2016 Annual Report

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ANNUAL REPORT 2016

+ PortsToronto | Annual+ Report 2016 1 © Toronto Port Authority 2017. All rights reserved. To obtain additional copies of this report please contact: 60 Harbour Street, Toronto, ON M5J 1B7 Canada PortsToronto The Toronto Port Authority, doing business as Communications and Public Affairs Department PortsToronto since January 2015, is a government 60 Harbour Street business enterprise operating pursuant to the Toronto, Ontario, M5J 1B7 Canada Marine Act and Letters Patent issued by Canada the federal Minister of Transport. The Toronto Port Phone: 416 863 2075 Authority is hereafter referred to as PortsToronto. E-mail: communications@portstoronto.com

2 PortsToronto | Annual Report 2016 Table of Contents About PortsToronto 4 Mission and Vision 5

Message from the Chair 6 Message from Chief Executive Officer 8 Corporate Governance 12

Business Overview 14 Billy Bishop Toronto City Airport 16 Port of Toronto 22 Outer Harbour Marina 24 Real Estate and Property Holdings 26

Four Pillars 28 City Building 29 Community Engagement 30 Environmental Stewardship 37 Financial Sustainability 43

Statement of Revenue and Expenses 44

2017: A Look Ahead 45

PortsToronto | Annual Report 2016 3 About PortsToronto

PortsToronto is a federal government business PortsToronto is committed to fostering strong, enterprise that owns and operates Billy Bishop healthy and sustainable communities, and has Toronto City Airport, Marine Terminals 51 and invested more than $9 million since 2009 in 52 within the Port of Toronto, the Outer Harbour charitable initiatives and environmental programs Marina and various properties along Toronto’s that benefit communities and organizations along waterfront. Toronto’s waterfront and beyond.

Responsible for safety and efficiency of marine PortsToronto is financially self-sufficient, as navigation in Toronto Harbour, PortsToronto required under the Canada Marine Act, and also exercises regulatory control and performs its activities and operations are not funded by public works services for the area, works with taxpayers. partner organizations to keep the Toronto Harbour clean, issues permits to recreational boaters and manages the Leslie Street Spit site.

4 PortsToronto | Annual Report 2016 Vision Mission As a guardian and steward of Toronto’s waterfront PortsToronto’s mission is to effectively manage resources, PortsToronto works closely with the Billy Bishop Toronto City Airport, the Port of broader waterfront community to ensure these Toronto, the Outer Harbour Marina and its real assets will provide prosperity and enjoyment for estate properties on a self-sustaining basis, future generations. allowing PortsToronto to reinvest funds into transportation infrastructure, marine safety, environmental protection and community programming. Through the successful pursuit of this mission, PortsToronto plays an important city-building role in the economic growth and sustainable future of Toronto.

PortsToronto | Annual Report 2016 5 Message from the Chairman

Whether it’s establishing the waterfront in the early 1900s, building Billy Bishop Airport in 1939, undertaking environmental protection of the harbour and surrounding wetlands, or digging tunnels to connect infrastructure, PortsToronto has been building and investing in Toronto’s waterfront for more than 100 years… and the best is yet to come.

The year 2016 was my first full year As owner and operator of Billy operations. For the last several years, as Chair of PortsToronto’s Board Bishop Airport, the Port of Toronto, PortsToronto has been working with of Directors and as I reflect back the Outer Harbour Marina and real Oxford Properties Inc. (Oxford) and on the achievements, awards and estate holdings along the waterfront Canada Pension Plan Investment contributions that took place over this such as the 30 Bay Street and 60 Board (CPPIB) to address its time, I can’t help but be proud of what Harbour Street properties that are underutilized head-office property at has been accomplished and where we home to the historic Toronto Harbour the corner of Bay and Harbour Streets are headed as an organization. Commissioner building, PortsToronto that is currently used for surface is continuing its role as an economic parking. PortsToronto is a federal government driver for the City of Toronto. From business enterprise with more than providing important gateways to bring In March 2012, PortsToronto 100 years of history. Starting as the people and goods to and from the city, announced that it had entered into Toronto Habour Commissioners, to investing in infrastructure such an agreement with Oxford to jointly tasked with building the waterfront as the pedestrian tunnel to promote develop the property. Earlier this year and encouraging commerce through access and leverage innovation, to Oxford and PortsToronto finalized the Port of Toronto, to becoming investing back in our communities an agreement to sell the property to the Toronto Port Authority in 1999 through sponsorships and in-kind Oxford and CPPIB. Approvals were and assuming a role as a financially services, PortsToronto is working secured at the municipal and federal independent agency of the federal with municipal, provincial and federal level and the sale closed in May government, to our rebranding a partners for the benefit of all. 2017. The sale is important for many few years back as PortsToronto, this reasons. First, it will ensure that an organization has played a significant This legacy promises to continue as underutilized property is put to good role in shaping Toronto and making it PortsToronto prepares for the next use in what has become a burgeoning the economic centre it is today. chapter in its successful business area of the city. Second, the sale

6 PortsToronto | Annual Report 2016 ensures that the historic Toronto Harbour I would like to thank the PortsToronto Commission building will be incorporated management and staff for their into the development and be restored commitment to this organization and and preserved for years to come. Third, their achievements in 2016, as well as my this sale is consistent with PortsToronto’s fellow board members for their dedication federal mandate and governing Letters and insight. I would also like to thank our Patent and is aligned with the City of stakeholders and government partners, Toronto’s vision for new development especially Transport Canada, the City of in the South Core. Fourth, it provides Toronto and the federal government under PortsToronto with the financial resources the leadership of The Right Honourable to continue to invest in infrastructure along Justin Trudeau, Prime Minister of Canada the waterfront and support its community. and the Minister of Transport, The Honourable Marc Garneau. The property at 30 Bay/60 Harbour is classified as “Schedule C” property in Canada celebrates 150 years in 2017 and PortsToronto’s Letters Patent. This means we are proud of the part we have played in that the property is not federally owned, making this country among the best in the but is rather private property owned by world and Toronto one of the best in the PortsToronto. As such the proceeds of nation. I look forward to the year ahead and the sale can and will be directed to fund all that it will hold for our organization, city ongoing operations related to the port and country. and harbour. Specifically, the proceeds of this sale will be used to pay down debt and enable revitalization of the Port. Funds will also go towards repairing aging dock walls and warehouse terminals, improving “last mile” road and rail access, refining navigation in areas of the harbour, Robert D. Poirier and supporting our corporate social Chair responsibility and community investment program.

