Business Update
Total Page：16
File Type：pdf, Size：1020Kb
PORTLAND INTERNATIONAL AIRPORT UPDATE TO: PDX Community Advisory Committee FROM: Vince Granato, Chief Operating Officer DATE: January 23, 2019 BUSINESS UPDATE Airport Activity More than 64,000 travelers passed through Portland International Airport on each of the peak travel days (Dec. 20, 21 and 26) between Dec. 17 and Jan. 1. In total, PDX served more than 928,000 passengers during the holiday travel period. PDX finished the year with 19.9M passengers, up 4.2% over calendar year 2017 serving approximately 802K more passengers or an average of 2,200 more passengers a day than 2017. We expect the growth rate to moderate in 2019 to around two percent. Cargo volumes also grew 272,123 tons in calendar year 2018, up 4.5% compared to 2017. UPS contributed strongly to this growth with an 8% increase in freight volumes. Additional Air Service Updates Sun Country Airlines announced the addition of three new seasonal routes from PDX to Nashville, Tennessee, St. Louis and San Antonio. These routes bring Sun Country’s total nonstop offerings from Portland to nine, which also includes San Francisco, Las Vegas, Phoenix, Honolulu, Hawaii, Minneapolis/St. Paul and Palm Springs, California. Horizon will initiate three new flights to Paine Field in Everett, WA. starting February 11th offering Seattle area travelers another option. Delta’s service to London will restart on May 9th and be daily this year compared to 4x/week in 2018. Condor’s service to Frankfurt will restart on May 5th and the carrier plans to bring on an additional flight during the peak summer season, to 5x/week from 4x/week. Airport Concessions/Properties Rental Car Lease Agreement At the November Commission Meeting, the Port Commission approved the new rental car lease agreement. The 20-year lease agreement with the rental car companies represents two years of discussions and negotiations between the Port and the rental car companies. The following 12 brands will be represented at PDX under the five new agreements: Enterprise Rent-A-Car, National Car Rental, Alamo Rent- A -Car and Enterprise Car Sharing – operated by the Enterprise Group; Hertz Car Rental and Thrifty Car Rental – operated by Hertz; Avis Car Rental, Budget Car Rental, Payless Car Rental and Zipcar – operated by ABCR; Dollar Rent A Car – operated by Todd; and Sixt Rent a Car – operated by Sixt. Collectively, these brands represent over 99% of the existing rental car market at PDX. 2019 Concessions Request for Proposals A Request for Proposals (RFP) will be issued at the end of this month to fill concessions spaces in the Concourse E Extension and the upcoming Concourse B Remodel projects. The Concourse E Extension will include ten concessions spaces overall, three of which have already been leased to Starbucks, Stumptown Roasters, and Your Northwest Travel Mart. The other seven spaces – three retail locations and four food & beverage locations – will be awarded through the RFP. The Concourse B Remodel project will include one food and beverage location and one coffee location, also awarded through the 2019 RFP. Leases resulting from the RFP will be executed this summer, and the Concourse E locations will immediately begin design work for an opening in June 2020 along with the extension. Concourse B locations will pause for about seven months, and then begin design work for an opening in early 2021 along with the remodeled facility. As in previous concessions RFPs, there will be a significant focus on local brands, small business opportunities and Quality Employer Plans. A Quality Employer Plan is required in every proposal and weighted at 25% of the overall scoring. Successful proposers will then have their plans attached to the resulting leases and will be committed to maintaining the plans as proposed. The locations in this RFP are all brand new, and therefore not displacing any current concessions or their employees. As part of its Diversity, Equity, and Inclusion Plan, Concessions Development is implementing a new approach for the design work requirements in this RFP. Typically, proposers are required to submit architectural renderings, which can cost up to $20K to assemble. The 2019 RFP will omit this requirement and ask only for design vision and intent instead. This approach does not come without some risk to the Port, but the Concessions team is confident that they can work through the challenges and still achieve design goals consistent with the program. Eliminating this requirement will lower the barriers to entry for small businesses and expand the opportunity to include more proposers. As result, the Port expects this RFP to be highly competitive. Waffle Window and Cubo Food Carts 2 Page 2 of 8 Waffle Window joined the PDX food cart program on December 20, opening their fourth location in town. The family- owned and operated cart is dishing out their infamous sweet and savory waffles with extended morning hours, as