A research project from the United States Conference of Mayors discusses the economic impacts of high speed rail in cities, citing that rail growth will create Chicago transportation jobs.

According to the report, which was sponsored by Siemens, four cities, Chicago, Los Angeles, Orlando, and Albany were selected to represent metropolitan areas impacted by planned High-Speed Rails. In all four cities, the introduction of high-speed rail services will significantly increase jobs, wages, business sales, and value-added Gross Regional Product. Results particularly point to an increased economic payback when intercity travel time is under three hours.

The potential long-term economic impact of proposed high speed rail service will grow over time as service is fully implemented and savings in travel are realized.

According to the NYTimes, who analyzed the report’s findings, a Chicago high-speed rail network connecting to Minneapolis, St. Louis and other areas would create $6.1 billion per year in new business, according to the report. This includes a $3.6-billion-per-year increase in gross regional product and 42,000 new jobs.

The numbers are comparable to the economic revitalization seen in Europe and Asia when they got their high-speed rail systems, Hauck said.

“We are planning for the future,” said Fitzroy of the Economic Development Research Group. “We have to be competitive on a global scale and be able to move from city to city without relying on fossil fuels.”

Continental and United Airlines have agreed to merge, which many say will result in the loss of hundreds of airline jobs in Chicago and in other parts of the United States where Continental has established hubs (click here).

A formal announcement will come on Monday.

According to Chron.com, the carrier will be based in United’s home of Chicago and take United’s name, the sources said. Jeff Smisek, chairman, CEO and president of Houston-based Continental, will be CEO of the merged carrier and he will have offices in Houston and Chicago, they said.

United’s CEO Glenn Tilton will become non-executive chairman until Dec. 31, 2012, or on the second anniversary of the closing of the deal, whichever is later. Then Smisek takes the helm as chairman.

The deal — which had earlier bogged down over price — will be an all-stock swap. Continental shareholders get 1.05 United shares for each Continental share they own.

That values the deal at about $3.2 billion, based on Friday’s closing share prices and the latest publicly available outstanding shares. United’s shareholders will own a 55 percent stake in the merged company with Continental’s shareholders holding the remaining 45 percent.

Houston is expected to be the largest hub of the combined carrier and continue to be its gateway to Latin America. Continental employs 16,500 people in Houston and the sources said it should remain a top private employer in the city.

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Chicago’s O’Hare Airport has received $410 million in federal funds to complete a modernization plan, a move that will spur on the creation of Chicago transportation jobs.

The plan has created a lot of controversy in the Chicago area.

To detract from the controversy, public officials have pointed to the importance of job creation spurred on by the federal funds.

The O’Hare Modernization Program has faced numerous obstacles including a lawsuit filed by the Village of Bensenville about land acquisition, and a public relations debacle involving relocating graves in St. Johannes Cemetery to make way for new runway construction. The suit was settled in November.

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According to an analysis conducted by the Chicago Tribune, Chicago Transit Authority workers get some of the highest wages in the U.S. for transportation jobs in Chicago (click here).

The study found that at $28.64 an hour, the top wage rate for Chicago Transit Authority bus drivers ranks third-highest among U.S. transit agencies.

CTA bus drivers trail only their counterparts at two transit agencies operating on opposite coasts.

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More transportation jobs in Chicago could soon be created because of a railroad deal.

Canadian National Railway recently won the right to purchase EJ&E Railway from the U.S. Surface Transportation Board.

On the up side, the Chicago Metropolis 2020 has estimated the project could create 600 new jobs, a welcome notion while other jobs are being cut, and add $60 million to the local economy each year, while 80 communities will see a reduction in rail traffic. On the down side, according to an article by the Chicago Tribune, the sale will result in increased rail traffic Waukegan, Barrington, Aurora, Joliet and east into Indiana.

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