Research Problem and Background

The New Jersey Department of Transportation is soliciting proposals for a study that will quantify the economic and congestion-relief benefits from transit service to recreational activities in three specific market areas. Transit service to these market areas is provided by NJ TRANSIT.

New Jersey residents use the services provided by NJ TRANSIT for various purposes. While a large proportion of the system’s customers use commuter rail, light rail, and buses for commuting purposes, many also take advantage of the system’s expanse to participate in recreational, sporting, and cultural activities at beaches, amusement parks, performing arts centers, stadiums, and arenas. The proposed study will quantify the economic and congestion-relief benefits attributable to public transportation pertaining to recreational activities in New Jersey by focusing on three specific market components served by NJ TRANSIT. These three market components are: (a) the Prudential Center arena in downtown Newark, (b) the communities served by the North Jersey Coast Line (NJCL) between Red Bank and Bay Head, and (c) the communities served by the Philadelphia-Cape May bus service with an emphasis on the Wildwood/Cape May area.

The Prudential Center, a multi-purpose indoor arena with more than 18,500 seats, is located in downtown Newark (see Figure 1). It was completed in October 2007 at an estimated cost of $375 million, shared between the City of Newark and the New Jersey Devils of the National Hockey League (NHL), with a 20-year naming-right contribution from the Prudential Financial Incorporated. In addition to NHL games involving the Devils, the arena hosts regular NBA basketball games involving the New Jersey Nets, NCAA basketball games involving Seton Hall Pirates, and various other sporting and cultural events, including concerts, family shows, special events as well as other professional, collegiate and amateur sporting events. Although the New Jersey Nets will move to Brooklyn Borough of New York City after the current season, there is speculation in the media that another NBA team may move to the Prudential Center in the near future. Several bars/lounges as well as nine concession stands are located in the arena building, in addition to the 350-seat Acela Club restaurant. In addition, the team store for the New Jersey Devils, called the Devil’s Den, and other satellite team stores are located inside the Prudential Center.

The Prudential Center is easily accessible by multiple modes of public transportation. Although the arena is surrounded by more than 3,500 parking spaces and connected to New Jersey Turnpike, I-78, I-280, and Route 1/9 by Route 21 (McArthur Highway), a large proportion of sports fans and concert goers use public transportation to attend events. The primary reason for the high usage of public transportation by the event goers is the close proximity of the arena to Newark Penn Station, a multi-modal transit facility served by NJ TRANSIT trains and buses, PATH trains, Newark Light Rail, and Amtrak. The station, which directly connects Manhattan and many parts of New Jersey, is only two blocks away from the arena. Furthermore, it takes only about 15 minutes to walk to the arena from the Newark Broad Street Station, which is served by a number of commuter trains from northern New Jersey. In contrast to the ease by which one can access the arena by public transportation, driving to the arena is difficult due to perpetual congestion on major arterials leading to downtown Newark, including McArthur 2 Highway, Raymond Boulevard, and Broad Street, and local streets such as Market Street and Ferry Street.