Rebuilding Place in the Urban Space

"A community’s physical form, rather than its land uses, is its most intrinsic and enduring characteristic." [Katz, EPA] This blog focuses on place and placemaking and all that makes it work--historic preservation, urban design, transportation, asset-based community development, arts & cultural development, commercial district revitalization, tourism & destination development, and quality of life advocacy--along with doses of civic engagement and good governance watchdogging.

Monday, October 07, 2019

New York City Ferry subsidies: it's obvious it should be repriced upward as a premium service

The fact that the New York City Ferry service, the only transit service operated by the City of New York, is priced the same as a single fare on the subway or bus, but the cost to provide each ride is significantly higher, is getting renewed media coverage.

According to Politico New York, based on a study by the Citizens Budget Commission, NYC has the second highest subsidy for ferry trips, surpassed only by New Orleans ("Should New York City charge more to ride the ferry?" ), but that's because NYC's fare is many dollars lower than peer systems.

-- "How the NYC Ferry could work: Experts weigh in on how to improve the city’s ferries without scrapping them," City & State
-- "NYC Ferry mostly used by white, well-off New Yorkers, city data shows," New York Daily News

The obvious course of action is to charge more, recognizing it is a premium service. But this is one more issue that Mayor DeBlasio is obstinate about and so far he refuses to acknowledge the reasonability of charging more.

I wrote about this, but as part of another entry, in 2018:

New York City is expanding the ferry system ("NYC Ferry service is getting a major expansion," Time Out) which is the only element of the transit system controlled directly by the city.  They'll be adding two routes, and three new vessels each with a capacity of 350 passengers, compared to the 150-person capacity of each boat in the 17 boats in the current fleet.

Commuter Emily Mueller enjoys a drink at the ferry bar on her way home to north Brooklyn on the evening ferry. Village Voice Photo: David Williams.

Before the recent agreement by Mayor DeBlasio to fund a lower cost transit pass for low income residents, advocates criticized the transit focus on ferries as helping the well off, especially because under mayor DeBlasio, the ferry fare is equal to the subway fare,$2.75, making it heavily subsidized.

From the Village Voice article "Foamland security: ferry riders say DeBlasio's subsidies spare them subway trauma":
Ferry riders are, by and large, higher-income New Yorkers taking advantage of subsidized ferry rides to avoid subways and buses — not because it’s a faster commute, but because of the ferry’s creature comforts such as elbow room, concessions, alcohol, WiFi, and the fresh sea air.

“The time factor has nothing to do with it for me,” explained J. Scott Klossner, a 53-year-old freelancer currently working for the Today show who takes the Rockaway route, even though it adds almost 45 minutes each way to his commute.

“I can get a coffee, a bagel, everyone is nice. The opposite is true of the A train: Everyone is a fucking asshole.”
London as a counter example: pricing ferry commuter rides as a premium service.  On my walking tour of London with former TfL official Ivan Bennett, we talked about the ferry services there, called the River Bus.

In planning for river  transit, TfL differentiates between commuter transportation and tourist services.

-- TfL River services
-- London River Services map and guide, Tfl (speaking of branding, it uses the same design style as other London transit services)
-- London River Services map, 2018

Ferry trips on the Thames tend to be slower than rail, but nicer, with coffee service and newspapers. Ivan argues that they should be marketed and priced as premium services, with the extra revenues used to support other aspects of the transit system.

And in London, they are.

(By contrast, most ferry fares in other places fares are higher too, but the services aren't necessarily marketed as premium.  But there is a recognition that water transit costs more to provide, but it's worth paying more because it may be the only option because there aren't bridges to the mainland, or it is less congested compared to bridges, etc.)

That seems like a sensible approach for pricing ferry/water taxi service in London and elsewhere.

While the individual fare for ferry service in London is higher than riding the Underground--2x to 4x higher than a single fare, they've slacked off raising River Bus fares, and because of the Crossrail cash crunch, expansions to the system have been delayed.

Past writings on water-based transit include:

-- "Metrorail shutdown south of AlexandriaNational Airport would have been a good opportunity to promote ferry service," 2019
-- "Instead of a third Chesapeake Bay Bridge, why not start out with a fast ferry from Rock Hall to Baltimore?," 2018
-- "Implementing transit services (water taxi) before the market will support them," 2017

Changing minds: Ken Livingstone, former Mayor of London versus most politicians, including Bill DeBlasio. In talking with Ivan about London's use of articulated buses instead of double deck buses, I wondered why they wanted to use articulateds, because double deck buses are so signature to London's identity. He said it was because there is only one entry door on a double deck buses, and to reduce bus dwell time, they wanted multi-door entry and exit.

Livingstone wasn't favorable, but as Ivan said "He listened [taking in what people said and then actually considering it}" and he changed his mind, based on the recommendations of the transit planners.

(In the vein of successors countermanding the decisions of predecessors, Boris Johnson made the decision to remove articulated buses from the London bus fleet.)

Many politicians don't listen, let alone consider what's been said and change their minds.

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5 Comments:

At 10:35 PM, Blogger Richard Layman said...

https://www.crainsnewyork.com/letters-editor/memo-critics-nyc-ferry-responded-pandemic-taxpayer-savings-and-service

5/21/2020

includes links to other articles

 
At 10:49 AM, Blogger Richard Layman said...

