RCWP McCandless

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UNDERSTANDINGTHECHALLENGES

OFREGIONALFERRYSERVICEINNEWYORKCITY

PatrickMcCandless

JUNE2010


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UNDERSTANDINGTHECHALLENGESOFIMPLEMENTINGFERRYSERVICEINNEWYORK

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TableofContents

INTRODUCTION 5

PROLOGUEANDTHESIS 5GOALSANDMETHODOLOGY 8INTERVIEWS 8

CHAPTER1:FERRYSERVICEINTHENEWYORK/NEWJERSEYREGION 11

BACKGROUND 11FERRYSERVICEINNEWJERSEYANDSTATENISLAND 14ARGUMENTSTOEXPANDFERRYSERVICEINNEWYORK 25KEYISSUESIMPACTINGREGIONALFERRYEXPANSION 28

CHAPTER2:FERRYSYSTEMSINOTHERUSCITIES 31SANFRANCISCO 32BOSTON 39SEATTLE 42

CHAPTER3:RECENTATTEMPTSTOEXPANDFERRYSERVICEINNEWYORK 45

THEROCKAWAYS 45YONKERS 51LESSONSLEARNED 59

CHAPTER4:CHALLENGESTOEXPANDEDFERRYSERVICEANDRECOMMENDATIONS 63

CHALLENGESIDENTIFIED 63ALONGTERMPLANTOEXPANDFERRYSERVICE 65SHORTTERMRECOMMENDATIONS 72FERRYCORRIDORSFORFURTHERANALYSIS 75CONCLUSION 78

APPENDICES 81

BIBLIOGRAPHY 81LISTOFFIGURESWITHSOURCES 85


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INTRODUCTIONPROLOGUEANDTHESIS

OnFebruary12th,2008,ChristineQuinn,SpeakeroftheNewYorkCityCouncil,tooktothedaisattheCityCouncilChamberstodelivertheStateoftheCityAddress.Towardsthe17thpageofan18pageaddress,theSpeakersremarksturnedtopublictransitandtheMayorsrecentlyreleasedPlaNYCinitiatives.WhiletransitisgenerallyahottopicinNewYork,MayorBloomberghadmadetransportationacenterpieceofhissecondtermandwasspendingthewinterinacampaigntoconvincetheStateLegislaturetoapproveacongestionpricingschemeinManhattantofinancetransportationcapitalprojects.Itsonlynaturaltolookatournaturalhighways,ourwaterways...tomoveNewYorkersefficientlyandsustainably.SaidSpeakerQuinn,Thatswhyweare

proposingandtheMayorhasagreedtobegindevelopingacomprehensivefiveborough,yearroundNewYorkCityFerrySystem.TheSpeakerexplainedthattheideaforferryserviceoriginatedthroughaseriesofpublichearingssheheldwithhercolleaguesintheCouncil:Soonafter,webeganexploringtheconceptofapilotferryservicefortheRockaways,gotacommitmentfromtheMayortofunditandthatserviceshouldbeupandrunningbythissummer.ButwhylimitourselvestoRockaway?ImaginegettingonaferryinHuntsPointforadaytriptoConeyIsland.

OrcommutingfromAstoriatodowntownwithouthavingtobravethetrafficattheTriboroBridge.OrtravelingfromBrooklyntoQueenswithoutwaitingfortheGtrain.Andthinkofhowitwillenhanceourinfrastructure,openupourwaterfrontsandcreatejobs.1

Twoyearsandtwelvedayslater,therhetoricoftheStateoftheCityspeechcamecrashingtoananticlimacticend,asareportintheDailyNewsannouncedthecancellationoftheRockawaysservice.TheferrywouldceaseoperationsattheendofMarch.2PlansforafiveboroughFerrySystemhavenotmaterialized,exceptforanEastRiverferryservingdevelopmentsalongtheQueens/Brooklynwaterfront,currentlywithtwosailingsduringtheAMandPMpeakhoursisexpectedtooffermorefrequentservicenextyear3TheRockawayroutehadnotmetridershipprojectionsandwasrecoveringonly1530%ofitsoperationalcostsfromrevenuescollectedat

1Quinn,Christine,StateoftheCityAddress,NewYork(February12,2008)2Hirschon,Nicholas,FerryShortLived,DailyNews(February24,2010)3Source:NewYorkWaterTaxiWebsite:http://www.nywatertaxi.com/commuters/eastriverline/(Accessed5/20/10);AccordingtointerviewswithofficialsatNYCEDC.


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thefarebox.4ThefailureoftheRockawayferryservice,combinedwiththecancellationofanothernewlyopenedferryservicebetweenYonkersandLowerManhattanin2009hasdashedthehopesofsomewhowishedtoexploitNewYorkswaterresourcestoimprovecommutingoptionsviaferries.ThishasledtoquestionsaboutthefeasibilityofexpandingferryserviceinNewYorkCitymore

broadly.AslargesectionsoftheNewYorkCitywaterfrontarereclaimedfromdecadesofindustriallanduse,idyllicwaterfrontparkshavebeendevelopednexttogleamingresidentialtowers.ItseemsonlynaturalthatferrieswillsoonservearoleintransportingresidentsandvisitorstothesenewneighborhoodsthroughouttheCity.However,recentexperiencesillustratethemanyobstaclesfacingexpandedferryservicesinNewYorkCity***

ThispaperseekstomakesenseoftheRockawayandYonkersferryservicessuspension,anddrawlessonsforthoseseekingtoexpandferryserviceinNewYorkCityinthefuture.Newferryservicehascapturedtheattentionofcitizens,electedofficialsandmanyintheciviccommunity,butaworkablenetworkofferryservicehassofareludedNewYork.WhyhasanetworkofpubliclyfundedferryservicefailedtotakerootinNewYorkCity?Also,Whatwouldamodeltofundaferryrouteoverthelongtermlooklike?Tounderstandthis,thepaperhassoughttoexamine:

1)TheexistingnetworkofprivateferriesinNewYork/NewJersey.2)Theexistingtransportationnetwork.3)HowferrysystemsinothercitiesdoordonotoffergoodmodelsforNew

York,and4)NewYorksrecentattemptstoimplementferryservicefromtheRockawaysandYonkers.

ChapterOnebeginswithanexaminationofthehistoryofferryserviceinNewYorkCityanditsreemergenceasaformoftransportationinthe1980s.TheexistingnetworkofprivateferriesservingtheNewYork/NewJerseyregionisanalyzed.Basedonthelimitedamountofpubliclyavailableinformation,afewassumptionsaboutitsoperationsneedtobemade.Theattributestobetakenintoaccountincludethecostofticket,headwayintervals,distancestraveled,ridershipprofiles,geographicareasserved,existingavailabletransportationoptions,andhowthe

systemwasstarted.Basedonthisanalysis,thepaperseekstodrawlessonsfromtheexistingnetworkofprivateferries.ChapterTwo,examinestheferrysystemsofSanFrancisco,BostonandSeattleascasestudiesthatmayofferlessonsforNewYorkCity.Thefactorstobeexamined

4Source:NYCEconomicDevelopmentCorporation,BriefingDocument


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aresimilartothoserelevanttothestudyoftheNewYork/NewJerseyferrynetworks.ThefailedattemptstoestablishlongtermferryservicetotheRockawaysandYonkersinNewYorkCityisthetopicofChapterThree.Theridershipprojections

andtheassumptionsbehindtheseprojectionsaredetailed.Thechapteralsoexaminestheseroutesbackgroundandtheiridentifiedmarketpopulations,andalsooffersadiscussionabouttheoperatingassumptionsoftheseservices.Finally,lessonslearnedfromthefailureoftheseroutesmaybedrawnbycomparingtheseroutestothoseoftheotherfourferrynetworksstudied(SanFrancisco,Boston,Seattle,NewYorkNewJerseyprivateferries.)ChapterFouridentifiesmajorchallengestoexpandingferryservice,offersafinancingsolutionbasedonaTaxIncrementFinance(TIF)proposal,andrecommendsstrategiesforexpandingferryserviceinthelongterm.Iffinancedbytheuppermiddleclassfortheuppermiddleclass,anexpandedferrynetworkcould

besoldasalongtermstrategytoattractandretainhighincomeearnersintheCitysnewdevelopmentsalongthewaterfront.ThepaperconcludeswithspecificrecommendationsforNewYorkCityferryroutesbasedonthecharacteristicsstudiedofferrynetworksinothercities.


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RobertMiller,VicePresident,LowerManhattanDevelopmentCorporationAlanOlmstead,ExecutiveDirector,OfficeofPrivateFerries,NYCDepartmentof

TransportationBillWheeler,DirectorofPlanning,MetropolitanTransportationAuthorityAdamZaranko,SeniorProjectManager,Maritime,NYCEconomicDevelopment

CorporationJeffZupan,SeniorFellow,RegionalPlanAssociation


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CHAPTER1:FERRYSERVICEINTHENEWYORK/NEWJERSEYREGIONTobetterunderstandwhyasystemofpubliclyfundedregionalferrieshasfailedtotakeroot,thischapterexaminestheNewYorkNewJerseyferrynetworkandNewYorksownexistingtransportationinfrastructure.FerryshaveservedandcontinuetoserveakeysegmentoftripsbetweenNewYorkand New Jersey. Prior to the development of New Yorks extensive network ofbridgesandtunnelsconnectingManhattantotheUSmainlandin1883,ferrieswerethe only means of accessing Manhattan. In the 1980s, a network of commuterferrieswasstartedtoservedevelopmentontheNewJerseysideoftheHudson.WhileNewYorksexistingtransportationinfrastructureandrelativelyhighfareboxrecoveryratio(comparedtootherUScities)presentchallengestoexpandingferry

service,newwaterfrontdevelopmentandtheMTAslongtermcapacityissuesmakeacaseforexploringferrysabilitytodecreasingcommutetimeswhileaddingtransitcapacity.I.BACKGROUNDPriorto1980s5PriortotheconstructionofbridgesandtunnelsspanningtheHudson,HarlemandEastRivers,ferrysservedanessentialroleinNewYork

As bridge and tunnel connections were built in the late 19th Century, ferrysdominanceintransportinggoodsandpassengerstoandfromManhattanbegantowane. While the completion of the Brooklyn andWilliamsburg Bridge impactedridershipbetweenBrooklynandManhattan,theoverallnumberofvesselsandgrosstonnage of freight carried by ferryboats grew until 1910. This yearmarked theopeningofPennsylvaniaStation,adirecttunnellinkfromManhattantoNewJersey.In1967,thelastferrybetweenHoboken,NJandBarkleyStreet(orBarclayStreet,inManhattan?)ceasedoperations.6For19years,theStatenIslandFerrywastheonlypassengerferryserviceintheNewYorkregion.

1980sPresent7Threetrendshaveinfluencedthecurrentreemergenceofferryservice.Sincethe1980s,existingtransportationnetworksbegantoexperiencepeakhourcongestion.

5Cudahy,BrianJ.,OverandBack,FordamPressUniversity(NewYork)2NEEDSPUBLICATIONYEAR6Ibid7Thissectionderivedfrom:AlanOlmstead,(Speech,TheFutureofFerrysinNewYorkHarbor,TransportationResearchForumNYChapterLuncheon,3/4/10)


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Roadtraffichadincreasedcongestionfordecades,butthisphenomenonwasnewformasstransit. Congestion onthePortAuthorityTransHudson(PATH) ledtheagency to study supplementing PATH with subsidized ferry service to avoidexpandingrailplatforms.

