Drop in ferry ridership leveling off

A decade-long downward trend in ferry ridership in Western Washington is showing signs of leveling off.

In the future, officials expect numbers to grow again.

The number of people riding ferries in Puget Sound waters dropped from an all-time peak of 24 million in 1999 to about 20.4 million in 2009 -- a decline of more than 15 percent, according to numbers compiled by the Puget Sound Regional Council, a planning agency.

The drop is slightly less when non-Puget Sound routes, Port Townsend-Keystone and Anacortes-San Juan Islands, are figured in.

Several factors contributed to the decline. Fare hikes, gasoline prices, service reductions and the recession have played a part, officials said.

Fares were raised four times: 20 percent in 2001, 12.5 percent in 2002, and 5 percent to 6 percent in 2003 and again in 2006, said Ray Deardorf, planning director for the ferry system.

The increases meant the fares went up 70 percent to 80 percent on most routes and 100 percent on the San Juan Islands routes over the 10-year period, Deardorf said.

The ferry system once derived more than 20 percent of its operating revenue and all of its capital revenue from the state motor-vehicle excise tax. In 1999, voters approved I-695, which reduced the "car tab tax" to $30 per vehicle. Though the state Supreme Court declared the initiative unconstitutional, the Legislature made $30 car tabs the law.

Fare increases were needed to offset the cuts, officials said.

Then in late 2007, four Steel Electric ferries were pulled from service. The Port Townsend-Keystone (now Port-Townsend-Coupeville) route was served exclusively by these boats. The ferries were more than 80 years old, and cracks, leaks and corrosion were found in their hulls.

The same year, the state transferred control of its Seattle-Vashon Island passenger-only ferry to King County, taking those numbers out of the equation.

In February 2008, the state leased the Steilacoom II, a 54-car ferry, from Pierce County to move people between Port Townsend and Whidbey Island. Still, the capacity on the route was reduced.

Also in 2008, gasoline prices spiked at more than $4 per gallon, discouraging auto travel. Late in the year, the economic recession hit in full force.

"We had sort of a triple whammy" in 2008, Deardorf said.

From 1999 to 2009, the Mukilteo-Clinton route had the smallest decline, 6 percent, according to the Puget Sound Regional Council figures. This could be because the route is shorter than most, only a 20-minute trip, and the fare increase was less there than on other routes, Deardorf said.

In 2009, the trend leveled off and the total for the year was virtually the same as 2008, according to numbers provided by the ferry system. So far in 2010, the numbers are down about 1 percent from a year ago.

The number of walk-on passengers and regular commuters continues to decline, but recreational vehicle trips are up, Deardorf said.

"We still see a drop in our frequent users. That may be offset by more 'staycation' type of travel" because of the recession, he said.

In 2009 and so far in 2010, the Edmonds-Kingston route has shown modest increases. This is likely spillover traffic from reduced capacity on Port Townsend-Coupeville, Deardorf said.

For the long term, however, the state is forecasting a steady increase in ridership to 28.3 million in fiscal year 2026. The quarterly forecasts are based on economic and population projections.

"Those are forecasted to rebound," Deardorf said.

Bill Sheets: 425-339-3439; sheets@heraldnet.com.