Report on Edinburgh Tram Extension

Introduction of Edinburgh Tram Extension

It is important for the local economy to get some boost through new projects and investments so that viable positive effects can be made. Edinburgh Tram Extension is one of those projects, which is going to be a huge opportunity for the local economy in so many ways. It is important to see its current root and where it has to be extended. The tram network starts from York Place and then it goes to the northeast region by reaching Leith Walk and Elm Row. Then it moves towards the west and passes through the Leith River. Then the plan is to move trams from there and run past the offices of the Scottish government. Next stop of the trams will be Ocean Terminal Shopping Centre and its last destination after the extension would be Newhaven (MacLeod, 2019).

        The project may not have been seen as a great one by many, but it is important to understand that Edinburgh Tram Extension Project is a crucial one for the betterment of the local transport as well as the local economy. The pre-tax profit made by this tram network in 2017 was £1.6m, which was 6 times more than its actual anticipation. There was an increase of 10% in the number of passengers in 2018 reaching a record 7.7 million. It shows the need for its extension as local people are using it on preferences, and the new extensions will come up with more ease and convenience for them. For instance, if a passenger is going from north to the center point of the city or trying to reach the airport, then he/she can take this tram to avoid any other local transport hassle, and directly reach the airport without taking a car or taxi. This is just one side of its extension, it is going to boos economy in so many ways (MacLeod, 2019).

Tram Extension’s Benefits to Local Economy

      This tram extension project is going to be a great source for the local economy to grow further as it will not only create more jobs, but it will also create more business and investment opportunities as well. Its first major effect will be on the overall growth of the city. There are 4 strategic development areas, which have been identified by “The Edinburgh Local Development Plan,” and these 4 areas are South East Edinburgh, Edinburgh Waterfront, the City Centre, and West Edinburgh. The great thing about this tram extension is that it is going to link three out of these four important development areas, which is always a great sign for the local economy. It is important to link major areas of a city together with a fast, reliable and convenient local transport so that more business activity is possible in less time, and people can have great access from one area to the other. The linkage of three strategic development areas is going to be huge in so many ways.

               It is vital to understand for policymakers on a local level that how they can keep things on the right track by bringing some sustainable and long term projects, which may cause little disruption, but their outcomes can be huge for the local people. This tram extension project is one of them. It is going to have a great impact on the employment growth of the city. In this modern business world, where various economies are struggling and competition is getting intense, and it is getting hard to create new job opportunities for the youth. But this project is going to be a great one in this regard. It is estimated with the completion of this project that employment growth from 2013 till 2022 will be at 7.6%, which is such a positive sign for the unemployed people. The tram extension project will go through a corridor that is considered highly unemployment area in the city. The tram corridor will open new opportunities for the little businesses along the city center and new businesses will need more people on the job, which means that various employment opportunities will happen. It is a well-known fact that when any economy works better, it provided enough jobs to its people. So, this tram extension project is going to be huge in this regard as it will create more and more jobs with the passage of time.

    It is also important to realize that when such huge level projects are started, and when they go through different areas, especially the areas which are deprived in so many ways, and then such project boosts the overall economy of such areas. One such effect can be felt in the property sector as prices can get higher for existing properties providing value to its owners. The population is growing in the Brownfield sites, so more houses will be needed, which means that sustainable development will be needed in this regard. It has been observed that the area of Edinburg is going to be the most populated region in Scotland in the next few years. The facts and figures released by National Records of Scotland have revealed that till 2024, the city will be having 47,000 more people and this number will grow to 102,000 till the end of 2039. It shows that the city will observe huge investment and employment opportunities in the housing field as new house construction projects will have to be started. These kinds of activities are always highly critical to boost and develop a local economy with existing available resources.

    Edinburgh city has various areas, which are not that much explored and if the tram line goes through those areas, it will be a new beginning for them. The project was expected to have more than £165m if the new extension is completed with all its relevant plans and activities. In recent times, it has been estimated that Edinburg will be one of the fastest-growing economies in the UK, and the new extension of the tram line will come up with huge construction projects (JAMES, 2017).

       The construction of the houses, as well as tram line, will have more on-site construction jobs, where labor and other engineers will get the job. The direct employment is not the only thing to happen; rather the city will have more induced as well as indirect employment opportunities. The indirect employment and business opportunities will come across because new construction will need so many resources and equipment which will be purchased from the nearby markets. The local construction work suppliers will have a great opportunity to work with this project and earn some handsome profit and revenues. The new earning and income in any area mean that local spending of that earned money will also increase, which is another positive sign for the local businesses. It means that the overall business arena will have more buzz as well as opportunities. These are just short term effects, and tram extension will have long term effects as well like creating some permanent employment and business opportunities. For instance, new drivers, technicians, maintenance, engineers, and support staff will be needed (Cambridge Econometrics, 2001).

      If the cost-benefit analysis is done to see the positive effects of the tram extension, it was estimated in the economic forecast of the project that each spends £1 is going to deliver the benefit of around £1.60. So, the benefit to cost ratio is looking very much positive for the economy. It also means that income spending will increase in the city and its benefits will be observed in almost every sector of the city from small to large businesses as well as the housing sector. The citizens of the city will have more access to fast and reliable transport to reach any area of the city or to their jobs. The number of passengers will increase every year once the Tram Extension project is completed. It will continue to have various positive effects on the economy. The City Council has to realize all of these benefits so that they can consider these benefits to make sure that the Tram extension project is completed, even if it faces various issues.

Conclusion of Edinburgh Tram Extension

               It can be concluded in the end that the Edinburgh Tram Extension project is going to be a great one for the city in so many ways. It is going to be a huge booster for the local economy as it will not only create short term jobs but long term employment opportunities as well. The new construction will open more jobs as well as business opportunities for the local suppliers to fulfill the demands of the project. The business activity will increase in the area and housing projects will also be started to fulfill the requirements of the growing population.

Recommendations of Edinburgh Tram Extension

Some recommendations for the Edinburgh Tram Extension project are as mentioned below:

· The policy-makers and relevant officials should able to consider the benefits that this project offers to boost the overall economy of such areas

· The contractor, engineers, along with all the professionals that involve in the Edinburgh Tram Extension project must able to make a good presentation to convince the society, policy-makers, and relevant officials in the areas about the benefits that offered by this project such as long term employment opportunities

· The contractor along with the financial experts which involve in the Edinburgh Tram Extension project should able to make the project to be cost-effective to more convince the public and policy-makers

References of Edinburgh Tram Extension

Cambridge Econometrics. (2001). Socio Economic Effects. Retrieved October 31, 2019, from http://external.parliament.scot/S2_Bills/Edinburgh%20Tram%20(Line%20One)%20Bill/chapter12.pdf

JAMES, P. (2017). Edinburgh Trams May Get £165m Newhaven Extension.

Retrieved October 31, 2019, from https://scottishfinancialreview.com/2017/08/09/edinburgh-trams-may-be-extended-to-newhaven/

MacLeod, P. (2019). Edinburgh is extending its widely loathed tram network.

Retrieved October 31, 2019, from https://www.citymetric.com/transport/edinburgh-extending

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