Second, changes in the global economy influenced land use patterns at thewaterfront.Containerizationofshippinggoodsledtolesslandintensiveactivitiesatthe waterfront. AtPort Imperial inWeehawken, New Jersey, Arthur Imperatorepurchaseda350acreparcelinWeehawkeninthe1980sthatwaspreviouslyownedbythePennCentralRailroad8.TolurewealthyNewYorkerstohisdevelopment,Mr.ImperatorebeganferryserviceoperatingdirectlyfromhisrealestateholdingstoLowerManhattanandWest38thStreetinManhattan.AprivatebusservicelinkedtotheferriesontheManhattansideallowedforaquickarrivalattheenddestination.Finally, the third trend influencing a revival of passenger ferry service was theimprovement of marine technology. Prior to such innovation, boats generally

traveledfrom12 to14knots,whilestarting inthe1980smany traveledup to25knotsperhour.Increasedspeedshortensjourneytimesforferrypassengers.Inresponsetothesetrends,theKochAdministrationissuedapolicyframeworkforwaterborne transportation in 1986. The framework stated that the City wouldsupport ferries as an alternate servicemode by providing capital, but not as anoperatingsubsidy.TheCitywouldalsomakepiersavailableforusetoprivateferryoperators. This framework allowed operators to charge premium rates for itsservices.Thispolicyframeworkislargelyintactatpresent.Despite a lack of support for daily operations, ferry ridership (not including the

StatenIslandferry)grewmodestlyeveryyearbetween1986,whenridershipwas4,000perdayuntilJuly2001,whenridershipincreasedto37,000perday.9FerryboatsservedacriticalroleintheaftermathofSeptember11th,whenthePATHTerminalattheWorldTradeCenterwasdestroyed.Notonlywereferriestheonlymeans to points west of Manhattan in the direct aftermath of the attacks, theybecameessentialtomaintainingaccesstoLowerManhattaninthemonthsaftertheattacks.GeographyandExistingTransportationInfrastructure

New York is often referred to as a city of bridges and tunnels. While the vastmajorityofthesebridgesandtunnelsconnectManhattantotheBronx,QueensandBrooklyn,allbutsevenconnecttoNewJersey.OfthefourrailtunnelsthatlinktoManhattan, three are used for PATHandNJTransit, and one is through Amtrak.

8GaryPierrePierre,TravelingbyFerry,OnceCommoninNewYorkHarbor,MaybeAgain,TheNewYorkTimes,9/22/96isthisavailableonline?


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CarsandbusesaccessManhattanfromtheLincolnTunnel,theHollandTunnelortheGeorgeWashingtonBridge.10Sources?Incontrast,theNewYorkCityTransitAuthorityaloneoperates17tunnelslinkingManhattan to the Bronx, Queens and Manhattan across the East River.11 Nine

bridgesandtunnelsprovideautoaccesstoManhattanfrompointsnorth,southandeast.12AndtwotunnelsconnectcommuterrailservicefromWestchesterandLongIslandviatheMetroNorthRailroadandtheLongIslandRailroad.GiventherelativelackoftransHudsoncommuteoptionsrelativetotheEastRiver,the developmentof private ferries asameansof transportationfromNew Jerseybeginstomakesense.

10Source:PortAuthorityofNewYorkandNewJersey:http://www.panynj.gov/bridgestunnels/11Source:MTASubwayMap:http://mta.info/nyct/maps/submap.htm12Source:NY.com,http://www.ny.com/transportation/crossings/


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II.FERRYSERVICEINNEWJERSEYANDSTATENISLANDTransportationInfrastructureNewJerseyTransitoperatescommuterrail service toPenn StationandHoboken.

From the site of the Hudson County ferries (Edgewater, Port Imperial, LincolnHarbor),thenearestrailmasstransittoMidtownis locatedatSecaucusJunction,twotosevenmilesaway(inthewrongdirection). 13RailservicetoMidtownisalsoavailable via PATH atHoboken,which is1.5 toninemiles away.14AnumberofbusesprovideserviceintheeasternHudsonCountytoMidtown.15FromtheSouthHobokenferryterminal,thePortAuthorityTransHudson(PATH)providesservicetoManhattanalongthreeroutes.ThefirstrunsfromHobokentoChristopherStreetatHudsonStreetandthenalong6 thAvenuebetween9thStreetand33rdStreetinManhattan.TworoutesrunfromHobokenorJerseyCitydirectlytotheWorldTradeCenter.16FerryservicefromHobokenSouthisprovidedtothe

WorldFinancialCenterandPier11,butnottoMidtown.New Jersey Transits North Jersey Coast Line connects residents of MonmouthCountytoNewYorkPennStationviaatransferatHoboken.FromHoboken,thosecontinuingtoLowerManhattancantakethePATHtotheWorldTradeCenter.17

13Source:GoogleEarth14Ibid.15Source:NJTransit,Bus,http://www.njtransit.com/sf/sf_servlet.srv?hdnPageAction=BusTo16Source:TheNextTrainwebsite,http://thenexttrain.com/static/PATH_system_map.png17MapfoundthroughGoogleSearch,http://newyorkcity2005.web.infoseek.co.jp/information/maps/images/maps/pathmap.jpg,Accessed5/01/2010


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Fig

ure1:

NewYorkCommuterFerries;S

ource:

PortAuthorityofNewYork/N

ewJersey


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NewJerseyandNewYorkFerries18In2009,twentytwoprivately operatedferry routes served 28,445 passengers intheNewYork/NewJerseyregiononanaverageweekday.

Sixteen of these routes, carrying an average of 27,253 passengers, served NewJersey residents traveling to Manhattan. Two routes operated as feederferryservicestoMetroNorthHudsonRiverstationsfromtownsonthewesternsideoftheHudson.InNewYorkCity,privateferryserviceoperatedbetweentheRockawaysinQueensand Lower Manhattan. In Westchester and Orange Counties, service operatedbetweenYonkers/HaverstrawandLowerManhattan.OfthesixteenNewJerseyferryroutes,thirteenoriginatedinHudsonCounty(acrossfromManhattan)andthreeoriginatedinMonmouthCounty. Mostof theseroutes

ranpointtopointservice.Ten of the thirteen Hudson County routes are destined for Lower Manhattan.Combined, they served 14,175 riders. Of these thirteen, seven stop at Pier 11,serving10,112 residents.Three stopat theWorldFinancialCenter, serving4,063riders.SixoftheNewJerseyferriesterminateatPier79(West39thStreet),carrying10,450passengersonanaverageweekday.DistanceandCost

TenofthesixteenNewJerseyroutesarelessthanfourmileslong.Threeare4.5to7mileslong,andthreearebetweennineteenandthree/fourthsofamiletotwentytwomileslong.Routeslessthanfourmileschargedpassengersbetween$5.50and$9.25foraonewayfare; thosebetweenfourandahalfandsevenmiles charged$9.50to$12foraonewayfare;andthoseexceedingnineteenmilescharged$20$23foraonewayfare.19Whilethecost for tripsincreaseswithdistance, the tableon thenextpageshowsthat the costs per mile decreases as distance increases. The three routes fromMonmouthCounty charge between$2023 oneway,but this comes to just $1.01

and $0.89permile.20 The routeswith the shortestdistancecharge themostpermile.PaulusHooktotheWorldFinancialCenteris.8miles.Thefareis$5.50,orapproximately$6.88permile.21

18AlldatainthissectionderivedfromPortAuthorityofNY/NJ,2009-2010WeekdayRidershipStatistics,(excelspreadsheet)19TicketPriceinformationobtainedfromNYWaterwaysWebsite,http://www.nywaterway.com/GetTickets.aspx,Accessed5/2/1020Derivedbydividingthecostoftheticketbythenumberofmilesinthetriproute.21Equation:.8*X=5.50X=$6.88


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Table1:DistanceforVariousNY/NJRoutesandCostPerMile;

Source:GoogleEarth(Distance),NYWaterwaywebsite(ticketprice)

www.nywaterway.com/;Accessed5/1/10


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mile and Liberty Harbor to theWorld Financial Center is 1.5miles and charges$3.33permiletraveled.22One notable feature of the New Jersey private ferries is the consistency of itsridership base, even through the winter months. As discussed earlier, this is

primarilybecausepeoplelivingtheredonothaveeasyaccesstorail. But,anotherreasonmaybethat the vastmajorityof theseterminals offerenclosedpassengerwaitingfacilitiesmanyofthemwithamenities.ThirteenoftheNewJerseyferryterminals possess indoor waiting facilities, while one has a partially enclosedfacility,andthreedonothaveanyenclosedfacilities.23As the table belowdemonstrates, thirteenof the fifteenNew Jersey ferry routesexperienced a 59% change in ridership over the course of 2009. Service washighestinthesummerandlowestinthewinter.Twoferryroutesexperienced1316% ridership swings over the course of a year. One of these routes began

22Ibid.23Thepresenceofoutdoorfacilitieswasdeterminedusingdifferentmethods.MoststationshadpicturesoftheterminalfacilitiesontheNYWaterwayswebsite(http://www.nywaterway.com/FerryTerminals.aspx)Accessed5/2/10.ForHighlandsandAtlanticHighlands,informationwasobtainedbycallingtheoperatoratNYWaterways.

Table2:WeatherProtectedFacilitiesandSTDofRidership;

Source:SeeListofFiguresandTables


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operationsfromaterminalwithindoordockfacilities,andonedidnot.HeadwaysThefifteenNewJerseyferriesoperateatarangeofheadways.Someroutesoperate

at twelveminute headways, and some offer only one or two trips during themorningrush.24MonmouthThesethreeferries,whichtravelnineteentotwentytwomiles,operatethefewesttripsduring the AM rush. Asof20092010, Sea Streak service from the AtlanticHighlands operatesApril through the fall,with three trips inthemorning rush.25NewYorkWaterwaysservicefromBelfordtoPier11operatesonceduringtheAMpeak.26

Evenwithinfrequentsailings,theBelfordserviceaveraged1644passengersperdayandtheSeaStreakroutesaveraged1647and963passengersperday.27ItshouldalsobenotedthatferryservicetothispartofMonmouthCountyhasbeenonagain/offagain foranumberof years.28 Giventhe unreliabilityof the serviceandlowlevelofserviceovertheyears,thelargeridershipontheseroutesseemscounterintuitive.HudsonHeadway intervals for Hudson County ferries are much shorter than those from

Monmouth. Mostofferservice toManhattanat1020minute intervals.29Thisispossible because journey times are shorter. The same boat can make multiplejourneysacrosstheriverinonehour.Even when considering this, it appears that most of the New Jersey routes areserved by at most two vessels. This short distance allows for short headwayintervalsatanegligiblecosttotheoperator.Ofcourse,thisalsoimpactsthecapitalcostsofrunningtheseferries. Fewerboatsareneededtoprovidefrequentservicecomparedtolongerroutes.Alsoofinterestistherelationshipbetweenshortheadwayintervalsandridership.

While one would expect increased headways to impact ridership, this does not

24DatacompiledfromNYWaterwayswebsite(http://www.nywaterway.com/Home.aspx)Accessed5/2/1025SeaStreaksite(http://www.seastreak.com/)Accessed5/2/1026NYWaterwayssite(http://www.nywaterway.com/Home.aspx)Accessed5/2/1027PortAuthorityofNY/NJ,2009-2010WeekdayRidershipStatistics28Forexample,servicefromSouthAmboy,anearbytown,operatedfrom20012006(CambridgeSystematics,SouthAmboyFerryResearchStudyMarch2007)(11)29DatacompiledfromNYWaterwayssite(http://www.nywaterway.com/Home.aspx)Accessed5/2/10


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appeartohavetheeffectthathasbeenattributedtothefailuresoftheservicestotheRockawaysandYonkers.A number of ferry routes with short headway intervals times have low averageridership compared to the MonmouthCounty ferries. Paulus Hook toWest 39th

Streetsoperatesat30minutesheadwaysinthemorningrushbuthasanaveragedailyridershipof418.PortLibertetoPier11operatesat40minuteheadways(6tripsintheAMrush),andaverages501passengersonadailybasis.Incomparison,theMonmouthCountyferriesoffer13tripsintheAMrushandaverage1418ridersperday.30Thissuggeststhat,whileafactorinridership,frequentheadwaydoesnotdeterminea ferryroutes success. In the case ofMonmouthCounty, the lackofconvenienttransportationoptionstoLowerManhattanmeansthatalargepercentof thoseworking inLowerManhattanwill schedule theirday aroundmaking theone ferry trip. Thus,wecan see that populationsmightbemorewilling to takeinflexibletransitoptionsifitistheonlyoptionavailable.

