B-c Logistic projects to export
As we have previously seen, the president qualified Le Have
harbor as the main access of Paris to the sea. Indeed, one agency Antoine
Grumbach & Associes has titles its project «Seine Metropole Paris
Rouen Le Havre»115.
The agency has thought about a development between Paris and Le
Havre harbour in order to increase the competitiveness regarding the exports
and imports costs. In this project, the creation of a high speed train to
connect the two areas and also the creation of different river ports would be
the solution
112 Ibid, P.P 117
113 Sourced by Juan Pablo Bocajero, « Evaluation
économique de l'impact des politiques publiques liées à la
mobilité, le cas de Paris, Londres, Bogota et Santiago »,
Université Paris Est, 2008, P.P 36
114 Saurav Dev Bhatta, Matthew P. Drennan, «The Economic
Benefits of Public investment in Transportation», P.P.289
115 Atelier Castro/Denissof/ Casi, Le Grand Pari(s), Consultation
internationale sur l'avenir de la métropole Parisienne, P.P 125
to increase the exchanges between the companies located in Paris
and Le Havre as the economic growth generates by this project will increase the
number of companies present in this area.
As the president mentioned, the agency also placed
Achères harbour at the centre of the fluvial policy. Indeed the
connexion in Paris Ile-de-France to Le Havre Harbour would be located in
Achères, because of the town location on the Seine and Oise rivers.
Achères would become the Parisian logistic headquarter by stocking all
the products coming from or going to Le Havre harbour by train or by ship,
moreover its location would permit to be controlled by La Défense which
could become the logistic decision centre on an European
scale116.
The purpose of the development of High speed line will also be
to connect it to the existing European High speed network in order to help the
exports from Le Havre harbour to the rest of the continent. Because of the
development of this line, station as La Défense could become important
TGV station, the line Paris-London could be doubled by having TGVs passing by
Amiens and Cergy-Pontoise117. According to the estimation of the
agency, Le Havre-Paris journey would represent 1 hour thanks to the TGV.
The road projects aim to propose public transports on the high
ways, in order to ensure the network development in this area. Because of the
fluvial projects, the roads will not be the main way use by the companies to
ensure their deliveries, as it is considered as less eco-friendly and more
expansive118. Indeed A13 highway between Paris and Le Havre could be
transformed by creating new delivery relays: individuals could go to these new
centres and pick up products they ordered119.
The challenge for Paris in this case would be to become the main
gate of Europe to the Atlantic Ocean, in order to compete with the Northern
cities of Europe (Rotterdam).
The following map shows the project of connexion between Paris
and Le Havre harbour.
116 Michèle Leloup, Marion Bertone, « Le Grand Paris,
les coulisses de la consultation », 2009, P.P38 117Ibid, 2009,
P.P38
118 Atelier Castro/Denissof/ Casi, Le Grand Pari(s), Consultation
internationale sur l'avenir de la métropole Parisienne, P.P. 139
119 Michèle Leloup, Marion Bertone, « Le Grand Paris,
les coulisses de la consultation », Archibooks, 2009, P.P38
120Figure 13: Connexion plan between
Paris and Le Havre Harbour
According to the agency analysis, this project would lead to
different impacts. First, it would emancipate Paris from the Rhine river, by
developing the interdependence with La Seine river, which would permit the use
of a French harbour.
The second point made by proposing this project would be an
expansion of Paris toward Le Havre through Rouen. Indeed it would ensure
existing industries, and would permit the development of new industries in this
area. The connexions of these industries with Paris will be done by La Seine,
and these industries will be able also to export easily their productions to
foreign countries through Le Have Harbour121.
Hypothesis 2: Transport investments will be the main
improvements on the economy
By analyzing the theoretical investment of the Greater Paris in
transportation, we can understand how important will be its effects on the
regional economy.
