Privatizing Stations Can Save the Subway

Privately run MTA subway stations would improve the experience, generate loads of new revenue, and let the MTA focus on running trains.

Countless pixels of e-ink have been spilled over ways to make NYC subway stations more inviting—or at the very least, less bleak. Anyone who has used the system has encountered water cascading down a staircase, a crumbling platform, a broken fare gate, and announcements so garbled they might as well be broadcast from a 19th-century gramophone.

With 472 stations, the system is simply too large for the MTA to maintain at the level riders deserve. Despite the agency’s valiant efforts and an ever-growing payroll, it remains an overwhelming task.

In my last essay, I proposed private operators as a solution to improving train service through efficiency-driven management. Applying the same logic to station operations and maintenance could offer similar strategic benefits to the MTA.

Unlike Amtrak, the MTA subway system is a closed network—the agency owns all facilities and controls every aspect of daily operations. While privatizing train service may seem like a natural solution, a more targeted approach would be privatizing station management—from the street level to the platform edge. This model would allow private entities to oversee everything from public address systems, fare collection, retail management, maintenance, and security, while the MTA focuses exclusively on running trains.

One major advantage would be a significant reduction in overhead costs. The MTA’s 2024 operating budget is $19.3 billion, with labor expenses accounting for nearly $11.79 billion. Shifting station operations to private entities would transition many of these jobs to the private sector, where they could be managed with higher levels of accountability and efficiency. Private operators would also be subject to performance requirements, ensuring stations meet cleanliness, safety, and operational benchmarks set by the MTA.

Of course, eliminating or shifting public sector jobs will always face resistance. But we need to be realistic—the current system is unsustainable, suffocated by its own bloated weight.

Fortunately, New York City already has examples of privately managed transit hubs that operate far more efficiently. Moynihan Train Hall, the Oculus, Fulton Center, Grand Central Madison, and Penn Station’s LIRR corridor are all privately managed, functioning more like shopping malls than traditional transit spaces. Private entities oversee daily operations, retail leasing, and upkeep, resulting in cleaner, safer, and more user-friendly environments. Expanding this model to the wider subway system could vastly improve the commuter experience.

NYC’s airports provide another blueprint. JFK and LaGuardia operate under public-private partnerships (PPPs) between the Port Authority, airlines, and private operators. These partnerships allow private entities to manage terminals and daily operations, while the Port Authority retains control over infrastructure. This model works—LaGuardia transformed from the country’s worst airport into one of its best in under a decade. A similar framework for subway stations would allow private operators to handle security, maintenance, fare collection, and retail management, ensuring better service standards while freeing the MTA to concentrate on train operations.

Financially, private operators and the MTA could structure payments in various ways. A retail-based model could allow companies to pay for station management rights, profiting through shop leases while maintaining facilities. The MTA has tens of thousands of square feet of underutilized retail space that if properly leveraged could be a major source of revenue. Fixed-fee contracts could see the MTA paying operators a set rate with performance-based bonuses tied to cleanliness and security. While the MTA already funds station maintenance, outsourcing it under stricter contractual controls would cost the same but provide more oversight. Revenue-sharing agreements could allow private operators to receive a percentage of fares, incentivizing them to enhance service quality and fare collection efficiency. Additionally, PPPs could help fund station upgrades, with private firms recovering costs through long-term management contracts and retail income.

Privatizing station operations would allow the MTA to focus entirely on running trains, while private operators enhance station conditions, reduce costs, and improve commuter experience. With clear performance benchmarks and structured financial agreements, this model could transform New York City’s subway system into a cleaner, safer, and more efficient transit network.