30Source:PANY/NJRidershipStatisticsandNYWaterwaysScheduleInformation


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RidershipProfiles

WhilethenumberofactualferryridersbetweenNewJerseyandManhattanappearssmallbyNewYorkstandards,astudybytheLouisBergerGroupindicatesthatferry

commutinghascometodominatetheManhattanboundcommutermarketinmanypartsofHudsonandBergenCounties.

Figure2:WorkersCommutingbyFerryinSelectCensusBlockGroups;

Source:LouisBergerGroup


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As we can see in Figure 2, in certainNew Jersey census tracks, over 58%of allManhattanboundcommuterstaketheferrytowork.Qualifythisstatisticbysayingitsasmallpopulation.InMonmouthCounty,43%ofthispopulationtakestheferrytowork.31Thesepeoplepay$510permonth;triptimesare82minutes.32

IntheselectedHudson/BergenCounties,30%oftheManhattanboundmarkettakesferriestowork,paying$134permonth.Doortodoorjourneytimesarethirtyeightminutes.33Ofcourse,theoverallnumberofpeopletakingtheferrycomparedtotheworkingpopulationofMonmouthCountyisstillsmall.AccordingtotheUSCensus,236,746wereemployedinMonmouthCountyin2007.3458%ofthepeoplelivinginthesecensus tracts commuting to Manhattan take the ferry, but according to PortAuthorityridershipestimates,thetotalcombinedridershipfromMonmouthCountyRoutesis2,610.35Evengiventheapplestoorangesnatureofthesestatistics,wecanseethatthenumberofworkerscommutingbyferriesisarelativelysmallpercentof

theoverallpopulation.Asurveyofferry ridersona nowcancelled ferryservicefromMonmouthCountyshowedthatferryridersinMonmoutharewealthierthanthosecommutingbyNewJersey Transit. Ferry passengers were three times more likely to earn over$200,000 annually than those riding NJ Transit.36 While 37% the NJ TransitcustomersviewedtheMonmouthferryasavalidalternativefortheircommute,theychosetotakethelessexpensivetransitoption.37Funding

The New York/New Jersey system is practically the only ferry service in NorthAmericathatisbothprivatelyownedandoperated.Withtheexceptionofcapitalfundingforcityowneddocksandacoupleofpilotroutes,ferryoperatorsreceivenofinancial support fromtaxpayers. While privately owned/operated systemswereprevalentintheUSpriorto1950,theproliferationofUSspendingonhighwaysandbridges in the period sinceWorldWar IIdecimated themarket for private ferryoperations.38

31TheLouisBergerGroup,RidershipandRevenueAnalysisforaProposedFerryServicetoLowerManhattan,SubmittedtotheLowerManhattanDevelopmentCorporation(June2006)832Incontrast,ThosetakingthetrainfromMonmouthCountyrepresent31%ofthetotalpopulation.Theypay$260permonthand experience 82 minute total trip times (including waiting, walking, etc.) 14% of Manhattanbound commuters inMonmouthdrivetowork.Theypayupto$874andexperience71minutetraveltimes.Whatisthesourceofthisinformation?33PATHservicecaptures52%ofthemarket,costsanaverageof$93/month,andoffers33minutetraveltimes.Autotravelcaptures7%ofthemarket,costsanaverageof$592,andoffers44minutetraveltimes.34Source:USCensus,Quickfactswebsite(http://quickfacts.census.gov/qfd/states/34/34025.html)35Source:PANY/NJRidershipStatistics36CambridgeSystematics,SouthAmboyFerryResearchStudy,PreparedfortheNewJerseyTransitCorporation,(March2007)Chapter3,4537Ibid.38PortAuthorityofNY/NJ,InteragencyStudyofRegionalPrivatePassengerFerryServicesintheNewYorkMetropolitanArea,11


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WhileNew Yorkhasnt established fundingmechanisms tosupport ferries, ithasinvested over $350 Million on capital improvements for docking facilities inHobokenandEdgewaterinNewJersey,theWorldFinancialCenter,atlocationsontheEastRiver,Yonkers,andonStatenIslandsincethe1980s.39

TakeawaysThe largenetwork of ferry service betweenNew Jersey serves two distinctNewJerseymarkets.TheHudson/BergenCountyferriessupportedthedevelopmentoftheNewJerseysideoftheHudsonRiverbyprovidingaquick,premiumcommuteoption toManhattan.Whileconvenient access torail exists, suchastheHobokenSouthterminal, the ferryroutes servelocationsnot served byrail. This suggeststhatthedemandforferryserviceislesscompellinginlocationswhererailiseasilyaccessible.Incontrast,theMonmouthCountyferriesdevelopedtoserveanexistingpopulation

thatisgeographically closer toManhattanbyseacomparedtolandorrail.Evenwith fewerrunsandhigh ticketprices, thereis astrongdemandandridership ishigh.TheHudson/Bergenferriesdemonstratetheadvantagesof ferriesthattravelshortdistances. First, they allow for frequentheadways. Furthermore, shortdistancestranslateintolessfuelexpendedperpassenger.Aswewillsee,fuelcostscanmakeup3040%ofaferriesexpensessominimizingthisexpenseiskeytodevelopinganaffordablesystem.

39JeffreyZupan,PaperonNYRegionalFerryService,RegionalPlanAssociation(November2006.)


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StatenIslandFerryTheStaten Island Ferry isapassenger ferry serviceoperatingbetweenWhitehallStreetinLowerManhattanandSt.GeorgesinStatenIsland.TheferryisrunbytheNew York City Department of Transportation. It serves 65,000 people on an

averageweekday.40

Since1997, the ferryhasoperatedwithouta fare. Priorto1997,thefarewas50centsoneway.NewYorkCityDepartmentofTransportationoperates2municipallotsattheferryterminalandcharges$5.50toparkperday,$5withamunimeterparkingcardor$300forayear.41Vesselsmaketripstwentyfourhoursaday.HeadwayintervalsarefifteenminutesduringtheAMandPMpeakperiods,thirtyminutesduringnonpeakperiods,andsixtyminutesbetween1AMand5AM.Ittakestwentyfiveminutestotravelthe5.2milesbetweenSt.GeorgeandWhitehallStreet.

There are eight ferry boats. Two vessels carry 6,000 people, three carry 4,400people,onecarries3,500peopleandtwocarry1,280people.NewferryterminalsatSt.GeorgesandWhitehallStreetwereopenedin2005.TheMTAspent$530MilliontoimproveoperationstotheSouthFerry1TrainStation,whichisadjacenttotheferry.Thisprojectwascompletedin2009.42Similarly to the ferries crossing the Puget Sound inWashington State today, theStaten Island ferry exists because a bridge was never built to connect it to thecentralbusinessdistrictinManhattan.Althoughalongdistancefromeachother,a

bridgeconnectingtothetwolandmasseswouldbeonlyslightlylongerthanthe4.5mileSanFranciscoBayBridge.The scale of the Staten Island ferrys operations is much larger than any newpotentialrouteintheNewYorkregion.Theferrywillbeabletooperateatamuchlowercostperpersonsimplybecauseofthesheervolumeofpassengersserved.Asa result, the Staten Island ferry does not provide relevant insight to draw uponwhenidentifyingreasonsforexpandedferryservicesfailureorhowtoexpandontheexistingnetworkofferries.

40Source:Wikipedia41Ibid.42Ibid.


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III. ARGUMENTS TOEXPANDFERRYSERVICEINNEWYORKTheregionslongaverage

commute times, existingand projected transitcapacity and the cityslongterm growthaspirations all make astrongcaseforexpandingferry service in the NewYorkregion.LongCommuteTimes

New York City alone ishome to the top fourcountieswith the longestcommutes in the nation.Residents of Richmond,Kings, Queens and theBronx Countiesexperience averagecommute time of 44.1,42.5,41, and 40minutes,respectively. Although

residents of Manhattanenjoy faster commutetimesthanthesecounties,their commutes are stillthe33rdlongestintheUS.43TheCityssuburbsalsoperformpoorlyonthismeasure:Nassau andWestchesterhave the 8thand9th longest commuting times inthe US,MonmouthinNewJerseyhasthe11th,Suffolkthe12th,HudsonCounty,NewJerseyandOrangearetiedforthethe18th,andOrangeCountyisthe22nd.44IfNewYorkwishestoretainandgrowitspopulation,itwillneedtoreduceaveragecommutetimestowork.Whilethiswilllargelybedonethroughrailcapitalprojects

andpossiblytransportationdemandstrategies,increasedferryservicecouldservearoleinreducingtraveltimesforsomecommuters.ExistingTransitatCapacity

43AmericanCommunitySurvey,JourneytoWork,CountyLevel(2000)44Ibid.

Figure3:SubwayLinePerformancebySubwayLine.Source:TheNew

YorkTimes(June26,2007)


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Even with 23 subwaylines, 17 subwaycrossings between theouter boroughs andManhattan, 2 commuters

rail lines and numerousbus routes serving itsresidents, many parts ofthe MTAs system iscurrently at capacity and ridership is onlyexpected to grow in thenexttwodecades.A 2007 analysis by theMetropolitan

Transportation Authorityfound that the vastmajority of existingsubwayservicewasat80100% capacity, and thatfour(3,4,5,E)trainswerealreadyoperatingatpeakcapacity.45 Withoutincreased servicecapacity, theCitywill notbeabletotransportthemillionextrapeopleitexpectstoliveinthecityby2030.

Whilemostofthesepeoplewilllikelybetransportedbyrailorbus,itisunclearthatevenplannednetworkexpansionswillbesufficienttomeetfuturedemands.Forexample, the MTAs Environmental Impact Statement for the Second AvenueSubwayshowsthatthefirstsegmentofthesubway(96thto63rdStreet)willnotsignificantlyreducethecapacityproblemsontheLexingtonAvenueline.46TheimpactsofaddingonemillionnewpeopletotheCitywillfurtherincreasethestrainsonourtransportationsystem.TheBloombergAdministrationhasestimatedthat750,000newpeoplewillcommutetotheManhattanCentralBusinessDistrict

by 2030.47 The picture to the right showswhere these new commuterswill betraveling from. Interestingly, while a significant portion of new commuters areexpected to commute from the Bronx, Queens, and Brooklyn, PlanNYCs major

45WilliamNeuman,SomeSubwaysFoundPackedPastCapacity,TheNewYorkTimes,(June26,2007)Accessed4/5/1046MTA,SecondAvenueSubwayEnvironmentalImpactStatement,Chapter5B,(May,2004)20;ThefullcapacitybenefitsofthenewsubwaylinewillnotbeexperienceduntilcompletionoftheentireSecondAvenuesubwayfrom125thStreettoHanoverSqaure.Atthispoint,theSouthbound4,5trainswilloperateat80%capacitybelow86thStreetand94%capacitybelowGrandCentralTerminal.47PlaNYC:AGreener,GreaterNewYork,IntroductionNewYorkCity(3)

Figure4:DemandforTravelintoManhattan'sCBD;

Source:NewYorkCityPlaNYC2030


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solution to these constraints is adding Bus Rapid Transit routes and increasingopportunities to commute via NYC stations on the MetroNorth and Long IslandRailroad.Asmentionedearlier,whilethevastmajoritynewtransitcapacitywillneedtocome

frominvestmentsinnewrailandbus,thedemandfornewtransitcapacityinfutureyearsissogreatthataddingnewferryserviceintothemixshouldbeconsidered.NewWaterfrontHousingandCommercialOfficeCapacityMayorBloombergstimeinofficehasbeenmarkedbyanumberofrezoningchangesmanyofwhichareonornearthewaterfront.AsdiscussedearlierinthisChapter,thechangingUSeconomyhasledtodramaticchangesinlanduseatthewaterfront.Asaresult,anumberoftherezoningshaveoccurred. These include: Williamsburg/Greenpoint, Coney Island, the Hudson

Yards, the Highlinedistrict, the Con EdisonWaterside site, SaintGeorge and theStapleton Waterfront in Staten Island, Hunters Point, the South Bronx, and theGowanusCanal.48Inaddition,newhousinghasrecentlycomeonlineorisexpectedtobebuiltonthewaterfrontatRiversideSouthandQueensWest.All together, the rezoning changes under Mayor Bloomberg has allowed for 98Million Square Feet of new residential capacity as of 2007, of which 5.8 Billionsquarefeethasbeendevelopedsince2003.49Developing ferry services that link new waterfront developments to jobs inManhattancouldbeaneffectivelongtermstrategytoattractandretainresidentsby

providingthemwithpremiumtransportationoptions.Suchaplancouldbejustifiedasaneconomicinvestmentstrategytoretainhighincome,highlyskilledworkersbyprovidingthemwithanurbanalternativetotheconveniencesofthesuburbs.Theideaofemployingawaterfrontdevelopmentstrategytobuildingnewferryserviceswillbediscussedingreaterdetaillaterinthisreport.

