Ridership decreased from 12.3 million in 1947 to 4.4 million in 1949 as passengers switched from the rail line to city-operated buses due to a bus-fare reduction. In September 1948, about half of weekday trains were cut, night trains after 1:29 a.m. were cancelled, and thirty percent of the company's employees were laid off. After backlash, service was slightly increased. On September 22, the Interstate Commerce Commission allowed the SIRT to abandon the ferry it had operated for 88 years between Tottenville and Perth Amboy, New Jersey, and the ferry operation was transferred to Sunrise Ferries of Elizabeth, New Jersey on October 16. SIRT discontinued passenger service on the North Shore Branch and the South Beach Branch at midnight on March 31, 1953, due to competition from city-operated buses; the South Beach Branch was abandoned shortly afterwards, and the North Shore Branch continued to carry freight. On September 7, 1954, SIRT applied to discontinue passenger service on the Tottenville Branch on October 7 of that year; a large city subsidy allowed passenger service on the branch to continue.
