The city has granted a new contract potentially worth up to $405 million to the company operating NYC Ferry, allowing Hornblower to continue running the aquatic transit service for another five years at a cost well beyond the revenue it expects to generate.
The value of the contract is over 2.5 times larger than the $160 million in revenue the city’s Economic Development Corporation (EDC) expects to haul in from ferry fares, advertising, and concessions during the same period, despite the fact most of the city’s mass transit is required to operate with a balanced budget, often with the help of government subsidies.