The sale of this property meets all of our objectives for the property, the city and our organization, and will ensure that PortsToronto remains a strong and well- financed contributor to the City of Toronto and a relevant and valuable representative agency of the federal government.

PortsToronto | Annual Report 2016 7 Message from the Chief Executive Officer

Our growth and profitability in 2016 enabled PortsToronto to continue making important investments in Toronto’s waterfront infrastructure, the environment and community organizations.

The year 2016 can be best described as PortsToronto’s ninth consecutive year The year 2016 was also significant a year of collaboration, performance of profitability, with net income of $6.7 for the Port of Toronto and its terminal and focusing on the future by putting million on revenue of $59.7 million. As operations. The port recorded a strong investment and infrastructure in a financially self-sufficient organization year due to both the cargo business place to ensure our operations that does not receive public funding, and passenger cruise ship operations. remain successful in order to make we are proud of our ability to achieve The port and its activities reported meaningful contributions to our and maintain profitability, as this puts revenues of $6.3 million and government stakeholders, members of us in a position to continue to invest operating income from all sources of the community and business partners. in key infrastructure, initiatives and $1.2 million. The port also welcomed improvements, and give back to our seven cruise ships, carrying more than Our four business units serve the community. 2,400 passengers, to the City of Toronto purpose of providing transportation in 2016. This activity at the port helps and infrastructure to the City of Our four key businesses all reported to not only support the city’s business Toronto. Whether it’s Billy Bishop strong results in 2016. Billy Bishop industries, but also confirms the port’s Toronto City Airport that provides an Airport continued to see ongoing position as a vital part of Toronto’s important gateway to/from more than success, serving 2.7 million economic infrastructure. 20 destinations in Canada and the U.S., passengers, up from 2.5 million in or the Port of Toronto that last year 2015. Billy Bishop Airport generated The Outer Harbour Marina’s operating handled approximately two million operating income of $16.7 million, income was steady at $1.2 million on tonnes of cargo, or the Outer Harbour which included revenue from revenues of $3.9 million in 2016 and Marina that is one of the largest Airport Improvement Fees. This is benefited from an occupancy rate of freshwater marinas in Canada, or our expected to remain relatively stable approximately 85 per cent. The Real various real estate holdings along the in 2017, with passenger volumes Estate and Property Holdings division waterfront, PortsToronto spent 2016 forecast to increase slightly as we also had a steady year, reporting building, investing and preparing to continue to employ our “managed operating income of $0.9 million on keep our operations strong. growth” approach that ensures revenues of $1.9 million. This business airport growth keeps pace with the includes leasing revenue from such Looking to the future is possible access, infrastructure and needs properties as 60 Harbour Street, because of a strong foundation of of the surrounding mixed-use 30 Bay Street, Pier 6 and property business achievement that affected neighbourhood. at 5 Queens Quay West.

8 PortsToronto | Annual Report 2016 This growth and profitability in 2016 Consistent with our approach to focus U.S. Customs Preclearance also enabled PortsToronto to continue on the future, several key projects were continued to be a top priority for making important investments in initiated or progressed last year. One of PortsToronto and several important Toronto’s waterfront infrastructure, our biggest projects was year-one of a milestones were achieved throughout the environment and community three-year airfield restoration project last year. Billy Bishop Airport was among organizations. Since 2009, PortsToronto that had our main runway resurfaced the Canadian transportation facilities has invested more than $9 million in and the entire runway lighting system named in an expanded U.S. Customs community and environmental initiatives. updated—all without operational Preclearance program in March 2016. In 2016, in addition to supporting many interruption or community disruption. No The announcement came as part of worthwhile community organizations small feat but an overwhelming success Prime Minister Trudeau’s first official such as Aloha Toronto, Waterfront by all accounts. visit to the U.S. In December 2016, Neighbourhood Centre’s Youth Arts then-President Obama signed into law Program, Set Sail for Hope, Ireland Park This project also included the a bill ratifying the new preclearance Foundation, Second Harvest, CivicAction, construction of a Ground Run-up agreement between Canada and the Harbourfront Centre, Ontario Disabled Enclosure (GRE), a three-sided, open-top United States. With the new preclearance Sailing Association, Lake Ontario facility able to accommodate an aircraft agreement between Canada and the U.S. Waterkeeper and Evergreen, we once while maintenance mechanics conduct now law in the U.S., next steps include again held the popular and award- high-power engine run-up inspections. ratification of the agreement by Canada winning Sail-In Cinema™ film festival for Opened and operational in April 2017, and working out the specific costs and the enjoyment of audiences of all ages. the steel-framed structure is fully lined operating environment at Billy Bishop This August film event attracted more with acoustic panels designed specifically Airport. Preclearance will be a significant than 10,000 people and approximately for the purpose of absorbing engine enhancement to customer service at 75 boats to Sugar Beach over three sound and reducing noise impacts on the the airport and we are looking forward nights and has become a true community surrounding community. to having this completed as soon as gathering along the waterfront. possible. Enhancements also began inside the In 2016, PortsToronto also continued to airport terminal. In late 2016 Nieuport Billy Bishop Airport is a tremendous invest in our sustainability program to Aviation Infrastructure Partners, the asset to the City of Toronto and an ensure we conduct our operations in an operator of the Passenger Terminal at important gateway that is recognized environmentally responsible manner. Billy Bishop Airport, announced that for its efficiency, ease of access and This included publishing our first construction would commence on an emphasis on customer service. This Sustainability Report in January of 2016 upgrade to the passenger lounges. The recognition came at an international which served to report on our progress enhancement project will add more level in 2016 as the airport won several and goals with regard to environmental space in both passenger lounges, thereby prestigious awards including being sustainability and protection. This enabling more seating and additional ranked as the number one airport in includes our ongoing commitment to amenities such as retail, food and North America and number two in the investing in measures that minimize the beverage services. Overall, the changes world by Airport Council International; environmental impact of our businesses, will add approximately 2,500 square being ranked fourth-best airport in such as purchasing 100 per cent of our metres to the terminal, with the majority the world by Condé Nast Traveler; and electric power from renewable sources of the increase being in the passenger ranking within the Top 10 airports in such as wind and hydro through Bullfrog lounges, and will be completed in mid North America by Skytrax. Power. Billy Bishop Airport is the only 2018. airport and PortsToronto is the only port authority in Canada to use renewable energy for its entire operations.

