New York City Comptroller has called the US Department of Transportation to immediately explore taking over NYC Ferry, raising concerns on transparency and fiscal responsibility, as a result from the Economic Development Corporation’s contract with a private operator.
The Economic Development Corporation’s contract with NYC Ferry operator Hornblower raises serious questions about the exploding costs and liabilities that the City is choosing to absorb, all while handing over millions in revenue to a private contractor – questions that to-date have not been sufficiently answered,
…said Comptroller Scott Stringer.
Launched three years ago, NYC Ferry serves more than 4 million passengers annually along six routes, with plans to add two additional routes by 2021 and reach 9 million riders by 2023.
We must do better. That’s why I’m calling on the city Department of Transportation to immediately explore taking over NYC Ferry. This has the potential to improve efficiency and public savings across the board – capitalizing on DOT’s experience running the Staten Island Ferry, eliminating administrative redundancies, allowing the City to keep all fare box and concession revenues, and providing a level of budgetary and operational transparency that EDC has to-date refused to provide. Given all of these potential benefits, DOT should examine the feasibility of such a takeover as soon as possible,
…clarified Comptroller Stringer.
According to the non-profit Citizens Budget Commission (CBC), to date, NYC Ferry has required a high level of subsidy: At $10.73 per ride, its operating subsidy is 10 times that of the New York City Transit (NYCT) system. Furthermore, NYC Ferry transports fewer people annually than the subway transports in one day.
The ferry’s subsidies are high for two reasons: Its operating costs are high due to long routes and seasonal and leisure-oriented ridership, and its revenue is low because its fare is pegged to subway and bus fares,
…CBC explained.
The recently announced expansion of NYC Ferry service will require even greater public subsidies—reaching as much as $24.75 per ride for the Coney Island route, the Commission noted.
Before an expansion of service is implemented, City officials should reconsider the policy choices that contribute to the high subsidies, evaluate options that would reduce the level of subsidy, and consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively.
