Ocracoke, N.C., is feeling the pain of anticipated ferry tolls

Part 5 in a Series

Ferry tolls in North Carolina are already in place on three of the state routes that carry both passengers and vehicles – Cedar Island-Ocracoke, Swan Quarter-Ocracoke and Southport-Fort Fisher.

But a new requirement to extend tolls to the “free ferries” – Hatteras-Ocracoke, Currituck-Knotts Island, Bayview-Aurora and Cherry Branch-Minnesott Beach – on Jan. 1, 2027, is causing a lot of heartburn.

“This is not a case where you just expand the existing reservation system and toll system to the rest of the fleet,” said Justin LeBlanc, the executive director of the Ocracoke Access Alliance (OAA). 

“This is a completely different beast. Something has to be created from scratch, and doing that in five months is going to be really hard.”

Ocracoke is more or less caught in the middle. The existing Cedar Island-Ocracoke and Swan Quarter-Ocracoke runs are long, scheduled crossings where travelers can reserve space and purchase tickets in advance.

The red line denotes the Outer Banks Scenic Byway that begins north of Beaufort and extends to Whale Bone Junction at Nags Head, covering 137 miles. 

The route includes two ferry crossings...from Cedar Island to Ocracocke and from Ocracoke to Hatteras.

The Hatteras-Ocracoke connection is a shorter, high-volume route that does not accept reservations and operates on a first-come, first-served basis, with special priority boarding for Ocracoke residents, emergency vehicles and pre-approved vendors.

Approximately 165,000 vehicles use the Hatteras-Ocracoke route each year. 

Presently, vehicles enter stacking lanes at Hatteras – or simply wait on N.C. Highway 12 on the Ocracoke side of the crossing – and board the next available ferry as space permits.

Joy Crist, editor of the Island Free Press, based in Hatteras, has analyzed some of the options.

“Staffed booths or payment kiosks is one approach that would give attendants an immediate way to resolve questions about oversized vehicles, exemptions and failed payments,” Crist said.

 

“It would also risk slowing traffic at Hatteras and Ocracoke, two of the state ferry system’s busiest terminals,” she wrote. “Every transaction would add time before a vehicle could enter the line, potentially creating backups during summer weekends and other high-volume periods. And it would be difficult to implement in Ocracoke, where ferry traffic is congregated along the highway.

 

“A staffed system would require booths or portable collection stations, card readers, cash-control procedures, security, network connections and additional employees to operate multiple shifts. It would also need backup procedures during power, internet or communications outages, which are a regular issue on Hatteras and Ocracoke.”

 Crunch. Accidents in the toll booth line can create headaches and cause delays.

“An unmanned kiosk system could reduce staffing requirements somewhat but would still require vehicles to stop. Drivers unfamiliar with the equipment – or those paying for trailers or requesting exemptions – could take longer to process than other motorists,” Crist said.

 

Another option is electronic tolling, perhaps modeled on NC Quick Pass and E-ZPass that are currently being used on North Carolina’s toll highways. Vehicles with NC Quick Pass accounts are identified electronically, while motorists without accounts receive an invoice by mail, Crist said. Drivers do not stop at a toll booth.

 

The state also offers an “NC Only” account that does not require a transponder. A driver registers a license plate, and tolls are deducted from a prepaid balance when the plate is read on a North Carolina toll facility.

Weighing the alternatives, Crist said that “a booth-based system may be easier to install technologically but harder to sustain operationally, if the Ferry Division cannot recruit enough people to staff it.”

State Sen. Bobby Hanig of Currituck County, who opposed the added tolls, said “the implementation challenge extends well beyond simply collecting fees.”

“Technology, infrastructure and advertising would probably be the three biggest concerns,” he said. “You’ve got to let people know what’s changing, build a system that works, and make sure it’s staffed and ready to go. There’s a lot more to this than just deciding to charge a toll.”

Ferry tolls implementation plan is ‘half-baked’…at best

Part 4 in a Series

 

It’s interesting that the 23 vessels in North Carolina’s ferry system carry approximately 2 million passengers and upwards of 800,000 vehicles a year…ranking it as the second largest state-operated ferry system in the country, behind only Washington state.

 

That’s pretty impressive. North Carolina State Sen. Bobby Hanig of Currituck County proudly refers to our ferry system as “a major economic engine for eastern North Carolina, providing $1.2 billion in revenue, with an employment base of 5,900 jobs, producing $2.2 million in labor income, $735 million in economic impact and $32 million in local and state tax revenue.”