PortsToronto | Annual Report 2016 9 The waterfront is a vibrant mixed-use community and we look forward to continuing to work with all of our partners including Transport Canada, the City of Toronto, Waterfront Toronto, Toronto and Region Conservation Authority and Toronto Port Lands Company in the years ahead to ensure our operations remain strong and within balance.

This validation was felt here at home community investment, environmental as the airport enjoyed its busiest stewardship and city building. summer on record with close to 782,000 passengers travelling through I would like to take this opportunity the airport in June, July and August, to recognize the dedication of and its single busiest day on record our employees, the support and with 13,000 passing through the airport commitment of our board, and the on October 7,2016. But you didn’t need co-operation and feedback of our to be flying in/out of the airport to enjoy stakeholders and community partners, all that the airport has to offer. On May all of whom contributed to our 28 more than 10,000 people visited us achievements in 2016. The waterfront for Doors Open, making our site one is an interesting mixed-use community of the most visited in the Doors Open and we look forward to continuing to program. work with all of our partners including Transport Canada, the City of Toronto, In other areas of our business, Waterfront Toronto, Toronto and Region PortsToronto also continued to work on Conservation Authority and Toronto developing the underutilized property Port Lands Company in the years at the corner of 60 Harbour Street and ahead to ensure our operations remain 30 Bay Street, an important element of strong and within balance. our long-term financial sustainability. Home to the historic Toronto Harbour The year ahead promises to be exciting Commission Building that houses our as we begin year-two of our three-year head office, the property is currently airfield restoration project, formalize being used for surface parking. U.S. Customs Preclearance at Billy However, PortsToronto continued to Bishop Airport, work to finalize plans work with Oxford Properties Inc. in for the property at 30 Bay/60 Harbour 2016 to create a plan for development Streets, update the 2012 Master Plan that is aligned with the city’s vision for the airport, continue to devote for the South Core area. This project ourselves to sustainable operations remained a work-in-progress in 2016 and partner with community and but I believe 2017 will be an important charitable organizations to continue to year for this development. activate the waterfront.

I am confident that there will be many other important milestones and achievements in 2017 as PortsToronto continues to work to fulfill its mandate Geoffrey A. Wilson and achieve the goals it has set Chief Executive Officer for itself in the areas of business,

10 PortsToronto | Annual Report 2016 Doors Open 2016 Highlights

Last year’s Doors Open at Billy Bishop Airport was a great success with over 10,000 visitors attending throughout the day. Billy Bishop Airport’s Doors Open event was even voted as the top destination to visit by the Globe and Mail.

nge Hangar Maintenance Department . Fire Hall 1. Fal con Environmental Serv ices 13. Tran s Capital Air Ltd. Stolport Corporation

1. Historical Photo Exhibit

Free Wi-Fi @bbishopairport

Ferry Billy Caf food for purchase Aroma pr sso Ba

PortsToronto | Annual Report 2016 11 Corporate Governance

PortsToronto is the successor agency of the Toronto Harbour Commissioners (THC), which managed Toronto Harbour from 1911 to 1999. As part of a broad strategy developed by the federal government to modernize the administration of ports, the Toronto Port Authority, now PortsToronto, was established in 1999 to operate the port, marina, airport and its land holdings.

Established under the Canada representing four identified user The following four standing Marine Act in 1999, PortsToronto is a groups — commercial, recreation, committees oversee various government business enterprise that airport and port operations. The City organizational matters, various is mandated to be financially self- of Toronto and the Province of Ontario facets of our operations and assess sufficient and receives no federal, have a direct governance relationship recommendations from management: provincial or municipal funding. with PortsToronto via their appointees PortsToronto operates in accordance to the PortsToronto board of directors. • Audit and Finance with the Canada Marine Act and Letters The PortsToronto board met 15 times • Governance and Human Resources Patent issued by the federal Minister in 2016. • Communications and Outreach of Transport in addition to a series of • Pension specific policies and procedures. The The board of directors are appointed Letters Patent include requirements as follows: The board relies on these committees related to PortsToronto’s board of to facilitate business and guide its directors and outlines the activities • one individual nominated by the decisions. During 2016 the committees that can be undertaken by the federal Minister of Transport met 32 times. organization. • one individual appointed by the City of Toronto During 2016 PortsToronto updated PortsToronto is accountable to the • one individual appointed by the its full Board Governance Manual to federal government through Transport Province of Ontario incorporate best practices from other Canada, and is guided by a board of • six individuals nominated by the port authorities and industry leaders. directors composed of individuals federal Minister of Transport in appointed by all levels of government consultation with user groups For more information about — federal, provincial and municipal. PortsToronto governance, including a Six members of the board are All individuals nominated by the copy of the updated Board Governance appointed by the Minister of Transport Minister of Transport are appointed by Manual, please visit our website. in consultation with committees the Governor in Council.

DID YOU KNOW?

In 2016 PortsToronto designed a new user group director nomination process that harmonizes the nomination framework established in our Letters Patent with the Federal government’s recently announced open, transparent and merit based process for public appointments. Our new user group director nomination process was endorsed by Transport Canada and has been suggested as a best practice for other Canadian port authorities to emulate for their User Group Director Nomination processes.

In 2016 PortsToronto also revised its Corporate Governance Manual, consisting of our Board Mandate and Committee Charters, to reflect best practices from other port authorities and industry leaders. A copy of our Governance Manual can be referenced on our website.

