The productivity and competitiveness costs of traffic congestion
ROAD TRANSPORTATION is currently the dominant means of moving people and goods within Jamaica. In this regard, it is a critical component in building a productive and competitive economy. Virtually every social and economic activity in the country is linked to the transportation system. It is, therefore, a cost that must be factored into every good and service produced.
While the contribution to productivity and competitiveness from road infrastructure might be relatively small in mature economies, in developing countries the contribution is likely to be very substantial, and essential, to catalyse and leverage potential productivity gains from other types of investments.
The importance of the road network to Jamaica’s productivity and competitive position has been gaining the recognition of policymakers, as in recent months both Prime Minister Andrew Holness and Opposition Member of Parliament Ronald Thwaites have commented on the impact of road congestion on national development. Former chief executive officer of the Private Sector Organisation of Jamaica, Dennis Chung has also publicly stated that the current levels of road congestion and its corresponding economic impacts are unacceptable. A recent study by the Inter-American Development Bank (IDB) has also shown that one of the greatest constraints to national productivity and competitiveness in Latin America and the Caribbean is urban traffic congestion, which raises the cost of moving people and goods. This finding is noteworthy as most economic activity in Jamaica is generated in urban centres.
In 2008, then Minister of Transport and Works Michael Henry announced that there were plans to remedy the traffic congestion in the Kingston Metropolitan Area, as research had revealed that it can take eight times longer to travel along some of Kingston’s main routes during peak-hour traffic. Resulting from that, the 2009 Transport Sector Plan for Vision 2030 acknowledges the impact of road congestion on productivity and has cited efforts to mitigate the issue – as we are currently seeing with the expansion and upgrade of roads such as Marcus Garvey Drive and Mandela Highway.
Jamaica’s road network, at over 15,000 kilometres, is considerable for a country of our size, and the value of this investment over the decades has been likewise. The overall quality of Jamaica’s road network, and its ability to efficiently, effectively and safely move people and goods, is still another matter – even with the expansion of major thoroughfares in the urban areas. It can be easily observed via countless news reports that a large proportion of the road system is characterised as poorly constructed, inadequately maintained, lacking in traffic control markings, lacking in sidewalks and pedestrian crosswalks, lacking in adequate drainage and protective works, and susceptible to damage or obstruction from flooding and landslides.