A previously announced 10% fare increase for South Shore Line passengers is expected this year, to be followed by future price hikes to keep up with inflation.
The 10% increase could be approved as soon as the Northern Indiana Commuter Transportation District board’s May meeting.
General Manager and President Michael Noland briefed the board Monday on the need to avoid a fiscal cliff after the COVID-19 pandemic decimated the railroad’s coffers along with ridership.
“Because of the loss of ridership, there also was a corresponding loss in revenue,” he said.
The railroad is also seeking state assistance as the Indiana General Assembly drafts its biennial budget this month.
“We will get some kind of funding this year” from the state, Noland said, but just how much remains to be seen. The Legislature has an April 29 deadline to complete its work, including passing the 2026-2027 budget.
The 10% fare increase, now going through the approval process, is intended as a way to not just increase revenue but also to show state officials that the railroad is doing its share to improve its bottom line.
Railroad officials have had “great meetings” with legislative leaders and the governor’s office, Noland said. “I’m cautiously optimistic.”
“We have burned through our rainy day fund,” he said, so a cash infusion is needed to keep operating and begin to rebuild reserves. Before the pandemic, the railroad had enough cash reserves to cover eight to nine months of operating costs, Noland said.
During the pandemic, ridership plummeted during the stay-at-home order. While it’s growing again, it hasn’t reached pre-pandemic levels.
More than 200,000 riders used the train in January 2019, with about 125,000 riding it in January 2025, according to a chart shared with the board Monday. That’s a significant boost over January 2024, when the double-track project still required busing passengers to Gary’s Metro Center station.
March data was of course not available Monday, but ridership numbers for the St. Patrick’s Day parade and dyeing the Chicago River will show March to be a good month for riders, Director of Capital Investment and Implementation Nicole Barker said. In 2023, the events drew 4,680 riders, growing to 4,930 in 2024 and 11,109 this year. Barker also serves as the railroad’s marketing director.
As the railroad improves its on-time performance, Noland looks forward to the railroad being able to boast about its on-time performance.
When the double-track project was completed enough to start putting more trains in service last May, on-time performance was dismal, Noland acknowledged, at around 25% to 30%.
“There was not a single moment of recovery time in the schedule,” he said. The railroad tweaked the schedule and saw on-time performance improve to 55% to 60%.
Since the newest schedule took effect on Feb. 18, performance is even better, often at 100% for rush hour trains, he said.
“We really have come a long way. We’re not done,” he said. “The low-hanging fruit is all gone.”
“Our goal is to be consistently at 90%. We’re very close to that,” Noland said.
“It’s going to bleed right into increased ridership,” he said.
As the double-track service became operational, Noland communicated often with riders to update them on the railroad’s progress and seek public input.
Doug Ross is a freelance reporter for the Post-Tribune.