Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
NOVEMBER 20, 2025
Subject
SUBJECT: FEASIBILITY STUDY OF WATER TAXI SERVICE BETWEEN SAN PEDRO AND LONG BEACH
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE a feasibility study of water taxi service between San Pedro and Long Beach (Attachment A).
Issue
ISSUE
At its May 2025 meeting, the Board approved Motion 9 by Directors Hahn, Butts, Dutra and Dupont-Walker directing the Chief Executive Officer (CEO) to explore the feasibility of establishing a water taxi service between San Pedro and Long Beach for the 2028 Summer Olympic and Paralympic Games (Attachment B). This report provides an overview of the study and a discussion of the results.
Background
BACKGROUND
Water taxis and passenger-only ferries are used in many parts of the world and in the United States for marine transportation. Typically, the term, “passenger-only ferries” refers to passenger services (no vehicle transport) on fixed routes and schedules (also referred to as “water buses”) while “water taxis” operate on flexible routes and schedules based on demand. For the purposes of this report and for maintaining consistency with the language of the Board motion, the two terms are used interchangeably since a service plan is yet to be established.
In the United States, water taxis and passenger-only ferries are found in coastal and inland waterways in cities like New York, Seattle, San Francisco Bay Area and Baltimore. Services are provided by private operators that charge fares and fees, by public agencies, or some combination of both private and public entities. Six California transit agencies in San Francisco, Oakland, Long Beach, Stockton and Eureka operate ferry services. Among the top ten public transit providers in the U.S., King County Metro in Seattle and MBTA in Boston operate ferries. In Southern California similar services exist currently, including charter services to Catalina Island and seasonal services provided by Long Beach Transit.
The San Pedro Bay is home to a number of existing activities including two major cargo handling seaports, major cruise terminals and facilities, oil well islands, and private marinas and watercraft. Additionally, Long Beach Transit (LBT) currently operates a water taxi service between Shoreline Village, the Queen Mary and Belmont Shore every year between April and September.
Given the number of activities in the San Pedro Bay and the existing water taxi service operated by LBT, the study team conducted stakeholder meetings with the Port of Los Angeles and the Port of Long Beach, the City of Long Beach, labor union representatives, and private operators currently providing services for recreational and tourism activities. The Metro team also partnered with Long Beach Transit throughout this study. See Appendix C for additional details.
Discussion
DISCUSSION
Study Design
Through stakeholder and operator interviews, desktop reviews of existing and planned infrastructure and services in the Long Beach and San Pedro areas, and based on best known information about vessel availability, the project team identified existing conditions in the harbor and developed scenarios for services that could be operated during the 2028 Games. Factors included the best-known but evolving information on:
- Locations for Games events and spectator viewing areas, activation areas, hospitality houses
- Existing travel options between San Pedro and Long Beach
- Connecting and multi-modal land-side transportation services (availability of buses, shuttles, rail services, bike share facilities, active transportation networks, and parking)
- Potential landing site locations in San Pedro and in Long Beach that provide existing vessel landing infrastructure not likely to require extensive improvements
- Harbor conditions, including vessel traffic, slow zones, speed conditions inside and outside of the breakwater, and possible congestion points accessing the protected harbor at Angel’s Gate and Queen’s Gate
- Other harbor-related activities and existing ferry operations in the vicinity of the two landing locations.
Information collected from stakeholders was used to scope the study, identify plausible landing locations and sailing routes, understand developments on security perimeters and operating constraints, and validate assumptions on vessel types and availability, crewing needs, and unit costs needed to estimate operating and capital improvement costs.
Discussions yielded some themes, opportunities, and constraints. Notably:
- Special event services like the water taxi are expected to function as “transport-tainment” -- drawing specific segments of the travel market who will use water taxis not only for transportation, but to experience hospitality services onboard vessels, and for the novelty of enjoying the Los Angeles and Long Beach oceanside and harbor amenities. The experience of the water taxi trip may drive special event ridership more than other factors, such as travel time competitiveness.
- Local fleets are primarily committed to the peak summer season and especially during the 2028 Games, therefore, their availability will be limited. As a result, suitable vessels will need to be sourced beyond soley relying on Southern California operators.
