By Peter Vankevich
For nearly 70 years, the Hatteras–Ocracoke vehicle ferry has been a free link in North Carolina’s highway system, providing residents and visitors with access to Ocracoke Island.
That is scheduled to change on Jan. 1, when, for the first time since the state assumed operation of the route in 1957, the ferry will begin charging a toll.
Exactly how much motorists will pay remains unknown.
Two weeks after the North Carolina General Assembly approved its long-delayed two-year state budget that includes tolling the Hatteras ferry route, many questions remain about how the new ferry tolling system will be implemented, how much it will cost to establish, and what impact it will have on Ocracoke residents, businesses and visitors.
The General Assembly will reconvene on Tuesday, July 28, to consider technical amendments to the budget.
State Sen. Bobby Hanig (R-District 1) plans to introduce amendments addressing ferry tolling, although Justin LeBlanc, executive director of the Ocracoke Access Alliance, said Hanig had expressed little optimism that they would be adopted.
LeBlanc outlined several serious concerns in the Ocracoke Civic & Business Association (OCBA) meeting on July 21.
The budget requires tolls on all North Carolina ferry routes beginning Jan. 1. Four ferry routes are already tolled, but four others—including the Hatteras–Ocracoke route, the state’s busiest ferry crossing—have historically been free.
Under the new law, the North Carolina Board of Transportation will determine the amount of the tolls. While school buses are exempt from paying, no exemption is currently provided for other public vehicles, including ambulances, emergency vehicles and government-owned service vehicles.
The legislation also creates a $150 annual commuter pass for residents of the state’s 20 coastal counties, including Hyde County. Revenue generated from the tolls will be deposited into a ferry vessel replacement fund.
LeBlanc said the Alliance’s immediate priority is not the toll amount.
“Our number one focus is moving the implementation date from January 2027 to January 2028,” he said.
According to LeBlanc, officials in the N.C. Ferry Division have indicated that creating a toll collection system in less than six months is unrealistic.
“They don’t believe they have enough time to implement it properly,” he said.
Ferry Division estimates it could cost at least $3 million to establish a toll collection system, although some estimates are as high as $10 million depending on whether the state adopts an EZPass-style electronic collection system or another method.
He said those startup costs would come from the Ferry Division’s operating budget rather than from the new toll revenues.
According to page 16 of the 634-page budget document, the N.C. Ferry Division was awarded $101.1 million for operations, which LeBlanc said includes money for deferred maintenance and money for the implementation of a toll on the Hatteras ferry, but it doesn’t break down how much for each area.
“There is a real question about whether the revenue generated would even cover the cost of collecting the tolls,” LeBlanc said.
Because the implementation date is written directly into state law, delaying it would require the General Assembly to approve either a technical correction to the budget or separate legislation.
LeBlanc urged island residents and supporters to contact members of the General Assembly and ask them to extend the implementation deadline until at least Jan. 1, 2028.
“The Board of Transportation responsible for setting the rates haven’t even met to discuss them,” he noted. “They need time to determine what the tolls should be, and the Ferry Division needs time to develop a collection system.”
Bob Chestnut, chair of the OCBA, read a list of questions from its members and many of them remain unanswered: How much will the toll be? How will it be collected? Will emergency vehicles receive exemptions? Will Ocracoke residents and property owners receive additional accommodations? And perhaps most importantly, will the General Assembly agree to postpone implementation long enough for those questions to be resolved?
LeBlanc said the toll amount chosen for the Hatteras Inlet run could significantly affect Ocracoke’s economy.
Whether the charge ultimately is $10, $20 or more per vehicle, the toll could discourage some visitors from visiting, affecting lodging establishments, restaurants, shops and other businesses that depend heavily on tourism. Many of those taking the ferry are “day trippers” from the upper Outer Banks.
The alliance also plans to advocate for additional accommodations beyond the commuter pass.
Among its priorities are free or substantially discounted passes for full-time Ocracoke residents and non-resident property owners, many of whom travel frequently between the mainland and the island to maintain their homes and contribute to the local economy.
LeBlanc encouraged community members to help build support by reaching out to legislators, contacting non-resident property owners, and encouraging them to voice their concerns.
Both LeBlanc and Randal Mathews, Hyde County Commissioner Chair and the island’s representative, said they’ve been talking to Tess Judge of Kill Devil Hills, who is on the Board of Transportation and was instrumental in getting that board to visit Ocracoke in June.
“I suggested to her that the Ferry Division needs some leadership in this because I feel like that’s what they were asking for,” Mathews said. “How will tolls be collected at Hatteras? The Ferry Division doesn’t even know that.”
He also questioned whether or not a county could file an injunction to stop the bill from being implemented.
The ink has barely dried on this law, LeBlanc said.
“Speaking to how hard this is going to be to do in six months, the Board of Transportation normally would go through a process,” he said. “There’d be a public comment period. There’d be public input and the ability to do that in six months is pretty limited. So, they’re really interested in an extension as well.”
For Ocracoke residents, however, the issue extends beyond transportation policy.
The Hatteras–Ocracoke ferry has long been viewed as the waterborne extension of N.C. Highway 12 rather than simply another ferry route. That distinction explains why it has remained toll-free for decades.
Although private automobile ferry service across Hatteras Inlet began around 1953 under Capt. Frazier Peele, the state-operated Hatteras–Ocracoke vehicle ferry began year-round service in 1957 after the North Carolina Ferry Division assumed responsibility for the crossing.
From that point forward, North Carolina treated the ferry as an integral part of the state highway system.
Like a bridge or highway, it provides Ocracoke residents with access to employment, schools, medical care, goods and government services. State highway funds—including fuel tax revenues—have traditionally supported ferry operations just as they support roads and bridges throughout North Carolina.
The chairs of the Joint committee and their contact information is below.
Please contact Members of the NCGA by phone or email (www.ncleg.govfor contact info).
Please request the implementation date be extended until January 1, 2028, or later to give the NC Board of Transportation time to consider and set tolls and for the Ferry Division to develop a toll collection system.
Senators of particular importance include:
Senator Phil Berger: phil.berger@ncleg.gov – 919-733-5708
Senator Vicki Sawyer: vickie.sawyer@ncleg.gov 919-715-3038
Senator Mike Lazzarra: michael.lazzara@ncleg.gov 919-715-3034
Senator Bill Rabon: bill.rabon@ncleg.gov 919-733-5963
Senator Norm Sanderson: norman.sanderson@ncleg.gov 919-733-5706
