Transit´s Contributions to Global Competitiveness

Canada´s cities and communities help drive the national economy. They are incubators of innovation and magnets for attracting human talent. Canada´s success is strongly linked to the economic success of its cities and communities.

KEEPING THE ECONOMY MOVING

Cities must ensure that their transportation infrastructure moves people efficiently; that their solid-waste management is sustainable and cost-effective; that their water is safe to drink; and that their residents have access to recreation and culture.

Public transit is an important ingredient in a community´s strategy for success. It literally keeps the economy moving. Congestion and consequent delays can affect road capacity, public transit alternatives, the “friendliness” of the urban environment for cycling and walking, and the availability and cost of parking. Without public transit, many of our urban centers would be gridlocked, with ever more vehicles competing for ever scarcer road space.

ATTRACTING THE BEST PEOPLE

While the key factor in the old economy was cost efficiency, in the new economy competitive advantage has shifted to those regions that can generate, attract and retain the best talent and the most financial capital. Mass transit is also a valuable tool for attracting increasingly mobile talent, as Canadian cities are increasingly competing for the best people with cities in Europe, Australia, Japan and, most vigorously, the United States.

Recent business surveys identify gridlock as the top priority of Canada´s largest corporations, suggesting that there is no single factor more influential than transportation in determining where businesses locate. In fact these studies have stated that that congestion is quickly becoming major cities´ main competitive disadvantage. But this is not just a phenomenon. Congestion is affecting the competitiveness of all of Canada´s urban regions, a point reinforced by a 2006 federal study that found “the total annual cost of congestion (in 2002 dollars) ranges from $2.3 billion to $3.7 billion for the major urban areas in Canada.”

Hence, the role of transit in improving quality of life also improves a city´s economic competitiveness. It is the only universally accessible form of urban transport that provides access to employment, education, health care and recreation, including to those who do not have access to a car, as well as those with physical disabilities. In addition, greater use of public transit reduces smog and other air pollutants.

THE TRANSIT SOLUTION

While transit availability and levels are key drivers of congestion, they are also key solutions to its mitigation. For example, it is difficult to imagine such cities as Montreal, Ottawa and Toronto functioning without their transit systems. During the morning peak period, 78% of trips entering Toronto´s central business district are by transit. The existing road system could simply not handle those volumes on its own.

A national transit strategy that provides permanent investments will help tackle congestion in our cities, which will influence not only the movement of goods, but of people as well. It would put cities on a level playing field with their international counterparts, improving Canada´s competitiveness.

For more information: Massimo Bergamini, 613-907-6247 or [mbergamini@fcm.ca]