- Availability of zero emission water taxi service is largely determined by boat procurement, design and construction schedules. Two vessels of hybrid electric technology are on order by a private operator in the San Pedro Bay and are scheduled for delivery in 2026 and 2027.
- Some investment to install shoreside electric charging facilities - by vessel operators or local or state jurisdictions or some combination - is planned to support compliance with California Air Resources Board’s (CARB) updated Commercial Harbor Craft regulation, which requires transition to zero-emission or reduced emissions vessel operations. Specific compliance timelines and requirements vary by vessel and route types. The 2028 Games may serve as a catalyst for securing public funding and grants for this new infrastructure and thus expediting its development. Deployment of electric vessels for the 2028 Games requires completion of shoreside charging equipment and infrastructure projects, with timelines currently unknown. Other dockside infrastructure improvements likely will be needed for 2028 water taxi services, depending on landing site and dock fit-up needs for vessel configurations yet unknown.
- Aside from broad outlines, the details and specifics regarding Games events have yet to be defined, such as sailing competition course locations, spectator viewing areas, slow- and/or no-wake zones, the extent and operations of security perimeters, and locations of blast zones. These details are subject to change and may potentially impede or limit water taxi operations along its sailing route and at landing sites, including on any given day of an event.
- The specialized service during the two weeks of the 2028 Games presents an opportunity for stakeholder partnership to promote tourism and local economic development opportunities, feature Southern California’s natural and marine resources, and showcase the harbor as a gateway for global tourism.
The study develops a feasible service plan (components of which include potential routes, sailing times and schedules, vessel types and propulsion technology, infrastructure needs, and regulatory requirements), and identifies capital and operating cost estimates. In addition, the study addresses some potential funding sources and partnership opportunities between public and private sectors to support the development and operation of a water taxi service.
Findings
Landing Sites and Infrastructure Needs
Nine preliminary landing site options in San Pedro and three options in Long Beach were identified and based on screening factors, reduced to the West Harbor in San Pedro and Rainbow Harbor in Long Beach. West Harbor was selected as a suitable landing site in San Pedro due to its location closer to the mouth of the west channel, which does not require vessels to travel long distances into the inner channel under operating speed limits. The West Harbor is also the location for a San Pedro and POLA redevelopment project that includes a promenade, pop-up park, dog park, courtesy dock, proposed amphitheater, restaurants, and waterside attractions, as well as proximity to hotels. Electric vessel charging infrastructure installation is planned for completion by Harbor Breeze in coordination with POLA and POLB. Additionally, the site has been identified as conducive for extending enhanced local transit, walking and biking connectivity, and is planned for the development of 2,000 parking spaces.
Multiple landing options were identified in Long Beach including Alamitos Bay, Queen Mary, and Rainbow Harbor (including multiple dock options) near Downtown Long Beach. Long Beach is scheduled to host several waterside Games events. including sailing, canoeing, open water swimming, volleyball, and rowing. Many of the water event locations are proximal to existing AquaBus and AquaLink services; thus Metro’s study assumes Rainbow Harbor as a likely candidate for a dedicated service to and from San Pedro. Rainbow Harbor includes landside attractions such as the Aquarium of the Pacific, Shoreline Village with cultural, dining, and entertainment options, Pike Outlet stores, and Marina Green Park, which is used for music festivals. The Rainbow Marina includes 87 slips serving recreational boaters and commercial operators, and the harbor area includes twelve 150-foot docks serving harbor cruises, private charter boats, rental boats, and watercraft rentals.
Vessel Types, Trip Times, Estimated Capital and Operating Costs
Through a desktop review and stakeholder discussions of existing and planned local fleets, three representative vessel types were identified for analysis, based on technology availability (i.e., diesel, electric and/or hybrid propulsion) by the 2028 Games, and their range of potential characteristics including cruising speed and passenger capacity. The study team then developed potential service profiles based on speed, travel times, and loading/charging parameters. This information was used to estimate the number of passengers that could be served over an operating day. Results show that depending on the vessel and cruising speeds, crossing times between San Pedro and Long Beach range between 34 and 59 minutes, not including time for passenger loading/unloading or charging/fueling, or any special protocols for vessel or passenger security screening. With estimated loading/unloading dwell times, trip frequency is estimated every 35 minutes, assuming a fleet of three faster vessels, and up to every 80 minutes, assuming a fleet of two larger capacity electric vessels.
