NICTD Board approves 10-percent fare hike

South Shore Line fares are going up. The Northern Indiana Commuter Transportation District Board approved a 10-percent fare hike Wednesday. Gary Mayor Eddie Melton cast the lone opposing vote. The increase takes effect July 1.

It’s the South Shore Line’s first fare hike since 2018. NICTD President Mike Noland said planned increases had been put off, when riders left during the COVID pandemic. He thinks most riders understand the need.

“Just go shopping in the grocery store, and you’ll know that prices have gone up,” Noland told board members. “We haven’t passed that increase on.”

At the same time, Noland argued that service has improved, with the Double Track project allowing for more trains.

As part of the fare hike, the railroad will no longer offer two monthly tickets for the price of one, but it will offer bigger discounts for 10- and 25-ride tickets. “The 10-ride ticket was discounted off the one-way fare at five percent. I think it now goes to 10 percent. And the 25-ride ticket was discounted 10 percent off the average one-way ticket, and it’s now going to 20,” Noland explained.

He said that’s a response to fewer people working in the office five days a week.

The fare hike is part of a larger strategy to avert a fiscal cliff. Noland says the railroad has worked with its unions to find ways to save money, while still giving raises to employees. The Indiana General Assembly has agreed to increase its funding. And the NICTD board adopted a resolution Wednesday to allow $26 million that had been set aside specifically to run the West Lake Corridor service to be used to fund the railroad’s operations. It now goes to the Northwest Indiana Regional Development Authority for approval.

Noland expects a bigger overhaul of its funding structure to come in 2027. Going forward, he wants to see the NICTD Board look at regular five-percent fare increases every two years. But he notes that can change, depending on revenue, expenses and inflation. For example, if the state starts charging tolls on I-80/94, more people may decide to try the train.

“We actually saw, in 2007 and 2008, when there was significant construction on the Dan Ryan in Chicago and the Toll Road, a massive shift,” Noland said. “Our ridership hit all-time highs.”

Noland said more riders mean more revenue, which could offset the need for future fare increases.