Detroit People Mover seeks riders, revenue and vehicle overhaul in 2026 budget hearing

Detroit Transportation Corporation officials told the Detroit City Council on an item in the department budget hearing that the Detroit People Mover is pursuing higher ridership, new revenue streams and a multi‑year vehicle overhaul funded in part by a $6,000,000 one‑time allocation and state grants.

The presentation was delivered by Robert Kramer, chief executive officer of Detroit Transportation Corporation, who said the system recorded about 1,075,000 rides in calendar year 2024 and that the agency aims to return to roughly 2,000,000 annual rides by growing awareness and connections across downtown transit. "We just finished our first full year of the 0 fare program," Kramer said, noting the board extended the zero‑fare policy through calendar year 2025.

Why it matters: Council members pressed DTC on whether the People Mover can better connect with regional services and visitors, and on the technical and financial risks of updating aging equipment. The agency’s plans — including a fleet retrofit using decommissioned Scarborough (Toronto) vehicles and three state‑funded planning projects — would affect downtown mobility, tourism access and operating budgets.

Key facts and proposals

- Ridership and fare policy: Kramer reported about 1,075,000 rides in 2024, a year that included roughly three months of system closure for track replacement. The People Mover’s zero‑fare program, in place for more than a year, was credited with a large portion of recent ridership growth; DTC’s onboard surveys show about 90% satisfaction among current riders.

- Fleet enhancement and timeline: DTC is acquiring vehicles and parts from the decommissioned Scarborough line in Toronto. Kramer said 16 railcars and multiple semi‑trailers of parts have been moved to a shop in Pennsylvania for assessment and retrofit. He described a safety certification process involving consultants, vendors and the state safety office and said a $6,000,000 one‑time support amount is in the plan to complete purchase and overhaul costs. The agency is targeting 12–16 months to upfit and return cars to service, pending certification.

- State‑funded planning projects: Kramer listed three state grant projects nearing contract approval: a People Mover system plan (about $800,000) to evaluate short‑, medium‑ and long‑term changes (including station improvements or expansion scenarios); a $100,000 strategic agency plan; and a data‑management system to improve real‑time reporting and performance metrics.

- Fare integration limits: Kramer told council members that adding the People Mover to a unified regional fare system would require replacing the People Mover’s fare collection hardware — a roughly $4–5 million back‑of‑house cost to accept modern mobile and account‑based payments. He said the People Mover currently can accept rudimentary tokens or swipe cards and uses Swiftly for real‑time predictions and GTFS feeds that other apps consume.

- Revenue and marketing: DTC plans to expand advertising and sponsorships (train wraps, station column advertising, station sponsorships) and has begun outreach to solicit advertising contracts to increase nonfare revenue. Kramer cited a continuing sponsorship with Priority Waste and said additional train wraps are scheduled this year.

Council questions and concerns

Council member Scott Benson asked how DTC expects to reach 2 million rides and the cost to do so; Kramer said he expects increased outreach and awareness, not large new operating costs, will drive the increase. "I really don't think it's a matter of additional costs, but really for us to continue to push on the areas we have," Kramer said.

Council member Coleman A. Young II asked about expansion scenarios and costs. Kramer said the forthcoming People Mover System Plan (starting in April) will explore options and provide ballpark cost estimates and funding scenarios; he said major expansion could require public‑private partnerships and potentially cost in the "hundreds of millions" if it involved system expansion. "The system plan will not be about choosing the project," Kramer said; it is intended to identify options and benefits and to prepare the agency to respond when opportunities arise.

Council member Mary Waters, Council member Gabriel Santiago Ramón and others also pressed DTC on technical, maintenance and contingency planning. Kramer said the Toronto parts inventory addresses obsolescence of some components and that the automatic train control (ATC) system is stable though behind current generations; DTC will continue working with original vendors Thales and Hitachi and the state safety office on updates.

Operational and community context

Kramer reviewed 2024 accomplishments: completion of a station technology upgrade, a brand refresh, service supporting large events (the NFL draft, Grand Prix), and a months‑long track replacement project used for community engagement events during the closure. He emphasized the People Mover’s role as a downtown connector — linking micro‑mobility, buses, QLINE and regional routes — and highlighted opportunities tied to waterfront access and redevelopment sites including the Renaissance Center and Millender Center.

DTC officials also described partnerships with the Regional Transit Authority and local providers. Kramer said Swiftly produces the People Mover’s real‑time arrival predictions and GTFS feed that feeds Transit apps, Google and Apple Maps. He noted limitations to a single fare product because of the People Mover’s existing fare collection hardware.

What was not decided or acted on

There were no formal votes or council motions on the People Mover budget or projects at this hearing. Questions were taken; council members said they would submit some items in writing for follow up. Kramer and his staff provided answers to pre‑filed questions and indicated they would return with additional details as planning proceeds.

Clarifying details from the hearing

- 2024 ridership reported: about 1,075,000 rides (agency figure presented by DTC). - Agency goal: roughly 2,000,000 rides annually if a 50% year‑over‑year increase is achieved. - One‑time support referenced for vehicle upfit: $6,000,000 (presented by Kramer). - Fleet inventory: 16 railcars moved from Scarborough (Toronto) to a Pennsylvania shop; additional semi‑trailers of parts delivered. - System plan budget (state grant): $800,000; strategic agency plan: $100,000; data management system: cost not specified. - Estimated cost to replace fare collection to accept unified account‑based/mobile payments: roughly $4–5 million (back‑of‑house systems, per Kramer). - Track replacement closure: roughly three months in 2024 for major track work.

Next steps and outlook

DTC plans to begin the People Mover System Plan in April with public and council input; the agency will continue the fleet retrofit and safety certification process and pursue advertising contracts and sponsorships to grow nonfare revenue. Council members signaled interest in further technical details, cost estimates and contingency plans and said they would submit additional written questions for staff to answer.

Ending

DTC officials left the council with a request for continued collaboration as the agency develops plans and pursues grant contracts; the hearing concluded with council members indicating additional follow‑up questions would be submitted in writing.