Ferry Boat Feasibility Study

Chapter 10 – Conclusions and Recommendations

Background

The Virginia Department of Transportation received a federal grant to perform a high-speed passenger ferry boat feasibility study. The study was prompted by congressional desire to investigate alternative forms of travel in the I-95/US Route1 corridor in Northern Virginia, especially in light of the Springfield Interchange and Woodrow Wilson Bridge reconstruction projects. In addition, two privately financed ventures are presently attempting to obtain funding to operate a high-speed passenger ferry service on the Potomac River to serve commuters.

Study Findings

• Since 1964, five studies and at least five private ferry service providers have examined the feasibility of passenger ferry service on the Potomac River. During the same period, no ferry services have been started.

• Two firms are currently seeking funding, and several high-speed ferry operators from other areas are interested in providing service if public funding is available.

• Projections drawn from MWCOG transportation data sources indicate that there are a total of 31,715 total one-way commuter trips oriented to the District of Columbia made in the I-95/US Route 1 study area each workday. This is projected to grow to 35,470 trips by 2010.

• Based on further analysis of the MWCOG and other data, a commuter ferry route between Woodbridge and the Navy Yard is projected to have the highest passenger volume.

• It is projected that the Woodbridge to the Navy Yard service would initially generate approximately 345 daily passengers at a $4.40 fare, assuming speed waivers are received. This number is forecasted to grow to 600 over a five-year period.

• Potential private operators of this service are using more proactive market-based patronage projection techniques that tend to produce higher ridership forecasts.

• Forecasts based on a regional travel demand model indicate that implementation of the ferry service could shift three-tenths of one percent (0.3%) of SOV users, two-tenths of one percent (0.2%) of HOV users, and two percent (2%) of transit users to the ferry service.

• Existing docking facilities at Woodbridge and the Navy Yard can be used for the ferry service with minimum alterations.

• There are no major physical or environmental impediments that would prevent or delay ferry service start up funded by the private sector. Public funding would require an environmental compliance process that could require additional time prior to service implementation.

• Several U.S. shipyards can construct high-speed passenger ferry vessels that operate at 40-50 miles per hour. Financial, operational, safety or other factors may make their use on the Potomac River not feasible.

• To be time competitive with other modes of commuter travel, a ferry would have to travel from Woodbridge to the Navy Yard in 45 minutes or less, requiring removal of current speed restrictions. Speed restrictions on the Occoquan River, Potomac River, and Anacostia River presently add a projected 25 minutes to this trip, for a total travel time of 70 minutes.

• At a passenger fare comparable to the current VRE fare, ($4.40 one way), approximately $384,000 in annual revenues would be generated by the ferry service. Potential ferry patrons may be willing to pay more than $4.40 per trip, according to a market survey.

• Using operating expense data from available public and private high-speed passenger ferry operators as a base, first year expenses for the commuter service are projected to be $2 million and losses would be approximately $1.6 million. A private ferry operator that could utilize the vessels for profitable tourism/charter service, thereby spreading fixed costs, and charge higher fares may be able to operate the commuter service at higher revenues and lower costs.

• Capital costs for roadway, signage, and passenger waiting improvements at Woodbridge would be approximately $590,000.

• Capital costs for 3 vessels would be approximately $9 million.

• Public transportation programs, which could potentially include a commuter ferry service, have traditionally been a local/regional function in the Commonwealth of Virginia.

Study Conclusions

Based on these findings, the following conclusions are presented:

• There is a growing demand in Northern Virginia for actions to help ease traffic congestion. The perception of the impact on traffic from the reconstruction of the Springfield Interchange and the Woodrow Wilson Bridge could heighten this demand.

• To attract projected patronage, the ferry service would have to operate at a speed that is competitive with other modes of travel. This speed is not attainable at present due to wake and safety related speed restrictions. Waivers from the District of Columbia would be required to attain scheduled speeds.

• High-speed passenger ferry vessels that can operate at required speeds in Potomac River conditions are theoretically available. Vessels for this service would have to be constructed to specific performance standards and tested in service. Vessels that would meet Potomac River operating standards are not available for lease according to several manufacturers.

• Prior attempts to implement a high-speed ferry boat service on the Potomac River have not been successful, primarily for economic reasons. Entry into this business requires a capital investment of at least 12.5% of the total vessel cost (assuming use of a low interest Federal loan guarantee program) and a significant operating investment to fund start up, ongoing operations and debt service expenses.