12 PortsToronto | Annual Report 2016 Board of Directors

G. MARK CURRY JEREMY ADAMS DARIN EDWARD ROBERT D. POIRIER JAN INNES SEAN L. MORLEY AMANDA WALTON DESCHAMPS Chairman of the Board (appointed April 2017)

Six individuals nominated by the federal Corporate Governance Minister of Transport in consultation 6 with industry groups. One appointee nominated by the Commercial federal Minister Airport of Transport 1 Port-related activities/operations Recreational business

One individual One individual appointed by the appointed by the Province City of Toronto 1of Ontario 1

Senior Management

DEBORAH WILSON CRAIG MANUEL GENE CABRAL GEOFFREY A. WILSON ALAN J. PAUL KEN LUNDY ANGUS ARMSTRONG Vice President of Vice President and Executive Vice President, Chief Executive Officer Senior Vice President Vice President of Harbour Master and Communications General Counsel PortsToronto and Billy and Chief Financial Infrastructure, Chief of Security and Public Affairs Bishop Toronto City Officer Planning and Environment Airport

PortsToronto | Annual Report 2016 13 2.7 million

Billy Bishop Airport welcomed 2.7 million passengers through the airport in 2016. 100%

PortsToronto is bullfrogpowered with 100% green electricity across all operations.

Jurisdiction of PortsToronto within the Port and Harbour of Toronto. Western Channel 7,429

Active Powered Vessel Operator’s Permits held by boaters in 2016.

14 PortsToronto | Annual Report 2016 Business Overview

For more than 100 years, PortsToronto has worked with our partners at the federal, provincial and municipal levels to enhance the economic growth of the City of Toronto and the Greater Toronto Area. Today, Billy Bishop Airport and the Port of Toronto serve as urban transportation hubs for Canadian and international businesses to gain easy, convenient and cost-effective access to the heart of Canada’s most populated city and province.

1.8 million 40,000 The Port of Toronto moved over cubic metres 1.8 million metric tonnes of cargo. PortsToronto removes approximately 40,000 cubic metres of material from the mouth of the Don River annually.

Don River

Keating Channel

Ship Channel 1 of the largest Toronto Inner Harbour The Outer Harbour Marina is one of the largest freshwater marinas in Ontario.

Eastern Gap

Toronto Outer Harbour

PortsToronto | Annual Report 2016 15 Billy Bishop Toronto City Airport

Billy Bishop Airport is Canada’s has gained an excellent reputation Further, Billy Bishop Airport was ninth-busiest airport and welcomed throughout the travelling community ranked the ninth-best regional 2.7 million business and leisure for its superior customer service and airport in North America and ninth- travellers in 2016. The airport is amenities such as the pedestrian best airport globally (under 5 million also Canada’s sixth-busiest airport tunnel, enhanced shuttle service, passenger category) by the Skytrax with passenger service to the United full-service lounges, proximity to 2016 World Airport Awards. The States. Offering service to more than downtown and shorter lines, which airport was also ranked fourth-best 20 cities in Canada and the U.S., with have established Billy Bishop Airport International Airport by Condé Nast connection opportunities to more than as the airport of choice for business Traveler and was listed one of the Top 80 international destinations via our and leisure travellers alike. Ten Most Beautiful Airport Approaches airlines’ networks, Billy Bishop Airport in the world by Private Fly. In March is an important international gateway In fact, in 2016 the airport won a series 2017, Airports Council International and a key driver of Toronto’s economy, of passenger-driven awards, including (ACI-North America) announced accounting for more than $2.1 billion being named Best Airport in North that Billy Bishop Airport won the in economic output each year and America (over two million passenger Environmental Achievement Award in supporting 6,500 jobs, including category) by Airports Council the Mitigation Category for our Noise 1,960 directly associated with airport International’s (ACI) 2016 Airport Management Program. operations. Service Quality Awards, as well as Best Airport in North America (2-5 million The airport, which hosts two award- passenger category) and second winning commercial air carriers place for Best Airport in the World in Porter Airlines and Air Canada, (2-5 million passenger category).

2016

1957 March 24, 1957: Billy Bishop Airport original passenger terminal (Terminal A). Today, Billy Bishop Airport is located in the heart of Toronto and welcomed 2.7 million passengers in 2016.

16 PortsToronto | Annual Report 2016 Billy Bishop Airport continues to be Billy Bishop Airport Dillon Study Highlights: a key facilitator of business travel and tourism, creator of high-quality Pedestrian Tunnel • More than 90 per cent of travellers employment, and a significant opt to take the free, convenient, economic engine for the GTA. Through One of the largest infrastructure six-minute walk through the direct and indirect economic benefits, investments made to date by tunnel. the airport continues to support PortsToronto is the pedestrian Toronto’s key sectors including tunnel to Billy Bishop Airport that • On average, 40 per cent of financial services, life sciences, food runs beneath the lakebed across the travellers walk, bike or take and beverage, travel and tourism, and Western Channel of Lake Ontario transit to and from the airport, the film and television industry. The and provides efficient and convenient further reducing congestion on airport also boosts the local economy, access to travellers. surrounding roadways as well as with visitors coming through Billy traffic-related noise. Bishop Airport spending approximately The tunnel was built on a P3 model, $150 million a year on accommodation, which ensured the delivery of • Collaborating with the City transportation, retail and food and high-quality infrastructure at no cost to of Toronto, PortsToronto beverage. the taxpayer. also incorporated new and much-needed municipal water Billy Bishop Airport is also a base for Celebrating its one-year anniversary in and sewer mains to the Toronto an air ambulance service, commercial July 2016, the tunnel has delivered on Islands into the construction of operators, two Fixed Base Operators its promise to improve convenience and the tunnel, saving Toronto and is home to a sizable personal/ efficiency at the airport by significantly taxpayers an estimated $10 million general aviation community that improving passenger flow and reducing in duplicate construction costs. includes approximately 50 private lineups both within the terminal and on The city water and sewage mains planes and one flight school. the mainland. In fact, a recent modality now provide reliable services to study conducted by Dillon Consulting the Toronto Islands and replace on behalf of PortsToronto found that existing pipes that date back to more than 90 per cent of travellers the 1970s. opt to take the free, convenient, six-minute walk through the tunnel.

PortsToronto | Annual Report 2016 17 th busiest Canadian 2.7 million 6 airport serving the passengers annually through United States. Billy Bishop Airport

th busiest airport in 9 Canada.

Airfield

Rehabilitation +

Program Year-one of the three-year + Airfield Rehabilitation Program

complete

+ +

Completion of the

Ground Run-up Enclosure(GRE) +

+ General Aviation +

Community + Home to a sizeable General Aviation +

Community and one flight school. +

+ +

More than 4,600 Ornge air ambulance flights.