48NYCDepartmentofCityPlanning,Celebrating100Rezonings,http://nyc.gov/html/dcp/html/rezonings/index.shtmlAccessed5/5/1049NYUTheFurmanCenter,HowHaveRecentRezoningsAffectedNewYorkCitysAbilitytoGrow?NewYorkUniveristy(March2010)8


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IV.KEYISSUESIMPACTINGREGIONALFERRYEXPANSIONFareboxRecoveryPlannersrefertoasystemsfareboxrecoveryratioasthepercentofaridescost

capturedby the fare charged to the commuter. The rateof farebox recovery forferrysystemsinothercitieswillbediscussedinsubsequentchapters.The New York City farebox recovery ratio is the highest in the United States.Transportation advocates often refer to it as the fare burden. New York Citysubwaysandbusesrevenuesaccountfor55%ofNewYorkCityTransitsoperatingexpenses.50ThisrateismuchhigherthanmostUScities.Thetop50citiesintheUShaveanaveragefareburdenof37%,andmanycitieswithlargetransitdependentpopulationshavemuchlowerfareburdens.Forexample,Chicagosfareburdenis43%,Bostonsis29%,NJTransitis37%andWashington

DCis40%.51AstheNewJerseyferrysystemsare100%private,farescover100%ofthecostofoperation. Theyare publiconly inthe sense that theyuse publiclyownedandmaintaineddocking facilities,whichhavesometimesbeenenhancedwithfundingfrompublicentities.PublicTransitFinancingIssuesThe Metropolitan Transportation Authority has experienced ongoing financialdifficultyinrecentyears.Currentestimatesprojecta$751Millionoperatingdeficit

forthecurrentbudgetyearandcontinueddeficitsinfutureoperatingbudgets. 52Inaddition,theMTAs20102014CapitalBudgetis$10Billionofitsprojectedneed.53Because of the significant needs on New Yorks existing transportationinfrastructure, new ferry services are seen by many as another piece, and apotentially less deserving piece, of the pie of transportation capital projects.Included in this list is the Second Avenue Subway, East Side Access to MidtownManhattan,andtheongoingreplacementmaintenanceandreplacementofexistinginfrastructure.54

50NYPIRGStraphangersCampaign,MTAHearings:PointsYouCanMake,NewYork(http://www.straphangers.org/farehike08/pointstomake.html )51Source:NationalTransitDatabase,FederalTransitAdministration,Accessed5/5/1052ChristopherJones,TestimonyofChristopherJonesbeforetheMetropolitanTransportationAuthorityHearingonProposedServiceChanges,StudentFares,andCrossingCharges,RegionalPlanAssociation(March2010)53Ibid.54Source:InterviewwithJeffZupan,March2,2010;InterviewwithBuzzPaaswell,March19,2010


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***ItsimportanttonotethatNewYorkCityhasarelativelythrivingsystemofferriesserving the Central Business Districts of Midtown and Lower Manhattan. The

combinedridershipofNewJerseysprivateferrieswithStatenIslandFerryisover85,000passengersperday,farexceedinginsheernumbersthepassengersservedperdayinanyothercity.OtherthantheStatenIslandservice,thespecificnatureofNewYorksferrynetworkismorelimitedintermsofthemarketsitserves.NewJerseysferriesservewealthyoutersuburbsandnewwaterfrontdevelopment.TheStatenIslandferryservesasthe only direct link between Staten Island and Manhattan. Given the relativeabundanceofsubwayandhighwayconnectionstoManhattanfromtheotherfourboroughs, one can see how ferrieswouldhaveahard timecompeting for limitedpublicresources.


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CHAPTER2:FERRYSYSTEMSINOTHERUSCITIESWhatquicklybecomesapparentwhenresearchingthesystemsofothercitiesisthatthe scale of a ferry system as proposed by SpeakerQuinn in 2007 has not beenachievedanywhereintheUS.Whileanumberofothercitieshavedevelopedferry

routesforcommuters,noonesystemissufficientlycomprehensivesoastoprovideamodelforhowacitysuchasNewYorkshouldproceedwithdevelopinganetworkofurbancommuterferries.SanFranciscoofferstheclosestexampleofacitythathasdevelopedaregionalferrysystemakintothevisionarticulatedbySpeakerQuinn.WhilethisCaliforniaCityprovides a number of lessons about creating political momentum for, anddevelopingaregionalferry system, ithasbegunoperations just recentlyandanyjudgmentsaboutitssuccessesorfailuresareprematureatthistime.AprimarytakeawayisthatNewYorkdoesnothavesimilarconditionstothethree

citiesanalyzedinthissectionofthepaper.UnlikeSanFranciscoandSeattle,NewYorkgenerallyhasexcellenttransportationoptionstotransportcommuterstothecentral business district (CBD) across a body of water. Given Bostons limitednetworkandthelackofpubliclyavailableinformationonitsorigins,thisnetworkdoesnotprovidemuchusefulinformationonwhichtobaseaNewYorkCitysystem.Toillustrate,Seattledevelopedferrysystemsinsteadofconstructingbridgesacrossthe Puget Sound while New York has several bridges and tunnels connectingManhattantosurroundingresidentialneighborhoods.


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SANFRANCISCOExistingTransportationNetwork

SanFranciscoislocatedona7.5milewidepeninsulabetweentheSanFranciscoBayand the PacificOcean. It isconnected toOakland inAlamedaCounty bythe SanFranciscoBayBridge,afourandahalfmilespanofbridgesandtunnels.TheGoldenGateBridgeconnectsSanFranciscotoMarinCountytoitsnorth.55MasstransitserviceisavailablethroughtheBayAreaRapidTransit(BART).FiveroutesconnectSanFranciscoacrosstheBaytoAlamedaandContraCostaCounty. 56BARTsfareboxrecoveryrateis53%.57

55Source:Wikipedia,Accessed5/5/1056Ibid.57Source:NationalTransitDatabase,FederalTransitAdministration,Accessed5/5/10

Figure5:BARTSystemMap;Source:BayAreaRapidTransit;SourceBART

http://www.bart.gov/


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The San Francisco Municipal Railway (MUNI) operates 80 routes within SanFranciscoproper.AvarietyofvehiclesserveMUNI,includinglightrail,busesandtheiconicstreetcars.58TheBayAreaisthe6thlargestmetropolitanregionintheUnitedStates,withatotal

populationof7.3Million.59

GiventheareaslargepopulationandthefewbridgeortunnelconnectionstotheCityitself,thecaseforarobustferrysystemiscompelling.AlamedaCounty60Commuter ferryservice fromAlamedaCounty toSan Francisco began inthe late1960s. The City of Tiburon contracted the Blue and Gold Fleet to operateunsubsidizedservicetoSanFrancisco.Inthe1980s,theCityofAlamedacontractedservicetooperatetwoferryroutestoSan Francisco following the LomaPrieta earthquakeof1989. Service continued

aftertheearthquakecleanup. In1992,AlamedacontractedBlueandGoldtotakeovertheservice.BlueandGoldwouldoperateservicewith2vesselspurchasedbyAlameda.AsecondAlamedaroutebeganasmitigationforaharborresidentialdevelopmentin1992.TheCitypurchasedavesselforitsoperator,HarborBayMaritime.Whilethedeveloperprovidedserviceforsixyears,theCitytookresponsibilityfortheserviceafter1998.PrivateferryservicebetweentheCityofVallejoandSanFranciscobeganin1986bytheRedandWhiteFleet.Afteroneyear,theoperatortriedtocanceloperationsdue

to poor finances. Vallejo took over the service, and purchased a highspeedcatamaran in 1994. While the circumstances of the takeover are unknown, onecould speculate that the significant ridership of the route resulted in politicalpressurefortheCitytocontinueservice.Theservicecontractwaslaterawardedto

58Source:SFMUNIsite(http://www.sfmta.com/cms/home/sfmta.php)Accessed5/2/1059Source:Wikipedia,Accessed5/2/10

Table3:CharacteristicsforSelectedSanFranciscoFerryRoutes;

Source:VariousWebsites(SeeAppendix)


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theBlueandGoldFleet.VallejohassincepurchasedthreemorevesselsfortheuseoftheBlueandGoldfleet.MarinCounty61

TheGoldenGateBridgeandHighwayDistrictwasestablishedasaspecialdistrictin1921 to operate and maintain the Golden Gate Bridge and operate bus servicebetween Marin, Sonoma and San Francisco Counties. In the 1970s, the districtbegantwoferryservicesbetweenSausalitoandLarkspurtoSanFrancisco.UnlikethecontractmodelsofAlamedaCounty,serviceisprovideddirectlybytheGoldenGateBridgeandHighwayDistrict.Operations62-FerryservicethroughouttheBayareaoperatesatheadwayintervalsof30to110minutes.63 Even with the relatively long headway intervals and a handful of

scheduled AM peak trips to the San Francisco Ferry building, ridership remainsrelativelyhigh.Trip routes are generally short, althoughnot quiteasshortasmanyof theNJtoManhattanroutes.Alameda/OaklandtoSanFranciscoistheshortest,atfivemiles.ThetriptoVallejo,attwentyfournauticalmiles,isthelongestroute.JourneytimestoSanFranciscoarebetweentwentytothirtyminutes,and65minutesfromVallejo.The distance innauticalmiles toSan Francisco fromAlamedaHarbor is8miles,fromBerkeleyis7miles,Larkspuris12.6milesandSausalitois7miles.PlannedservicetoSouthSanFranciscowillbe12miles.

Most oneway tickets cost between six and eightdollars. For Vallejo, a onewayticketcosts$13.Packsof40ticketsrangefrom$170185fortheAlamedaferries,to$280 for Tiburon and $290 for Vallejo. The Golden Gate ferries (Sausalito,Larkspur)significantlydiscountratesforthosewhosignupforamonthlydiscountcard(Translink).Passengerswiththesecardspay$4.20$4.90foraonewayticket,whichresultsina40ticketcostof$168190.Thefleetiscomposedofhighspeedcatamarans,whichcarry150to400passengersandmonohulls.Thesevesselscarry700passengers.Theyrunonbiodiesellowsulfurfuelandtravelat25knotsperhour.

60SummarizedfromPANY/NJInteragencyStudyofRegionalPrivateFerryServicesintheNewYorkMetropolitanAreaStudy,131561Ibid62Scheduleandfareinformationcompiledfromvariouswebsites.AlamedaandOaklandferrysfromhttp://www.eastbayferry.com/;Larkspurfromhttp://www.goldengateferry.org/;SausalitoandTiburonfromhttp://www.blueandgoldfleet.com/;Vallejofromhttp://www.baylinkferry.com/;Accessed4/15/1063


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The table above shows the expected ridership, peak load and farebox recoveryratios for the five routes that will be operated by the Water EmergencyTransportationAuthority.Thetableshowsthatalloftheferryroutesareexpectedto operate at less than full capacity. They are also expected to operate at lowfarebox recoveryratios,whichmeans that theywill beheavily subsidized by thepublic.ManagingOrganization64Theestablishmentof theWaterEmergencyTransportationAuthorityandplannedexpansion of the existing routes provides useful guidance for cities looking toexpandpassengerferryoperations.In1999,theCaliforniastatelegislaturecreatedtheWaterTransportationAuthority

toplanaregionalferryserviceintheBayarea.Atthetimeofitscreation,alloftheferry services described above were in place. WTA identified seven new ferryroutesforimplementation(of22routesstudied)initsFinalImplementationandOperationsPlan.Thisplanoutlinednewserviceroutes,andcapitalprojectssuchasnewvesselsandterminals.Itwaspublishedin2003.TheWTAthenbegancollaboratingwithcivicgroupsandpolicymakerstoidentifyand implement a funding mechanism. California voters approved a RegionalMeasureinMarch2004.ThisMeasureincreasedbridgetollsby$1andraisedthesalestaxinthecountiesservedbytheservice.