• Precedents exist for using public funding in support of mass transit. Commuter ferry service is considered by the Federal Transit Administration as a form of mass transit. Public support of mass transit in Virginia is a local or regional function. The Virginia Department of Rail and Public Transportation serves as the state-level agency that coordinates financial and technical assistance.

• From a regulatory standpoint, high-speed passenger ferry boat service can be operated on the Potomac River.

• A survey of potential users indicated interest in a high-speed passenger ferry boat service.

• Passenger ferry service evaluated in this study does not appear to be feasible for implementation by the public sector. This conclusion is based on based on estimated costs versus projected revenues from passengers when compared with the same return on existing public sector transportation investments. The service is more costly to operate than other forms of public transportation that receive local, state and federal funding and are currently in service in the same travel corridor.

Recommendations

The ferry service developed in this report is not feasible for public operation based on financial and operational criteria. The following recommendations are based on obtaining speed waivers and implementing service through a private operator.

Recommendation One

VDOT utilize existing departmental resources to facilitate support of a privately operated passenger ferry boat service.

VDOT could help promote a passenger ferry boat service venture by providing assistance in the following areas:

• Post signage on major roadways that would advertise the ferry and direct motorists to docking facilities.

• Include a description of ferry service on VDOT’s website and in any VDOT sponsored public service announcements or paid advertising.

• Include the ferry service in any other VDOT public information efforts.

• Consider improvements to existing VDOT administered roadways, intersections, entranceways, and park and ride facilities that would enhance access to the ferry dock. These improvements could also include lighting and provision of passenger waiting facilities.

• Assist local transportation agencies with planning and grant preparation for implementation of a commuter ferry service.

Recommendation Two

An appropriate local/regional public transit agency should work with potential private ferry operators to explore integration of a high-speed passenger ferry boat service in the public transportation infrastructure.

There are several public transit operators in the study area, including PRTC, VRE, and WMATA, that may be well suited to integrate a privately owned and operated commuter ferry service into the existing public transportation system. Areas for possible integration include:

• A common fare medium,

• Alternate service provision for periods when the ferry cannot operate due to inclement weather, ice, or other factors,

• Provision of collector/distributor and shuttle bus services to and from ferry termini, and

• Other operational issues, such as insurance, grant application sponsorship, joint advertising/promotion, etc.

Recommendation Three

If a private sector ferry operator is not able to implement service with the assistance described in Recommendations 1 and 2, a local/regional grant-funded demonstration project should be considered. The purpose of the demonstration project would be to further assist the private sector in establishing commuter ferry service by implementing a one year technical proving and one and one half year in-service demonstration project for service between Woodbridge and the Navy Yard. If this is carried forward, the following implementation program should be used to guide project development.

Phase I

1. Prepare a grant application for 100% funding of a project that would demonstrate a high-speed passenger ferry boat service on the Potomac River for an one and one half year period.

2. Notify potential ferry service providers of the upcoming proposal, speed waiver requirements, and other general conditions.

3. Potential service providers, working with high-speed ferry manufacturers, would conduct operating trials in conjunction with the District of Columbia Harbor Master, Alexandria Dock Master, and other appropriate parties to determine technical viability. The potential proposer’s vessel would have to meet speed requirements. If existing speed limits could not be increased to a point that would allow the ferry to operate on a time competitive schedule, the selected agency should not proceed to the next phase.

Phase II

1. Assuming potential service providers successfully obtain speed waivers, develop a request for proposals for operation of high-speed passenger ferry boat service from Woodbridge to the Navy Yard. This request for proposals would include a detailed description of service required, schedules, performance characteristics for the vessel, and other requirements that would form the basis of a bid. The private operators will provide the prescribed service using their own vessels. This service would meet all agency requirements and specifications, including necessary speed waivers to meet service requirements.

2. Develop an operating plan and budget for the demonstrating agency to provide marketing, financial, administrative, and other activities needed for the demonstration project.

3. Coordinate fare collection with existing public transportation operations in the corridor.

4. Prepare a monitoring plan that would be used during the 18-month demonstration to establish and measure success criteria.

Phase III

1. Advertise the Request for Proposals and receive and analyze bids.

2. Contract with the successful bidder and begin service if bid price is the same or less per passenger when compared with VRE and Omniride.

3. Monitor and adjust service as needed.

4. Prepare a report on results of the demonstration project.