Transit Economics Untangled: NYC vs. the World
“This is the Coney Island-bound F local train. Stand clear of the closing doors please.”
Sound familiar?
Many New Yorkers use subways and public transportation on the daily. It’s a common way of getting to and from any place in the five boroughs. However, the system is definitely not perfect. There are constant delays, packed train cars, and dirty stations. There is much to question about how the transit system is funded and how much it would take to renovate the stations and trains. At the end of the day, the $2.75 fee adds up. On average, a New Yorker working 5 days weekly would most likely spend about $55 just on public transportation in a month. It may not seem like that much, but calculated for a year? That’s $650+ right there. Subtract some vacations and days off, and that’s about $600 a year.
While the trains are convenient, they are quite subpar. It seems as though the $600 doesn’t seem “worth it” for hot and smelly stations and raggedy train cars. Although it’s important to acknowledge that some trains have renovations and different set-ups. But for the most part, trains are loud, slow, and really crowded. It’s the harsh reality. But, why can’t something be done to change this? Maybe it can.
FUNDS & RENOVATIONS
Not surprisingly, it turns out that New York City (NYC) spends quite a pretty penny on its transit system. According to a NYC Council report done in 2021, the federal government allocates $9.1 billion to the entire transit system annually. That is over 50% of the entire state’s yearly budget. The expenses are beyond words and yet no cell phone service in the subways? The facts seem to be contradicting reality.
But what if that were all to change? What if NYC managed to completely renovate all the trains, buses, and stations to the extent that they are unrecognizable? The idea seems rather far-fetched. However, if properly supported it can be promising. A report posted by the MTA proves that it would require $106 billion just to uphold and protect the infrastructure of the subway system in the next 20 years (from 2015–2034). Hence, one could only imagine the funds required to completely alter the subways as we know it. This report was published in 2012, meaning that even without inflation the prices are that large. In order for the renovations to occur, they would require drastic increases in NYC tax deducts from the paychecks of working people. The idea is unfortunately heavily unfeasible in today’s world. Unless NYC hits a magic lottery, the chances of the system changing quickly are pretty low.
TRANSIT SYSTEMS AROUND THE WORLD
Everyone compares the NYC subway system to transit systems all around the globe. Some of the world’s best transit systems are located in Eastern Asia and Europe.
Hong Kong, for example, is ranked the best subway system in the world by CNN Travel. Known as the Mass Transit Railway (MTR), the metro system is known for its “cleanliness, ease of use, safety and reliability”. Not to mention the free WiFi at every station and the quick and easy commute to airports. The trains barely have any waiting time and are catered to support a wide range of disabilities. The railway system ultimately cost $10.8 billion, which is oddly low for such a sanitary station. Many believe that Hong Kong’s political relations with China are the reason for this low price.
Next up is the metro system in Seoul, South Korea. This metro system has amazing prices for tickets. One ticket for a teen or adult is 1350 KRW, which is $1.05 in USD. That is over 60% cheaper than the ride fares in NYC. This metro system is filled with an abundance of luxuries such as climate control, TVs, and WiFi service on the trains. Regarding its finances, the Seoul Metro is owned by 3 companies, which may account for its outstanding success. A difference (and for some a downside) about this transit system is that it closes at midnight and sometimes earlier. The entire project over the years amounted to about $17 billion and the Seoul subway budget annually is about $1.7 billion compared to the $5 billion for the NYC subway.
It is clear that Hong Kong and Korea are doing something different that makes them truly stand out. A change to implement in NYC’s metro could be to gather some funds from private investors or companies, not just from the government, to accomplish transit projects here in the U.S. For instance, in Seoul, only about 35% of metro system funds came from the Korean government. 15% was secured from bonds, but the remaining 50% came from SMG, a technology company in Korea. Not to mention, Singapore’s metro, a very successful institution, has similar ownership. Their entire transit system is owned by SMRT, which is an independent corporation.
The Asian transit systems mentioned each have their own specific circumstances that allow them to thrive and flourish as they do today. Some due to politics, others due to the way they were created and who owns them. Under the ownership of a private corporation, the NYC subway would be distinctly different. It may not be the best choice for the city. However, if executed well and thought out thoroughly, the proposal may achieve some advancement from the subway’s current state.
PRESENT-DAY SOLUTIONS
It’s significant to consider that the transit system is spectacular and that NYC would really never be able to function without it. In the long run, it can save commuters hundreds of dollars on car expenses and is great for the environment. No matter the bad service or the loud trains!
Not to mention, it’s amazing that the NY government is attempting to implement new policies to help out the less fortunate with their transit fares. This program is known as Fair Fares; it gives 50% discounts to low-income riders. Also with the addition of 7-day and 30-day MetroCards, frequent riders can save a lot more with these cheaper alternatives. Furthermore, students receive free MetroCards and the elderly/disabled do as well. It’s nice to know that the city is looking out for these special groups and providing everyone with as much support as it can.
Although NYC subways aren’t exactly like the wonderful transit systems around the world, NYC is still home to over 8 million people. It might not be perfect, but it’s all we’ve got.
