US unlocks nearly $300 million for modernization of ferry systems

The U.S. Department of Transportation’s Federal Transit Administration (FTA) has announced grants totalling nearly $300 million from President Biden’s Bipartisan Infrastructure Law to expand and modernize the nation’s ferry systems.

In total, FTA is awarding 18 grants in projects in 14 states. The supported projects include replacing old vessels with electric ships that reduce greenhouse gas pollution and improve air quality, expanding fleets, as well as building new terminals and docks. Of the 18 projects, eight are receiving support for environmentally friendly propulsion technologies such as electric ferries and charging equipment.

The funding will be sourced through three FTA competitive grant programs:

• The Ferry Service for Rural Communities Program provides funding to states for ferry service in rural areas. FTA is awarding $194 million to four projects in two states.
• The Passenger Ferry Grant Program supports capital projects to establish new ferry service and repair and modernize ferry vessels, terminals and facilities in urban areas. FTA is awarding $56.3 million to eight projects in seven states.
• The Electric or Low Emitting Ferry Program supports the purchase of electric or low-emitting ferry vessels that reduce emissions by using alternative fuels or onboard energy storage systems. FTA is awarding $49 million to six projects in five states.

FTA noted that its ferry programs invest in improving ferry service in urban and rural communities by providing federal support to acquire modern, “greener” ferry boats and upgrading equipment to support high-quality, low-emission ferry service.

The recipients of the funding for Fiscal Year 2024 include:

• The Alaska Department of Transportation & Public Facilities will receive $106.4 million to build a new ferry to replace a 60-year-old vessel. This ferry, which will feature a diesel-electric propulsion system, will serve rural southwest Alaska.

• The San Francisco Bay Area Water Emergency Transportation Authority will receive $11.5 million to build two new electric ferries to support the agency’s emission-free ferry service between downtown San Francisco, Treasure Island and Mission Bay.

• The Maine Department of Transportation will receive approximately $16.6 million to modernize rural ferry terminals in Lincolnville and Islesboro, in northeast Maine, that were built in 1959.

U.S. Transportation Secretary Pete Buttigieg commented: “Ferries serve Americans who depend heavily on this form of transit because of where they live—and the Biden-Harris Administration is making sure people have access to more reliable, cleaner ferry service. These funds will make it easier for Americans to move about their day while also protecting the rivers and waterways they depend on economically.”

FTA’s Acting Administrator Veronica Vanterpool said: “This historic funding for FTA’s Ferry Programs will enhance ways for people to travel by water. We applaud ferry agencies for taking the big step toward electrification, increasing reliability, and bringing their aging ferry systems into a state of good repair.”

To remind, in 2023, FTA announced $384.4 million in federal funding by the Biden-Harris administration for expanding and improving the nation’s ferry service in communities across the country. FTA awarded 23 grants across 11 states and the U.S. Virgin Islands.