TheWaterEmergencyTransportationAuthority(WETA)wascreatedin2008,aftertheCalifornia legislaturedissolvedtheWaterTransportationAuthority. WETA isnowchargedwithconsolidatingcontrolofallexistingferryservices,budgetingandcapitalinfrastructure.Inaddition,WETAwasauthorizedtocoordinatewaterborneemergencyservices.

64PortAuthorityofNY/NJ,InteragencyStudyofRegionalPrivatePassengerFerryServicesintheNewYorkMetropolitanArea,

Table4:RidershipCharacteristicsforPlannedWETAFerryRoutes;

Sources:Various(SeeAppendix)


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WETAsFinalImplementationandOperationsPlancalledfornewservicebetweenSouth San Francisco and San Francisco in January 2010, and service betweenBerkeleyandMissionBaybeginningin2011.IdentifyingandTargetingaMarket

Duringtheplanninganddevelopmentofnewferrylines,adetailedMarketingPlanwasdevelopedbyCambridgeSystematicsfortheWTA.Thisplanidentifiedtargetferrymarkets, developednew routes basedon thesemarkets, and developed animplementationplan.The Marketing Plan has two components, theMode Choice Model and the FinalMarketing Plan. TheMode Choice Model is a complicated, sophisticatedlookingdescriptionofhowthetargetmarketwasidentified.TheFinalMarketingPlan isadescriptionof themarket for ferryroutes intheBay area. Itproposes tactics tomarkettheservicetothepublic.

AccordingtotheFinalMarketingPlan, thetargetferryriderisaworkingtransbaycommutercurrentlyusinganautomobiletocrosstheBayThemarketisequallywomenandmenwithincomeshighenoughtoaffordfaresconsiderablyhigherthanbridge tollsand other transit options.65 The targetmarket is not currentBARTcommuters.66Because commuters from Alameda County have access to an equally fast andinexpensive commute via BART but have chosen to drive to work, the FinalMarketingPlanadvisesWTAtomessagethequalityoflifeandconvenienceoptionsthatferryservicewillprovidepassengers.

InMarinCounty,whereresidentsdonothaveaccesstoquickmasstransit,theFinalMarketing Plan recommends messaging the time savings aspects of ferrytransportationcomparedtodriving.Communicationtotheidentifiedmarketwasplannedtolastoverthreeyears.PhaseIfocusedonbuildingdemandby:67

Creatingasystemidentify. Capitalizingonthestrengthofexistingferrysystems. Messagingtheuniquepersonalbenefitsofusingtheferrysystem. AdvocacyadvertisingpresentingtheWTAspositiononkeyissues.

PhaseIIbuiltdemandpriortothesystemslaunchusingthefollowingtactics:68

65WaterTransitAuthority,WaterTransitAuthorityMarketingPlan,SubmittedbyJohnson|Ukropina,(May2005)166Ibid967Ibid968Ibid10


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Strongpublicrelationsprogramtointroduceexpandedferryservicetothemedia,opinionleaders,prospectivepatronsandthepublic.

Atargetedpublicitycampaign.DemonstrationsandtoursforthemediaandVIPs.

Grandopeningkickoffcelebrations. Placementofpaidmediasupport. Usesalespromotionandalliancestospikesaleswithspecifictargets. Terminalsignage,boatdecaling.

Afterthelaunchofanewline,WTAisto focusonmeetingandexceedingridershipprojections. Ridership projections will bemeasured against actual ridership, andpromotionswillbeadjustedaccordingly.69

WTA has invested significant time and resources to identify and reach its targetmarket.Thisinitselfseemsunusualandinnovativeforapublicagency.Ofcourse,theproofwillbeinthepudding.ThefirstnewservicetoSouthSanFranciscowillbegin operations this year and will provide insights into the strengths andweaknessesoftheMarketingPlan.TakeawaysAquickglanceatSanFranciscostransitsystemputsthedevelopmentofregionalferry service in context. Unlike New York, San Francisco has few connections

betweenitsCentralBusinessDistrictandtheresidentialneighborhoodswheremostoftheseworkersreside.Evenwithinfrequentsailings,iftheferryistheonlyoptionforcommuterstogettoworkwithoutacar,therewillsignificantdemandforferries.The lack of transit connections between the CBD and residential neighborhoodsallowstheservicetoattractsignificantridershipevenwithlongheadwayintervals.WhileNewYorkersareaccustomedtolowheadwayintervals,itispossibletobuildaridershipbaseatintervalsofupto60minutes.ThiswasalsoseenintheprivateNewJerseyservicefromMonmouthtoManhattan.

It might be argued that the lack of transit options in San Francisco allow policy

makersmorelatitudetofundtransitwithlowfareboxrecoveryratioscomparedtoNewYorkCity.SanFranciscosferrysystemisexpectedtomainlydrawfromformerdriversandwillalsoproduceancillary securitybenefits. Thismay explainpolicymakerswillingesstoacceptalowfareboxrecoveryratio.

69Ibid11


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In addition, unlike New York, San Francisco developed new routes after carefulstudyandresearch.AsshowninChapter4,SanFranciscosapproachwasamuchmorecomprehensivethanrecentlyplannedroutesintheRockawaysandYonkers.While its yet not possible to know if this will result in more accurate ridershippredictions,ithasbeencitedasanassetwhenWTAaskedvoterstoincreasebridge

tollsin2004.70

ThecreationoftheWaterTransportationAuthorityin1999laidthegroundworkforthe extensive system planned for today. WTA analyzed market conditions,identifiednewroutes,anddevelopedastrategytoconvincethepublictosupportnewbridgetolls.Aswewillsee,thisisincontrasttotheexperienceofNewYork,which chosewhich routes to implement first, and later commissioned studies tostudypotentialridership.Aswecansee,theSanFranciscoCaseStudyoffersanumberoflessonsastowhypubliclyfundedferryservicehasnotsucceeded.

70PortAuthorityofNY/NJ,InteragencyStudyofRegionalPrivatePassengerFerryServicesintheNewYorkMetropolitanArea,4


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BOSTONBostons ferry system is limited both in terms of the scope of its routes and thenumberofpassengersitserves.Thisispeculiar,asBostonhasfullyintegratedtheferrywithitsexistingtransitsystemandoffersfrequentsailingsatarelativelylow

cost.AnimportantlessonforNewYorkis thatevena perfect ferrysystemmayhaveahardtimecompetingwithrail.AllofthestationsinBostonarenearacommuterrailline.AndthecommuterrailtransportspassengerstodowntownBoston,whiletheferry system transports passengers to Rowes Wharf, just outside the CentralBusinessDistrictneighborhood.ExistingTransportationNetworkTheCityofBostonislocatedonapeninsulaontheAtlanticOcean.Itissurrounded

bywatertoitseast(outerBostonHarbor),west(CharlesRiver)andnorth(innerBostonHarbor).Onlytothesouth,Thecityabutswithadjacentcities.The Massachusetts BayTransportation Authority(MBTA) operates publictransit services in Boston.Five fixed rail subway linesoperate services that run tothe center of the city in aspoke and hub distribution.

Commuter rail systemsprovide regional service totheeasternthirdofthestate.Commuter rail stations arelocated within the sametownsasallofthetownswithferryservice.71Extensive bus service is alsoprovided throughout thecity.72 The MBTAs farebox

recovery ratio in 2008 was35%.73Eleven automobile bridges

71Source:MBTAWesite:http://www.mbta.com/schedules_and_maps/rail/;Accessed5/27/1072InformationonavailablepublictransitfromMassachusettsBayTransportationAuthority(http://www.mbta.com/)Accessed4/16/1073Source:NationalTransportationDatabaseWebsite,Accessed4/16/10

Figure6:BostonFerryRoutes;

Source:MassachusettsBayTransportationAuthority


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and tunnels connect Boston to neighboring cities to its north across the CharlesRiverandtheBostonHarbor.74Background

Ferry service between Hingham and Quincy began in 1984 to mitigate trafficcongestionwhileMassachusettsconstructedtheSoutheastExpressway(I93/MA3/US1).75Operations76FerryserviceinBostonconnectsthesouthBostonsuburbsofQuincy,HinghamandHulltoLongWharf,CentralWharforRowesWharfinBoston.TheBostonWharfsarealllocatedwithinashortdistanceofeachother.ServicetoLoganAirportwithaconnecting shuttle bus is available for Quincy and Hull passengers on selectedsailings

In addition, inner harbor service connects the nearby Boston neighborhood ofCharlestowntoCentralWharf.LongWarfandCentralWarfareadjacenttotheBlueLinesubway.RowesWharfisashortwalktotheBlueline(1/5mile.)ServicefromHinghamoperatesatheadwayintervalsof1530minutes,withatotalofnine sailingsduring theAM peak. The 10mile trip takes35minutes toreachRowesWharf.Passengerspay$6foraonewayfare,and$198foramonthlypass.As is the casewith all othermonthlypasses, faresare integratedwith theMBTA

system.Thisallowspassengerstoconnectwithabusortraintoreachtheirfinaldestination.FerryvesselsdepartQuincysForeRiverShipyardatheadwayintervalsoftwentytothirtyminutes.ThereareeightsailingsduringtheAMpeak.Thenauticaldistanceis10.8miles.PassengersreachBostonin37minutes.Onewayfaresare$6perride;monthlymultiMBTAmodepassescost$198.Hulls ferry service operates at 5070 minute headway intervals, with fourdepartures during the AM peak. Ata distanceof8.5miles, passengers arrive inBoston in twenty minutes. A oneway ticket costs $6 and a monthly MBTA

combinedpasscosts$198.ServicefromtheCharlestownNavyYardoperatesat15minuteheadwayintervalsduringtheAMPeak(twelvesailingsduringthistime.)Thetripdistanceisonemile.

74Source:GoogleMaps75ElizabethRoss,FedUpDriversSwitchtoFerriesTheChristianScienceMonitor,Boston,MA(11/20/1990)76Dataonheadways,faresandconnectionscompiledfromMBTABoatswebsite(http://www.mbta.com/schedules_and_maps/boats/)Accessed4/16/10


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PassengersreachBostonin10minutes.Faresarethesameasforthebusesandsubways.Onewayfaresare$1.70,andmonthlyfaresare$59.Theseroutesaccommodate4,211passengersonadailybasis.Ofthese,3,403takethe Hingham, Quincy and Hull ferries and 808 take the Charlestown service.77

Fareboxrevenuescapture50%ofthecostofoperatingservice.78

OperatingOrganizationTheMBTAcontractsprivatecompaniestoprovideferryservices.AccordingtothePortAuthoritiesInteragencyStudyonFerryService,thisoperatingscenarioresultsin contractors either charging a large rate upfront for a short period of time orrequiring a long contract to cover the costs of acquiring the vessel. The studysuggeststhatthismodelcangivethecontractorapotentiallyundesirableamountofleverage.

AwayaroundthiswouldbetohavetheCitypurchaseavesselandmakeitavailableforusebythecontractor.ThisisthemodelfortheQuincytoBostonroute.Whilethisisasolution,itrequiresthesupervisingagencytohavestaffexpertisetomakesure the right vessel is chosen and to supervise the procurement/ constructionprocess.TakeawaysBostonsferryservice,whilelimitedinscope,adherestoexcellentplanningpolicy.FaresarelinkedtotheMBTAsexistingbusandsubwayservice,ferrylandingsareatorclosetoamajorsubwayline,andheadwayintervalsarereasonablyshort.

Evenwiththeseconditions,ridershipontheseroutesaccountsforjust.4%ofMBTAridershipsystemwide.Itissurprisingthatevenwiththehighdegreeofplanningand integrativepolicymeasures, riders havent flooded the system. Thismay bebecauseBostonsbusinessdistrictiscenteredaroundSouthStationandDowntownCrossing, whicharemore easily accessedbyT CommuterRail Service. Also, theQuincylandingisclosetoastopontheMBTAsRedLinesubway.Given all this, and considering the ferrys 50% ($6) rate of subsidy, its hard toidentifythepolicyrationalbehindthisservice.

