Two state economic boost: Coalfields Expressway could bring billions to W.Va., Va.

Dec. 9—LEBANON, Va. — A proposed highway crossing Southwest Virginia and southern West Virginia could give both states an economic impact measured in billions of dollars over the next 50 years, according to the Virginia Coalfields Expressway Authority Board.

The cumulative economic impact of the Coalfields Expressway (CFX) during a 50-year span is estimated to be $12.8 billion in 2021 dollars, according to a study about the proposed roadway presented to members of the Virginia Coalfields Expressway Authority Board.

The study, performed by Chmura Economics & Analytics in Richmond, Va., was conducted at the request of the Virginia CFX Authority and the Virginia Coalfield Economic Development Authority (VCEDA) and built upon a prior study conducted by Chmura in 2013. What the new study found was that while 2021 estimates are that the completed roadway in Virginia will cost $3.1 billion, each dollar of investment in the CFX can result in $3.10 in economic impact in the two-state corridor during its life span.

The Coalfields Expressway, designated as U.S. Route 121 and a Congressional High Priority Corridor, is a proposed limited-access highway to provide a modern, safe and efficient transportation artery through the coalfield region of far Southwest Virginia and southern West Virginia.

"As far as the VCEDA is concerned, we view it as critical," said Jonathan Belcher, the VCEDA's executive director. "We're going to use (report) for marketing purposes to show what is in the works even though it is not completely constructed."

West Virginia has made significant progress on its portions of the Coalfields Expressway; however, Virginia has no sections of the Coalfields Expressway funded or under construction except for a shared section with U.S. 460 in Buchanan County, Belcher said. Virginia provided no mechanism to fund the Virginia Coalfields Expressway Authority when it was created in 2017 and it also remains unfunded. The VCEDA provides staff support for the Virginia CFX Authority.

The presentation of the Chmura study was made during a meeting of the CFX Authority board in Lebanon, Va. In the report, it was noted construction of the CFX is anticipated to inject an annual average of $225.4 million in total economic impact (direct plus ripple impacts) into the local economy from 2013 through 2038. Construction, the study found, will also generate 1,543 jobs each year during that period, Belcher said.

Belcher stated that the VCEDA plans to show the economic impact report to leaders on both the state and federals levels so they can see how important the Coalfields Expressway is to the region. The idea for a study came when the VCEDA was discussing the project with legislators. Legislators including Sen. Travis Hackworth, R-Tazewell; staff representing U.S. Rep. Morgan Griffith, R-9th District and staff representing U.S. Senator Tim Kaine, D-Va. attended Tuesday's meeting either in person or by Zoom.

The one-time economic impact of construction of the Coalfields Expressway is expected to reach $5.9 billion in the corridor from 2013 to 2038, the study showed. Of this total, the study noted, $4.1 billion will be in direct construction spending that can support 26,246 cumulative jobs in the CFX Corridor from 2013 to 2038. The cumulative ripple effect (indirect plus induced) of capital investment can generate $1.8 billion in spending and 13,859 cumulative jobs in the Corridor, the study found. The cumulative direct and ripple effect of this construction spending therefore can support a grand total of 40,105 jobs, according to Chmura's report.

"After the completion of CFX, both existing businesses and residents can benefit from the highway," according to the study. "CFX can help improve travel efficiency and provide cost savings. The total user benefits are estimated to reach $89.2 million in 2039."

The study projected the most immediate new service businesses to result from the roadway will likely be clustered around access points along the route. The businesses, the study projected, will serve both motorists and local residents, Belcher said. Chmura estimated a total of 79 service businesses can be supported by the CFX in 2039, generating an annual economic impact of $151.9 million and creating 1,236 jobs in the CFX Corridor.

The study also projected state and local governments in the two-state region will have considerable fiscal benefits, with the project's completion bringing with it $7.8 million in 2039 in sales tax, corporate income tax and individual income tax on an annual basis, Belcher said. Local governments in the CFX Corridor, the study projected, will receive annual tax benefits totaling $1.8 million in 2039 in the form of local taxes.

Travel time savings are also estimated and include on average, significant time savings for businesses and residents traveling the entire length of the road, Belcher said. Time savings can reach 49 percent in Virginia and 50 percent in West Virginia once the roadway is constructed, the study projected.

Belcher said the hope is that the economic impact report will keep the project's momentum going. To realize the Coalfield Expressway's economic impact, it must be completed in both Virginia and West Virginia. The possible $12.8 billion economic impact encompasses both states.

The study concluded by noting that the Coalfields Expressway will benefit mining, manufacturing and agricultural businesses by providing easier access to markets. The presence of an interstate highway can also increase the appeal of the region to expanding and relocating firms, Belcher said. The study projected that the CFX will also have a positive effect on population and tourism growth, as well as improving quality of life in the region.

A copy of the study may be found on the Virginia CFX Authority webpage at www.vceda.us/cfxauthority.

— Contact Greg Jordan at gjordan@bdtonline.com

Contact Greg Jordan at gjordan@bdtonline.com