Study: Extending South Shore commuter line would create jobs
June 25, 2006 (CHESTERTON, Ind.) - Extending the South Shore commuter rail line to two more communities would allow residents easier access to companies around Chicago and could create 7,000 jobs in northwestern Indiana over 25 years, according to a study commissioned by the railroad operator.
The jobs could increase disposable personal income by $600 million, the study released last week said.
Extensions to Valparaiso and Lowell would provide access to “high-paying jobs within Cook County,” where earnings per job are 32 percent higher than in northwest Indiana, the study by Policy Analytics LLC, of Indianapolis, said.
“There is just a huge financial payoff to greater connectivity to the Chicago downtown,” said William Sheldrake, president of Policy Analytics.
The South Bend-to-Chicago commuter line carried 3.8 million passengers in 2005, a 7.3 increase over 2004. Ridership this year has also increased, officials said.
Copies of the report have been sent to Gov. Mitch Daniels and the Northern Indiana Commuter Transportation District, the South Shore’s operator.
The rail project could take a decade to complete and cost more than $300 million, according to earlier estimates.
Earlier studies have also shown large economic benefits for the region in extending the South Shore. A study commissioned by NICTD and published in December 2000 forecast $130.2 million to $139.8 million per year in new consumer spending would be generated by extending the rail lines.
A key difference between the Policy Analytics survey and others is that it forecasts much more rapid population growth for northwest Indiana, Sheldrake said.
Historically, there has been slower population growth in Cook County and northwest Indiana than in the remainder of the greater Chicago area, according to the study. In northwest Indiana, about 63,000 peo