Report to Massachusetts Ferry Compact Members: Ferry Demand Estimation Methods and Ferry Service Trends June 25, 2014 Thomas J. Humphrey Central Transportation Planning Staff Objectives • Review state-of-the-art of demand estimation for ferry service • Review recent trends in passenger ferry service Why Predict Demand? Important to know your market: • Which services make best use of limited available resources? • What level of service is appropriate ? Demand Estimation Review • Few ferry feasibility studies are published • These provide little detail about demand estimation methods used • No consensus on the best methods Demand Estimation Review (Cont’d.) • Most services studied were not implemented • Demand estimates often based on assumed conditions 10 or 20 years in future Demand Estimation Review (Cont’d.) For ferry demand estimation, it is reasonable to adapt methods applied to land transportation Demand Estimation Review (Cont’d.) Most transit demand forecasting methods address a few basic questions: Demand Estimation Review (Cont’d.) 1. How many people want or need to travel between the points that will be connected by the service? Demand Estimation Review (Cont’d.) 2. How large a share of this total travel could the new service attract? Demand Estimation Review (Cont’d.) 3. Would new service be different enough to generate significant numbers of trips that would not have been made anyway? Demand Estimation Review (Cont’d.) Accurate Demand Estimates Matter! • Analysis of failed transit services often find that ridership never approached projections • With better estimates, these services might not have been run, preventing… Demand Estimation Review (Cont’d.) …Problems after a ferry service fails: • Boat disposition • Ongoing finance, storage, and maintenance costs • Terminal facilities disposition • Accounts depleted by operating losses Demand Estimation Review Conclusions • New ferry services should be planned carefully • Demand estimation is a key element of such plans • Methods to be used for demand estimation are not unique to ferries Review of Trends in North American Ferry Service Ferry Trends • In US, 38 states have at least one point-to-point ferry • And 4 others have out-and-back tour boats • There are 270 ferry routes in continental US excluding Massachusetts Ferry Trends (Cont’d.) Ferry Trends (Cont’d.) Island ferries ─ 43%: • Many run only seasonally, serving summer residents and visitors… • Or accessing parks and nature preserves Ferry Trends (Cont’d.) River crossings ─ 22%: • Used where nearest bridges are miles away but traffic volume at ferry crossing not sufficient to justify another bridge Ferry Trends (Cont’d.) Ferries across lakes, bays, or sounds ─ 13%: • Often served by large vessels carrying cars and trucks along with foot passengers • May save hours of travel versus land alternatives Ferry Trends (Cont’d.) Commuter ferries ― 13%: • Repetitive home-to-work trips in AM peak • Work-to-home in PM peak • Reduced or no service off peak • Route count includes only New York and San Francisco Ferry Trends (Cont’d.) Water taxis ― 9%: • Passenger-only vessels, multiple stops on urban waterways • Most have fixed routes and schedules, not demand responsive Ferry Trends (Cont’d.) Passenger-only commuter ferries and water taxis: • Outside Boston, only New York and San Francisco have commuter ferries • Seattle, Chicago, and NY have commuter water taxis Ferry Trends (Cont’d.) San Francisco: • Most ferries provided by public sector • Funded by bridge tolls, state and federal grants, and sales taxes • Of 10 routes begun since 1964, 7 are still running Ferry Trends (Cont’d.) Seattle: • Passenger-only ferries now county responsibility • Funded through property taxes • Of 5 routes begun since 1986, 2 still running Ferry Trends (Cont’d.) Chicago: • Water taxi service on Chicago River left mostly to private sector • MPO used CMAQ* funds to help buy one boat *Congestion Mitigation and Air Quality Improvement Program Ferry Trends (Cont’d.) New York: • City operates Staten Island ferry • Other ferries are private sector • Of more than 65 routes started since 1985, 24 still running Factors Contributing to Success • • • • Demand Potential Accessibility Competitiveness Funding Factors Contributing to Success (Cont’d.) Demand Potential: • High residential density near outer terminal • High employment density near inner terminal Factors Contributing to Success (Cont’d.) Accessibility: • High parking capacity and/or feeder service at outer terminal • Transit connections at inner terminal Factors Contributing to Success (Cont’d.) Competitive : • Travel times and fares competitive with existing alternatives Factors Contributing to Success (Cont’d.) Committed funding: • Committed public funding sources for capital and/or operating costs exceeding fare revenue Factors Contributing to Failure • Overoptimistic ridership projections • Postponement or cancellation of major development • Noncompetitive travel times or fares • Budget cutbacks • Spend-out of demonstration grants Conclusions • Requirements for success: Know markets to be served Be competitive with other modes Make terminals convenient for actual trip ends Obtain adequate funding commitments Questions?