TRAFFIC WOES MAY HURT HUB’S AMAZON HQ2 PITCH
Boston’s rock-bottom rankings for traffic and airport reliability could loom over its chances to score Amazon’s coveted second headquarters, but industry analysts and consultants say it’s likely not a “killer” as the HQ2 sweepstakes officially begins in earnest.
Boston, with four proposed sites with Suffolk Downs the focus, is widely considered a strong contender to score Amazon’s new $5 billion campus and its promise of 50,000 jobs, thanks to its tech-centric talent pool, extensive network of colleges and strong economy.
But the Hub’s checklist will likely not escape two of its more notorious setbacks.
It’s regularly rated as one of the most traffic-congested cities in America, ranking in the bottom six of two recent surveys, including a July WalletHub analysis of worst cities to drive in that pegged it 95th out of 100 cities — just one spot better than Amazon’s current home, Seattle.
Not far behind is Logan International Airport, which — despite an aggressive expansion of its international flights menu — has its own hurdles.
One survey, released this past spring by the site MileCards.com, ranked Logan fifth worst in the country for delays during summer travel, according to an analysis of federal data. J.D. Power put Logan in the bottom five among so-called “mega airports” in customer satisfaction rankings released last month.
Both likely won’t go unnoticed by Amazon officials, say experts — but don’t expect them to take the Hub out of the running either.
“Traffic and airports are always such a local concern. I’m not trying to downplay them but I don’t think it’s a killer,” said Andy Shapiro, managing director of Biggins Lacy Shapiro & Co., which consults companies on site selection.
“I have ended up taking the train back to New York from Boston because I got tired of getting stuck at Logan,” Shapiro said. “It’s a hassle. You’re going to have delays, and you’re going to have traffic. But what other benefits are you offering?”
Massachusetts, in its own bid released last week, appeared to nod to this. It emphasized the $1 billion it’s spending annually to upgrade infrastructure on the MBTA and public transportation network. A total of 26 potential sites for the HQ2 were submitted by Bay State cities and towns.
At Logan, state officials highlighted the 56 nonstop flights they run to Seattle weekly, plus direct flights it’s added to Tel Aviv, Beijing and Tokyo. Massport is also launching a $750 million expansion of Logan’s international terminal, adding seven gates.
Other competing cities, such as Atlanta and Denver, have industry-leading airports, said Seth Kaplan, an analyst for the industry publication Airline Weekly. But Boston can offer competitive prices because it’s not locked down as one specific airline’s hub, he said.
“We haven’t done (an analysis of) where Amazon should go,” said Kaplan. “But in terms of air service, Logan’s gotten a lot better over the last decade.”
Boston’s traffic issues could also be a moot point, said Mark Sweeney, who advises companies on locating new facilities.
“Boston obviously has that challenge, but all of the top-populated cities in the U.S. that might be interested in this project — and you can go right down the East Coast — they all have major traffic issues,” he said.
Between traffic and airport connections, another factor helps Boston, experts say: There’s not a perfect choice out there.
“There’s not a single city out there that has everything,” said Didi Caldwell, founding principal for the consulting firm, Global Location Strategies. “What they’re going to have to do internally is make tradeoffs.”