House Appropriations, Transportation Ferry Division Jed Dixon, - - PowerPoint PPT Presentation

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House Appropriations, Transportation Ferry Division Jed Dixon, - - PowerPoint PPT Presentation

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House Appropriations, Transportation Ferry Division Jed Dixon, Assistant Ferry Director April 1, 2015 Ferry Division System Overview 2 nd largest state operated ferry system in the US 7 scheduled routes 1 emergency route 12

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House Appropriations, Transportation Ferry Division

Jed Dixon, Assistant Ferry Director April 1, 2015

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  • 2nd largest state
  • perated ferry system

in the US

  • 7 scheduled routes
  • 1 emergency route
  • 12 terminals
  • State owned shipyard
  • 4 field maintenance

shops

Ferry Division – System Overview

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200,000 400,000 600,000 800,000 1,000,000 1,200,000 04 - 05 05 - 06 06 - 07 07 - 08 08 - 09 09 - 10 10 - 11 11 - 12 12 - 13 13 - 14

Vehicles Carried - 10 Year Trend

FERRY DIVISION SOUTHPORT CHERRY BRANCH CEDAR ISLAND SWAN QUARTER PAMLICO HATTERAS CURRITUCK

North Carolina Ferry System

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Route Comparison FY 14

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Southport 19% (176,039) Pamlico River 8% (71,044) Cherry Branch 26% (238,681) Currituck 3% (24,450) Hatteras 34% (305,744) Swan Quarter 3% (29,325) Cedar Island 7% (63,152)

Vehicles Carried

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10,000 20,000 30,000 40,000 50,000 60,000 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Seasonality Average Vehicles Carried

Southport Cherry Branch Pamlico River Cedar Island Swan Quarter Hatteras Currituck

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North Carolina Ferry System

Route Profiles 2015

Route Crossing Vessels Toll

(miles) (mins.)

Currituck 4.69 45 1

  • Pamlico River

3.38 30 1

  • Neuse River

1.92 20 3

  • Hatteras

8.68 60 9

  • Swan Quarter

26.43 150 2 Yes Cedar Island 22.63 140 2 Yes Southport 3.43 35 2 Yes

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Tolling Rates

Fare Class Southport Swan Quarter Cedar Island Pedestrian $1 $5 $5 Bicycle $2 $3 $3 Motorcycle $3 $10 $10 Vehicles < 20 ft. $5 $15 $15 20 ft. to 40 ft. $10 $30 $30 > 40 ft. $15 $45 $45

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Toll Revenue – 5 Year Trend

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1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 FY10 FY11 FY12 FY13 FY14 Millions

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  • Albemarle RPO – No Action Taken
  • Mid East RPO – No Action Taken
  • Down East RPO – No Action Taken
  • Wilmington/Cape Fear MPO – Voted to raise tolls from

$5 to $7 for vehicles 20 feet or less.*

*Anticipate implementation 2015.

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RPO/MPO Actions on Ferry Tolls

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Economic Benefits

North Carolina Ferry System

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Table 3 from ITRE Report 2009

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$26 $27 $26 $29 $29 $4 $5 $6 $6 $6 $7 $6 $6 $6 $7

$0 $5 $10 $15 $20 $25 $30 $35 $40 $45

FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Millions

Expense by Major Category*

LABOR FUEL + LUBE OVERHEAD + SERVICES + MATERIALS

O&M Expense - Five Year Trend

*Expenses prior to offsetting revenue.

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FY14 O&M Expense Detail - $41.5M

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$28,885,365 $171,235 $6,005,140 $3,305,675 $2,084,802 $1,051,215

Labor 69.6% Lube Oil 0.4% Fuel 14.5% Overhead 8.0% Materials 5.0% Services 2.5%

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Staffing Summary - Headcount

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440 460 480 500 520 540 560 FY 09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14

Average Headcount

Temporary Emp. Pool Created in 2010 & New USCG Staffing Requirement

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Factors Driving Recent O&M Cost Increases

  • 2010 USCG requires crew changes for 11 vessels. This

change required hiring 44 crew members. Approx. + $2.2M per year

  • 2012 Added Turnpike for reservations and toll collections. Up

to + $500K per year

  • 2013 USCG mandates 10 new homeland security positions.

+$500K per year

  • 2014 Hatteras Alternate channel becomes permanent route.

+ $2.0 Million per year.

  • Combined annual increase of + $5.2 Million

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O&M Cost Containment Measures

  • 2015 Schedule Adjustments
  • Sound Routes - projected annual savings $500K
  • Pamlico River - projected annual savings $790K
  • Continue to evaluate demand on a monthly basis to determine

possible areas for additional efficiencies

  • 2015 Change in Dry-dock Requirements for M/V Hunt
  • Estimated savings of $2.0 Million over the expected life of the

vessel

  • Innovative Maintenance Practices

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Supplemental Revenue Generating Activities

  • Wanchese Fish Company
  • 2012, 30 day lease, $38K
  • Maintenance Services for Other Agencies:
  • Army Corps of Engineers – 4 dredges
  • NC Cultural Resources – Elizabeth II
  • NC Division of Marine Fisheries – Various Vessels
  • Potential for Commonwealth of Virginia

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Supplemental Revenue – Other Opportunities

  • Advertising and Sponsorship
  • Utilization of Surplus Real Estate (cell phone towers,

billboards, etc.)