The North Carolina Department of Transportation (NCDOT) Ferry Division operates seven major routes year-round that carry both passengers and vehicles across various bodies of water.

 

Four of those routes have traditionally been toll-free. But that is about to change, effective Jan. 1, 2027, when the state begins to enforce a new tolling requirement that was authorized by the legislature in July as part of the budget bill.

What’s scary is that there is no plan about how to go about implementing the new tolls.

Sen. Hanig says the ferry tolls provision was the “worst-drafted” section in the state budget, because it’s full of loose ends. It’s half-baked…at best.

Decisions are being left up to the NCDOT and its Ferry Division, with instructions to “work it out.”

A July 8 editorial in the Carteret County News-Times, published in Morehead City, N.C., sounded the alarm: “This premature decision by the legislature is a continuation of a serious disconnect between the leadership in Raleigh that is influenced by Piedmont legislators who see the coast as their playground, not as a valuable resource that sets the state apart from the others.”

The News-Times editorial continued: “North Carolina’s coast has a rich culture, history and economy that deserve greater respect....Failure on the part of the legislature to acknowledge the vital role the ferries play in the local economies as well as that of the state, is an indication of a divide between the financially well-off regions of the state and the others that are struggling to keep pace with rapid growth.”

“This division and diminished respect for the coast cannot continue.”

So, here we are…in countdown mode to “ferry tolling time” on Jan. 1, facing a ton of uncertainties. As Carteret County’s legendary storyteller Rodney Kemp would put it, “we’re in a scape.”

Someone who has given this subject a lot of thought is Joy Crist, editor of the Island Free Press, based in Hatteras, N.C. 

She says that implementing the new ferry tolls “may be technically possible, but experiences in North Carolina and other states suggest that implementing a permanent, fully integrated tolling system would require more time” than just a few months.

Her focus, obviously, is on the Hatteras-Ocracoke ferry service. Crist said: “It could cost millions of dollars before the state collects its first toll on the currently free Hatteras-Ocracoke crossing, while creating another staffing challenge for a ferry route that has repeatedly struggled to fill positions.”

“The law does not establish individual fares, specify whether drivers will pay online or at terminals, require toll booths or electronic collection, or explain how vehicles will be identified and charged on routes that have never collected fares before.”

Crist said NCDOT must “select a collection method, establish rates, identify vehicle classes and exemptions, procure equipment, modify software, install electrical and communications connections, train employees, test the system…and explain it to the public.”

Futhermore, the law provides no additional funding to create toll-collection positions or hire employees to administer the new program.

In short, the whole thing is unfolding as a major mess.

What if cost of implementing ferry tolls exceeds revenue?

Part 3 in a Series

Much of the conversation surrounding the North Carolina General Assembly’s decision to impose a toll on all state ferries, effective Jan. 1, 2027, centers around the Ocracoke-Hatteras route, and rightfully so. 

You can’t just drive to Ocracoke. Getting there (as well as leaving) requires a ferry boat ride.

 

What we do know is that the N.C. Department of Transportation (NCCOT) Ferry Division intends to sell permanent residents in 20 coastal counties as well as active-duty military personnel an annual ferry pass for $150. But that’s about it, as the rest of the details are pretty much still up in the air.

The Ferry Division has scheduled five public “listening sessions” in communities close to the ferries where the new tolling requirement will be imposed. Division staff will be present to receive public comments, hear concerns and address questions. All the meetings will be from 6-8 p.m. Dates and locations are:

Sept. 1 – Beaufort County Community College, 5337 U.S. 264 East, Washington, in Beaufort County.

 

Sept. 2 – Pamlico Community College – Delamar Center, 5049 N.C. 306 South, Grantsboro, in Pamlico County.

 

Sept. 3 – Knotts Island Elementary School, 413 Woodleigh Road, Knotts Island, in Currituck County.

 

Sept. 8 – Graveyard of the Atlantic Museum, 59200 Museum Drive, Hatteras, in Dare County.

 

Sept. 9 – Ocracoke School, 120 Schoolhouse Road, Ocracoke, in Hyde County.

 

The Ferry Division’s announced timeline to develop the policies, rate recommendations, payment and collection systems and infrastructure needed to implement the new tolling program is described as “aggressive,” with several “required milestones” before implementation.

