Birmingham's Metro Extensions Have Potential to Bring Thousands of New Jobs

February 6 2008

Two proposed Midland Metro tram routes in Birmingham and the Black Country could create up to 5,300 sustainable new jobs and boost the region's economy by an extra £178 million a year.

Those are the findings of an independent economic report due to be presented to Centro-WMPTA, the region's public transport developer.

The Phase One extensions, from Birmingham's Snow Hill Station through the city centre streets to Five Ways and from Wednesbury to Brierley Hill would bring significant and lasting economic benefits, the study by experts at the Centre for Economic and Business Research (CEBR ) concluded.

The £178 million a year boost to the economy means the cost of adding the two extensions to the existing Metro line between Snow Hill and Wolverhampton city centre would be recouped within just three years.

But the study found that even greater economic benefits could be achieved if Centro-WMPTA's longer term Phase 2 extensions were realised. These involve three new Metro lines radiating out of Birmingham city centre to Birmingham International Airport/NEC, Quinton and Great Barr and a Black Country route linking Wolverhampton, Wednesfield, Willenhall, Walsall and Wednesbury.

These Phase 2 routes are key to tackling congestion, promoting economic growth along those corridors and in securing the continuing sustainable expansion of the city centre business and retail sectors.

The CEBR study found that the Phase One and Phase 2 Metro routes taken together would lead to the creation of up to 14,500 sustainable new jobs and boost the regional economy by £513 million a year. More than 70 per cent of these benefits would occur in Regeneration Zones so many of the new jobs would be created where they would be most needed.

Cllr Gary Clarke, chairman of Centro-WMPTA, said: "The findings of the CEBR study show just how strong the business case is for these Metro extensions and how quickly they can pay for themselves.

"Whilst it has always been accepted that jobs would be created during the construction phase of such a major transport project, this study confirms how the benefits of improved connectivity and access brought about by the Metro extensions will feed their way into the local economy after opening. It shows how the Metro can act as a catalyst for economic growth.

"Our plans for the Phase One extensions are complete and we are ready to move forward as soon as funding is made available."

Cllr Clarke said the economic potential of the Phase One extensions was being increasingly recognised by the local business community.

Westfield, owners of the Merry Hill shopping centre, a major business in the Black Country, has already pledged £36.5 million towards the delivery costs of the Wednesbury to Brierley Hill extension which would serve the Merry Hill.

Ballymore, who are building a new office and hotel complex at Snow Hill, have, as part of the development, built a viaduct to carry the proposed city centre Metro extension. The viaduct would have otherwise cost Centro-WMPTA several million pounds.

Figures also show that the Metro plays a key role in fighting our region's growing problem of congestion which in itself is costing the West Midlands economy more than £2.2 billion a year.

The existing Metro line from Snow Hill to Wolverhampton, which opened in 1999, has taken an estimated 1.2 million car journeys off the roads with 15 per cent of passengers using the tram instead of their cars for the same journey.  It operates at around 99 per cent reliability and carries around 5 million passengers a year.

Cllr Angus Adams, Lead Member for Metro Extensions on Centro-WMPTA, said: "The Metro is a successful public transport system that is well used and highly regarded.  It is reliable, frequent and fast offering a high degree of onboard personal security.

"What this study shows is that the Metro also has major economic benefits by providing the links people need between their homes and where the jobs are. At the same time firms benefit because these Metro extensions would provide them with a bigger and more competitive pool of labour."

The Phase One Metro extensions are a key priority of Centro-WMPTA's transport strategy for the West Midlands and already have Transport and Work Acts approved and in place ready for construction work to start.

An Outline Business Case seeking approval for 75 per cent Government funding of the £384 million needed for the Phase One extensions was submitted to the Department for Transport on 21st July 2006.

Centro-WMPTA continues to lobby for funding for the Phase One extensions while working with partners to determine regional transport priorities.

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