Amazon's QG2 in Long Island City can not make traffic worse, say experts



[ad_1]

Since the news hit Amazon

AMZN, + 2.35%

was bringing part of the second seat to Long Island City, New York, some worried that the influx would make for the congested traffic of the city. Experts say it would be difficult for traffic to slow down a lot, but the window of time during which traffic slows could become even greater.

"The road network is already stressed all day in New York," said Trevor Reed, Transportation Analyst for INRIX, a global traffic data analytics firm headquartered in Kirkland, WA.

He noted, however, that this did not count for the ravages caused by bad weather. Example: A snowstorm of unexpected strength at rush hours last week slowed down road traffic by 30% in Long Island City.

A snowstorm of unexpected strength at rush hours last week slowed down 30% road traffic in Long Island City.

Starting at 3 pm According to INRIX data, drivers generally travel at an average speed of 20 km / h at 20 km / h.

During the same period in Crystal City – the northern suburb of Virginia, which also divided the price of the secondary HQ called "HQ2" – drivers generally traveled 14 km / h.

Crystal City is very different from Long Island City, said Reed, adding that he was not able to predict the potential impact of a larger number of workers in the first. The planned Amazon headquarters in Crystal City will be located in a newer and less developed suburban office park than Long Island City, he said. Compared to New York, it was a "relatively virgin canvas".

When Amazon announced its HQ2 projects, which will create more than 50,000 jobs at both sites, it said the sites were ready to attract top talent. The announcement noted access and development of transit areas.

Amazon plans to build heliports at its New York and Virginia sites.

Crystal City's Amazon headquarters will be located in a less developed suburban office park than Long Island City.

A few days before the big news, New York City announced that it would spend $ 180 million, among other things, to improve transportation and infrastructure in Long Island City. The subways are crowded and unreliable, the critics note.

The Amazon deal includes a condition that the retail giant will contribute to a city-controlled infrastructure fund, but some wonder what immediate help it will provide.

Access to specialized talent and tax incentives may have posed a significant threat to the online retail giant. (Amazon has not responded to a request for comment.)

However, travel considerations are not an easy task and can have an impact on companies' bottom line.

According to a global traffic dashboard INRIX, US drivers incurred direct and indirect costs of $ 305 billion due to traffic congestion last year. Congestion in New York accounted for $ 34 billion of this price, INRIX noted. New York City ranked second on the list of the most congested cities in North America in 2017 and Washington DC in sixth place.

Reed pointed out that public transit in and around Queens was one of the major drawbacks of traffic jams in the city of Long Island. He expects that the majority of QG2's travel will be by subways, buses and ferries in the area.

US drivers incurred $ 305 billion in direct and indirect costs due to traffic congestion last year.

However, with respect to the Long Island City roads, Reed stated that it was likely that the periods of heavy morning and afternoon congestion would continue, and that the speed of traffic on the highways would have also suffered.

"Since the period of heavy congestion is getting longer, the accumulation on the periphery will have more time to develop. In summary, congestion will last longer and go further, "Reed told MarketWatch.

In other words, Reed explained, the estimated impact would not affect the already abysmal speeds, but would widen the time window and geographic extent when congestion worsens.

On Monday, New York State Governor Andrew Cuomo fought back to critics who complained that Amazon was successful in the Long Island City accord. Tax incentives were "usual and typical" and Amazon's presence would be lucrative and job-rich for the state. The benefits include investments in public transit, noted Cuomo.

Get a daily summary of key personal finance readings in your inbox. Subscribe to MarketWatch's free newsletter, Personal Finance Daily. Register here.

[ad_2]
Source link