77MassachusettsBayTransportationAuthority,MBTAFY2009AnnualBudgetBook,Section7,91.78PANY/NJInteragencyStudyofRegionalPrivateFerryServicesintheNewYorkMetropolitanAreaStudy,20


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SEATTLE / WASHINGTONSTATEFERRIESThe Washington State Ferrysystem serves communities

surroundingthePugetSound.WhiletheWashingtonStateferrysystem is expansive, only tworoutesdirectlyservecommutersfromSeattlessuburbstothecityproperCBD?.Mostofitsroutesoperate as an extension of theState highway system, ratherthan a transit alternative to onroad vehicles. Given the

difference to the systemenvisioned for New YorkCity, itishardtodrawtoomanylessonsforNewYork.Background and ExistingTransportationNetworkFerry service to Seattle isoperated by the WashingtonState Department of

Transportation. This servicecomprises two of eleven ferryservices crossing the PugetSound.79 The only bridgeconnecting Washington to thewesternbanksofthePugetSoundisovertwentymilessouthofSeattlebyTacoma.Thus,theferryservesasthenearestlinkacrosstheSoundformanyresidentsofWashingtonStateandactsasthebridgebetweenhighwaysatoppositeendsoftheSound.Asaresult,theWashingtonDOTsfleetisthelargestofallautomobileferrysystemsintheUnitedStatesandthethirdlargestintheworld.

PublictransitinSeattleisprovidedbytheKingsCountyMetroTransitandSoundTransit. Kings County Metro, a division of the Kings County Department ofTransportation, operates 223 bus routes and serves 118 million passengersannually.80 SoundTransitoperatesasapublicauthorityandprovidesexpressbus,lightrailandcommuterrailservicetoSeattle.81

79WashingtonStateFerriessite(http://www.wsdot.wa.gov/ferries/schedule/)Accessed4/17/1080KingsCountyMetrosite(http://metro.kingcounty.gov/)Accessed4/17/1081SoundTransitsite(http://www.soundtransit.org/)Accessed4/17/10

Figure7:WashingtonStateFerriesMap;

Source:WashingtonStateDepartmentofTransportation


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Operations82TheWashingtonStateDepartmentofTransportationoperatestwoauto/commuterferriestoPier52inSeattle.TheseservicesruntoBainbridgeIslandandBremertonon the western banksof the Puget Soundacross from Seattle.83 TheWaterfront

streetcarlineconnectspassengerstoareasfurtherinland.84

FromBainbridgeIsland,ferriesmakefourtripsduringtheAMpeak,makingatripevery 4550 minutes. A oneway ticket costs $6.90, and a monthly pass costs$88.35. Ten ticket books are available for $55.20. The total population ofBainbridgeIslandis20,000peopleandtheaveragehouseholdincomeis$108,000annually.The routebetweenBainbridgeandSeattle is8.7miles. Run timesbetweenthesecitiesaverage35minutes.

FerriesfromBremertonmakethreetripsduringtheAMpeak,departingatheadwayintervalsof60to85minutes.Onewaypassessellfor$6.90.Monthlypassescost$88.35 and 10 ride passes are $55.20. 37,000 people live inBremerton and theaveragehouseholdincomethereis$36,000.The ferry route betweenBremerton and Seattle is approximately16miles. Runtimesbetweenthetwocitiestake60minutes.80%ofrevenuesforferryoperationsarederivedfromfares.85The American Community Surveys 20062008 indicates that 6,195 of 111,405

workersintheBremertonSilverdaleMetropolitanStatisticalArea(MSA)commutedto work by ferry. This represents 5.5% of the total working population (thisnumberdoesnotincludeworkersintheSeattleMSA).Ofthese,2,764,or27%oftheworkingpopulationofBainbridgecommutedtoworkbyferryand754people,or5%oftheworkingpopulationofBremerton,commutedbyferry.86TheaverageincomefortheBremertonSilverdaleMSAis$59,136.87In2008,65,000passengerstookWashingtonStateferriesonanaverageweekday.Ofthese,19,500,or30%ofitsridership,tooktheBainbridgeferry.7,800,or12%oftotalWSFridership,tooktheBremertonferry.88

82FareandHeadwayinformationobtainedfromWashingtonStateFerriessite(http://www.wsdot.wa.gov/ferries/schedule/)Accessed4/17/1083WashingtonStateFerriessite(http://www.wsdot.wa.gov/ferries/schedule/)Accessed4/17/1084KingsCountryMetro(http://metro.kingcounty.gov/tops/wfsc/waterfront_streetcar.html)Accessed4/17/1085Source:NationalTransportationDatabase,Accessed4/17/1086Datacompiledthroughthe3Year,20062008AmericanCommunitySurveyontheUSCensusBureauswebsite:(http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=ACS&_submenuId=&_lang=en&_ts=)87Ibid.88Ibid.


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TakeawaysWhileWashingtonState is the largest system ofautomobile ferries in the US, itspassenger/commuterferrysystemrepresentsasmallportionoftheSeattleworkingpopulation. Of the 1,797,286 workers in the combined Seattle/Bremerton

Metropolitan Statistical Area, only 3/10 of 1% commute to work by ferry.Washingtonhasarobustnetworkofferries,butitservesmainlyasanextensionoftheStateHighwaysystem,notasamajorcommuterpassengerservice.Although 80% of the revenues are derived from farebox revenues, monthlycommutersappeartoenjoysignificantcostsavingscomparedtothosepayingaonewayfare.Oneway(passenger)serviceis$6.90,butamonthlypasscostsjust$88.The low monthly fare (especially when compared to fares in other systems)indicatesthatpassengerserviceispartlysubsidized,probablybythehighvolumeofdailyautotrafficontheelevenotherlinesthroughouttheState.


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TheMTAsbase subway fare is$2.25. Monthlypasses are available for $89. In

addition,dailypassesareavailablefor$8.25,weeklypassesfor$27,anda2weekpasscosts$25.75.93For Western Rockaways; commute mode to Manhattan: it totals 95%, whereascentralRockawaystotalupto100%.ExpressbusservicetoMidtownManhattanisavailable via the QM16bus. This routestopsat four locations inthe Rockawaysbefore running express to Manhattan. Travel times from its origin atNeoponsit/Rockaway Beach to 57th Street and Third Avenue run at 78 minutes.Expressbusesoperateat20minuteheadwaysduringtheAMpeak.Onewaybase fareon theexpressbus is$5.50during theAMpeakand$2.75off

peak. Free transfers toconnectingserviceare allowedonthisservice. TheMTAoffers a 7day express plus fare for $45, which also allows for a free transfer.Monthlyoptionsarenotoffered,sopassengerstakingtheexpressbuspay$180.PopulationCharacteristicsThe Western Rockaways is home to the neighborhoods of Rockaway Park, BelleHarbor/Neponsit, FortTilden,Roxburyand Breezy Point. Ithas apopulationof17,000peopleandanaveragehouseholdincomeof$59,000.41%oftheworkingpopulationcommutestoManhattan.12%(585people)commutetodowntownand12%(719people)commutetomidtown.OftheManhattancommuters,44%took

thesubway,33%drovetoworkaloneand9%carpooled.94The population of the Central Rockaways is less affluent than the WesternRockaways. Home to Rockaway Beach and Averne, this neighborhood has apopulationof21,000.Theaverageannualincomeis$34,000.Thetotalnumberof

93Source:MTANewYorkCityTransit,http://mta.info/metrocard/mcgtreng.htm#unlimited,Accessed6/12/201094Appleseed,ProposedRockawayandSoutheastBrooklynFerryLandingSites:DemographicsandMarketAnalysis,PreparedfortheNewYorkCityEconomicDevelopmentCorporation(9/27/06)

Table5:PopulationCharacteristicsofRockawaysNeighborhoods;Source:AppleseedConsultants


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people in the labor force is 9,660. Of these, 2065, or 28% of the labor forcecommutestoManhattan.8%,or605people,commutetoLowerManhattanand8%,596people,commutetoMidtown. 64%ofthoseworkinginManhattancommutedbysubway,26%drovealonetowork,4%carpooledand6%tookthebus.95

AppleseedRidershipStudyAppleseed, a New York Citybased consulting firm, conducted a ridershipassessmentfortheCity.Whiletheassumedconditionsofthisanalysisdifferedfromtheactualoperationsfortheservicethatbeganin2008,thereportoffersinsightsintothechallengesfacedbyferryservicefromtheRockaways.UnlikethedetailedsurveyingconductedbytheWaterTransportationAuthority inSanFrancisco,Appleseedbaseditsmodelontimevalueconceptsdevelopedina2001studythatestimateshowpeoplevaluetheirtimewhentakingandwaitingforpublictransit.96This,andotherdataarecomparedwiththeoutofpocketcostsof

drivingandparkinginManhattan,gasoline,aonewaysubwayfareorexpressbusfare.TheanalysisassumesastopatRiisLandingandastopatPier11,twotripsintheAMandPMpeaksthatoperateatonehourheadways(thisnecessitates2vessels),a149passengershipanda$12onewayfarethat isblendedto includeriderswhopayfullfareandthosewhopurchasediscountedmonthlypasses.Atthisfare,Appleseedestimatesitwillcapture70140riders.Atafareof$4andholdingallotherassumptionsconstant,theridershipisestimatedtobe146192.

AridershipassessmentstudyconductedbyAppleseedestimatedthatthemajorityof the ridership would arrive at the terminal by car. There is a small walkonpotentialmarketof486peoplewholivewithinamileradiusoftheferrylanding.

95Ibid.96Thestudy,PublicTransitValuesofTime,bytheInstituteforTransportStudiesfindsthatpeopleperceive1minuteinuncongesteddriving/subwayserviceas1minute,1minutewaitingforatrainas3minutes,1minutewalkingtoatrainstationas2minutesand1.5minutesdrivingincongestedtrafficas1.5minutes.


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Firsthalf:at$12pertrip(oneway)andthesecondhalf$4pertrip(oneway)please

indicate Thetablesaboveshowrevenueprojectionsattheexpectedridershiplevels.Thetoptableshowsannualrevenuesandprojectedoperatingdeficitfora$12onewayfareandthebottomtableshowstheannualexpectedrevenueandoperatingdeficitfora$4 oneway fare. Even with a high $24 roundtrip cost, Rockaways service isexpectedtooperatewithalargeoperatingdeficit.TheAppleseedstudyalsoprovidesaproformafortheRockawaysferryservice(seenextpage.)Itprojectsthatthecostoffuel(at$2.33/gallon)willequal$451,438ofthe $1,137,783annualoperating expenses,or 40%. Ifcalculatingthe costoffuel

andconsideringthedepreciationofthevessel,thefuelcostsrepresent$291.25ofthe$1,018costpervesselhour,or28.6%ofthetotalcostperhour.ThedistancebetweentheRockawaysandPier11onGoogleEarthisestimatedtoequal15.9miles.ThisdistanceismuchgreaterthanthedistancesobservedinmostoftheNJManhattan,Boston,SanFranciscoorSeattleferrysystems.