Really great article on the state of ferry planning in the Puget Sound. Lots of places want ferry/water taxi service, but the likelihood of realizable demand is low, and the costs--ships and piers--is high.

"A new walk-on ferry will cruise from Des Moines to Seattle" 8/8/2022

https://www.seattletimes.com/seattle-news/transportation/a-new-walk-on-ferry-will-cruise-from-des-moines-to-seattle/

 
At 10:56 AM, Blogger Richard Layman said...

https://nypost.com/2022/07/08/eric-adams-should-stop-paying-for-deblasios-nyc-ferries/

"De Blasio saddled NYC with a money-sucking ferry system — and Adams should stop paying for it "

https://nypost.com/2022/07/06/ex-mayor-bill-de-blasio-cooked-books-to-hide-224m-in-nyc-ferry-outlays/

Former Mayor Bill de Blasio used accounting gimmicks to hide nearly $225 million he poured into the city’s costly ferry system — and forced taxpayers to shell out as much as $14.57 for each ride as overwhelmingly wealthy passengers paid just $2.75 a piece.

 
At 6:20 PM, Blogger Richard Layman said...

https://www.bloomberg.com/features/2026-nyc-ferry-fame

New York City’s Hottest Transit Mode Is a Boat
The city-run fleet of ferryboats is seeing a surge of riders — and social media fame — as it tries to navigate NYC's challenging commuting landscape.

And as other public ferry systems around the US struggle to recover post-Covid ridership and fight for federal funding, NYC Ferry is using its social media clout to convey this transit mode’s more intangible value: It’s fun.

“One of the things that really differentiates us as a transit system in New York is how personable it feels,” said Franky Ponce, the ferry’s social media manager. “Quite frankly, I think a lot of it, too, is the views are just so good.”

Running the ferry through EDC had another advantage: Rather than relying on state and federal transportation funding, or elbowing its way onto the city budget each year, the nonprofit had its own pool of cash. It could use some of the extra revenue it generated from the rental properties it managed on the city’s behalf to cover ferry operations. “There was more freedom of maneuver with EDC,” the former mayor said.

This model also set NYC apart from typical US public ferry systems, which rely heavily on farebox revenue or bridge tolls, along with state and federal support. The San Francisco Bay Ferry, for example, gets more than 70% of its operating revenue from tolls, another 20% from fares and the rest from state and local sources. “I would dream of having the funding structure that NYC Ferry does,” said Lauren Gularte, who manages government and regulatory affairs for the San Francisco Bay Ferry and chairs the national Public Ferry Coalition.

Indeed, the boat service has been both thanked and blamed for boosting waterfront housing prices. Research has shown that while property values near ferry landings rose after the launch of NYC Ferry, these stops also tend to be slated for areas that are already experiencing economic growth.

Another key to the turnaround plan was to lean into the ferry’s secret weapon: being a remarkably pleasant way of getting around. As one TikTok video put it, “NYC Ferry is essentially a public yacht that goes from island to island.”

EDC decided to reassess fares accordingly. It increased the cost of a one-way ticket first to $4, and in the fall of 2024, to $4.50. Specialty trips, like summer service to Rockaway Beach, offer $12 premium fares with reserved seats and priority boarding. The system still offers a 10-trip value pack for $29, which comes out to ten cents less than a subway swipe after the MTA’s latest fare hike. Students, seniors, and people with disabilities qualify for additional discounts.

The idea is to keep costs low for commuters while capitalizing on the fact that non-commuters, tourists and joyriders make up nearly two-thirds of passengers, according to EDC’s latest survey from the fall of 2024. “Our lived experience is that yes, commuters rely on this every single weekday. But I’m not going to pretend that we don’t also have a lot of people who are here for a recreational visit,” Wong said. “We’re willing to let people who are riding for more of a recreational trip pay more.”

 
At 6:20 PM, Blogger Richard Layman said...

By many metrics, all these post-pandemic efforts to “right the ship,” as Wong put it, are working. NYC Ferry is now the third-largest municipal ferry system by passenger volume in the US, trailing only the free Staten Island Ferry and the Washington State system (which also carries cars). And while those systems haven’t yet recovered their pre-pandemic ridership, the 7.4 million passengers NYC Ferry carried last year represents a gain of over 30% since 2019. (The system still hasn’t reached the 11 million annual riders projected pre-pandemic.)

Though operating costs have gone up due in part to rising fuel prices, the system has still been able to push down the per-rider subsidy to $8.33, according to EDC’s latest figures. As of 2024, the last year with comprehensive national data available, NYC Ferry had the lowest subsidy of any major municipal passenger ferry in the US. The EDC’s goal is to reduce it by another dollar by 2028.

Reflecting on NYC Ferry’s impact so far, former mayor de Blasio said this first decade has just been “act one.”

The waterfront is hotter than ever: Red Hook is poised for an EDC-led redevelopment, and neighborhoods like Greenpoint and Williamsburg just keep growing. New landings are planned for East Harlem and Sunset Park, and in late April, a group of city lawmakers proposed adding service from West Harlem to accommodate World Cup fans heading to MetLife Stadium in New Jersey. EDC said it appreciates the proposal and “will evaluate it thoroughly.”

 

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