Will NYC Congestion Toll Take a Bite Out of Big Apple Businesses?
In December, Progressive Grocer spoke with Margaret Magnarelli, VP marketing and communications at Baldor Specialty Foods, about the company’s efforts to organize a coalition of 100-plus food distributors, trade groups, wholesale markets, food banks, restaurants and other foods to push for an exemption. “The reality is that 99% of the food served and sold in New York City comes from outside the congestion zone – and it can’t come in by subway or bus. So retailers will experience the impact of congestion pricing directly (on their own trucks) or indirectly (in cascading food pricing),” she explained at the time.
This week, PG talked with Burt P. Flickinger III, managing director of New York City-based Strategic Resource Group (SRG) about the tolls. His firm recently worked on a study commissioned by the National Football League on the fallout from the pricing changes. “The irony of the whole thing is that it is a politically created problem that politicians are trying to make businesses and people pay for,” he said, citing traffic lane layouts that have contributed to street congestion.
“It is going to be commercially crushing for commerce, including retail. Some of the food companies have trucks with drivers who go in and out of the zone 12 to 20 times a day,” Flickinger continued, adding that consumers are likely to be caught up in the ripple effect, too. “A lot of people come in to go to Broadway shows, sports and other events. Now, people on fixed, limited or lower to middle incomes are economically boxed out beyond the four boroughs. Even before the toll went into effect, 70% were living paycheck to paycheck.”
Janno Lieber, chair and CEO of the Metropolitan Transportation Authority in New York City, said in a Jan. 1 press conference that the program will have certain growing pains. “This is a toll system that has never been tried before in terms of complexity. We don’t expect New Yorkers to overnight change their behavior. Everybody’s going to have to adjust to this,” Lieber declared.