With essentially no notice to commuters, New York Waterway announced late in the afternoon of Friday, August 29 that it would be raising monthly commuter fares on its vessels effective Labor Day. The 15 percent hike increases a monthly pass from $80 to $92. Single and round trip tickets remain the same price.
The Port Authority of New York and New Jersey, Hoboken City Council, and Mayor David Roberts have all protested the “stealth” fare hike.
“There were no public hearings and there was no advance notice of a 15 percent fare increase,” said Roberts Wednesday. “This is outrageous and unfair to the thousands of Hoboken commuters who rely on public transportation to get their jobs. I would like Governor McGreevey and Port Authority Chairman Anthony Corsica to ensure that this fare is justified.” Also Wednesday, the Hoboken City Council passed a resolution asking for a state investigation into the fare increase.
Pat Smith of Rubenstein Associates, NY Waterway’s public relations firm, said that increases are necessary to cover its expenses.
“New York Waterway is a family-owned business that must pay its bills and collect revenue,” said Smith. He added that money from ticket sales, the company’s main source of revenue, must cover maintenance of the boats, fuel, salaries, insurance and a host of other costs.
NY Waterway also said that the increase was needed to offset an anticipated loss of revenue when PATH service resumes in Lower Manhattan later this year.
“The sensible approach would have been to wait for PATH service to resume and analyze a revenue decrease, if any,” said Roberts. “Is 15 percent arbitrary, or based on fact?”
Smith said that as of Thursday afternoon, he was not aware of Roberts’ comments, and could not comment on them directly.
PA chimes in
A. Paul Blanco, the PA chief of regional and economic development, wrote an August 25 memo to Arthur Imperatore, the president of NY Waterways in Weehawken, urging against a fare increase.
“Since 2001, NY Waterway has experienced a 111 percent increase in ridership for lower Manhattan services originating in Hoboken,” said the memo obtained by the Reporter. “We are certain you will agree that the increased ridership is largely comprised of displaced PATH patrons.”
Blanco added: “Although many existing NY Waterway commuters will continue using ferry service as their primary mode of transportation despite the increase, we believe that displaced PATH commuter should not be subject to a fare increase until an alternative mode of transportation is available.”
Government subsidies
For the most part, a privately-owned business can raise its rate at its whim, but the picture becomes murkier when that company receives federal or state subsidies.
While NY Waterway does receive the bulk of its revenue from ticket sales and only rarely accepts subsidies, the company recently received government checks. According to Port Authority officials, NY Waterway was given the exclusive right to provide ferry service from Hoboken to all of Lower Manhattan by the Port Authority. Also, NY Waterway was the beneficiary of some $35 million of Federal Emergency Management Agency (FEMA) funds to enhance ferry and bus services from Hoboken since 2001. Also, NY Waterway has been the direct recipient of a number of FEMA-funded capital construction projects totaling over $10 million during the same period.
Blanco said that because NY Waterway’s recent expanded service is governmentally subsidized, it should at least wait until the PATH is up and running until it considers raising fees.
Roberts said, “Public funds demand public review and hearing.”