Division staff will present the proposed tolling plan, including the methodology and recommended rates, to the N.C. Board of Transportation at its Oct. 8 meeting.

Ferry leaders will return to the board on Nov. 5 seeking approval of the tolling policy and rate structure before launching the new program.

 The NCDOT will report to state legislators on the new tolling system by Dec. 1 – one month before new toll implementation.

The new tolls will affect riders on four vehicle ferry routes: Currituck-Knotts Island, Bayview-Aurora, Hatteras-Ocracoke and Cherry Branch-Minnesott Beach.

Many, many people are skeptical that all the tolling arrangements can be made in time to meet the arbitrary Jan. 1 deadline. 

Add to this a “real concern” that has been expressed by representatives with two separate organizations – the Ocracoke Access Alliance (OAA) and the Ocracoke Civic and Business Association (OCBA).

 

They are worried whether the revenue generated will even cover the cost of collecting the tolls.

The OAA has a simple objective: “to keep Ocracoke connected, thriving and accessible for everyone who calls it home or comes to experience its beauty.” 

The group has sent a letter to every legislator asking that the tolling be delayed for a year to provide a more realistic timeframe to set up a program.

Justin LeBlanc, OAA executive director, says the toll amount chosen for the Hatteras-Ocracoke run could significantly affect Ocracoke’s economy and needs to be based on a scientific formula, not a number pulled out of a hat.

 

“Whether the charge ultimately is $10, $20 or more per vehicle, the toll will ultimately discourage some people from visiting, affecting lodging establishments, restaurants, shops and other businesses that depend heavily on tourism.”

Bob Chestnut, chair of the OCBA, said there are too many unanswered questions, and people are edgy.

 

“How much will the toll be? How will it be collected? Will emergency vehicles receive exemptions? Will Ocracoke residents and property owners receive additional accommodations? And perhaps most importantly, will the General Assembly agree to postpone implementation long enough for those questions to be resolved?”

Let’s pause the state ferry tolling frenzy…until data is in

Part 2 of a Series

Credit North Carolina’s coastal news media outlets for sending out early alerts about the new state requirement that will slap tolls on all of the N.C. Department of Transportation Ferry Division routes, effective Jan. 1, 2027.

 

The provision was slipped into the new state budget bill by certain state senate leaders at the “eleventh hour” without rhyme nor reason. 

The maneuvering was detected by Sen. Bobby Hanig of Currituck County and Sen. Norman Sanderson of Pamlico County, who raised a last-minute fuss that was basically ignored.

Sen. Hanig said he strongly believes the ferries “are, by all accounts, a part of the North Carolina highway system,” and personally, he “believes no North Carolina citizen should have to pay a toll to ride on a ferry.”

“Now we’re going to tax the hardworking people of eastern North Carolina to go to work, go to school, go to doctor’s appointments,” he said. “I made a promise to my constituents a long time ago that I would not vote for a ferry tax,” Hanig said.

He also questioned: What’s the rush to implement tolls by Jan. 1, in advance of two important studies related to the ferry system?

The Ferry Division is well into an comprehensive economic impact study that is being conducted by the Institute for Transportation Research and Education at North Carolina State University.

 

The study is intended to help the division better understand the needs and experiences of passengers on each route. Public surveys are being accepted through Dec. 31 – one day before the toll mandate takes effect. 

Let’s wait for the findings.

It’s also noteworthy that the General Assembly approved, and Gov. Josh Stein signed, House Bill 1094 directing the State Auditor’s office to conduct a broad financial performance audit of the Ferry Division. 

“The purpose is to examine operations, maintenance spending and budget practices, evaluate capital project activities and make suggestions for long-term strategies to maximize revenue and reduce costs.”

Additionally, the audit will evaluate the current route system and potential routes and recommend any adjustments, also to maximize revenue and reduce costs. The auditor must deliver a report to lawmakers by Jan. 15, 2027.

North Carolina Auditor Dave Boliek

As the Carteret County News-Times, published in Morehead City, N.C., commented in an editorial on July 8, wouldn’t it “be better to review the results of the audit to determine where savings might be found as well as conclusions regarding the value and importance of the ferry system” before imposing new tolls on ferry users?

Something is not adding up here. Why bother with the time, effort and expense of an audit, if the data are not going to factored into the process?

