This may be less true if you happen to live/travel on one of the miles in question.
Economic productivity is not linear with the number of jobs.
More jobs is not automatically better when the actual productive output (ie. moving x containers from A to B) is the same.
In fact, it could be argued that it is less efficient to employ more labour than necessary. The only contra-argument that remains viable is if the cost of capital (additional railway infrastructure and, where necessary, additional rolling stock in this case) will be (or be likely to be) more than the cost of additional labour.
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It is one of the most important freight lines in the UK. It is also patently fit for purpose as such. It is well to remember that Hutchinson Port have a planning commitment to double most of the branch, which they have consistently tried to get out of for at least 7 years.
Perhaps it is time to lobby Hutchinson Port to honour their obligations. They could also be persuaded that OLE is in their best interests, given competition from London Gateway.
Playing Devil's advocate, the branch could accommodate all the freight traffic forecast with the planned expansion of the port if the Felixstowe passenger service was turned peak only. So what is better for UK plc (or even Suffolk plc) - spending upwards of £50m to, effectively, enable a continued hourly passenger service on the branch off peak, or spend practically nothing by asking the passengers affected to get the bus? (Which for most journeys is actually quicker and more convenient, according to the locals I know up there).
Firstly, rail is superior to road for passenger travel both in terms of efficiency and safety - it is not much fun having to travel out-of-town to get a train when there is perfectly good infrastructure in the town. Secondly, the Felixstowe locals will not like Hutchinson Port very much if they lose their local train service for little gain.
Thirdly, a logistical issue - maximum booked traffic and disruption due to an issue elsewhere on the railway network will leave the Port vulnerable to disruption. Given the competition in the greater Thames Estuary ports market, this may be another reason why Hutchinson Port should consider dualling of the track to be in their best interests.