NYC Ferry is a public transit system operated by the New York City Economic Development Corporation that provides waterborne transportation across various routes in the city. This page covers CBC's work on operating subsidies, fare structures, route efficiency, capital commitments, and the Ferry Forward plan.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The EDC should eliminate the lowest-ridership routes to improve financial efficiency.
The EDC should target subsidies to those in the greatest need of affordable transit options.
The EDC should increase fares for other riders to match those of comparable premium transit services, like the $7 per trip charged for the MTA’s express bus system.
The EDC should continue to hold the line on service expansions absent rigorous analysis that they would be financially feasible.
The EDC should eliminate the lowest-ridership routes to reduce the total subsidy.
The EDC should avoid money-losing expansions to reduce the total subsidy.
The EDC should target subsidies to those in the greatest need of affordable transit options.
The EDC should increase fares for other riders to match those of comparable premium transit services, like the MTA’s express bus system.
The EDC should structure the discounted 10-ticket package so that it can only be used by individual commuters and not by groups.
Key Data
As of September 2024, the official per-ride operating subsidy for NYC Ferry was $8.55 in fiscal year 2023, though when accounting for debt service, the full per-ride subsidy is actually $12.54.
Between fiscal years 2019 and 2023, the overall annual subsidy for the ferry system declined from $65.2 million to $56.5 million, driven by revenue growth and reduced operating expenses.
The annual debt service on NYC Ferry capital commitments is estimated at $26.4 million, or $3.99 per trip, which is not included in the official operating subsidy figures as of September 2024.
In fiscal year 2021, the average per-trip subsidy for NYC Ferry was at least $9.85, reflecting the high costs of running long routes with low ridership.
As of October 2019, NYC Ferry recouped just 24 percent of its operating costs through fare revenue in fiscal year 2019, which was among the lowest of all transit systems in New York City.
The NYC Ferry system has improved its financial standing through the Ferry Forward plan, reducing the per-trip subsidy to $8.55 and increasing ridership, though it remains heavily subsidized at $56.5 million annually. To further improve fiscal sustainability, the system should eliminate low-ridership routes, better target subsidies to those in need, and raise fares for non-commuters to match the $7 cost of MTA express buses.
Recommendations related to NYC Ferry
The EDC should eliminate the lowest-ridership routes to improve financial efficiency.
The EDC should target subsidies to those in the greatest need of affordable transit options.
The EDC should increase fares for other riders to match those of comparable premium transit services, like the $7 per trip charged for the MTA’s express bus system.
The EDC should continue to hold the line on service expansions absent rigorous analysis that they would be financially feasible.
Key Data
$8.55
— The official per-trip operating subsidy for NYC Ferry in fiscal year 2023.
$56.5 million
— The total annual subsidy for NYC Ferry in fiscal year 2023.
$12.54
— The full per-ride subsidy for NYC Ferry when accounting for debt service costs.
$7
— The per-trip fare for MTA express bus service, which is suggested as a benchmark for NYC Ferry non-commuter fares.
17 percent
— The increase in NYC Ferry ridership between fiscal years 2019 and 2023.
29 percent
— The increase in NYC Ferry revenue between fiscal years 2019 and 2023.
4.67 million is the total number of jobs in New York City, just shy of employment pre-pandemic. Though the economy is stable and employment generally strong, challenges remain. The economy is undergoing longer term transformation including remote work, which will affect our labor market and commercial real estate, and the…
The NYC Ferry system relies on heavy public subsidies due to high operating costs and low fare revenue, which diverts significant funds from the Economic Development Corporation's core mission. To improve financial sustainability, the system should increase fares to match comparable premium transit services, eliminate low-ridership routes, and better target subsidies to those in greatest need.
Recommendations related to NYC Ferry
The EDC should eliminate the lowest-ridership routes to reduce the total subsidy.
The EDC should avoid money-losing expansions to reduce the total subsidy.
The EDC should target subsidies to those in the greatest need of affordable transit options.
The EDC should increase fares for other riders to match those of comparable premium transit services, like the MTA’s express bus system.
The EDC should structure the discounted 10-ticket package so that it can only be used by individual commuters and not by groups.
Key Data
$9.85
— Average per-trip subsidy for NYC Ferry in fiscal year 2021.
$25
— Potential subsidy per trip for the proposed expansion to Coney Island.
20%
— Portion of operating expenses covered by fare revenues in fiscal year 2019.
$40 million
— Amount of revenue diverted by the EDC in fiscal year 2019 to cover the gap between ferry revenues and expenses.
$25 million
— Amount of cash reserves diverted by the EDC in fiscal year 2019 to cover the gap between ferry revenues and expenses.
$30 million
— Amount of federal COVID-related aid used by the City in fiscal year 2022 to support ferry operations.
The NYC Ferry system is highly subsidized compared to other transit options, and the new "Ferry Forward" plan aims to improve financial transparency and implement variable pricing. To ensure the system provides broad-based value, the city should consider raising fares on weekends and longer routes, while ensuring cost reporting includes all direct and indirect spending.
Recommendations related to NYC Ferry
The EDC should consider a single-ride ticket price closer to the MTA’s express bus fare.
The EDC should implement higher fares on weekends and for the longer, more expensive routes.
The EDC should reassess the most subsidized routes to determine if they provide the broad-based value and effectiveness the public deserves.
The EDC should evaluate the impact of the new fare system on NYC Ferry’s ridership and finances.
The EDC should increase fares or change routes and timetables if appropriate to allow redeployment of subsidy dollars to other high-value initiatives.
