Public investments in rail infrastructure pay off in many ways

Public investments in rail infrastructure pay off in many ways

Tuesday, 23 February 2010

Each publically invested euro in rail infrastructure brings an added value of two euros for national economies, shows a new study carried out by the Institute for Advanced Studies (IHS) in Vienna/Austria. In addition, just over half of the investments would be returned to the state in the form of taxes and social contributions.

Until 2014, the Austrian federal railways (ÖBB) plan to invest around 34 billion euros in the construction and operation of rail infrastructure. The IHS study, presented on 24 February, now indicates that this investment can bring benefits of up to Rail infrastructure investments function as an economic locomotive and create jobs, says newly published Austrian study 72 billion euros to the Austrian economy in the long term - due to positive effects on GDP and a multiplier effect on the economy. An investment of one billion euros in rail infrastructure will furthermore create 17,000 jobs.

High tax returns speak in favour of investing in environmentally sustainable rail transport: “We will accelerate the expansion of modern rail infrastructure in Austria, because we need a strong rail network,” said Austrian Transport Minister Doris Bures when presenting the study in Vienna. “These investments will create the basis for an efficient and environmentally friendly mobility of tomorrow,” she added.