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Seoul Brings London and New York Ferry Experts to the Table: What the Han River Bus Needs to Avoid a Subsidy Trap

EconomySeoul Brings London and New York Ferry Experts to the Table: What the Han River Bus Needs to Avoid a Subsidy Trap
Courtesy of News1
Courtesy of News1

On Tuesday, Seoul Mayor Oh Se Hoon acknowledged that while there were initial hiccups in the Han River Bus operations, the city is committed to using even criticism as a catalyst for improvement.

Speaking at the Han River Bus Global Insight Forum at Hotel Naru Seoul M Gallery in Mapo, Mayor Ohemphasized that the administrative responsibility lies not in fearing criticism, but in addressing shortcomings and striving for excellence.

The forum, organized by the Seoul Housing & Urban Development Corporation and the Seoul Institute, brought together water transportation experts from London, New York, and Brisbane to explore strategies for successfully implementing the Han River Bus service.

Notable speakers included David Panayiotou, head of London River Services at Transport for London; Franny Civitano, senior vice president of the New York City Economic Development Corporation; Jonathan Figueroa, senior vice president of the New York Hornblower Group; and Mark Hickman, a professor of transportation engineering at the University of Queensland, Australia. They shared insights on the challenges and solutions in urban water transportation from their respective cities.

Mayor Oh recounted a dinner conversation from the previous evening with Panayiotou and Figueroa.

He reported that both experts unanimously said the Thames River Bus in London and the Hudson River Ferry in New York faced far greater challenges and were less prepared than Seoul is.

Oh added that there was broad agreement that Seoul’s launch is significantly more organized than their initial experiences. He also emphasized that the Han River Bus journey has only just begun, and said that even in the face of adversity, Seoul will persevere and keep moving forward.

The Han River Bus service, which officially launched on September 18 last year, encountered issues after just 10 days, with steering and electrical system problems leading to a month-long passenger-free trial run.

Operations resumed in November, but on November 15, a vessel ran aground in a shallow area near Jamsil Pier.

Consequently, from November 16, the Apgujeong-Oksu-Ttukseom-Jamsil route was suspended, with partial service continuing only between Magok, Mangwon, and Yeouido.

Courtesy of News1
Courtesy of News1

During the forum, Panayiotou discussed the challenges faced by urban water transportation, noting that the Thames River Bus relied heavily on subsidies. He explained that in 2010, the mayor invested an additional £10 million (approximately 13.5 million USD) to expand piers and integrate public transport cards, resulting in a significant increase in ridership.

He added that the biggest challenge is charging infrastructure for electric vessels, noting that he understands Korea has already addressed it. While they are still grappling with the issue, he said, Korea has already succeeded.

Civitano shared strategies for establishing the New York City Ferry, noting that high initial costs drew public criticism. She said the service started with very low fares, and added that after improving its discount system in 2022 and 2023, total fare revenue rose by 80%.

The Han River Bus is set to resume full operations on all routes on March 1, just over 100 days after its initial launch. Starting in April, it will introduce an express route that stops only at Magok, Yeouido, and Jamsil, rather than all seven piers.

Park Jin Young, head of Seoul’s Future Han River Headquarters, said that following the examples of New York and London, the city aims to balance Han River Bus operating revenue with income from ancillary businesses to minimize government subsidies. He also said the team is thoroughly preparing for the official launch on March 1.

Later in the day, a panel titled “The Wisdom of the World Converges on the Han River: Opening the Future of Seoul’s Water Transportation with the Han River Bus” took place. It was moderated by Kim Won Ho, deputy director of the Seoul Institute, and all speakers participated in the discussion.

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