Ferries, Free Riders and a Free Dinner

Prepared by Jeff Hanson, Research Analyst

We've given up (almost). After three months of trying to get specific ferry ridership data from Washington State Ferries (WSF), we are convinced that our search is fruitless. In response to a request (actually, it was a follow-up to a follow-up request), WSF told us that answering our question would require having several staff members work on our request exclusively for one month (at a cost of over $30,000). WSF later responded to our follow-up to our follow-up to our follow-up request by sending a copy of a 1988 report.

What was this obscure information that we requested? We asked for ferry ridership data broken down by route and time of day because we are interested in determining when and where ferry system routes are at capacity. Since the legislature is currently deciding whether or not to authorize the construction of four new passenger-only ferries and a fourth jumbo ferry, we thought that information on ferry overloads would be easily at hand. Apparently, however, ferry planners base their recommendations for capacity expansion on anecdotal evidence and/or data from a decade old study.

Of course, no one is denying that ferry users frequently experience delays. Nevertheless, it would be useful to have data that specifically pinpoint when and where demand is high. Demand. Whoa, it is not often that the language of the free market enters into a discussion of the Washington state ferry system. After all, the system is heavily subsidized (overall, fares cover less than 70 percent of expenses). The system's two passenger-only ferry routes were subsidized 85 and 88 percent(!) in 1996 (four more boats on the way?).

Allowing the ferry system to respond to market forces would go a long way toward addressing capacity needs. By varying fares according to demand, significant numbers of riders would shift to lower demand (and, hence, less expensive) runs. Those choosing to continue to ride during peak hours would pay higher fares (which would reflect the high value of those trips). Eliminating the 30 percent subsidy would generate additional revenue, which could be put toward needed capacity or safety improvements.

To develop a rational pricing structure one needs to explicitly identify when and where demand is high (or low). But then that would require that elusive ridership data broken down by time of day. Can you help?

* Under the current system, market principles are not only ignored, but distorted. Passengers purchasing frequent user books (typically commuters) pay lower fares. Thus, when demand is at its highest, the price drops for many users.

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org