Capital (shoreside) improvement costs were estimated based on a field review of existing dock facilities in San Pedro and Long Beach and potential minimum improvements needed to support short-term water taxi service. Operating costs were estimated based on crew requirements for the vessel sizes, estimated labor rates, and estimated energy requirements for each vessel type, using fuel and electricity rates local to Southern California. The table below summarizes assumptions for the three fleet types operating in four service scenarios, potential service levels and capacity, and estimated costs, including cost per passenger (assuming full capacity) to inform an appropriate ticket or fare price (subsidy notwithstanding). These estimates are based on service from the start of the Olympic Games through the end of the Paralympic Games (approximately 47 days including the hiatus between the Olympic and Paralympic Games). This duration does not include start-up, testing, or ramp-down service leading into or tapering down from the Games periods.
As mentioned previously, a likely challenge will be the supply of local vessels to serve both regularly planned uses (AquaBus and AquaLink services, whale watching, cruises, etc.) and added Games-related demand for water taxi service. Further development of this service is likely to require exploration of new vessel constructions by 2028 to supplement existing planned services, and/or the possibility of using the existing or planned local fleet for the water taxi service in lieu of their existing services.
Another option may be acquiring use of vessels from other parts of the state or country, though this would likely only be feasible for short-term temporary operations and not for long-term service. Discussions with stakeholders and existing operators identified potential pilot service use of recently ordered low/no-emissions technology vessels. For example, Harbor Breeze anticipates the delivery of two demonstration hybrid-electric vessels (in construction now) as part of the POLA project, Los Angeles Marine Emission Reduction (LA MER), funded through CARB. Delivery is anticipated in 2026 and 2027 for pilot testing and initial service demonstration.
Note that scenarios were developed to understand feasible capacity and estimated costs; however, the demand for such service is not likely to be known until further Games-related activities are defined and once Games ticket sales begin.
Permitting and Regulatory Constraints
Development Permits: Development permits required will depend on whether infrastructure improvements will be minimal or extensive, thus requiring different easements, approvals, and environmental permits from a variety of organizations and agencies. Determining which permits are required depends on the type of improvements needed (i.e., whether ground disturbance would be required), jurisdictional control of the land, waterways, properties involved, and construction activities associated with potential landing site improvements. Existing jurisdictions in the study area include the City of Los Angeles, City of Long Beach, Port of Los Angeles, California Coastal Commission, California Department of Fish and Wildlife, California Department of Transportation, Regional Water Quality Control Board, South Coast Air Quality Management District, State Water Resources Control Board, United States Fish and Wildlife Service, National Marine Fisheries Service, United States Coast Guard, California Public Utilities Commission, South Coast Air Quality Management District, and United States Customs and Border Protection.
For purposes of evaluating services in time for the 2028 Games, the study assumes minimal landside improvements needed; such improvements may include dock improvements and minor landside improvements with no ground disturbances. In this case, permitting is expected to take around two years with the California Coastal Commission (Coastal Development Permit) and about a month with the Port of Los Angeles (Hot Work Permit).
Long-term service may require more extensive and permanent facilities, however and are estimated to require at minimum three years for permitting, as well as two years for environmental documentation per California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) depending on the extensiveness of facilities development and the level of document. The environmental documentation and permitting activities together would total approximately three to five years to complete for long-term service.
Operating Permits: The operator of the water taxi service whether it be publicly or privately provided, and whether it be for short-term or long-term operation, will be required to comply with the California Public Utilities Commission (CPUC) and the United States Coast Guard (USCG) which requires crew training and each vessel’s Certificate of Inspection (COI), specifying maximum number of passengers, qualifications of crew members, and limits on areas of operations. USCG-approved Facility Security Plans also will be required for each landing site depending on vessel size. The operator would also be responsible for meeting maintenance requirements based on USCG regulations and developing and implementing long-term capital improvement plans for both vessels and facilities.