18 PortsToronto | Annual Report 2016 + Terminal Upgrades

In October 2016, PortsToronto • Reconfiguring offices and approved plans submitted by Nieuport administrative areas to Aviation Infrastructure Partners, owner accommodate passenger and operator of the airport’s passenger processing needs in anticipation terminal, to undertake upgrades and of a U.S. Customs and Border enhancements to the airport terminal Protection preclearance facility; building. Overall, the changes will add approximately 2,500 square metres • Adding more space in both to the terminal, with the majority of passenger lounges, enabling more the increase being in the passenger seating and additional amenities lounges. such as retail and food and beverage services; and, The plans include: • Building an 11th gate to increase • Increasing the terminal’s footprint the terminal’s operational to accommodate the airport’s flexibility and efficiencies during growth since 2010, when the peak travel periods and weather terminal was built, and to further events. enhance its world-class passenger experience as per the Airport Master Plan;

PortsToronto | Annual Report 2016 19 Airfield Rehabilitation Program

In 2016, Billy Bishop Airport broke ground on a significant three-year construction project to replace the aging civil and electrical infrastructure (pavement and lighting) for the airport’s runways, taxiways and apron.

In addition to a number of noise-mitigation measures already in effect at Billy Bishop Airport, a new Ground Run-up Enclosure (GRE) was constructed as part of the rehabilitation project and has taken our efforts one significant step further by reducing the acoustic impact from engine run-ups required and regulated as part of standard aircraft maintenance.

The new GRE at Billy Bishop Airport is only the second structure of its kind in Canada and cost approximately $9 million, which was paid for by PortsToronto through the Airport Improvement Fee.

20 PortsToronto | Annual Report 2016 Case Study: Sustainable Design in Airfield Rehabilitation 4,125 Given that some construction activities Other initiatives included: fewer for the airfield rehabilitation must take place during night-time hours trucks when the airport is closed to non • Compressing the construction medivac aircraft traffic, PortsToronto schedule to improve efficiency implemented measures to minimize and reduce construction noise and the impact of construction activities on emissions; local residents, including limitations • Converting existing airfield lighting on construction-vehicle access fixtures to LED, resulting in energy and construction-related noise and savings; lighting. Using a barge to move • Reducing the overall quantity of earthworks required through materials accounted For example, in order to reduce specific pavement design construction-related traffic through strategies; for 4,125 fewer truck the Bathurst Quay Neighbourhood, the majority of equipment and • Reusing materials in the movements via the material to the site was transported construction of new facilities such by tug boat and barge from wharves as airside perimeter roads; neighbourhood’s located at PortsToronto’s Marine • Reusing asphalt millings to offset roadways. Terminal property in the Port Lands total volume of new granular to a purpose-built dock on the east material required; side of the airport. Specifically, the • Constructing a Ground floating barge can carry 900 tonnes Run-up Enclosure (GRE) facility of aggregate material from the Port to reduce noise during aircraft Lands to the airport in one trip, engine maintenance run-ups; and, eliminating the need for 64 dump trucks (32 each way) on the roads in • Public outreach and meetings the neighbourhood. This accounted (regular Community Liaison for 4,125 fewer truck movements Committee meetings, Doors Open via the airport neighbourhood’s Toronto information booth, etc.). roadways during phase 1 of the airfield rehabilitation project. WINNER—2017 ENVIRONMENTAL ACHIEVEMENT AWARD FOR NOISE MITIGATION Billy Bishop Airport won the Airports Council International 2017 Environmental Achievement Award for its Noise Management Program.

PortsToronto | Annual Report 2016 21 Port of Toronto

The port boasts a unique location minutes from Toronto’s downtown and moves goods from countries as far away as Germany, South Korea, China, Brazil, Australia, South America and the United States.

Serving primarily as a bulk cargo from 2015. Stone, aggregate and sand increase in imports housed at the destination, the port boasts a unique cargo levels nearly tripled totalling port. Warehousing remains due to location minutes from Toronto’s 166,207 tonnes, while salt imports the storage of steel rail needed to downtown and moves goods from increased by four per cent. Sugar support upcoming projects for the countries as far away as Germany, imports continued to be strong with Toronto Transit Commission (TTC). South Korea, China, Brazil, Australia, more than 515,000 tonnes of raw sugar The outlook for 2017 remains strong South America and the United States. delivered via the port. In 2016, the port with record construction in Toronto In addition to managing the movement reported operating net income from all expected to continue for the next few of ships through the harbour, sources of $1.2 million, down slightly years. PortsToronto’s 50-acre facility PortsToronto is the owner and operator from the $1.5 million reported in 2015. has more than 225,000 square feet of of Marine Terminals 51 and 52 and the warehouse space and over 30 acres of Cruise Ship Terminal within the Port of Seven passenger cruise ships carrying paved marshalling area. Toronto. more than 2,400 passengers visited PortsToronto’s Cruise Ship Terminal in With its unmatched vistas of downtown The Port of Toronto moved 1,874,035 2016. Two 220-passenger U.S. vessels Toronto and proximity to the city’s metric tonnes of cargo in 2016, made frequent visits to the port in 2016 cultural centre, PortsToronto’s Cruise marking another strong year for —the newly launched MS Victory I Ship Terminal continues to be a popular marine imports into the city and once visited Toronto twice, while MV Pearl filming location for major television again re-affirming the port’s position Mist visited five times. The five-star, dramas and big-screen blockbusters. as a vital part of Toronto’s economic 440-passenger German MS Hamburg In what was another strong year for the infrastructure. will return to Toronto in September and industry in Toronto, filming activity at October 2017. The 2017 cruise season PortsToronto’s properties generated In 2016, 161 ships visited the Port of is expected to be one of the port’s more than $230,000 in revenue in Toronto, bringing sugar, road salt, busiest yet, with 16 ships visiting from 2016—a five-year record. Several cement and aggregate directly into the May through to October, bringing more productions, including Dino Dana, heart of the city. At 1.87 million metric than 5,500 passengers to Toronto. Ransom and Taken, were filmed on tonnes, overall port tonnage was up PortsToronto properties. by close to 14 per cent in 2016 with In 2016, PortsToronto’s efforts to cement cargo reaching a 20-year high diversify and market the construction- at more than 690,000 metric tonnes staging services of Marine Terminals —representing a 17 per cent increase 51 and 52 resulted in a significant

1933 Still to this day marine transport is the most sustainable way of moving bulk cargo, keeping trucks off the highways.

