Has the NYC Ferry Righted Its Ship?

Added: 2026-05-24

[00:00:01]Back in the 19th and early 20th centuries, the waterways ruled New York City.

[00:00:06]-The locals cheer with joy.

[00:00:08]-It was the golden age of ferries and helped make Manhattan the financial power that it is today.

[00:00:14]But around the turn of the century, new bridges and tunnels made transportation by boat less lucrative.

[00:00:21]The city stepped in to keep commuter ferries running for a few decades.

[00:00:25]But by 1955, its only remaining line was to Staten Island.

[00:00:30]But today, the municipal ferry system is attempting to stage a comeback.

[00:00:36]This is a story about the NYC Ferry, nearly a decade into its existence.

[00:00:41]What’s gone right, what's gone wrong and what's still to come.

[00:00:47]In 2017, then Mayor Bill de Blasio launched a municipal ferry system all across the city.

[00:00:54]The city pledged over $325 million dollars to get the system up and running, and it was a big undertaking.

[00:01:01]The ferry is run by New York City's Economic Development Corporation or EDC.

[00:01:07]Since its launch, EDC has contracted a private transportation and sightseeing company called Hornblower Group to operate the ferry.

[00:01:15]-So EDC manages a lot of property on behalf of the city.

[00:01:19]NYC Ferry is funded through rental revenues that EDC has.

[00:01:23]But also you know the fares are covering a fair bit of the cost of NYC ferries.

[00:01:28]-That funding structure is pretty unique.

[00:01:30]Most other municipal ferry systems rely primarily on revenue from fares, with support from state and federal funding.

[00:01:38]But it hasn't been all smooth sailing.

[00:01:40]According to EDC, it costs $88 million dollars to operate the ferry last year, running a deficit of $61 million dollars.

[00:01:48]That deficit is largely covered by rent that EDC collects from the properties it manages.

[00:01:54]And in 2022, the New York City Comptroller asserted that EDC had underreported its ferry related expenditures by more than $224 million dollars and overpaid Hornblower by tens of millions of dollars.

[00:02:08]EDC challenged the audit's conclusions and defended its spending as sound.

[00:02:14]Still, EDC says the audit was a wakeup call.

[00:02:17]In 2023, EDC selected Hornblower again for its contract under new terms.

[00:02:22]That included EDC retaining the revenues from fares which it hadn’t before.

[00:02:27]Shortly after, in 2024, Hornblower filed for bankruptcy and it was bailed out by a private equity firm.

[00:02:35]That contract with Hornblower will last through 2028 with an option to extend.

[00:02:41]Critics of the ferry point out that there's a gap between how much a passenger pays for a ride, and how much it costs for the city to take them on that ride.

[00:02:50]As of 2025, the city was subsidizing each ride on the NYC ferry by $8.33.

[00:02:59]-So our subsidy is down considerably, almost 40% from its peak.

[00:03:03]We are now the lowest cost public passenger only ferry system in the country.

[00:03:09]-They're aiming to bring down the subsidy by another dollar by 2028.

[00:03:14]One way to do that is increase ridership and to attract riders they've turned to social media for some help.

[00:03:21]I'll see Look at this one. Look at that one.

[00:03:29]Look at this one.

[00:03:30]The ferries videos really lean into how enjoyable it can be to ride the boat.

[00:03:35]Whether you're a leisure rider or a commuter who wants to take the ferry on your way to work.

[00:03:41]The ferries also have been tapping into brand partnership opportunities.

[00:03:44]EDC and Hornblower split the revenue from those promotions, and last year EDC brought in $300,000.

[00:03:52]In the ferry’s latest survey from 2024, nearly two thirds of riders were not using it to commute.

[00:03:59]Getting more leisure riders can bring down the subsidy while keeping costs lower for commuters.

[00:04:04]The cost of one trip on the ferry is now up to $4.50.

[00:04:10]But if you're a commuter, you can get ten rides for $29, which actually brings the single cost of ride down to less than a subway swipe.

[00:04:20]The ferry also recently announced changes to its route map with the goal of speeding up commutes and increasing access.

[00:04:27]-We did have a small increase in service as part of this optimization, but it is expected to drive up to 14% more riders throughout the system.

[00:04:36]There are signs that this turnaround is working.

[00:04:38]Last year, more than 7 million people rode the ferry.

[00:04:42]That's a record for the city.

[00:04:44]But at the same time, the ferries operating costs have been going up, in part because of rising fuel prices.

[00:04:55]The ferry is only one part of New York's public transit picture, but it is charting its own course.

[00:05:01]And in its next act, the ferry is hoping to grow.

[00:05:05]Expanding into new neighborhoods, building new landings, boosting ridership and making the ferry accessible to all New Yorkers.

[00:05:14]Dumbo. Fulton Ferry.