Over the last few years, New York City’s ferry system has been going through a tough time. And the fact that a new five-year contract has just been renewed at a cost well beyond the revenue it is expected to generate only worsens its position. Hornblower, the private company from San Francisco that has been co-managing the Staten Island Ferry since 2017, together with the city’s Economic Development Corporation, will be paid $405 million to restore NYC’s aquatic transit.
The old contract was about to expire next month. Finalized on Tuesday, this renewal aims to cut costs and “re-brand the system” by investing in “a corporate sponsor name”, as the city’s ECD communicated. Hornblower will receive around $125 million to cover fleet maintenance and the rest will be earmarked for the costs of labor, fuel and other supporting fees. Ferry services and accessibility will be improved, with on-board free WiFi and better real-time updates and scheduling information for passengers.
But the revenue foreseen by NYC’s agency is over 2.5 times smaller than the value of this contract: they predict taking in only $160 million from ferry fares, advertising and concessions, and something more from public grants and concessions.
Single-ride fares have already been bumped up from $2.75 to $4 and subsidies per passenger are on a downward trend, since the Ferry Forward was released in July 2022. But they are not enough to cover all the expenses. So “the difference is made up with public funding”, EDC spokesperson Jeff Holmes said.
