said, “We are obviously pleased with the growth in the railroad’s activity and impact. Many people and organizations working together led to this outcome, including Norfolk Southern, the state Department of Transportation and local officials along the corridor.”

The RTI researchers determined that 347,000 freight containers and carloads originated or terminated on the NCCR corridor in 2013, adding up to an estimated 11.4 million tons moving to or from North Carolina industries.

 

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