Table6:ProjectedOperatingExpensesforDifferentRidershipandCostScenarios;(TopTable:

$4onewayfare;BottomTable:$12onewayfare)Source:AppleseedConsultants


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Table7:OperatingExpenseEstimates;

Source:AppleseedConsultants


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Operations97FerryservicefromtheRockawaysoriginallyoperatesfromRiisLandinginBreezyPointtoPier11,withastopinbetweenattheBrooklynArmyTerminal.Onevessel

wouldmaketwotrips,withonedepartureat5:45AMandanotherat7:45AM.TworeturntripsdepartPier11at4:30PMand6:30PMintheevening.TheJourneytimefromtheRockawaystoLowerManhattanisonehour.Aonewayfarecost$6.10tripbooksareavailablefor$60and40tripbooksareavailablefor$216.ThecostoftheferryridedoesnotincludetransferstoexistingMTAbusorsubwayservice.RidershipThetableaboveshowstheactualridershipofRockawaystoLowerManhattanfrom20082010 basedondata receivedbytheNew YorkCityEconomicDevelopmentCorporation. As we can see, the ridership is well belowwhat was predicted byAppleseed.Moreover,theAppleseedreportdidnotpredictthesignificantdropoffthatwouldoccurduringthewintermonths.InFebruary2010,theEconomicDevelopmentCorporationstatedthattheferrywasoperatingata30%fareboxrecoveryratio,andthatthesubsidyperpassengerwasrunningat$25(perride)partlyduetolowridershiplevels.98TheservicewasextendedinMarchwhentheCityCouncilallocatedfundstokeepservicerunningthroughJune30th.99

97UmarCheema,NewFerryServiceWillBeginNextWeek,TheNewYorkTimes(May6,2008)98NicholasHishon,CitytoStopRockawayFerryinMarch,DailyNews,(February24,2010)99Source:RockawayFerrywebsite(http://rockawayferry.com/)Accessed4/20/10

Table8:RockawaystoLowerManhattanRidershipbyMonthandYear

Source:NYCEconomicDevelopmentCorporation


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II.YONKERSService between Haverstaw/Yonkers and Pier 11 in Lower Manhattan operatedbetweenMay2007andDecember2009.

Background100

Itisimportanttounderstandtheunderlyingnarrativebehindtheimplementationofferry service from Yonkers to Lower Manhattan. While service between theRockawaysandLowerManhattanhasbeendiscussedfordecades,servicebetweenYonkers and Lower Manhattan was not a regional priority prior to itsimplementationin2007.TheCityofYonkershasundergonesignificantredevelopmentduringthe2000sandreceivedStateattentiontodevelopnewhousing,improveitsdowntown,libraryandtheMetroNorth train station. Developmentof a pier on the Hudson Riverwith

commuterferryservicewasexpectedtoenhanceplannedresidentialcondominiumsonthewaterfront.ThesubsidyforferryservicefromYonkerswasallocatedaspartofthe$20BillionappropriatedbyCongressfollowingtheSeptember11thattackontheWorldTradeCenterthroughtheLowerManhattanDevelopmentCorporation.ExistingTransportationOptionstoManhattan101TheCityofYonkershasapopulationof196,086.102TheMetroNorthRailroad,nearGettySquare,providescommuterrailservicetoManhattan.Between5:16AMand

8:41AM,thirteentrainstravelfromYonkerstoGrandCentralTerminal.TrainsdepartingYonkerstoGCTbetween5:15and6:28AMarriveatGCTin2531minutes.Thosedepartingafter6:28take3436minutestoarriveatGCT.HeadwayintervalsduringtheAMpeakaveragetwentyminutes.TheYonkerstrainstationislocatedacrossthestreetfromtheferrypier.103AonewaypeakfarefromYonkerstoPier11is$15.10ticketbooksareavailablefor$85andmonthlypassescost$186.ItispossibletopurchaseNewYorkCityTransitticketservicethatcanbeaddedtothephysicalMetroNorthticket,butMNRridersdonotreceiveadiscountonNewYorkCityTransitssubwaysandbuses.

YonkerspassengerstravelingtodestinationsawayfromGrandCentralTerminalpay$275incombinedmonthlycosts.

100AdaptedfromInterviewwithRobertMillerandPhilipPlotch,LowerManhattanDevelopmentCorporation(March26,2010)101HeadwayandscheduleinformationfromMTAMetroNorthwebsite(http://www.mta.info/mnr/)andNJTransit(http://www.njtransit.com/hp/hp_servlet.srv?hdnPageAction=HomePageTo)Accessed4/25/10102Source:Wikipedia,Accessed4/25/10103Source:InterviewwithRobertMillerandPhilipPlotch,LMDC(March26,2010)


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Table9:PopulationCharacteristicsforYonkerstoLowerManhattanTargetMarket

Source:LouisBergerConsultants

ThevillageofHaverstrawislocatedinOrangeCounty.NewJerseyTransitprovidesthenearestcommuterrailservice.Itislocated9.7milesaway(a17minutedrive).104EighttripsdepartSpringValleyduringtheAMpeak.Afteratransferin

SecaucusJunction,ridersarriveatNewYorkPennstationatanaverageof79minutesafterdepartingSpringValley.Headwayintervalsrangefrom1325minutesduringthistime.AonewayticketfromSpringValleycosts$8.25.Weeklyticketsareavailablefor$76.25andmonthlypassesfor$251.PassengerswhotakeNewYorkCitytransitfromPennStationpaythebase$2.25perrideor$89foramonthlypass.Forthesepassengers,thetotaloutofpockettransportationcostspermonthis$340.PopulationCharacteristics

TheCityofYonkershasapopulationofapproximately196,000.Themedianannualincomeis$44,600.ADraftBusinessPlanfortheferryservicebytheLouisBergerGroupestimatedthat2500YonkersresidentscommutedtojobsinLowerManhattan.105Themajorityoftheseworkersdrovetowork(53%).24%tookrail,16%tookthesubwayand7%tookthebus.106FurtheranalysisshowsthatYonkersresidentscommutetoarelativelydispersedareainLowerManhattan,especiallywhencomparedtothosecommutingtoLowerManhattanfromNewJersey.Forthecensuspurposes,LowerManhattanisdefinedastheareabelowHoustonStreet.ThismeansthatthosetakingtheferrytoworkdestinationsinLowerManhattanmayneedtotransfertoabusorsubwaytoreachtheirfinaldestination.107

104Source:GoogleMaps105TheLouisBergerGroup,RidershipandRevenueAnalysisforaProposedFerryServicetoLowerManhattan,DraftReport,submittedtotheLowerManhattanDevelopmentCorporation(June2006)106Ibid.107Ibid.


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53

Figures8+9:

DestinationofManhattanBoundCommutersfrom

Yonkersa

ndHaverstraw;

Source:

TheLouisBergerGroup


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ThemarketareafortheHaverstrawstationencompassedlocalitieswithina15minutedriveoftheferrystop.HavestrawislocatedinOrangeCounty.In2000,theCountyspopulationwas293,600,withamedianhouseholdincomeof$68,000.ThetownofHaverstrawhadapopulationof33,800andamedianhouseholdincomeof$53,800.

Themarketareacontainedapopulationof1500workerscommutingtoLowerManhattan.68%traveledbycar,17%byrailand15%bybus.108ThesecommuterswereslightlymoreconcentratedinjobsnearPier11andtheWorldFinancialCenter,butstilllessconcentratedthanNewJerseyferrycommuters.PlannedWaterfrontDevelopmentsNewresidentialdevelopmentattheYonkersandHaverstrawpierswasexpectedto

buildridershipfortheferryservice.By2007,336unitsofaplanned850unitcondodevelopmentwerefinishedatHaverstraw.Thepriceofthecondosrangedfrom$336,000to$1Million.109Asmentionedearlier,theYonkerswaterfrontwasundergoingextensiveredevelopmentduringthistime.Ferryservicewasseenasacriticalfactorinfulfillingthecitieswaterfrontdevelopmentplans.Atotalof1,000residentialunitswereplannedalongthewaterfront.In2008,294apartmentsneartheYonkerstrainstationwere97%leasedattheHudsonParkNorthtower.110266unitsinHudsonParkSouthcameonlineinthespringof2008.

Operations111TheservicebeganoperationinMay2007.TwoferriesduringtheAMpeakperiodranfromHaverstrawandfourfromYonkers.JourneytimesarefasterthantheRockawaysservice;ridersreachedtheWorldFinancialCenterin45minutesandPier11in57minutes.Thetripis18.4nauticalmiles,muchlongerthanmostofthetripsintheothersystemsstudied.AonewayticketfromYonkerscost$12,and$15fromHaverstraw.A10ticketbookfromYonkerscost$110andamonthlypassis$400.FromHaverstraw,a10

ticketbookcosts$130anda40ticketbookis$450.TheferryislocatedacrossaparkinglotfromtheYonkersMetroNorthStation.ParkingissharedbetweenMetroNorthandtheferry.UnlikeotherMNRparking

108Ibid11109Ibid12110ElsaBrenner,ItHadtheSetting,NowitHastheHousing,TheNewYorkTimes,(March9,2008)111Ticketcost,headway,parkinglotinformationfrominterviewwithRobertMillerandPhilipPlotch,LMDC(March26,2010)


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facilities,ampleparkingexistsatthislotforbothferryandrailpassengers.Also,intheeventthatapassengermissedthelastsailingfromPier11at6:30,theycouldeasilytakeaMetroNorthtraintotheircarinYonkers.Onboardpassengeramenitiesincludedwirelessinternet,flatscreentelevisionsandacafandbarsellingfoodanddrinks.112

RidershipProjections:MethodologyandPredictions113TheBergeranalysispredictedridershipusingsimilarcomparisonsofcostsvs.timessavingsasusedbyAppleseedtopredictridershipbetweentheRockawaysandLowerManhattan.BergeranalyzedtheridershiptrendsofthosetakingtheferriesfromMonmouthCountyandforecastedridershipbasedontheincomesandworkplacedestinationsofthemarketsinYonkersandHaverstraw.ThemodelalsoconservativelyassumesthateveryonedrivingtoworkinLowerManhattanwasreimbursedbytheiremployerforthecostofparking.Thus,insteadofhavingan$800outofpocketexpensetodrivetoworkfromHaverstraw,theout

ofpocketexpensewasassumedtobe$400.Becauseofthisassumption,Bergerbelievedtheactualridershipnumbersmaybehigher,asitisunlikelythateveryonewhodrovetoLowerManhattanhadtheirentirecostofparkingfullyreimbursed.ThetableaboveshowsBergerspredictedridershipfortheservicelevelmostresemblingwhatwaseventuallyputintooperation.TheassumedmonthlyfareiswhatwasimplementedinYonkersandbelowthefareimplementedforHaverstraw.Thesecostsassumedservicewouldoperateon99passengervessels.Instead,theserviceoperatedontwo149passengervessels.Therefore,theactualcostsandrequiredsubsidyareexpectedtobehigherthanwhatisassumedhere.

112ElsaBrenner,ItHadtheSetting,NowitHastheHousing,TheNewYorkTimes,(March9,2008)113TheLouisBergerGroup,RidershipandRevenueAnalysisforaProposedFerryServicetoLowerManhattan,DraftReport,submittedtotheLowerManhattanDevelopmentCorporation(June2006)

Table10:EstimatedRevenueProjectionsforYonkersFerry;

Source:TheLouisBergerGroup


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BusinessPlan114Thefullbusinessplanwasnotmadeavailableforthisreport.Whatwaslearnedaboutthebusinessoperationsisdescribedbelow.

PaymentScheduletoNewYorkWaterTaxiThefollowingisNewYorkWaterTaxisestimatedtotaloperationalhoursandoperatingexpense.ExpendituresarebasedonvesselsberthingfromtheCityofYonkerspier,and21commuterdayspermonthwiththeNewYorkStockExchangeholidaysexcluded.a.)YonkerstoBatteryParkCityTerminal

DayRateOperatingHours: 10.5at$750/hourMobilizationHours: 2.0at$700/hour

TotalDayRate: $9,275Total(YearlyOperatingExpense): $2,337,300

b.)ExtendedServicefromtheVillageofHaverstraw,RocklandCounty,NYtoBatteryParkCityTerminalDayRate OperatingHours: 9.0at$750/hour MobilizationHours: 2.0at$700/hour

TotalDayRate: $13,250Total(YearlyOperatingExpense): $3,339,000

Otherdetailsregardingthebusinessassumptionsinherentinthehourlyratewerequotedatinterviews:115

NYWaterTaxisOperatingCosts=$900$1000perhour. Fuelcosts=$150perhour(at$2.25/gallon). Dockingfees=$25attheWFCand$16atPier11. FinancingonvesselsmakeupabouthalfofNYWaterTaxiscosts.