More thought especially needs to be given to the unique situation of Ocracoke Island, and the “free ferry” to Hatteras Island.

Sen. Sanderson says a state statute already on the books may “prevent” tolling that route, requiring residents and guests with one “free pathway” to exit Ocracoke.

Peter Vankevich, co-publisher of the Ocracoke Observer (shown above), reported that Randal Mathews, chair of the Hyde County Board of Commissioners (shown below), has had intense conversations Tess Judge of Kill Devil Hills, a member of the N.C. Board of Transportation, about the tight timeline for developing the tolling system.

Tess Judge

Vankevich said: “The Hatteras-Ocracoke ferry has long been viewed as the waterborne extension of N.C. Highway 12, rather than as simply another ferry route. That distinction explains why it has remained toll-free for decades.”

“State highway funds – including fuel tax revenues – have traditionally supported ferry operations, just as they support roads and bridges throughout North Carolina.”

  

N.C. ferries told to implement new toll system in 2027

Part 1 of a Series

North Carolina’s General Assembly has gone off and done it again – “a’messin’ where they shouldn’t ‘ve been a’messin’” – borrowing from the lyrics of the hit song written by Lee Hazlewood in 1965 and performed by Nancy Sinatra…“These Boots Are Made for Walkin.’”

 

The new state budget includes a requirement to charge tolls on all state ferries, effective Jan. 1, 2027. 

Eliminating the “free state ferry” routes in eastern North Carolina is not only a bad decision, the start date appears to be totally unrealistic.

The ruling, if left unchanged, puts the State of North Carolina on a course to encounter a huge “train wreck at sea.”

Coastal community leaders and local elected officials are pleading for at least a one-year extension. It’s a reasonable request, given all the hurdles that the N.C. Department of Transportation and its Ferry Division must jump over to meet an arbitrary deadline established by the General Assembly.

 

This is a complicated ball of wax, with many tentacles to boot. North Carolina got into the ferry business in 1947, when it began taking over private ferry services. The system has grown steadily over the years, and now North Carolina has the second-largest state-operated ferry system in the nation, serving nearly 2 million passengers a year, trailing only the State of Washington.

 

Today, North Carolina maintains seven regular ferry routes that routinely transport both passengers and their vehicles. 

Three have tolls: Cedar Island-Ocracoke; Swan Quarter-Ocracoke; and Southport-Fort Fisher.

Four do not: Hatteras-Ocracoke; Cherry Branch-Minnesott Beach; Currituck-Knotts Island; and Bayview-Aurora. This will change when these routes will implement tolls in 2027. 

Legislators wrote the ferry tolls language into the $34 billion budget bill that was passed July 2, 2026, and signed five days later by Gov. Josh Stein.

There are all sorts of contradictions at play here, and an editorial in the Carteret (N.C.) County News-Times on July 8 touched on a number of them.

Additionally, Gareth McGrath of the Wilmington (N.C.) Star-News, pointed out that the state ferries have traditionally been regarded as an extension of the state’s transportation network – “maritime highways that play the same role for local residents and the coastal economy as traditional asphalt roads and bridges do in the rest of the state.”

Coastal residents and officials assert that the ferries are “vital to small, isolated communities where waterborne transport is the only way to get around,” McGrath said.

They say the ferries are “an extension of the state-run road system that happens to travel over water instead of land, and the ferries should be supported by the state gas tax and registration fees just like other parts of North Carolina’s highway network,” he added.

 

Strong objections were raised by coastal legislators Sen. Bobby Hanig of Currituck County (show above) and Sen. Norman Sanderson of Pamlico County (shown below), but their voices fell on deaf ears.

 

The News-Times editorial pointed out that Sen. Vicki Sawyer of Iredell County argues that the ferry system serves only a small percentage of the state’s population.

 

The editorialist said that Sen. Sawyer lives in the Piedmont, in a “county that is surrounded by major metro markets, predominantly Charlotte-Mecklenburg, where the state has been investing tax dollars to incentivize large multi-national companies to locate in that region.”

“So, her complaint that the state is using taxpayer funds to underwrite the operations of the state’s ferry division is hypocritical – ‘taxpayer support for me but not for thee.’”

Sen. Hanig said the tolling requirement was adopted with “no plan” for implementation, and it’s going to “a bunch of hiccups,” in getting it done.