Ferry Toll Rate Recommendations Presented To N.C. Board of Transportation

The board passed a resolution Thursday to request that the state legislature delay ferry tolling implementation

RALEIGH, N.C. – Officials with the N.C. Department of Transportation’s Ferry Division on Thursday presented their toll rate recommendations to the North Carolina Board of Transportation, as the agency prepares to implement a law requiring tolls on all state ferry routes.     

Starting Jan. 1, 2027, state law requires NCDOT’s Ferry Division to start collecting tolls on the system’s ferry routes that are currently free: Currituck-Knotts Island, Aurora-Bayview, Hatteras-Ocracoke and Cherry Branch-Minnesott Beach. Ferry Division Director Jed Dixon made Thursday’s presentation.

“We recognize this is a significant change for the residents and communities who rely on ferries for essential travel,” Dixon said. “Ultimately, we had to meet the requirements outlined in the law, minimize impacts to ferry operations and account for the potential impacts the tolls could have on our customers and coastal communities.” 

Dixon presented the following recommended base toll rates for one-way routes: 

• $10 each way for Hatteras-Ocracoke 

• $7 each way for Currituck-Knotts Island, Aurora-Bayview and Cherry Branch-Minnesott Beach 

The law requires a $150 annual commuter pass for active-duty military and eligible permanent residents of the state’s 20 coastal counties. Each pass pays for one vehicle a year on all ferry routes. The commuter passes will be available for purchase online and in person in November, Dixon said.

The Board of Transportation is scheduled to consider adopting the toll rates and rate-setting methodology at its Nov. 5 meeting.

However, after Thursday’s presentation, the board passed a resolution to request that the state legislature delay the implementation of ferry tolling. Board members applauded the efforts of the Ferry Division to complete the large task in a short timeframe, but said the agency should have more time for additional analysis and to execute the many tasks needed for toll collection. NCDOT Secretary Daniel Johnson agreed to share the board’s resolution with the state legislature.

The base toll rates recommended for one-way ferry travel are similar to those that already exist on the three vehicle ferry routes that currently collect tolls: Cedar Island-Ocracoke, Swan Quarter-Ocracoke and Southport-Fort Fisher. The division is recommending rates on the currently tolled routes remain unchanged, Dixon said.

The new state law requires that toll revenue support the replacement of ferry vessels, which was a critical factor in the methodology the division used to determine the division’s recommended rates, Dixon said. The division developed the methodology on a tight timeline using past studies and surveys, ridership data, revenue analysis and traffic data near the terminals.

The recommended rates are anticipated to generate an average of $4.4 million a year, which will support vessel replacement but is less than the revenue required to fund 80% of one vessel every four years, he added.

Dixon said the Ferry Division plans to monitor the revenue generated and the impacts tolls have on ridership and report any needed changes to the board in a year.

Ferry Division staff evaluated the vessel replacement schedule, estimated replacement costs and other available funding that could help purchase new boats. They also analyzed the anticipated impacts of tolling on ridership and concluded that higher initial rates could reduce other funding needs or future rate adjustments but drive away customers and create higher revenue uncertainty.

An important part of these determinations was the feedback the Ferry Division heard during a public comment period from Aug. 17-Sept. 14. The division hosted five public listening sessions, conducted an online survey, put in place a voicemail hotline and established an email address to field comments.

The public will have another opportunity to provide feedback online from Oct. 9-23. Starting Friday, people can leave comments on the proposed toll rates and rate-setting methodology by visiting the NCDOT’s Ferry Tolling webpage and clicking on the “Submit Comments” box. Comments may also be submitted during the comment period by phone by calling (984)205-6615 project code 10744, or by email at ferry-tolling@publicinput.com.

Preparing for Ferry Tolling

Dixon also updated the board on how the division is preparing to implement the law.

The division has been recruiting and hiring people for temporary positions to collect tolls. And the agency is updating its ticketing and reservation systems, procuring computer equipment and retrofitting terminals with signage to support tolling, he said.

Thursday’s presentation to the board is available on the NCDOT website.