Public subsidy for new ferry service in the Bay Area, whether for capital facilities or for operations and maintenance, is in short supply. Existing ferry services receive all the money currently available for local water transit. According to the criteria currently used by Bay Area transportation funding agencies, a new Richmond ferry service is not particularly competitive with other proposed transportation improvements.

It may at first seem desirable or necessary for the City of Richmond to establish a new transportation agency to compete for capital and operating subsidies administered by the MTC. However, this course may introduce its own difficulties over the long run. The principal challenges to securing public funding arise not from the City’s eligibility, but from the limitations placed on available funding and from MTC’s priority for maintaining existing services rather than establishing new ones. In addition, since MTC does not encourage the establishment of new transit operators, the City could actually diminish its chances of securing funding from MTC as a new transit agency, rather than in league with an existing operator. Liaison with AC transit may be a particularly viable means of implementing new service.

The formation of the Bay Area Water Transit Authority (WTA) reflects the coalescing of support for water transit development throughout the Bay Area. However, the WTA anticipates dedicating its first two years to establishing its role and developing an implementation and operations plan for approval by the California State Legislature. Whereas the City of Richmond should maintain active interest in, and support for the WTA’s program, the WTA does not represent an immediate or definite source of funding for a new Richmond ferry service. Ultimately, funding for new services under the WTA may be a function of electoral support for new revenue sources, and will be the subject of competition.

At present, the greatest opportunity for public subsidy of new water transit services lies via the United States Maritime Administration (MARAD) and their alternative fuel research and demonstration program. The program is aimed at fostering alternatives to diesel fuel, the dominant marine fuel for ferries, in such forms as Compressed Natural Gas (CNG), Liquified Natural Gas (LNG) and hybrid fuel mixtures. MARAD has solicited the interest of public-private partnerships in demonstrating advances in vessel, propulsion, and fuel logistics technology in revenue service, and offers substantial subsidies for initial capital costs. Should Richmond be willing to take the risk of an early application of developing technologies, there may well be key local partners, including natural gas suppliers, marine equipment manufacturers, ship designers and builders, and environmental agencies and groups.

Next Steps

Richmond’s development and transformation is a work in progress. While major economic and demographic changes are occurring, the case for new system deployment and operation is not very competitive purely in terms of the criteria by which local transportation propositions are evaluated. Further, while Richmond may be growing in population and economic activity, its commute market to San Francisco is already well-served by BART and AC Transit, and current regional economic forecasts do not indicate appreciable growth over the next 20 years.

Water transit may be an extremely compelling cause, rather than an effect, of Richmond’s development. To develop ferry service on this more speculative basis will require the City to work with development and business interests that can share both in the rewards of Richmond’s economic growth, and in the effort to improve its infrastructure and quality of life. Further public-private partnership may in fact enable Richmond to take advantage of federal subsidy for new ferry vessel and propulsion technology, the most viable capital subsidy currently available.

If ferry service is to be a part of Richmond’s vision for its future, the City itself needs to develop and execute a strategy for water transit implementation, articulated for all the potential supporters and opponents of the initiative. Such a plan should be based on plausible forecasts of ridership and revenue, levels of initial service that are attainable yet appealing to riders, and the lowest possible capital and operating costs. The plan should also articulate the City’s vision for how ferry service will contribute to the quality of life of its residents and the character of the community. The best course to establishing service quickly is one of liaisons – with an established operator, with vested business and development interests, with the community, and with entities interested in advancing ferry technology via a compelling service demonstration. Richmond should not aim at strict compliance with existing requirements for public subsidy, but should make its own case for ferry service based on the greatest benefit to its riders and potential for success as an independent operation.

To further develop the case for ferry service, the City of Richmond may follow these courses over the near term:

»    Maintain contact and participation in the activities of the new Bay Area Water Transit Authority. The WTA may eventually represent a viable source of funding for a new Richmond service.

»    Quantify the pure transportation potential of Richmond ferry service, via preference survey and ridership forecast.

»    Explore the potential of the United States Maritime Administration’s alternative fuel program as a potential means of subsidizing a new technology demonstration service.

»    Develop a coalition among developers, local businesses, constituencies, and residents to articulate a common understanding of the rationale for ferry service, the challenges and risks, the funding requirements and a strategy for implementation.