Below is a list of potential permits and approvals needed for short-term ferry service with limited landing site improvements, assuming that no work would be conducted within, or result in any impacts on, any jurisdictional waterways.
Anticipated Permits and Approvals for Short-Term Ferry Service
Note that implementation of short-term improvements for the 2028 Olympic and Paralympic Games would not be expected to require extensive environmental documentation because they would be temporary and short term, and the proposed construction activities are assumed to be minor.
Considerations for Implementation by 2028 and Responsible Parties
Given the resources needed to stand up a new water taxi service with Metro-owned facilities and operations, including capital investments (service and back-up vessels, new water vessel maintenance facilities, landing site infrastructure, and moorage) and of establishing operations (operator permits, crew staffing, recruitment and training, development of maintenance capabilities, and establishing maritime safety and security programs, etc.), it would not be feasible for Metro to operate new service on waterways by 2028.
While Metro has the statutory authority to operate transit service on waterways, development of the service and infrastructure in the San Pedro Bay and harbor would likely require agreements with POLA and POLB, approval from the U.S. Army Corps of Engineers under Section 10 of the Rivers & Harbors Act for work affecting waterways, and compliance with the California Air Resources Board (CARB) Commercial Harbor Craft (CHC) Regulation (setting vessel requirements in compliance with emissions standards). Metro would also need to follow U.S. Coast Guard (USCG) regulations and the International Regulations for Prevention of Collisions at Sea, along with registering the vessel(s) with the state and ensuring its operator has a valid California Boater Card.
Permitting authority for landside development, and dock usage agreements reside with local jurisdictions that would be in a more effective position to review, permit, and potentially support the implementation and the maintenance of such improvements. Similarly, for vessel procurement and operations, existing operators such as private charter operators and/or Long Beach Transit likely would be better positioned to procure vessels and capture economies of scale and scope in expanding their existing services and operations for special events (rather than Metro establishing new services in marine environments where we have neither existing operations nor expertise).
The number of experienced and established public and private operators already serving the San Pedro Bay and harbors suggests opportunities for other service delivery models such as privately owned commercial operators to provide this service directly to the public, or through a contractual arrangement between a public agency (or agencies) and private operator(s); opportunities and constraints for each of these delivery models and for public agency delivery are described in the table below. Metro could participate in a contracted service by working with an interested entity or contractor to examine the potential integration of fare media and TAP card interoperability, opportunities for branding and co-marketing, and/or assist with accessing public funding that would need to be identified for this service. The expectation would be that the contracted operator would obtain or already have all certifications and permits required to operate the service and own and maintain assets.
Funding Opportunities
For short-term service operated during the 2028 Games, it is likely that local funding would be required for the entirety or a significant portion of costs. Depending on how the service is delivered, potential partnerships may provide options for shared or reduced costs. Potential opportunities include grants related to the implementation of no/low emissions vessel technologies such as the Clean Off-Road Equipment Voucher Incentive Project (up to $1M), or 2028 Games Mobility Funding.
Many of the grant funding options typically available to passenger ferry services are unlikely to be applicable to short-term event service unless it is presented as part of a planned ongoing service. Additionally, the timelines associated with these grants, including development of project information to support grant application materials, completion of required permitting/regulatory processes, execution of grant agreements, and construction of improvements, may make implementation of grant-funded projects ahead of the 2028 Games infeasible.
For long-term service extending beyond the 2028 Games, a portfolio of sustainable funding sources will be needed. The following sections discuss funding opportunities for services operated through direct agency delivery or a public/private contracting arrangement in which an agency owns some or all of the vessel or landing site assets.
Capital costs for water taxi service include vessel procurement and landing site improvements. Multiple state, federal, and local sources can be used by public agencies to fund capital projects, including tax levies, state and local budget appropriations, and grants from State and Federal agencies such as the California State Transportation Agency (CalSTA) and the Federal Transit Administration (FTA). Eligibility for specific funding opportunities may depend on service characteristics or vessel technologies used. Also note that should a water taxi service be submitted for grant funding from some of these programs, it would compete with other Metro projects, including major pillar projects and other Games-related candidates.