22 PortsToronto | Annual Report 2016 1,874,035 metric tonnes The Port of Toronto moved 1,874,035 metric tonnes 2,400+ of cargo in 2016. Cruise ship passengers visited the Port of Toronto. 515,000 tonnes of raw sugar imported.

240 kilometres

One tonne of freight can travel 240 kilometres on a 20-year high single litre of fuel by ship, for cement imports. whereas it can travel only 30 kilometres on the same amount of fuel by truck. 30 kilometres

PortsToronto | Annual Report 2016 23 Outer Harbour Marina

Located 10 minutes from the downtown core, just outside the Toronto Harbour and a short walk from Tommy Thompson Park, the Outer Harbour Marina provides an idyllic escape from city life, offering breathtaking scenery and a world-class marina — all without having to leave the city.

The Outer Harbour Marina (OHM) is user experience. More than Every recreational boater operating a one of the largest freshwater marinas 91 per cent of those who completed powered vessel within PortsToronto in Ontario, with more than 625 slips, the survey rated the staff at the jurisdiction, which extends from the including inventory of extra-wide slips OHM as excellent or very good and mouth of the Humber River to Victoria that can accommodate boats up to nearly all respondents indicated that Park Avenue, is required to have a 100 feet long — the only docking facility they would recommend the OHM. Powered Vessel Operator’s Permit. of its kind in Toronto. In addition, the Our Powered Vessel Operator’s Permit OHM is the only marina in the GTA with The Outer Harbour Marina continued education program, which includes heated indoor winter boat storage. its steady performance in 2016 with on-water testing, takes place at the operating net income of $1.2 million, Outer Harbour Marina from May The OHM also provides best-in-class matching the financial performance of to September. In 2016, 633 new amenities. When not out on the water, 2015. permits were issued to boaters, boaters and their families enjoy free with 7,429 active permits currently WiFi, access to laundry, as well as a For the seventh year in a row, the Outer held by boaters. spacious BBQ pavilion and picnic area Harbour Marina earned a 5 Green with ample green space. Anchor Gold rating from the Ontario Marine Operators Association—one A survey was conducted at the OHM in of the highest rankings a marina can 2016 to assess customer satisfaction attain for following environmental best and identify opportunities to enhance practices.

24 PortsToronto | Annual Report 2016 91% satisfaction Amenities rating for the OHM. Includes a BBQ pavilion, retail store and its close proximity to Martin Goodman Trail and the Leslie Street Spit.

Heated Boat Storage

The Outer Harbour Marina is the only marina in the GTA to offer indoor heated boat storage.

100%

PortsToronto is bullfrogpowered with 100% green electricity across all operations.

More than 625 extra-wide slips

The Outer Harbour Marina has more than 625 extra-wide slips that can accommodate boats up to 100 feet 5 Anchor Gold long. For the seventh year in a row, the Outer Harbour Marina earned a 5 Green Anchor Gold rating from the Ontario Marine Operators Association.

PortsToronto | Annual Report 2016 25 Real Estate and Property Holdings

The Real Estate and Property Holdings and residential development in Toronto including the repair of aging dock walls division of PortsToronto includes given its optimal location, public transit and warehouse terminals, building ownership and leasing from such access and amenities. “last mile” road and rail access, properties as 60 Harbour Street, improving navigation in areas of the 30 Bay Street, Pier 6 and property at On May 1, 2017, PortsToronto harbour, and supporting our corporate 5 Queens Quay West. It is a priority for announced that it had sold the social responsibility and community PortsToronto to ensure full utilization 30 Bay/60 Harbour property to Oxford investment program. of its properties in an effort to fulfill its Properties Group (Oxford) and Canada federal mandate to manage operations Pension Plan Investment Board Oxford and CPPIB will continue on a self-sustaining basis in order (CPPIB), for $96 million. The property exploring future redevelopment to reinvest funds into marine safety, is classified as “Schedule C” property options to maximize the potential of environmental protection, community in PortsToronto’s Letters Patent, which the site and will provide information programming, and transportation means that it is not federally owned, as it becomes available regarding infrastructure. but rather private property owned future plans for the site. Importantly, by PortsToronto. The Canada Marine the historic Toronto Harbour Throughout 2016 PortsToronto Act stipulates that port authorities, Commission building will be restored continued to work toward developing including PortsToronto, must remain and maintained as part of any future the underutilized 1.82-acre site financially self-sufficient and cannot development on the site ensuring comprising of its 30 Bay and receive public funding from any level of that future generations can enjoy and 60 Harbour properties—a development government. Each port authority has experience the building for years project that was first announced business assets with which to generate to come. in March 2012. The site is home to revenue to fund operations. PortsToronto’s head office and a surface parking lot, but the vision for The property at 30 Bay /60 Harbour is the property is to develop it in line with such an asset. The proceeds from the the City of Toronto’s plan for the South sale of this property will be used to pay Core, a burgeoning area for business down debt and invest in infrastructure

26 PortsToronto | Annual Report 2016 1917 1920 1930

Preserving the past to build our future The historic Toronto Harbour Commission building, which currently serves as headquarters for PortsToronto and is located on the site along with a surface parking lot, will be restored and maintained as part of any future development plan with Oxford Properties Group (Oxford) and Canada Pension Plan Investment Board (CPPIB), who each own a 50 per cent stake.

The Toronto Harbour Commission building is one of the oldest on Toronto’s Waterfront.

Designed by Alfred H. Chapman in 1917 and completed in 1918, the building is a prime example of Beaux-Arts Classicism, an 18th century European style inspired by classical Greek and Roman architecture.

The Toronto Harbour Commission building is constructed of concrete and faced mostly with Indiana limestone. All the Indiana limestone was extracted from a single ledge to ensure the “veining” was the same. Exterior features include Corinthian columns, a sculptural group of figures over the front entrance and embossed copper spandrels on all faces.

The front entranceway is notable for its arched recesses, coffered ceiling and marble walls and floor. The boardroom is finished in its original walnut panelling, with original furnishings. The building was constructed on a pier directly on the water, complete with a boardwalk, railings and a public landing for boats at the bottom of the building’s front steps. Infilling of the north side of the harbour began in the early 1920s, moving the shoreline south of Queens Quay. The building underwent structural renovation in 1975 and an interior redesign in 1989.

