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Massachusetts Port Authority Annual Report for 2017 Fiscal Year

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Massachusetts Port Authority Annual Report for 2017 Fiscal Year OFFICE OF PERFORMANCE MANAGEMENT AND OVERSIGHT Massachusetts Port Authority Annual Report for 2017 Fiscal Year The Massachusetts Port Authority (“Massport”) 2017 Annual Report complies with the requirements of the Office of Performance Management Oversight created by Chapter 240 of the Acts of 2010 – An Act Relative to Economic Development Reorganization. It includes goals set for the year and the performance metrics to evaluate goals, programs, and initiatives. AGENCY OVERVIEW Massport operates an integrated transportation system that delivers world-class safety, security, facilities, and customer services in an environmentally responsible manner. The Authority’s facilities include airport properties, comprising Boston-Logan International Airport, Worcester Regional Airport and Laurence G. Hanscom Field (“Hanscom Field”); maritime properties including the Paul W. Conley Marine Terminal (“Conley Terminal”); the Flynn Cruiseport Boston at the Black Falcon Terminal (“Flynn Cruiseport Boston”); and various maritime and industrial port properties, located in Charlestown, South Boston and East Boston; and various commercial and residential properties, located primarily in South Boston and East Boston. Massport is a key economic development engine for the Commonwealth. Annual Budget Massport’s approved budget for the fiscal year beginning July 1, 2016 is $721.5 million. The FY 2017 budget supports the Commonwealth’s objective to grow the economy by investing in our facilities to handle record growth in business activity, servicing our customers, supporting our business partners and ensuring the success of our neighbors and employees while minimizing our impacts on the environment. Overall, the FY 2017 budget directs resources and capital investment to fulfill Massport’s major policy objectives while balancing the need to maintain long-term financial stability and preserve our AA bond ratings. FY2017 REPORT DETAILS Goal: Safety and Security Strategy Measurement(s) Outcome(s) • Annual Part 139 inspections 1. Receive annual Federal Aviation • FAA Part 139 Certificates of completed: Logan Airport Administration Operating Approval. Certificate for Massport (October 2016); Worcester airports. Airport (October 2016) and Hanscom Field (July, 2016). • 2. Receive annual U.S. Coast • Certificate of Compliance from Review of physical conditions, Guard Certification of the U.S. Coast Guard. security procedures and records Compliance with Marine for compliance with the MTSA Transportation and Security Act. was completed in November 2016. • Six major exercises were 3. Increase emergency • Conduct four exercises to completed in FY 2017: (1) The preparedness. address specific emergency preparedness needs. 2016 Aviation Security (AVSEC) exercise in October 4; (2) Violent Incident Functional Training was provided at all terminals and airport wide throughout FY 2017; (3) a Unified Command Emergency Operations Center tabletop exercise in March; (4) a VHA Patient Relocation Exercise in Q4; (5) Active Shooter/Hostile Event (ASHE) overview training in Q4; and (6) four Logan Emergency Action Plan (LEAP) mini-tabletop exercises in Q4. • Create a plan for internal • Authority-wide Emergency 4. Enhance security measures at Communication Plan detailing Massport facilities. emergency communication and identify resources and the tools, equipment and protocols for managing equipment in each department. Train and test all vested parties. emergency communication at the executive and senior staff levels was completed and staff were trained. • Develop a Central Receiving and • An RFP for the development of a Distribution Program for Logan Central Receiving and Airport to eliminate curbside Distribution facility was issued deliveries. and a contractor was selected. • Complete construction of the • Facility construction and cargo Passport Cargo Container container testing were Inspection and Screening Facility completed. at Conley Terminal. Goal: Customer Service Strategy Measurement(s) Outcome(s) Build customer amenities to improve • Complete construction of the • Terminal E renovations and service at Logan Airport and other Terminal E Renovations and aircraft gate upgrades were Massport facilities. Enhancement Project. completed in February 2017. • Expand Digital Signage including • New digital flight information new Flight Information Displays displays, way-finding stations (FIDS) and new interactive way- and “InfoBar” installations were finding stations to new locations added to Terminal E in FY 2017. at Logan Airport. • Execute a lease for the Logan • MarketPlace Logan LLC was Airport In-Terminal Concessions chosen as the new concession Program to expand and