PortPort ofof SanSan FranciscoFrancisco WaterWater TaxiTaxi FeasibilityFeasibility StudyStudy

Presentation to San Francisco Commission Water Taxi December 8, 2009

Veronica Sanchez Consulting Walther Engineering Services ScopeScope ofof StudyStudy

¾ IsIs therethere ridershipridership demanddemand forfor waterwater taxitaxi service?service?

¾ WhatWhat cancan wewe learnlearn fromfrom otherother otherother citycity’’ss waterwater taxitaxi systems?systems?

¾ WhatWhat areare capitalcapital andand operatingoperating requirementsrequirements forfor PSFPSF toto startstart thisthis service?service?

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services IsIs therethere RidershipRidership Demand?Demand?

¾ #1 Market Niche: F-Line Diversions ¾ F-Line has overcapacity problems. Wait times are longer than time at peak. • Conservative Assumption: 522-576 daily riders • Aggressive assumption 1306-1440 daily riders

Compare: Bay: 620 daily riders.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services IsIs therethere RidershipRidership Demand?Demand?

¾ #2 Market Niche: Repeat visitors (17.5%) may be looking for a different shoreline experience ¾ #3 Visitor Attractions & Destinations

z Example: Exploratorium Opening in 2014.

z Special events

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services IsIs therethere RidershipRidership Demand?Demand? Conclusions ¾ F-Line is formidable competition to water taxis. Direct, convenient & cheap.

¾Water taxis need to have competitive & high frequency.

¾Water taxi ridership will fluctuate with seasons and daily peak periods.

¾Other visitor market niches exist but ridership is speculative because walking, biking, taxis, Segways, excursion are other alternatives.

¾Existing ridership demand is speculative & does not justify a substantial capital investment! Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems NewNew YorkYork CityCity

¾ is not an “on-call service” ¾ Company operates 4 commuter ferries with public subsidies ¾ Strong Partnerships with shoreline real estate businesses & attractions

z Free IKEA service from Manhattan.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems NewNew YorkYork CityCity

¾ NY Water Taxi also in excursion boat business. Bought Circle Line in 08! ¾ Hop On/Hop Off seasonal service ($20 day pass) has nine stops at 5 min. intervals near tourism sites: • Times Square • World Financial Center • Wall Street • United Nations/Empire State

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems ChicagoChicago ¾ Two companies: • Water Taxi - Primarily a commuter service. • Shoreline Water Taxi – Chicago River and Lake Michigan routes include Sears Tower, Navy Pier, and Field Museum. ¾ Facilities built by operators or building owners. ¾ Lessons: Cost of operating water taxi service is offset by revenue from commuter, excursion operations.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems LongLong BeachBeach

¾ 2 services: AquaBus & AquaLink (3 boats) ¾ Started in 1998 to support economic development of Long Beach Aquarium. ¾ Initial capital investment low. ¾ Contracts with Catalina Express ¾ Not a self-sustaining operation!!

• Operating subsidies from LB Transit ($360,000 last year) and received federal funds for vessels.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems SanSan DiegoDiego ¾ On-Call Water Taxi Service: $7/one way trip. ¾ San Diego Harbor Cruises is waterfront marina and commercial property owner. ¾ 3 vessels - 42 & 23 paxs ¾ Monthly flat fee arrangements with hotels to passengers (i.e. Hyatt-Seaworld). ¾ Operate group charters

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther Cities:Cities: RangeRange ofof FaresFares

NY Water Taxi Hop On/Hop Off Adults $20 (Day Pass) Chicago Shoreline Water Taxi Michigan Avenue-Navy Pier $3 Navy Pier-Museum $7 Sears Tower-Navy Pier $6 Museum-Michigan Avenue $10 Sears Tower-Museum $13 Long Beach $1-$5

Excursion Cruises Circle Line/New York $27 Shoreline Sightseeing/Chicago $14-15 Blue and Gold/S.F. Bay Cruise $24 Red and White/Golden Gate Bay Cruise $22 Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services ExistingExisting VesselVessel ExamplesExamples

Long Beach Aquabus: 49 NY Water Taxi: 74 paxs, 24 knots paxs, 15 knots, $295,000

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services ExistingExisting VesselVessel ExamplesExamples

Chicago Shoreline Water Taxi: 40 Maui Ocean Explorer: 49 paxs, 26 paxs, 14 knots, $275,000 knots, $875,000