The restoration of this building will ensure that the past is preserved for future generations.

PortsToronto | Annual Report 2016 27 Four Pillars PortsToronto has built its organization on four pillars to ensure an efficient, successful and relevant approach to its business and activities. City building, community investment, environmental stewardship and financial sustainability are equally important in ensuring that PortsToronto serves its key stakeholders and continues to play an important role in building a strong and vibrant waterfront that reflects both commercial and community interests.

28 PortsToronto | Annual Report 2016 City Building City Building

When it comes to infrastructure Job Creation Facilitator of Tourism development, municipalities are responsible for more than 60 per cent Billy Bishop Airport is an important and Trade of public infrastructure assets. With international gateway and a key driver The unique downtown locations of 80 per cent of the Canadian population of Toronto’s economy, accounting for Billy Bishop Toronto City Airport residing in urban centres, the need for more than $2.1 billion in economic and the Port of Toronto make them infrastructure investment in cities such output each year and supporting key urban transportation hubs for as Toronto is crucial. Innovative and 6,500 jobs, including 1,960 directly Canadian and international businesses quality infrastructure is an essential associated with airport operations. to gain convenient, cost-effective and asset to cities, attracting capital and Both the Airfield Rehabilitation and environmentally sustainable access to talent to drive future growth. Terminal Upgrade construction the heart of Canada’s business capital. projects will continue to foster job Since its inception in 1911, creation in Toronto for the next several Since its opening in 1939, Billy Bishop PortsToronto has made strategic years. investments in Toronto’s waterfront Airport has become an important international gateway and significant and in developing transportation Canadian ports serve as valuable economic engine for the GTA. infrastructure for the city. As the economic engines with every one According to the InterVISTAS study owner and operator of one of Canada’s million tonnes of new cargo moved updated in 2014, Billy Bishop Airport largest major inland ports and creating 300 new jobs. The Port of generated more than $2.1 billion in Billy Bishop Airport along the Toronto is among Canada’s largest total annual economic output and waterfront, PortsToronto reinvested major inland ports and provides $695 million in gross domestic product $26.6 million in waterfront and a direct link to various major (GDP), with the airport having become transportation infrastructure in 2016 transportation services, including a critical facilitator of the growth of with investments ranging from the marine, rail and major highways. trade and tourism between Toronto and replacement of equipment to the Beyond providing sustainable other North American centres. maintenance and restoration of our employment for terminal workers various facilities. This included the and other jobs directly related to the Through direct and indirect economic rehabilitation of the airfield and the shipping industry, the port supports benefits, the airport continues to construction of the Ground Run-up indirect job creation by providing support Toronto’s key sectors including Enclosure at Billy Bishop Airport. businesses with a convenient, financial services, life sciences, food cost-effective and environmentally and beverage, travel and tourism, and responsible way to bring goods into the film and television industry. The Canada’s largest city. airport also boosts the local economy,

with visitors coming through Billy

Bishop Airport spending approximately

$150 million a year on accommodation, transportation, retail and food and beverage.

$2.1 billion 6,500 jobs

Billy Bishop Airport generates supported by the Billy Bishop Airport; more than $2.1 billion in total including 1,960 of which are directly annual economic output. associated with airport operations.

$695 million

Billy Bishop Airport generates more than $695 million in gross domestic product (GDP).

PortsToronto | Annual Report 2016 29 Community Engagement

Since 2009, PortsToronto has invested more than $9 million in community and environmental initiatives.

For more than a century, PortsToronto has worked with residents and businesses along Toronto’s waterfront on our common goal of helping to keep the water’s edge vibrant. Nine consecutive years of profitability for PortsToronto have allowed us to continue to invest in our priority areas of youth, culture, waterfront, protection of the environment and education, with the ultimate goal of keeping our community strong.

Each year, PortsToronto provides more than $500,000 in donations and sponsorships to local initiatives, activities and events with the goal of promoting healthier, greener and empowered communities.

In 2016, PortsToronto funded 25 community initiatives and organizations, including the following:

• Evergreen Brickworks School Greening Program • Redpath Waterfront Festival • Aloha Toronto (benefiting children with autism) • Set Sail for Hope (benefiting Camp Trillium children living with cancer) • Toronto Taste (benefiting Second Harvest) • Harbourfront Centre • Beaches International Jazz Festival • Ireland Park Foundation • Global Forum • CivicAction

Community Engagement • Moorelands (benefiting youth living in under-served neighbourhoods) • Easter Seals Regatta (benefiting youth with physical disabilities) • Lake Ontario Waterkeeper • Pollution Probe • Youth Boatworks (helping disadvantaged youth learn life skills) • Disabled Sailing Association (benefiting people living with a disability) • Waterfront BIA Icebreakers • Toronto Brigantine (helping to build character in youth through sail training) • Pilots N Paws (benefiting animals in need) • Billy Bishop House Museum • Emily’s House and Philip Aziz Centre for Hospice Care (supporting adults and children living with life-limiting illnesses) • Waterfront Neighbourhood Centre —Room 13 • Make-A-Wish Foundation • Fly for M.S. • Hope Air

Children from the Waterfront Neighbourhood Community Centre participating in a basketball clinic with the Toronto Raptors courtesy of PortsToronto.

30 PortsToronto | Annual Report 2016 Waterfront Neighbourhood Community Connect Garden The community garden is a great asset, utilized not only for the community centre but providing food for the centre’s youth after school. Community Engagement

More than $500,000 provided to charities and community organizations annually. 18 Schools identified and selected for greener playgrounds through Evergreen Canada’s Children’s Program.

2017 WINNER FOR BEST SPECIAL EVENTS Gold Quill Awards from the International Association of Business Communicators (IABC).

PortsToronto’s sixth annual Sail-in Cinema brought more than 10,000 people and 75 boats to the waterfront in 2016 and won the International Association of Business Communicators (IABC) Award of Merit, also known as the Gold Quill Award, for Special Events. Audiences enjoyed three fun-filled evenings of “Books to Big Screen” —themed movies, including Hook, Jumanji and The Princess Bride.

Sail-In Cinema continues to be a way for PortsToronto to give back to the community in which it operates, connect with residents and spread awareness of the role the organization plays in the waterfront community.

