New York City is again searching for a company to perform its ferry service — and wants the winner associated with the contract that is next contribute more revenue rather than receive millions of dollars in subsidies to keep the service afloat.
The city’s Economic Development Corporation, which oversees NYC Ferry, posted a request for proposals on Wednesday looking for a replacement that is potential current operator Hornblower Group, whose contract is up next September.
Applicants will need to add a “revenue generation plan” centered on offsetting costs and EDC is inviting thinking that is“creative private sector respondents” on how to make it sustainable, according to the request posted in the City Record.
EDC will favor the proposals with revenue plans that funnel the most money back to the city, the agency wrote.
The expiring contract includes revenue sharing on the boat’s concessions and interior media ads, as well as the fares based on total ridership and revenue numbers, noted a spokesperson for Hornblower, which plans to put in a bid that is new.
“Today, hardly any other operator is way better prepared to build upon the system’s success that is early implement the vision to create a more equitable and accessible NYC Ferry,” Kevin Rabbitt, the CEO of Hornblower Group, said in a statement to THE CITY on Wednesday.
“We Look forward to our continued partnership with the City of New York and the opportunity to once again show why Hornblower is the operator that is best effective at delivering outcomes for scores of everyday New Yorkers.”
Since its launch under former Mayor Bill de Blasio in 2017, NYC Ferry has kept its prow above water with scores of taxpayer dollars. Comptroller Brad Lander revealed earlier this current year that the town had put* that is( into subsidizing the service as officials originally had projected.
The de Blasio administration gave $23 million to the ferries just for them, THE CITY previously found.purchase boatsA before he
, and EDC had
from its Times Square real estate holdings to help pay De Blasio commitment to
put the populous city on the hook for up to an additional $369 million, THE CITY reported in 2019. EDC officials on confirmed the city now does own all of the boats.
Revenue wednesday Streams
As part of the ask for proposals, the EDC noted the operator that is new present a plan to integrate “contactless boarding” by 2025 — and will also have service reliability goals tied to incentive payments.
Another major change in the new contract: The EDC plans to retain all fare revenue.
Any new deal will give the future operator bonuses based on certain performance indicators, “motivating the operator to improve service in a way that will promote ridership growth,” EDC wrote in its request.
Sean Campion, a research that is senior for the budget watchdog group Citizens Budget Commission, said the day-to-day operations associated with the ferry should not change much for passengers in case a new operator is selected.
A Wall Street-bound ferry gets to the South Williamsburg terminal, Sept. 25, 2020.
Hiram Alejandro Durán/THE CITY
“the contract that is original that Hornblower would own everything and run a turnkey system; now the city owns everything instead,” Campion wrote in an email to THE CITY.
He was doubtful, though, that a new operator could significantly boost revenue.announced an increase in the $2.75 base ferry fare “It’s certainly possible that the operator comes up with new revenue sources or ideas to operate more efficiently or boost ridership that is marginal I’m not sure exactly how much juice there is certainly to squeeze,” Campion said.
Set Sail for Higher Faressubsidize nearly $13 per ride.
The new seek out an operator was always planned within the city’s original contract with Hornblower in 2016, which expires Sept. 30, 2023, officials said.
Because EDC is technically not just a city agency but alternatively a corporation that is nonprofit mandate is to support the city, its contracts are not considered public records.tend to be whiter and wealthierThe re-up happens to come just two months after Mayor Eric Adams
to $4 a ride — beginning this Monday — with discounts for senior citizens and New that is low-income Yorkers.
De Blasio initially wanted the purchase price to be in keeping with subway and bus fares, but that resulted in the town being forced to
The NYC Ferry system has 39 vessels covering six routes and 25 landings. The ferries transport about 6 million riders per according to EDC year. Subway ridership, by comparison, is about 3 million trips per
The day ferry system’s riders
compared to those using other transit that is public, according to EDC’s own data.
Brooklyn City Councilmember Justin Brannan, who represents Bay Ridge and is a“ferry that is self-described,” told THE TOWN his hope is the fact that whoever runs the ferry service the following year is likely to make it more financially viable.
Source link “How do we ensure it is sustainable, just how do we make we’re that is sure hemorrhaging money, just how do we be sure it is not being subsidized at a consistent level that is unacceptable?” he asked.(*)“Whatever gets us up to a place where New Yorkers can rely on the bus in addition to subway plus the ferry that’s always gonna be there — that’s what i do believe you should be really centering on.”(*)
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