VIDEO: Hornblower wins new NYC Ferry operating contract

Image: NYCEDC

The New York City Economic Development Corporation (NYCEDC) has announced the procurement of a new NYC Ferry operating contract with Hornblower Group. NYCEDC, which launched an RFP for an operator back in September 2022, says that selecting an operator through a competitive process and negotiating a new contract is a key component of the NYC Ferry Forward plan announced by Mayor Eric Adams in July 2022

• Record breaking ridership, exceeding pre-pandemic levels with farebox revenue up more than $6 million;
• Per passenger subsidy is down dramatically and on track to be reduced by nearly 30% by 2025;
• Financial transparency into the system has been transformed with the publication of NYC Ferry ridership, financial, and subsidy information;
• Equitable ferry access has improved through the launch of the NYC Ferry Discount ticket program, the launch of half-price tickets for Harbor School students;
• Pilot routes including the Rockaway Rocket, Rockaway Reserve, and South Brooklyn Faster Connections, which deliver more transit options to riders, while reducing costs to the system.

Building on this track record, and after a competitive procurement process, NYCEDC has awarded the new NYC Ferry contract to the ferry services’s existing operator, Hornblower Group. It says that Hornblower offered a “robust proposal that will further NYC Ferry’s position as the modern transportation system that riders want. This contract includes: major business improvements, including a framework to partner with a corporate name sponsor to re-brand the system and further drive down the subsidy, upgraded ridership experiences like free onboard Wi-Fi, and behind-the-scenes system upgrades to increase transparency and efficiency. The new contract will have an initial five-year term with two three-year expansion options, furthering the system to remain a permanent fixture of the New York City landscape.”

NEW CHAPTER

“We are a five-borough administration, and we want all New Yorkers to get where they want to go as efficiently as possible, especially when using transportation like our ferry system,” said Mayor Adams. “Last year, we announced the ‘Ferry Forward’ plan to make our ferry system more equitable, accessible, and financially sustainable. And now, we’re delivering on our commitment with upgrades like free onboard WiFi, better real-time updates for passengers, expanded in-app language services, and greater accessibility. Without question, this contract marks a new chapter in our ferry system.”

Key highlights of the new agreement include:

Building a more financially sustainable ferry system

• Decreases cost to the City through features that boost ridership and expand NYCEDC’s access to NYC Ferry revenue streams such as farebox revenue, advertising and concessions.
• Improves NYCEDC oversight with greater transparency and control on operations and cost centers.
• Allows NYC Ferry to pursue engine upgrades that will result in up to 10 percent fuel savings for more than half the fleet.

Upgraded ridership experience

• Free Wi-Fi onboard all NYC ferries.
• Enhanced real-time passenger information including landing wait time estimates and on-board seat and bike spot availability.
• Expanded access to onboard and land-side schedule and stop information.

Increasing equity, strengthening communities, and furthering the NYC maritime career pipeline

• Furthers NYC Ferry as a maritime career pipeline for New York City students through partnerships with the Department of Education, CUNY, and SUNY schools with a minimum of 10 internships per year and a variety of other career engagement opportunities.
• Expands community engagement programs, where Hornblower Group will engage over 10,000 people per year through events and other programs, host at least 10 volunteer events annually in the communities NYC Ferry serves and hire a full time NYCHA outreach coordinator to grow diverse ridership and establish NYC Ferry as an integral part of waterfront communities.
• And in a historically non-diverse industry, Hornblower Group commits to spend at least 15% of its total compensation under this agreement with M/WBE firms. Hornblower Group’s commitment to this goal is evidenced through their efforts to help numerous vendors become certified in the M/WBE program throughout the request for proposal (RFP) process.

“We are proud to be selected by NYCEDC and the City of New York as we continue our partnership as the operator of NYC Ferry; providing millions of New Yorkers with a convenient, accessible, and affordable commuting option that connects both traditionally underserved transit deserts and local economic hubs across all five boroughs,” said Hornblower Group CEO Kevin Rabbitt. “As the founding operator of NYC Ferry in 2017, we look forward to building upon the achievements of the system’s record-setting success in a new phase, including implementing Mayor Adams’ Ferry Forward vision to create a more equitable and financially sustainable system. We proposed and look forward to executing an innovative long-term strategy for NYC Ferry that drives ridership among underserved communities, reduces operational costs, and maximizes value to city taxpayers. On behalf of Hornblower Group and the hundreds of devoted and exceptional NYC Ferry crewmembers, we thank NYCEDC and the City of New York for their ongoing collaboration and look forward to welcoming millions more riders onboard in the coming years.”