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Massachusetts Port Authority OFFICE OF PERFORMANCE MANAGEMENT AND OVERSIGHT Reporting Entity Fiscal Year 2018 Annual Report Reporting Agency Overview Reporting Agency Name Massachusetts Port Authority General Description 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 that generates $18,000,000,000 of economic impact for the Commonwealth annually through our transportation assets. Agency Mission A world class organization of people moving people and goods – and connecting Massachusetts and New England to the world – safely and securely and with a commitment to our neighboring communities. Agency Budget funded by the Commonwealth of Massachusetts $0.00 Agency Total Budget (including Commonwealth of Massachusetts funding) Massport’s approved budget for the fiscal year beginning July 1, 2017 is $783,000,000 and is the result of a collaborative and deliberative process with a clear focus on our strategic objectives. This budget will enhance safety and security at our facilities and will support Massport’s overall mission to grow the regional economy by allowing us to invest in our transportation infrastructure to serve current and future demand, support our business partners, invest in our employees, and enhance the quality of life in our impacted neighborhoods and communities while protecting the environment. Overall, the Fiscal Year 2018 budget directs resources and capital investment to fulfill major policy objectives while balancing the need to maintain long-term financial stability and preserve our AA bond ratings. Agency Budget funded by the Commonwealth of Massachusetts Expended $0.00 OFFICE OF PERFORMANCE MANAGEMENT AND OVERSIGHT Reporting Entity Fiscal Year 2018 Annual Report Program / Initiative Information Program / Inititiave #1 Name Safety and Security Program Citation (Legislation) - if applicable Not Applicable Legislation Website Link - if applicable Not Applicable Bill Item Number - if applicable Not Applicable Program / Initiative Website Link - if one exists Not Applicable Description of Program / Initiative The safety and security of our transportation facilities is Massport’s highest priority objective. Our transportation assets are vital to growing and expanding the reach of the Massachusetts economy. Massport invests in physical infrastructure and telecommunications to support emergency response and security screening and collaborates with the Transportation Security Administration, Federal Aviation Administration, Customs and Border Patrol, other governmental agencies and academia to deploy the latest processes, technology and assets as we continuously work to enhance safety and security. Our commitment to safety, security and emergency preparedness imparts public confidence and ensures the continued economic contributions of our facilities. Fiscal Year 2018 Line Item Number (#### - ####) - if applicable Not Applicable Fiscal Year 2018 Budget Not Applicable Total Fiscal Year 2018 Budget expended Not Applicable Total Budget (Total $, including other sources) Not Applicable Details of additional funding sources Program costs are shared across multiple departments and are not budgeted/tracked. Program / Inititiave #2 Name Customer Service Program Citation (Legislation) - if applicable Not Applicable Legislation Website Link - if applicable Not Applicable Bill Item Number - if applicable Not Applicable Program / Initiative Website Link - if one exists Not Applicable Description of Program / Initiative Providing exceptional customer service at our facilities is essential for ensuring their continued economic contributions to the Commonwealth. Significant business activity growth at Logan Airport and Massport’s maritime properties provides economic opportunities for the region, and requires Massport to make significant investments in passenger terminals, airfields, port infrastructure and ground transportation to maintain high customer service levels. Massport strives to continuously improve the passenger experience by upgrading its facilities and service offerings and employing new technologies as outlined in Massport's Strategic Plan. One specific example of customer service that Massport provides to its customers in conjunction with the MBTA is free bus service on the SilverLine 1 route from Logan Airport into Boston. The MBTA provides this service, and Massport reimburses them for the cost. Fiscal Year 2018 Line Item Number (#### - ####) - if applicable Not Applicable Fiscal Year 2018 Budget Not Applicable Total Fiscal Year 2018 Budget expended Not Applicable Total Budget (Total $, including other sources) Not Applicable Details of additional funding sources Program costs are shared across multiple departments and are not budgeted/tracked. Program / Inititiave #3 Name Worcester Regional Airport Program Citation (Legislation) - if applicable Not Applicable Legislation Website Link - if applicable Not Applicable Bill Item Number - if applicable Not Applicable Program / Initiative Website Link - if one exists Not Applicable Description of Program / Initiative The Worcester Regional Airport is a critical transportation resource for the Central Massachusetts region. Massport’s mission for the Worcester Regional Airport is to provide commercial airline service and premier general aviation facilities to the Greater Worcester region. To achieve this goal Massport has invested over $32,000,000 with plans to invest over $100,000,000 in infrastructure, operations and marketing of the facility by 2020. Over a 10-year period, this investment and growth in commercial airline services is expected to contribute $369,000,000 of economic activity and 388 jobs to Central Massachusetts. Fiscal Year 2018 Line Item Number (#### - ####) - if applicable Not Applicable Fiscal Year 2018 Budget $32,489,766 ($10,670,766 operating expense plus $21,819,000 capital expense) Total Fiscal Year 2018 Budget expended $25,694,057 ($10,690,057 operating expense plus $15,004,000 capital expense) Total Budget (Total $, including other sources) $32,489,766 ($10,670,766 operating expense plus $21,819,000 capital expense) Details of additional funding sources Not Applicable Program / Inititiave #4 Name Be an Economic Engine for the Commonwealth Program Citation (Legislation) - if applicable Not Applicable Legislation Website Link - if applicable Not Applicable Bill Item Number - if applicable Not Applicable Program / Initiative Website Link - if one exists Not Applicable Description of Program / Initiative Massport plays a critical role in the region’s economy. In total, Massport’s premier transportation facilities generate $18,000,000,000 of economic activity each year and support more than 181,000 jobs. Businesses across the Commonwealth rely on Logan International Airport and Conley Container Terminal to ship and receive goods globally. The state’s tourism industry benefits from the millions of visitors who travel from around the globe through Logan Airport or Flynn Cruiseport Boston annually. Massport also supports employment in the Commonwealth not only through the jobs at Massport’s facilities – with over 18,000 people employed at Logan and 1,300 employed at Massport – but also blue collar jobs in two important “clusters”: seafood processing in the Seaport District and manufacturing across the Commonwealth. The Boston seafood processing cluster that exists on Massport property in the Seaport District anchors nearly 100,000 seafood industry jobs in Massachusetts. Cargo container processing at Conley Terminal supports Massachusetts’ growing manufacturing economy by facilitating imports and exports for Massachusetts businesses and sustains 3,500 good-paying jobs for the region. Finally, real estate developments on Massport owned properties in South Boston and East Boston are part of Massport’s economic engine by creating jobs and bringing businesses and visitors to Boston’s waterfront areas. Fiscal Year 2018 Line Item Number (#### - ####) - if applicable Not Applicable Fiscal Year 2018 Budget Not Applicable Total Fiscal Year 2018 Budget expended Not Applicable Total Budget (Total $, including other sources) Not Applicable Details of additional funding sources Program costs are shared across multiple departments and are not budgeted/tracked. Program / Inititiave #5 Name Improve Maritime Operations Program Citation (Legislation) - if applicable Not Applicable Legislation Website Link - if applicable Not Applicable Bill Item Number - if applicable Not Applicable Program / Initiative Website Link - if one exists Not Applicable Description of Program / Initiative Massport has made significant progress towards enhancing maritime activities in the Port of Boston, which supports more than 7,000 blue collar jobs and $4,600,000,000 in annual economic output. Massport’s investment in its maritime businesses, which consist of the Conley Container
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