The EDC should ensure reports on costs are comprehensive, including all direct and indirect EDC spending on ferry operations and City spending.
The NYC Ferry system has become a significant financial burden, requiring a $53 million subsidy in 2019, which equates to $9.34 per ride. To address these fiscal pressures, the Economic Development Corporation has begun reducing service and should consider further measures like dynamic fare pricing and canceling planned expansions to routes requiring high subsidies.
Recommendations related to NYC Ferry
The Economic Development Corporation should implement dynamic fare pricing to make ferry operations more efficient.
The Economic Development Corporation should delay the launch of costly planned expansions to the ferry system.
The ferry system should charge higher fares on weekends and for noncommuters to generate additional recurring savings.
The ferry system should not run or expand routes to Coney Island and Ferry Point that require extraordinarily high subsidies.
Key Data
$53 million
— The amount spent to subsidize NYC Ferry in 2019, the first full year of operations for the six initial routes.
$9.34
— The subsidy cost per ferry ride.
$10 million
— Estimated operating cost savings in fiscal year 2021 from service reductions and route consolidations.
30 percent
— The reduction in ferry service implemented in March.
20 percent
— The additional reduction in ferry service announced to generate savings.
The NYC Ferry system relies on a high taxpayer subsidy of $9.34 per ride, with only 24 percent of operating costs covered by fare revenue. Because the current flat $2.75 fare structure contributes to these high costs, the system's operating strategy and pricing model should be reconsidered to better align with other public ferry systems.
Recommendations related to NYC Ferry
The high cost of NYC Ferry—both in per-trip subsidy and relative to other public ferry systems—should prompt reconsideration of the operating strategy and pricing model.
Policymakers should ensure that fares vary by route to be more in line with their operating costs, as is done on most other public ferry systems.
Key Data
$9.34
— The per-ride subsidy for NYC Ferry in fiscal year 2019.
24 percent
— The portion of operating costs recouped through fare revenue by NYC Ferry in 2019.
$2.75
— The flat fare charged for a single NYC Ferry ride, which is a primary driver of the system's high subsidy.
5,670,849
— The annual ridership for NYC Ferry in fiscal year 2019.
$69,596,000
— The total operating expenses for NYC Ferry in fiscal year 2019.
The NYC Ferry system is heavily subsidized, with per-ride costs significantly higher than other transit options, and its expansion plans will likely increase these financial burdens. The current funding model lacks transparency and fails to prioritize cost-effective transportation solutions, necessitating a reevaluation of pricing and service strategies.
Recommendations related to NYC Ferry
Before an expansion of service is implemented, City officials should reconsider the policy choices that contribute to the high subsidies.
City officials should evaluate options that would reduce the level of subsidy.
City officials should consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively.
EDC and City officials can take actions to improve the system, such as charging higher fares on weekends and for noncommuters to offset the cost of subsidies for daily commuters.
Dynamic pricing models could be more appropriate for long, low-productivity routes that require substantial subsidies and see demand spikes on weekends.
Key Data
$10.73
— Per-ride operating subsidy for NYC Ferry in fiscal year 2018.
$24.75
— Projected per-ride subsidy for the proposed Coney Island ferry route.
$56.7 million
— NYC Ferry’s operating costs in fiscal year 2018.
$638.5 million
— Total capital commitments for the NYC Ferry system as of February 2019.
$114.3 million
— City's capital commitments for NYC Ferry as of February 2019.
$48.6 million
— Annual debt service at full buildout of capital commitments.
According to a CBC report, the number of NYC Ferry passengers for all of last year is less than the number of passengers who ride NYC subways in just one day. Mayor de Blasio defends the ferry service & says it’s a long-term investment.
A new study by the Citizens Budget Commission finds that each trip costs taxpayers $10.73. That's more than 10 times the subsidy for a trip on the subway at $1.05. Watch the original segment here .
The NYC Ferry system requires high public subsidies, with per-ride costs significantly higher than other transit options, due to low ridership and high operating expenses. Before expanding service, city officials should reevaluate the current pricing model and operational strategy to ensure more efficient use of transportation funding.
Recommendations related to NYC Ferry
City officials should reconsider the policy choices that contribute to the high subsidies before implementing any further expansion of ferry service.
The City should evaluate options that would reduce the level of subsidy, such as assessing whether alternative uses would meet the city’s transportation needs more efficiently.
Officials should charge higher fares on weekends and for noncommuters to offset the cost of subsidies for daily commuters.
The City should implement dynamic pricing models for long, low-productivity routes that require substantial subsidies and see demand spikes on weekends.
City officials should consider whether alternative uses would meet the city’s transportation needs more efficiently and more effectively than the current ferry expansion plans.
Key Data
$10.73
— The per-ride operating subsidy for NYC Ferry in fiscal year 2018.
$24.75
— The projected per-ride subsidy for the proposed Coney Island ferry route.
$1.05
— The subsidy per ride for New York City Transit.
$56.7 million
— The operating costs for NYC Ferry in fiscal year 2018.
$638.5 million
— The total capital commitments for the NYC Ferry system as of February 2019.
$48.6 million
— The annual debt service at full buildout of the ferry system.
$3.2 billion -- how much New York City spent on economic development in 2016, including tax expenditures, operating costs, and capital spending. NYCEDC President and CEO James Patchett joins the podcast to discuss the City's development strategy, tax breaks, NYC Ferry and the BQX project.
No results for your current filters. Manually edit your filters, or
clear the filters.
Share Feedback
Give a star rating, write a comment of at least 10 words, or both.
