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Massachusetts Port Authority May Board Meeting May 23, 2019

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Massachusetts Port Authority May Board Meeting May 23, 2019 Massachusetts Port Authority May Board Meeting May 23, 2019 Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 REPORT OF THE ACTING CEO MAY BOARD MEETING MAY 23, 2019 JOHN PRANCKEVICIUS Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 2 Teamsters Local 25 12th Annual Gala for Autism and 2019 Challenger Baseball League Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 3 May 2: Massport All Hands Meeting The meeting recognized the work of Massport employees and its many partners – over 800 people attended and Robin Hayes, CEO of JetBlue, was the keynote speaker Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 4 Chair of House Aviation Subcommittee Rick Larsen Briefing Representative Larsen visited Massport on May 13 and received an overview of Logan Airport and its modernization plans Rick Larsen is a member of House of Briefing Representatives for Washington's 2nd congressional district. He was first elected • Rep. Larsen attended Logan Airport daily 8:30am in 2000 and is currently serving his 10th meeting with airlines and state and federal law term in office. enforcement partners Rep. Larsen is a member of the House Armed Services Committee and the House • Briefed on “Massport 101 Overview” Transportation and Infrastructure Committee. • Toured Terminal E (upgraded public/secure He is also Chair of the House Transportation areas, new gates, CBP) Subcommittee on Aviation. Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 5 I. SAFETY AND SECURITY Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 6 3-D Checkpoint Screening Machines TSA announced that it will rollout 300 more 3-D (CT) screening machines with a $96.8M contract – piloted at Logan since 2017 Machine at Logan Airport Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 7 TSA at Logan Airport TSA officers caught two loaded handguns at Logan Airport checkpoints on May 19 – 6 total this year – and worked with MSP to resolve situations Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 8 II. BUSINESS RESULTS Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 9 2019 Mass Insight Survey Massport continues to receive high performance ratings for overall management with 80% reporting they are satisfied/very satisfied QUESTION: Tell me whether you are very satisfied, somewhat satisfied, somewhat dissatisfied, or very dissatisfied with the way…The Massachusetts Port Authority, which runs Logan Airport, is being managed 90% 80% 80% 70% 60% 50% 40% 30% 20% 10% 19% 0% Jan. '04 Jan. '05 Jan. '06 Jan. '07 Jan. '08 Jan. '09 Jan. '10 Jan. '11 Jan. '12 Jan. '13 Jan. '14 Jan. '15 Jan. '16 Jan. '17 Feb. '18 Feb. '19 Very/Somewhat satisfied Very/Somewhat dissatisfied Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 10 Conley Terminal Even with competition from other ports, Conley Terminal has maintained and bolstered its success over the past decade and is laying the groundwork to remain competitive in the future Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 11 2018 Massport Annual Report The Annual Report reflects on a strong 2018 for the Authority with numerous goals achieved and groundwork laid for the future Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 12 Massport FY19 Preliminary Results Through April 2019 FYTD Budget YOY Revenue $763M 12.0% 8.6% Expenses $425M 0.8% 5.7% Capital Investment* $278M 7.0% 14.4% Net Income $60M N/M 4.2% *Debt Service, Maintenance Reserve & I&E Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 13 Back Bay Logan Express The enhanced Back Bay Logan Express service departing from Back Bay Station launched on May 1 Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 14 Back Bay Logan Express Dashboard – May 1 to May 21 Total Riders by Day vs. Prior Year May 1 to May 21 • 1,000 Average Daily Ridership: 653 riders 800 600 • Peak Day: May 12 at 862 riders 400 200 2019 • Around 30% of riders are 2018 0 utilizing security checkpoint 5/1 5/2 5/3 5/4 5/5 5/6 5/7 5/8 5/9 5/11 5/12 5/13 5/14 5/15 5/16 5/17 5/18 5/19 5/20 5/21 5/10 priority pass Back Bay LEX Riders by Direction • Free service leaving Logan May 1 to May 21 16,000 69% Airport up over 85% 14,000 12,000 10,000 • New discounted service to 85% 51% 8,000 Logan Airport up over 51% 6,000 4,000 2,000 • Total outbound volume (free) 0 ≈30% higher than inbound From Logan To Logan Total Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 15 