Example federal grants available to a potential agency-provided San Pedro - Long Beach water taxi include:
• Federal Transit Administration (FTA) <https://www.transit.dot.gov/> Passenger Ferry Grant Program: Provides competitive, capital funding for ferry systems in urban areas, including vessels, terminals, and infrastructure.
• Federal Highway Administration (FHWA) <https://highways.dot.gov/>:Surface Transportation Block Grant and National Highway Performance Programs: Provides funding to states for transportation projects, including ferry projects.
• FHWA PROTECT Program <https://www.transportation.gov/rural/grant-toolkit/promoting-resilient-operations-transformative-efficient-and-cost-saving>: Funding for projects that support resiliency for events like sea level rise and other natural disasters.
• Department of Transportation (DOT) Better Utilizing Investments to Leverage Development (BUILD) Grants <https://www.transportation.gov/BUILDgrants>: A competitive, multi-modal grant program that can be used for ferry vessel and terminal projects.
Additional state and federal funding opportunities may be available for projects that meet specific goals, such as emissions reduction or the use of innovative technologies. Eligibility, scoring, and funding levels for federal grants may change year to year and can be set based on the priorities of the administration in place. Example grant funding opportunities include:
o FTA Electric or Low-Emitting Ferry Program: Supports capital projects for low- or zero-emission ferries and shoreside infrastructure.
o Carl Moyer Memorial Air Quality Standards Attainment Program: Provides funding for repower or replacement of vessels operating in the South Coast region. Also includes limited options for shore power projects.
Ongoing water taxi operating costs, including those for staff and crew wages, fuel, and maintenance activities for terminals and vessels, require sustainable and continued funding sources. Revenue from fares and concessions are typically insufficient to cover all operating costs. For systems governed through public-private contracts or direct agency delivery, multiple state, federal, and local sources may be available and can be used to fund operating costs, including tax districts and levies and capital costs through grants from state and federal agencies.
The FHWA Ferry Boat Program is an example of a funding source that has been used by water taxi operators in California to cover operating costs, as well as costs for construction of vessels and terminal facilities. Ten operators in California received a combined $7.3 million in Fery Boat Program formula funding in fiscal year 2025.
Equity_Platform
EQUITY PLATFORM
An equity analysis has not been performed as part of this study. Should this service be further evaluated, an equity analysis would be conducted.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential impact on VMT.
As part of these ongoing efforts, this item is expected to contribute to further reductions in VMT. This item supports Metro’s systemwide strategy to reduce VMT through planning activities that will further encourage transit ridership, ridesharing, and active transportation, or in this case, explore the possibility of water-based transportation around San Pedro and Long Beach connecting multiple existing transit, walking, and biking infrastructure. Metro’s Board-adopted VMT reduction targets were designed to build on the success of existing investments, and this item aligns with those objectives.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The study supports the following strategic plan goals:
• Goal #1: Provide high-quality mobility options that enable people to spend less time traveling;
• Goal #2: Deliver outstanding trip experiences for all users of the transportation system; and
• Goal #4: Transform LA County through regional collaboration and national leadership.
Next_Steps
NEXT STEPS
Should the Board decide to continue to explore implementation, the next step would be to develop either a request for interest or a reverse pitch to be released to the industry to gauge interest from private and public sector entities in implementing this service.
Attachments
ATTACHMENTS
Attachment A - San Pedro - Long Beach Water Taxi Feasibility Study
Attachment B - Board Motion 9: Feasibility Study for Water Taxi Service between San Pedro and Long Beach
Attachment C - Stakeholder Engagement
Prepared_by
Prepared by: Allison Yoh, Senior Executive Officer, Countywide Planning and Development (213) 922-4812
Reviewed_By
Reviewed by: Ray Sosa, Chief Planning Officer, (213) 547-4274
Seleta Reynolds, Chief Innovation Officer, (213) 418-3034
Conan Cheung, Chief Operating Officer, (213) 922-4656
