Effects of Rail Freight Corridors in Low Population Regions

Abstract

Impact analysis of the construction and commissioning of a rail freight infrastructure must contemplate the regional economic system in its entirety, since that impact extends beyond the direct contribution to the increase in production, and the consequent generation of income from capital and remuneration of labor incorporated in such activity. The objective of this research is to know the effects that a rail freight infrastructure produces in a region with a low population, such as Extremadura (Spain). For this purpose, the calculation of the total impact produced by the rail freight corridor on the regional economy of Extremadura has been made, which will correspond to the sum of the direct, indirect and induced impacts. For its determination, a simulation tool has been created from Input-Output tables that allow you to compare different impact levels depending on the intensity of the investments made, or the activity developed following the launch of the new rail corridor. The research concludes with the profitability of the action because for a planned investment of 160 M€ for 3 years in the freight rail corridor from Extremadura, every euro invested returns in more than 2 euros to the Extremadura’s productive system, creating more than 4100 jobs.