Savrav Dev Bhatta and Matthew P.Drennan have listed six possible
economic benefits from a public investment in transportation:
1- «Increase in output;
2- Increases in productivity (output per unit of output)
3- Reduction in costs of production
120 Michèle Leloup, Marion Bertone, « Le Grand Paris,
les coulisses de la consultation », 2009, P.P129
121 Atelier Castro/Denissof/ Casi, Le Grand Pari(s), Consultation
internationale sur l'avenir de la métropole Parisienne, P.P. 130
4- Increases in income, property values, employment and real
wages
5- Rate of return equal to or greater than the social costs of
capital
6- Reductions in non commercial travel time, improved access,
improved quality of life»122
Researches have been conducted in order to demonstrate these
points. Indeed by using statistics and the linear regressions methods, it
became possible to show the correlation between public investments and measure
this impact (negative or positive impact and the scale of the impact).
Acording to the research, there is an increase of output
measurable by gross state product (GSP), private GSP or manufacturing output.
Conrad and Seitz (1994) have used different highways, rail, mass transit and
airport to measure the public capital, and measure the economic benefit with
the output in three sectors of Western German economy. The results found out
were an increase of the output and productivity, and a reduction of the
costs123.
Nevertheless, the effects of a public investment will have
only a local effect. Indeed, Boarnet confirmed the positive effects of a
highway on the private sector output in a region. He also showed that this
highway will have an indirect impact on the neighboring regions, and a negative
significant effect on private sector output124.
Alicia Munnel has found out a correlation in 1990, concerning
the relation between public expenditures and productivity. Indeed, the author
has shown that some investments have a strong relationship on the output of
firms: transportation, water, gas and electricity are the most correlated
factor to the productivity. Indeed her findings imply that a 1 percent increase
in public (or private) capital will increase output by 0.35 percents. The
author also mentioned that even public investments with a correlation
statistically less significant on the productivity (as hospitals or schools),
have still an important impact on the efficiency of the workers (more educated
and healthy)125.
The public investments also have an impact regarding the cost
of production. Indeed, Bhatta listed nine researches showing a correlation
between public expenditure and cost reduction, with an
122 Saurav Dev Bhatta, Matthew P. Drennan, «The Economic
Benefits of Public investment in Transportation», Journal of planning
education and research, 2003, P.P.289
123 Conrad,K. and H. Seitz, «The economic benefits of public
infrastructure», Applied Economics 26, P.P 3303- 311 sourced by . Saurav
Dev Bhatta, Matthew P. Drennan, «, The Economic Benefits of Public
investment in Transportation», P.P. 290-292.
124 Boarnet M.G., « The direct and indirect economic effects
of transportation infrastructure», University of California Transportation
Center , n°340, 1996 P.P. 12
125 Munnell, A.H., « Why has productivity growth declined ?
», New England Economic Review, 1990, P.P. 17
elasticity of -0.05 to -0.21 which concretely means a decline of
0.05 percents to 0.21 percents of the costs production for an increase of 1% of
the public investment126.
Haughwout showed a correlation regarding house values and
public investments in highway. Indeed, he found out a negative effect of the
public investment expenditure regarding in Highway regarding the house values.
Haughwout even specified that houses values located in the city centers will
suffer more that houses located in the suburbs, as they do lost their location
advantage127.
As we have seen, many advantages have been shown off with all
these different studies. It is also important to see the quantified profits to
the society of these policies. Different authors have worked on research to
quantify the rate of return on public capital. Nadiri and Mamuneas have
estimated a rate of return range from 4.9 percents to 7.2
percents128. According to the statistics, and regarding to our
context, an investment of €30 billion Euros (budget to build new
transports and improve the existing structures) this would represent an
estimated return of €1.47 to €2.16. Also as previously mentioned, an
investment of €22 billion of Euros just to create the new automatic public
transports infrastructures in the Grand Paris project, would generate 690800
jobs, and companies affected by this project would gain €66 billion in
sales, and the users would save €33 billion.
All these studies show how public/private investments in
public transport could affect the Parisian (and Norman) economy. To conclude
the hypothesis 2, we can say that yes, transport investment will be the main
improve of the region regarding the project because of the results possible and
expected.
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