HVEDC-Oates, MIke

The Newburgh–Beacon Ferry Was an Economic Engine. New York Should Restart It

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Replacing the Newburgh-Beacon Ferry With Bus Service Forfeited An Essential Economic Development Tool

By Michael Oates

Mike Oates, HVEDCFor 220 years, a ferry carried people across one of the widest stretches of the Hudson River, between Newburgh and Beacon. George Washington crossed here during the Revolution. Generations of commuters crossed after him. And until last year, so did the workers, students, and visitors who kept two of the Hudson Valley’s most promising downtowns connected. In July 2025, the Metropolitan Transportation Authority discontinued the service permanently, citing low ridership and a $2.1 million annual cost. A bridge shuttle bus now stands in its place.

As president and CEO of the Hudson Valley Economic Development Corporation, I believe that decision measured the wrong thing. The ferry was not a failed experiment in public demand. It was a service starved of investment — and abandoning it forfeits one of the most cost-effective economic development tools our region has.

Consider what the ferry actually did. In roughly ten minutes, it delivered west-of-Hudson commuters to the Metro-North Hudson Line at Beacon, the fastest single-seat rail connection to Grand Central. It did so without adding a single car to the Newburgh–Beacon Bridge, which already carries more than 26 million crossings a year on Interstate 84 — the busiest span in the entire New York State Bridge Authority system. Every rider on that boat was one fewer vehicle in that crush, and one fewer driver competing for the perpetually waitlisted parking at the Beacon station.

But the ferry’s real potential was never in the rush hour alone. It was in everything the old schedule ignored.

Here is the evidence that should end the debate. Thirty miles downriver, the same operator runs the same kind of boat between Haverstraw and Ossining under the same MTA contract. The difference is design. In 2024, the MTA added weekend service to that route, aimed squarely at tourism and leisure. Ridership climbed from 240 on opening weekend to 455 a day by July, with a single-day record of 822. A state legislator called it “a tried and true economic development engine.” Officials on both shores credit it with filling their restaurants, shops, and summer concerts.

The Newburgh–Beacon ferry was never given that chance. Its timetable had not been meaningfully updated since 2005 — before the iPhone, before remote work, before Beacon’s Main Street and Newburgh’s waterfront became destinations. It ran only during narrow weekday windows, was never integrated into Metro-North’s ticketing app, and offered no weekend service at all. As one former member of Newburgh’s transportation committee put it, the ridership was “low by design.”

Fix the design, and the returns multiply. A ferry drops visitors on foot, at street level, in the heart of a downtown — exactly the pedestrian traffic that independent retailers and restaurants prize above almost anything. It stitches Beacon’s Dia museum and Newburgh’s reviving waterfront into a single, walkable, car-free experience. And reliable cross-river transit lifts housing on both shores: research in New York City found property values rose near ferry landings, and a 2024 Washington State study documented families choosing lower-cost homes on one side of the water while reaching higher-wage jobs on the other. That is precisely the Newburgh-to-New-York dynamic a restored ferry would support.

There is a larger prize, too. New York Stewart International Airport — one of our region’s signature assets — handled just 277,000 passengers last year, down 70 percent from its 2007 peak, hobbled above all by poor ground access. For decades, planners have envisioned a single spine: Beacon rail to Newburgh by ferry, then a ten-minute drive up Broadway to Stewart. Restoring the ferry is the first link in finally giving that airport the transit connection it has always lacked.

We do not have to guess whether this works. New York City built NYC Ferry into a 7.4-million-rider system — and pointedly placed it under its Economic Development Corporation, because a ferry is infrastructure, not a line item. San Francisco Bay Ferry doubled its ridership in seven years. Washington’s Kitsap Fast Ferries, a mid-size regional system much like ours, carried a record 1.22 million riders in 2024 and grew simply by adding service. Federal ferry grants helped pay for their boats, and the same funds are available to us.

So I am asking our state and regional partners — the MTA, the Port Authority, both counties, and the cities of Newburgh and Beacon — to convene not around switching the old service back on, but around reimagining it: weekday commuting, seasonal weekend service, digital ticketing, cleaner vessels, and onward links to Stewart.

The river connected these communities for two centuries. We should not let a damaged dock be the reason it stops now.

Michael N. Oates is president and CEO of the Hudson Valley Economic Development Corporation, which serves Westchester, Putnam, Dutchess, Rockland, Orange, Ulster, Sullivan, Greene, and Columbia counties.