114ObtainedfromthePortAuthorityofNY/NJ115InterviewwithRobertMillerandPhilipM.Plotch,LowerManhattanRedevelopmentCorporation(March5th,2010)


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ActualRidership

ThetableaboveshowstheactualridershipforthecombinedYonkers/HaverstrawferryservicethroughDecember2009,whenservicewascancelled.Anumberofchangestotheserviceduringitsrunmakeithardtodrawtoomuchfromtheridershipfluctuationsobservedinthisgraph.Thesechangesinclude:

Tostimulateridership,inMay200840tripticketbooksweredecreasedfrom$450to$360fromHaverstrawandfrom$400to$320fromYonkers.RidershipinJuneskyrocketed,increasingto150/dayfrom117(a28%increase).116

InMay2009,theLMDCgrantwasdepleted.YonkerssecuredagrantfromtheEmpireStateDevelopmentCorporationtocontinueservicefromYonkers.ServicefromHaverstrawwasdiscontinued.117

Inthesummerof2009,theESDCgrantwascombinedwithgrantsfromtheYonkersdevelopmentagencies.AstopwasaddedatWest39thStreettoservethosecommutingtoMidtown.118

$50,000wasspenttomarketthenewserviceinthesummerof2009.119

Evenwiththeseconsiderations,theassumptionsoftheBergerridershipstudyaredemonstrablyincorrect.Underthegiventicketprices,Bergerpredictedacombinedridershipof216in2007.Theactualridershipwas87.In2008,Bergerpredicted

116InterviewwithMillerandPlotch(March26,2010)117Ibid.118Ibid.119PatrickMcGeehan,FerrybetweenManhattanandYonkersisSettoStop,TheNewYorkTimes,Metro(December23,2009.)

Table11:YonkerstoLowerManhattanRidershipStatistics;

Source:PortAuthorityofNewYorkandNewJersey


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306riders.WithasmallerfarethanexpectedbyBerger,theactualridershipwas124.Ofcourse,theeconomiccrisisinSeptember2008andweakeningeconomythroughouttheearlierpartofthatyearlikelycontributedtotheweakridership.

Howmuchofafactorisunknown,butBergersforecastsprojected200%moreridersin2007,250%moreridersin2008and400%moreridersin2009.Atpeakridership,theservicewasgenerating$50,000inrevenuesand$200,000incosts.Thisrepresentsafareboxrecoveryratioof25%.By2009,LMDCwasoperatingtheserviceathalftheoriginallyproposedfarewith1/3oftheexpectedriders.Attheendof2009,servicewascancelled.


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III.LESSONSLEARNEDFROMTHEROCKAWAYSANDYONKERSFERRYSERVICEThefailureoftheRockawaysandYonkersferryroutesillustrateanumberofreasonswhyexpandedpubliclyfundedferryservicehasnotsucceededinNewYork.Inthissection,welookathowtheimpactsofpoormodeling,lackofindoorwaiting

facilities,longroutesandfailuretocaptureasignificantportionofthemarketbetweentheoriginandcommutingdestinationledtothecancellationoftheseferryservices.PoorModelingWhatismoststrikingabouttheYonkersandRockawaysservicetoLowerManhattanisthefailuretoaccuratelypredictthenumberofridersoneachoftheroutes.Appleseedforecastedafareof$4woulddrawbetween146192dailypassengerstotheRockawayferry.Inreality,itdrew70100withafareof$6.TheLouisBergerGrouppredictedridershipwouldrampupfrom216in2007,to306

in2008to496in2009forfaresof$400permonthfromYonkersand$525permonthfromHaverstraw.Atthepredictedfarelevels,ridershipaveraged87in2008and124in2009.Bothservicesmodeledexpectedridershipbycomparingtheoutofpocketcostsofferryservice,transit,anddrivingcostswithtimevaluecosts.Timevaluetheoryplacescertainvalueoncommuterstimewhenaccessingtransit(walkingtothesubway/bus),waitingfortransit,andtravelingintransitortravelingbycar.TheBergerstudydoesnotspecifywhatvaluesitplacedonthesefactors.Appleseedprovidesadetaileddescriptionofhowtheymodeltheycalculatethevalueoftimetoarriveattheirestimations.120

Withoutaccurateinformationaboutwhowillridefutureferryservices,itisimpossibletodeterminewhichroutesshouldbefundedandwhichroutesshouldbeignored.Ifprovenaccurateoverthenextfewyears,theWTAsmodelingandmarketingschemesbyCambridgeSystematicscouldserveasausefultooltopredictridershiponfuturelines.Asanalternative,NewJerseyTransitforecastsferryridershipasacomponentoftheNJTransitDemandForecastingModel.121

120Appleseeds model of time value is derived from: M. Wardman,Public Transport Values of Time,Institute for Transport Studies, University of Leeds, Working Paper 564, December 2001. This research

suggests, for example, that transit riders, on average, perceive one minute waiting for a train as feeling

three times as long as one minute riding a train. Walking to the train is perceived as feeling twice as long

as the actual time. And driving in congested traffic is perceived as taking 1.5 times as long as the actual

time. The time spent accessing, waiting, and riding a train, bus, ferry or car is then multiplied by$23/hour (a figure identified by NYMTC to measure the average value of time for the average worker in

the New York region) to identify the perceived cost of journey time for all modes. 121CambridgeSystematics,SouthAmboyFerryResearchStudy,FinalReport,PreparedfortheNewJerseyTransitCorporation(March2007)ES1


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Table11:

TripLengths

forAllFerryRoutesinReport;

VariousSources


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Alloftheseferryterminalswereconstructedwithoutenclosedstructurestoprotectpassengersfromtheelements.ApartialenclosuremayhavebeenconstructedattheYonkersterminal,butthiscouldnotbeconfirmed.

SignificantDeviationsinWintervs.SummerRidershipBoththeYonkersandRockawaysferryexperiencedsignificantdeviationsinridershipduringthewintermonthscomparedtothesummer.In2007,theYonkersferryexperienceda10%deviationinridershipanda20%deviationduring2008.TheRockawaysferryexperiencedanevengreaterdeviationinridership,witha40%deviationin2008anda32%deviationin2009.Asdiscussedearlier,almostalloftheNewJerseytoLowerManhattanferrieshadfullyenclosedterminalsatthepierwithamenities.Partlyasaresultofthis,alloftheNewJerseyroutesoperatedatrelativelyconsistentridershiplevelsthroughout

theyear.Mostroutesdeviatedbyfivetoninepercent.LongRoutesAtdistancesof18.4milesfromYonkersandsixteenmilesfromtheRockaways,theseroutesaresomeofthelongestexaminedinthisreport.WiththeexceptionoftheMonmouthCountyferriesinNewJersey,theVallejoferryinCaliforniaandtheBremertonferryinWashington,allotherferryserviceshavedistancesmuchshorterthantheseroutes.Detailedpro-formaswerenotmadeavailableforthisreport,buttheOperating

ExpenseEstimateprovidedbytheNewYorkCityEconomicDevelopmentCorporationestimatedfuelcostsmakeup3040%ofthecostsofoperatingtheservice.Longertripsresultinmorefuelused,whichinturnresultinhighercosts.Withoutasustainedhighridershiplevels,theseroutesquicklyturnintobigmoneylosers.TheotherrouteswithasimilarlengtharethoseinMonmouthCounty,NewJersey,Vallejo,CaliforniaandBremerton,Washington.Ofthese,theMonmouthferriesoperateasapremiumservicetoawealthyclientele.TheBremertonferryservesamiddleincomecommunity.Theaverageincomein

theBremertonMSAis$59,136.But,asdiscussedearlier,theoverallfareboxrecoveryfortheWashingtonStateFerriesis80%.Thus,Bremertoncommuterpassengers(whopay$88.30foramonthlypass)maybebenefittingfromthehighercostschargedtocars.AlongdistanceferrycurrentlyoperatesfromVallejo,California.Accordingtothe2008AmericanCommunitySurvey,theaverageincomeintheVallejoUrbanizedArea(thisincludesVallejoandneighboringtowns)is$65,233.WETAexpectsthat


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thisservice,whichattracts2,300peopleperday,willonlyrecoup45%ofcostsfromfareboxrevenues.Whilelowmoderateincome/longdistanceferriesexist,theyaredefinitelytheexceptionandnotthenorm.Theirdistancewillcertainlymakethemmorecostly

forbothpassengersandtheiroperators.DespiteOne-SeatRideAlternative,YonkerstoLowerManhattanFailedtoCaptureaSignificantMarketShareOnereasonthatplannerswouldexpectaYonkerstoLowerManhattanferryservicetothriveisthatitwouldprovideaoneseatridealternativetothosecurrentlytakingtheMetroNorthtoGrandCentralandthentransferringtotheLexingtonAvenuesubway.InadditiontothetimesavingsbenefitsofdirectservicebetweenYonkersandLowerManhattan,passengerswouldnotneedtomakeatransfertoreachLowerManhattan

Ifweassumethat60%oftheridershipontheYonkers/HaverstrawferrycamefromYonkers122,theYonkersferryserviceattracted52people,oronly2%oftheentireLowerManhattanmarketin2007.In2008,itattracted74YonkersresidentslivinginLowerManhattan,or3%ofthemarket.Consideringthecostoftheferrywasonly$75morethanthecostofacombinedmonthlyMetroNorthandNewYorkCityTransitmonthlypass,itshardtounderstandwhytheroutedidntattractalargershareofthemarket.In fact, the Louis Berger model assumed that the Yonkers portion of the ferry wouldcapture 29% of the Yonkers to Lower Manhattan market and 12% of the Haverstraw to

Lower Manhattan market.123

***

ThefailureoftheRockawaysandYonkersservicetoLowerManhattanillustratesanumberofissueswithimplementingnewferryserviceinNewYorkCity.Bothfailedtocorrectlyforecastthenumberofriderswhowouldusetheservice.Similarly,bothexperiencedsignificantridershipdecreasesduringthewintermonthsthisislikelytheresultofthelackofindoorwaitingfacilitiesattheterminals.Thetworouteswerelongerthanmostoftheroutesstudiedinthispaperwhichledtohighergasandotheroperatingexpensesaswellascapitalcosts.Finally,neitherofthe

ferriescameclosetocapturingasignificantportionofthemarketexpectedtobeservedbytheferryservice.

122Thisisaroughassumptionsbasedonaridershipof67inMay2009,themonthafterthestopatHaverstrawwaseliminated.InApril,thelastmonthofcombinedYonkers/Haverstrawservice,theridershipwas117.IfweassumeridershipstayedthesamebetweenAprilandMay,Yonkersridershipwouldhavemadeup60%ofthetotalridership.123TheLouisBergerGroup,RidershipandRevenueAnalysisforaProposedFerryServicetoLowerManhattan,DraftReport,submittedtotheLowerManhattanDevelopmentCorporation(June2006)27


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CHAPTER 4: CHALLENGES TO EXPANDED FERRY

SERVICE AND RECOMMENDATIONSWhatwouldittaketocreatearobustsystemofpubliclysubsidizedferriesinNew

York?Thischapterattemptstoanswersuchaquestionbyidentifyingsomeofthemajor challenges to implementing ferry service in New York and proposing afinancing and business plan for a route using a Tax Increment Financing (TIF)scheme.I.CHALLENGESIDENTIFIEDExistingPublic?TransitInfrastructureWhileNewYorksextensivetransitinfrastructureisamajorassetforresidentsandtheNewYorkseconomy,itisadeterrenttoimplementingnewferryservice.The

ferrysystemsinSanFrancisco,WashingtonandtheNewJerseyHudsoncoastweredeveloped because these cities lacked solid options to connect residents todestinationsacrossmajorbodiesofwater.InSanFrancisco,theBARTcrossestheBayfromtheeast,butpeoplelivingnorthofSan Francisco in Marin County only have the option of taking buses across thecongested Golden Gate Bridge. InWashington State, the only bridge connectingPugetSoundtothewesternpartof the state is located20milessouthofSeattle.AndtheHudsonCoasthasfarfewerpublictransitoptionstoManhattancomparedtotheboroughsofQueens,BrooklynandtheBronx.

ThisisnotthecaseinNewYorkCity.SeventeensubwaytunnelsconnectManhattantofourofitsboroug

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