Transforming Rail in Virginia
This study evaluates the economic effects of the Virginia Passenger Rail Authority’s (VPRA) Transforming Rail in Virginia (TRV) initiative, in particular the economic effects of capital projects identified in the VPRA FY 2025 budget amendment and passenger service improvements that will be made by FY 2035. The goal of the initiative is to expand and improve passenger rail services across Virginia through major track right-of-way acquisitions, rail infrastructure investments, and passenger service enhancements.
The TRV initiative will stimulate Virginia’s economy through substantial capital investments and operational enhancements made through FY 2035. The total cumulative economic impact over the over the period state fiscal year (FY) 2025 to FY 2035, including indirect and induced effects, is projected to be 33,668 jobs, $2.6 billion in labor income, $4.0 billion in value-added, and $6.7 billion in output. A regional breakdown of these economic impacts highlights significant impacts for the Washington-Arlington-Alexandria, Richmond, and Blacksburg-Christiansburg metropolitan areas. The analysis suggests that TRV will also generate substantial social benefits, including travel time savings, vehicle operating cost savings, and crash reduction benefits.
When vehicular operations savings, driving time savings, and safety improvements are translated into inputs and used in economic impact analysis, the results are not negligible. Findings suggest that the total economic impacts (an estimated 63 jobs) represent about one-third of the 198 total employment impact of TRV operations expansion.
The initiative will not only create jobs and increase economic output but also generate substantial federal, state, and local government tax revenue and provide extensive social and environmental benefits to the Commonwealth’s citizens. The improvements in passenger rail services will enhance connectivity, expand transportation options, reduce road congestion, and promote sustainable development across the Commonwealth. These positive impacts and benefits will increase as the TRV initiative moves into future phases.