  • Wi-Fi
  • Increased Vending and Concession Items

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Operational Challenges

  • Attracting and retaining skilled employees
  • Peak period capacity constraints – especially at Hatteras
  • Shallow water with shifting shoals
  • New maintenance requirements – Shipyard schedule
  • Aging fleet and facilities

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Operational Challenges - Shipyard Schedule

  • Dry-dock requirements
  • Prior to 1998:11 of 21

ferries

  • Current: 22 of 22 ferries
  • Shipyard workforce
  • Prior 1998: 100
  • Current: 62
  • Man-hours per dry-dock
  • Approximately 8.5K to

12.5K

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US Coast Guard requires ferries to be dry-docked twice every 5 years

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Operating Challenges / Shoaling

Hatteras - Ocracoke

Alternate Route Hatteras Ferry Channel CLOSED

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Operating Challenges / Shoaling

Hatteras - Ocracoke

  • Hatteras Ferry Channel – 4.3-miles
  • Emergency Area Federally Maintained
  • Constant Dredging
  • 52 departures/day (peak)
  • Alternate Route – 8.6 miles
  • Natural Deep Water Channel
  • Approx. increase of $175K per month in labor/fuel
  • 42 departures/day (peak)
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Hatteras Shoreline Erosion

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Army Corps of Engineers Funding for Hatteras Ferry Channel Dredging

Fiscal Year Regular Federal Appropriations Supplemental Fed. Appropriations/ Hurricane Relief Non Federal Contributions 2009 $210,000 $191,000 $0 2010 $50,000 $142,000 $0 2011 $50,000 $0 $0 2012 $49,000 $2,000,000 $1,433,000 2013 $49,000 $2,000,000 $0

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Operational Challenges

Aging Fleet and Facilities

  • Ferry vessel replacement funded through:
  • Ferry tolls dedicated to route via capital reserve accounts
  • Division funds through STI
  • Division generated receipts
  • MAP 21 - FHWA formula based program
  • NC Ferry estimated receipt approximately $1.5M
  • Current sources do not meet projected needs for fleet

replacement and capital improvements

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Fleet Condition

  • Replacement Cost (FY14$):
  • Sound Class Vessel New Construction approx. $18M
  • River Class Vessel New Construction approx. $12M

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Age (years) Hatteras Class Sound Class River Class Condition 0 to 5 2 1 Good 6-15 5 Good 16-25 7 2 2 Average 25+ 2 1 Critical

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Capital Improvement Plan Summary

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Vessels & Facilities CIP (Unit) CIP (YOE $) O&M (Rehab) (Unit) O&M (Rehab) (YOE $) Tug 3 $9,532,618 $0 Barges 3 $643,029 $0 Synchro-lift $0 1 $1,781,529 River class ferry 6 $80,172,525 7 $28,333,525 Sound class ferry 3 $37,385,460 1 $8,040,413 Hatteras class ferry $0 3 $17,808,127 Facilities Projects 1 $1,634,957 17 $37,029,406 Total Number of Vessels 15 12 Total 20-Year Cost $129,368,589 $92,993,000 Average Cost Per Year $6,468,429 $4,649,650

1 CIP facilities include new mooring facilities

http://www.navsea.navy.mil/Organization/SEA05/indices.aspx

2 3.5% p.a. escalation assumed based on 2004-2014 historical escalation indices for labor and material used by

the Navy for steel vessel building, Bureau of Labor Statistics. Year-over-year escalation presents significant

20-Year CIP and O&M Plan

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Other Unfunded Short-Term Capital Needs

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Item Cost Compliance with new USCG Regulations $1,125,000 Shipyard (HVAC, Roof, Boiler) $1,100,000 Shipyard Equipment Replacement and Water Tower Repair* $700,000 Fire System Refurbishment $600,000 * Included in Governor’s Recommended Budget

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Recent Budget Actions

Spoil Site Rehabilitation

  • Project Cost $1.15M
  • Estimated Completion 2016

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Location Planned Remaining % Complete Southport $100,000 $67,311 32.7% Fort Fisher $150,000 $66,733 55.5% Cherry Branch $400,000 $276,790 30.8% Swan Quarter $500,000 $446,644 10.7%

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Recent Budget Actions

Dredge Carolina Replacement

  • Project Cost $ 7.9M
  • Anticipated Delivery Date Fall 2015

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Passenger Ferry Feasibility Study

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  • Research all aspects of

passenger ferry operations including:

  • Vessel type
  • Pedestrian Usage
  • Parking
  • Shore side improvements
  • Transit needs
  • Study Complete – Dec 2015
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Passenger Ferry Route

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Hatteras Congestion

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Vessel Information: Length – 91 feet Width – 30 feet Draft – 2.5 feet forward, 5 feet aft Speed – 28 knots Capacity – 149 passenger Crew – 1 Captain, 2 Deckhands

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FY2015-16 Budget Request

Based Appropriation Recurring (Hatteras Route) Non-Recurring (Shipyard) Net Change Total $38,900,395 $850,000 $700,000 $1,550,000 $40,450,395 The Ferry Division continues to seek new efficiencies to offset increased

  • perating costs due to external factors and USCG requirements, and to also

explore revenue opportunities – while improving customer service. Key initiatives in 2015 include evaluation of a passenger ferry service between Hatteras and Ocracoke Village to reduce congestion and lower operating and capital expenses, and development of new maintenance practices.

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Jed Dixon Assistant Ferry Director jedixon@ncdot.gov Jeff Mann Deputy Secretary for Transit