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?”