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther VesselVessel ExamplesExamples ExistingExisting VesselsVessels inin SanSan FranciscoFrancisco BayBay NeedNeed RetrofitRetrofit andand ConversionConversion

Sports Fishing Boats: USCG for 49 Westar Marine Crewboat: 49 paxs, paxs. ADA retrofit, interior 16-20 knots $375,000. Industrial improvements and cover needed. boats. ADA retrofit needed PSF docks would also need ramps to handle 30-40” of freeboard.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OtherOther WaterWater TaxiTaxi SystemsSystems SydneySydney

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services RecommendationsRecommendations forfor thethe PortPort MinimalMinimal CapitalCapital InvestmentInvestment VesselVessel RequirementsRequirements

¾ 3 vessels minimum (6 vessels if goal is 15 minute intervals) ¾ 25-49 passengers ¾ 12-16 knots ¾ Range of cost of existing vessels: $215,000 to $2.4m ¾ Estimated cost for construction of new boats (@ $300,000/boat)$

• $900,000 for 3 new boats

• $1.8m for 6 new boats

• 8 month construction period

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services OperatorOperator’’ss BasicBasic RequirementsRequirements

¾ HistoryHistory ofof qualityquality service,service, soundsound financialsfinancials andand priorprior managementmanagement experience.experience. ¾ CrewCrew capabilitycapability andand strongstrong certifiedcertified trainingtraining program.program. ¾ StrongStrong marketingmarketing experience.experience. ¾ MaintenanceMaintenance andand fuelingfueling capacity.capacity. ¾ YearYear roundround vs.vs. seasonalseasonal service.service.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services RecommendationsRecommendations forfor thethe PortPort MinimalMinimal CapitalCapital InvestmentInvestment LandsideLandside RequirementsRequirements

¾ Reviewed 13 sites at Port of SF and Central Fisherman’s Fort Mason (GGNRA) Wharf Area Pier 39 Area ¾ Criteria Used:

z Are minimal capital improvements required (existing floats, ramps, ADA access, adequate water depth)? Building Area

z Are there conflicts with adjacent recreational or commercial uses on water side?

z Is the facility close to popular visitor destinations? South Beach Area z Is the facility accessible from the street level to customers? CONCLUSION: 6 sites at Port of San Francisco are suitable to start service in 2010-2012

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: SuitableSuitable FacilitiesFacilities

South Beach Area Ferry Building Area

Pier 1 1/2 Guest Dock built by SF Pier 40 - leased to Waterfront Partners. SF Redevelopment Agency Construction cost: $850K with $425K federal grant.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: SuitableSuitable FacilitiesFacilities PierPier 3939 AreaArea

¾ PierPier 3939 SouthSouth

or

¾¾ PierPier 4141 -- sitesite ofof existingexisting ferryferry docksdocks

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: SuitableSuitable FacilitiesFacilities CentralCentral WharfWharf

¾ Pier 43 ½

OR

¾ Hyde Street Harbor

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: FutureFuture FacilitiesFacilities

¾ FortFort MasonMason • The National Park Service is conducting long-term planning for ferry service to GGNRA properties.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: FutureFuture FacilitiesFacilities Pier 15/Exploratorium

z Construction of dock within 5 year anniversary of lease execution.

z Possible 2015 if lease executed in 2010.

z Projected number of visitors: 850,000/ year

z Travel distance from Pier 1 1/2 Guest Dock @ 15 knots is 7 minutes.

z Great marketing opportunities for special events and linkages to other part of waterfront.

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services Recommendations:Recommendations: FutureFuture FacilitiesFacilities

ContCont’’dd Proposed Water Taxi Dock ¾ FutureFuture SitesSites

z Seawall Lot 337-Pier 48 Mixed Use Development

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services FinancialFinancial SustainabilitySustainability

¾ Develop a phased approach

z Phase I - facilities ready in short term (2010-2012) and work with developers and other partners for long term. ¾ Attract operator with diverse business portfolio of excursion and commuter products. ¾ Start up service may need cross-subsidies between operator’s different brands. ¾ Demonstrated financial and operating experience. ¾ Marketing and promotion experience is critical (tourism products and special events).

Port of San Francisco Water Taxi Feasibility Study Veronica Sanchez Consulting September 2009 Walther Engineering Services