NJ TRANSIT, the largest statewide public transportation system in the United States, could realize as much as $1.9 billion in non-farebox revenue over the next 30 years, according to a new agency plan.
Non-farebox revenue also would add up to an additional $1.6 billion in municipal revenues, up to $14 billion in economic impact to New Jersey, and create up to 50,000 jobs and up to 20,000 new housing units.
“This first-of-its-kind plan delivers a roadmap for the next administration that maximizes non-farebox revenue opportunities for NJ TRANSIT, the state of New Jersey, and the municipalities we serve,” NJ TRANSIT President and CEO Kris Kolluri said. “The plan’s proposed actions are presented merely as options for consideration – not mandates – to support the plan’s full revenue potential.”
Revenue would be achieved through a combination of opportunities designed to derive value from its 8,000-acre real estate portfolio.
Non-farebox revenue opportunities include:
Creating mixed-use communities centered around transit hubs could generate an additional $780 million-$1.1 billion by boosting ridership.
Parking fees collected at station lots could generate an additional $170 million-$230 million. These fees are sometimes shared with municipalities or private operators.
Creating industrial hubs requires flat property with good road access and utilities. Developing these properties could create an additional $150 million-$300 million.