Framingham Logan Express Parking Massport has put out a design RFQ to expand the Framingham Logan Express garage by about 1,000 additional parking spaces Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 16 Logan Express Service – Next Steps • Continue Logan Express marketing campaign across all sites • Evaluate potential 128/I-90 and Route 1 and 2 Logan Express sites • Increase parking capacity at Braintree and Framingham • Meeting with Senate President Spilka next week about Framingham garage expansion • Explore security checkpoint priority pass for other sites • Begin advancing North Station Logan Express service by procuring new buses Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 17 Terminal B Roadway Construction Massport is doing roadway work around Terminal B – requiring detouring – and has proactively messaged this to the public Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 18 III. ECONOMIC AND INDUSTRY DEVELOPMENTS Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 19 Economic Outlook 2019 Q1 economic growth indicates that the U.S. and Massachusetts economies are robust, adding to strong job growth in the state National – 3.2% GDP Growth Massachusetts – 4.6% GDP Growth “more jobs were added in Massachusetts in the first three months of this year than in the entirety of last year” Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 20 Aviation Industry Outlook Airlines are reporting robust revenue and earnings outlooks, but some have seen a financial impact from grounding of 737 MAX 8s Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 21 Increase in Passenger Facility Charge To fund airport infrastructure, the House Committee on Transportation and Infrastructure has proposed increasing the PFC from $4.50 to $8.50 per flight segment • The $4.50 PFC fee was last increased • “Momentum is growing to approve an in 2001 increase in the PFC to help improve the nation’s airports – with an unusual mix of • Since then, construction costs have Democratic House leaders and historically increased by nearly 80% anti-tax conservatives helping push the effort” Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 22 Massport Federal Funding Priorities Massport sent a letter regarding its federal funding priorities to Congressman Lynch, who is a member of the House Committee on Transportation and Infrastructure Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 23 A Fellowship for International Real Estate (AFIRE) Survey Continuing the trend from the past two years, the Boston real estate market remains hot – ranking second in investor interest and top ten most stable and attractive globally Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 24 Seaport Development Projects Massport involved in about a quarter of the biggest active/planned construction projects in the Seaport Massport’s Projects • Parcel K: 294-room hotel, 304 apartments and ground floor retail. Due 2020 • Gables Seaport: 307 apartments with ground floor retail. Due 2020 • Omni Hotel: 1,055 room hotel with 120,000 SF of meeting space. Due 2021 • Boston Sword & Tuna: 50,000 SF seafood processing facility. Due 2020 Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 25 111th NAACP National Convention in Boston – July 2020 Boston will host the 111th NAACP National Convention in July 2020 and Massport is collaborating and getting involved Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 26 MCCA Impact on Massachusetts The Massachusetts Convention Center Authority (MCCA) recently presented on their direct and indirect economic impact Economic Impact Plan for Future Convention market is robust, driving spending on The MCCA has been touting the Omni development in its food, entertainment, and accommodations pitches for new conventions Occupancy Rates Occupancy and room rates in Boston and suburbs are at historical highs, increasing need for Omni and Hilton hotel Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 27 May 15-17: Advancing Women in Transportation Conference The 2019 WTS Annual Conference was held in Boston from May 15 to May 17 and Massport participated in a panel discussion and additional events Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 28 IV. AVIATION: LOGAN AIRPORT Visual Materials for Massachusetts Port Authority Board Meeting May 23, 2019 29 Most Kid-Friendly Airport Logan Airport has been ranked as the most kid-friendly airport in the nation – only airport to get a perfect score out of 50 studied Reasons Logan Airport #1 • Logan Airport has airport-themed
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