The benefits of PATCO
Every day, PATCO carries about 38,000 passengers, 90 percent of whom go to or from Center City. This is about one-third of those carried each day by SEPTA's 13 Regional Rail lines - more than any two of those lines. For this service, the city and the Pennsylvania Department of Transportation pay nothing. It is a gift.
Every day, PATCO carries about 38,000 passengers, 90 percent of whom go to or from Center City. This is about one-third of those carried each day by SEPTA's 13 Regional Rail lines - more than any two of those lines. For this service, the city and the Pennsylvania Department of Transportation pay nothing. It is a gift.
If PATCO were one of those Regional Rail lines, it would be subsidized by Philadelphia, PennDot, and, to a small extent, by the suburban Pennsylvania counties.
But PATCO's $47 million operating and maintenance budget comes from two sources: Delaware River Port Authority toll payers, mostly New Jersey residents, contribute $21 million per year, with the rest coming from PATCO fare payers. Capital is contributed directly by DRPA, sometimes with federal grants.
For the privilege of serving Philadelphia, DRPA pays the city $8 million per year to lease the Eighth Street and Locust Street subways. To be fair, the city should pay PATCO to provide the service, rather than extracting substantial rent from DRPA.
In New Jersey, PATCO stations provide more than 12,000 parking spaces, with daily use usually in the 90 percent range. That's about 10,000 cars parked each day in Jersey, instead of clogging the already gridlocked streets of Philadelphia. A modern central business district cannot exist without rail transit that delivers tens of thousands of commuters to their workplaces every day, and PATCO's service contributes to making Center City viable. Add 10,000 vehicles to the morning or evening commute, and you'd start seeing businesses reconsidering their commitment to Philadelphia.
PATCO also does its share when it comes to increasing property values.
A recent report by Richard Voith of Econsult Solutions Inc. in Philadelphia found that real estate near SEPTA Regional Rail stations has value higher than properties that aren't near a station. A typical residential property was valued at about $7,900 more than one that was not near a station. Several variables were evaluated, including proximity to and quantity of parking, as well as frequency and hours of rail service. Regional Rail hauls about 127,000 riders per day, a significant percentage of the people entering and leaving the city daily.
The study shouldn't be a surprise. We've known for decades that PATCO contributes to increased property values.
Just a few years after PATCO opened in 1969, a study by Wharton professors Bruce Allen and David Boyce indicated that properties in the Lindenwold corridor were valued at about 10 percent more than similar houses elsewhere. Properties along SEPTA lines were only valued at about 6 percent more than similar homes. The higher value of housing along the Lindenwold Line was attributed to the 24/7 service and ample, convenient parking. Another factor is that PATCO stations are fully enclosed, heated, and air-conditioned, while most commuter railroad and light-rail stations are simple shelters.
The Wharton School report indicated that the increase in real estate values in New Jersey approximated the $94 million cost of constructing the original Lindenwold Line. This capital gain to real estate owners was a windfall gain of no benefit to DRPA, a fact that may have contributed to the reluctance of the DRPA board to expand the system.
Even without expansions, PATCO continues to deliver thousands of people every day to Philadelphia, providing a substantial benefit to workers, businesses, and the city.
And, again, all of this costs the city and PennDot nothing.