upgrade company and will begin offerings to airport customers. assuming concession operations in FY 2018. • Launch new responsive • New website was launched on Massport website, effective July 13, 2017. social media tools, and a new • Wi-Fi model to improve the user Massport will upgrade, own and experience at Logan. manage the physical Wi-Fi network and contracted with Boingo for software and backend system support. • Amend the Logan Airport • On June 30, 2017, MassDEP Parking Freeze to add 5,000 new published the Final Amended parking spaces. Massport/Logan Airport Parking Freeze, increasing Logan’s parking inventory by 5,000 spaces. Goal: Worcester Regional Airport Strategy Measurement(s) Outcome(s) 1. Invest in assets to improve • Advance construction of the • Construction of the CAT III commercial service and general CAT III Instrument Landing ILS/Taxiway is underway and aviation activities at this System (ILS) and Taxiway estimated to be completed by Massport facility. project. February 2018. • JetBlue announced new service 2. Increase the economic impact of • Support JetBlue to upgrade to New York JFK starting in early Worcester Regional Airport. existing services or add a new 2018. destination. • Exceed 120,000 passengers in • Worcester serviced 122,000 CY 2016. passengers in CY 2016. Goal: Be an Economic Engine for the Commonwealth Strategy Measurement(s) Outcome(s) 1. Increase the economic impact of • Secure at least one new • Four new international services Logan Airport. international non-stop service at added in FY17: 1) Delta/Dublin; Logan. 2) Avianca/Bogota; 3) Air Europa/Madrid; and 4) Air Canada/Vancouver. • • Reach 35 million passengers at Logan served 36.3 million Logan Airport in CY 2016. passengers in CY 2016. 2. Support tourism and economic • Negotiate development • Executed a Development development in the Seaport agreement for a Summer Street Agreement with hotel developer District. Hotel and proceed with in June 2017. Initiated design permitting and design. and permitting review. • Develop the South Boston • Construction of the SBWTC Waterfront Transportation began in FY 2017. Estimated Center (SBWTC) design and completion date is April 2018. construction program to expand parking options in the Seaport District. • Seek additional cruise business • Massport signed incentive to increase the economic impact agreements with the Norwegian, of Cruiseport Boston by adding Carnival, and Royal Caribbean new/larger ships and new cruise lines. Scheduled Cruise itineraries through the Cruise Season 2017 (April to Incentive Program. November) calls are up 34% from 2016. 3. Support the fishing and seafood • Select developer(s) and • Two Developers were selected processing industries. negotiate agreements for in November 2016: Cape Cod development of the Massport Shellfish & Seafood and Pilot Marine Terminal. Development Partners (PDP). In June, Massport executed the Development Agreement with PDP and the Board approved an extension to December 31, 2017 for executing the Development Agreement with Cape Cod Shellfish & Seafood. • Sponsor the Boston Fisheries • On August 7th, Massport hosted Foundation 2016 Seafood the 5th annual Boston Seafood Festival. Festival at the Fish Pier. Goal: Improve Maritime Operations Strategy Measurement(s) Outcome(s) Increase cargo ship container • Number of containers (TEUs) • Conley Terminal set a new volumes and cruise passengers at serviced at Conley Terminal. record by processing 256,951 our facilities in the Port of Boston. containers (TEUs) in FY 2017, a 3.9% increase over FY 2016. • Number of Cruise passengers • The 2016 Cruise Season (CS) serviced by Cruiseport Boston. ended with 309,027 passengers, 5.9% less than CS 2015, mainly due to fewer ship calls by the NCL Dawn from an extended stay in dry dock for repairs. • Advance the Boston Harbor • The U.S. Army Corps of Dredging Project by starting the Engineers’ contractor for the maintenance dredging and maintenance dredging and CAD securing federal funding for cell construction mobilized in improvement dredging. June. Construction is scheduled to be completed by December 2017. Goal: Community Collaboration – Good Neighbor Strategy Measurement(s) Outcome(s) Establish partnerships with • Support Department of Public • Massport made $695,000 in organizations in neighboring Health and the East Boston payments for FY 2017 to support communities around shared goals. Community Health Center the East Boston and Winthrop initiatives to improve Neighborhood Health Centers, respiratory health in the Mass League of Community communities surrounding Logan Health Centers (including the Airport. North End DPH, Charlestown DPH and Chelsea DPH) and the MassDPH. • Support the East Boston • Massport contributed $500,000 Foundation and the newly to the East Boston Foundation formed Winthrop Foundation by and continues to
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