In-School Productivity Campaign | 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.

Significant improvements in Jamaica's highways

Although there have recently been significant improvements in Jamaica's highways, the same cannot be said for many parochial and urban roads. The long hours many Jamaicans spend each day in traffic imposes avoidable costs on household budgets, individual and public health, businesses' bottom lines, and the nation, through a very heavy fuel import bill. There are also the environmental costs which are frequently ignored, but for which society still pays.

There are several ways Jamaica can reduce the negative impact of traffic congestion on productivity and competitiveness (individual, firm, industry and country). First, continue to expand the existing road network - which is very expensive, especially since persons have been allowed to construct permanent structures too close to existing roadways.

Second, intensify the use of existing roads using ICT to manage traffic, employ pricing strategies to raise the cost of using the road network, and offer incentives to road users to reduce their use of selected roads. This option might be difficult to implement as it requires cultural and behavioural changes among road users. In this regard, public education to change attitudes and behaviour to encourage greater use of public transportation are among the strategies identified in the 2009 Transport Sector Plan.

THIRD OPTION

The third and most effective option is a combination of the first and second. This mixed strategy appears to offer the best approach to maximise productivity at a relatively lower overall cost to the taxpaying public, as it reduces congestion, wear and tear on the roads and on vehicles, as well as pollution. At the same time, it frees up the limited road space for use of higher value-adding vehicles such as public passenger and freight transportation services.

If Jamaica is to raise productivity and competitiveness of its workforce, firms, organisations and industries, it must conduct a cost-benefit analysis of all the possible solutions. No country has ever been able to deliver significant economic development without efficiently and effectively moving people and goods.

While increased capital investments will be necessary for road network expansion and maintenance, there are also less costly short- to medium-term solutions to consider - such as staggered work schedules, flexi-work, a school bus system, electronic road pricing, and clampdown on overloaded trucks - around which a national conversation could be framed.

-Collette Barham is administrative manager at the Jamaica Productivity Centre