well as a variety of chicken and waffle sandwiches, mac & cheese, BBQ, salads, and more. In early February, El Cubo De Cuba will open in the PDX Food Cart Program, serving authentic Cuban comfort food as PDX’s first ever Cuban concept. The menu will include Cuban bowls and hot-pressed sandwiches with tropical twists like plantains, mangos, Mojo sauce and Caribbean spices. Cubo is owned and operated by a Havana born-and- raised Cuban man and an American woman who started the business as a very popular food cart in 2010 and expanded into a Hawthorne brick and mortar in 2013. PLANNING AND CONSTRUCTION UPDATE PDXNext Program PDXNext is the name given to a series of projects designed to meet the growing needs of the people and airlines using the airport – employees and travelers alike. The PDXNext program contains more than 20 projects occurring now through 2025. Terminal Balancing (TBAL) Terminal Balancing, the six-gate extension of Concourse E, continues to take shape. With the utility tunnel and concrete slab complete, workers have been busy erecting structural steel and the “skeleton” of the Concourse E extension has begun to emerge. Sloping wall and roof line bents are complete for the initial section of the building closest to existing Concourse E. Work on the north apron and south of the building between the security fence and Airport Way continues. The water line across Airport Way was tied into the line at the extension in mid-December. Parking and Consolidated Rental Car Facility (PACR) Enabling work on the Parking Additions and Consolidated Rental Cars (PACR) project continues. The new 82nd U-turn to return to the terminal opened Oct. 23. The Port worked with Portland Bureau of Transportation staff to optimize the timing of the traffic signals to improve the performance of all segments of the intersection. The Port received quite a bit of feedback on this traffic change. The modifications to the signal have addressed most concerns and traffic is flowing smoothly even during peak times. Port Commission approved JE Dunn’s contract amendment for the Guaranteed Maximum Price for the completion of the entire PACR project at November’s Port Commission Meeting. Expansion of the Port HQ employee lot and other enabling work continues. Construction work on the new exit plaza is underway. Quick-Turnaround (QTA) Demo With the new Quick Turnaround (QTA) Facility open and operating since last March, the rental car industry has initiated a project required in their current agreement to demolish the former QTA. Demolition is complete. Demolition was required for the new Rental 3 Page 3 of 8 Car Center that will be built next to the PACR project on the site, which will house rental car customer service areas on the bottom floor, and airport police and operations functions on levels above. On Dec. 5, a demolition crew broke a water line, which shut off all water to the airport’s terminal for several hours. Operations and customer service teams jumped into action in the terminal to attend to passenger needs; maintenance staff worked with contractors outside to bring the water back on line as quickly as possible. Perhaps it goes without saying, but not having water in the terminal is problematic. This incident pointed out opportunities for even better communication and coordination as we continue to progress with multiple construction projects, each having the potential to impact the same critical systems at the airport. Terminal Core Redevelopment (TCORE) The schematic design documents were completed for the main TCORE project area in December. These will be the basis of an updated cost estimate scheduled for delivery the end of February 2019. The design team will be progressing with the site utility and roof design over the next few months as the overall budget and scope is finalized. The design of the new roof over the terminal is a much-discussed topic on the TCORE project. The project's architects are drawing inspiration from the natural world as inspiration for the shape of the roof’s structure. The roof’s form will also be shaped by the need to direct water, create space and access daylight. Designers are keeping environmental goals top of mind. Those environmental goals include the commitments to net zero carbon and net zero energy. Key opportunity areas include sourcing material and how the space is heated and cooled. As part of TCORE, we’re closing Concourse A and modifying and expanding Concourse B. We will relocate Horizon operations to the end of Concourse C which will allow for the early abandonment of Concourse A. This will allow construction activities on Concourse-B extension to occur and be isolated from passenger processing and travel. When construction begins on Concourse B later this fall, Horizon will move operations to the end of the C Concourse, which steers travelers away from the construction area and provides more shopping and dining options than are currently available on Concourse A.