PortsToronto | Annual Report 2016 31 Public Outreach and The CLC is composed of key Public Meetings representatives from neighbourhood Meetings residential groups, local businesses in 2016 and stakeholders, including local city As part of our ongoing efforts to councillors. The CLC follows best Community Liaison further engage with the residents and practices of community engagement, Committee businesses surrounding Billy Bishop meets four times per year, and February 24, 2016 Airport, PortsToronto established a explores matters ranging from June 1, 2016 Community Liaison Committee (CLC) managing airport noise to improving September 21, 2016 in 2010. The committee is designed to transportation access. The quarterly November 23, 2016 provide our neighbours with a forum meetings are open to the public and for discussing issues and concerns meeting minutes are taken by a third- Annual General Meeting related to airport development, party consultant, Lura Consulting, and June 14, 2016 operations and activities. It also posted to the PortsToronto website. enables airport management to Public Meetings on Ground Run-up communicate operational activities and You can visit www.portstoronto.com Enclosure information to stakeholders and the to view all Public Outreach meeting June 23, 2016 broader community. minutes and 2016 Public Outreach June 28, 2016 meetings. Community Engagement

32 PortsToronto | Annual Report 2016 Connecting online Our World Interactive Keeping you connected In August 2016, PortsToronto In operating four business units, launched Our World interactive on we are in constant contact with portstoronto.com which highlights our partners, stakeholders and the the connections between its business community, and we pride ourselves units, the community and the rest of on our ability to quickly and efficiently @PortsToronto the world. From the new Billy Bishop connect with anyone who contacts us. @BBishopAirport Airport pedestrian tunnel to dredging operations and the Leslie Street Spit @OHMtoronto In 2016, PortsToronto launched a wetlands creation, Our World provides redeveloped and responsive website, Community Engagement an introduction to these various designed to make it easier for initiatives. In addition, a Port of Toronto visitors, users and stakeholders to map provides an overview of the port access online information quickly and the role it plays in importing goods and on any mobile device. Executive and materials to the heart of Toronto. correspondence, the governance PortsToronto manual, news releases, project BBishopAirport updates and FAQs are regularly OHMtoronto updated to ensure transparency and promote greater awareness of PortsToronto and our activities. The new website also includes a new feedback portal that makes it easier for passengers, residents and stakeholders to contact PortsToronto with their questions, comments and concerns. Additionally, this system provides an opportunity for us to track common concerns and trending topics in order to best address community needs.

PortsToronto | Annual Report 2016 33 REPORTING BACK TO THE COMMUNITY Annual Noise Management Report

In February 2017, PortsToronto released its Annual Noise Management Report, which is a compilation of all noise data and complaints submitted to the airport’s Noise Management Office over the course of 2016. Community Engagement

36 % In 2016, there were 89 36 complaints related Complaints related to the ferry and to engine run-ups, which mainland operations declined by marks a 37 per cent a significant 89 per cent, from reduction from 2015. 26 complaints in 2015 down to three complaints in 2016. 38% Overall noise complaints decreased by 38 per cent, going from 386 complaints in 2015 to 236 complaints in 2016.

34 PortsToronto | Annual Report 2016 Noise Management of the airport have been installed to Two NMTs, located on the Toronto encourage non-vehicular access to the Police Marine Unit building and Operating an airport that is part of a airport to further mitigate the airport’s the airport’s on-island fire hall, thriving, mixed-use urban waterfront noise impact. were upgraded and a third NMT requires effort to ensure that our was installed on the mainland ferry operations stay in balance with the terminal building in 2016. This new neighbourhood, that an effective Vortex NMT enables enhanced tracking of equilibrium is struck between noise generated by aircraft run-ups and the airport’s ferry operation—two commercial and community interests, In 2015, Billy Bishop Airport’s Noise key areas of focus under Billy Bishop and that measures are in place to Management Office implemented Airport’s overall noise management mitigate the airport’s impacts such as Vortex – a customizable tracking and program. The noise data transmitted noise. logging software platform designed

by the NMTs is also viewable through Community Engagement specifically for the needs of an airport Webtrak. Noise Management environment – greatly enhancing how noise complaints are tracked, Office documented and responded to.

Billy Bishop Airport’s Noise Management Office, which was Webtrak significantly enhanced in 2010 with PortsToronto continues to offer free the implementation of a state-of-the- community access to Webtrak, an art Aircraft Flight Tracking and Noise Internet-based software service that Monitoring System, has dedicated enables anyone with a computer, staff in place to collect, analyze and smartphone or tablet to gather respond to noise complaints and information on an aircraft flying monitor daily operations. In addition to overhead. reporting on an annual basis, the Noise Management Office also produces a monthly noise report that is posted to the PortsToronto website. Noise Monitoring WINNER—2017 ENVIRONMENTAL The recent launch of an enhanced Terminals free airport shuttle service that drops ACHIEVEMENT off/picks up passengers outside Noise Monitoring Terminals (NMTs) are the mainland pavilion and provides the foundation of the airport’s noise AWARD FOR NOISE travellers with convenient, reliable monitoring system and provide ongoing MITIGATION transport to the airport has reduced noise-level data to the airport’s Noise car traffic and related noise. In Management Office. This data is then used in long-term noise mitigation Billy Bishop Airport won the addition, redesigned taxi and parking Airports Council International areas and additional bike racks on planning and in responding to noise 2017 Environmental Achievement both the island and the mainland side complaints from the surrounding community. Award for its Noise Management Program.

PortsToronto | Annual Report 2016 35 the airport. Now, with more than • on other routes such as Dan Traffic 90 per cent of passengers choosing Leckie Way and Queen’s Quay to Management to take the convenient, six-minute the east, airport traffic constitutes Rapid condominium development walk through the tunnel, the study approximately 15-35 per cent of and attractions such as the Rogers completed by Dillon confirmed a total traffic. Centre, along with the popularity of notable ease in traffic and passenger the airport, have resulted in increased flow. traffic in the area. Compared with findings from the Bike Racks For its part, Billy Bishop Airport last study completed in April 2015, continues to encourage travellers just prior to the pedestrian tunnel’s Over the past four years, in an to bike, walk, shuttle or take transit opening, the October 2015 study effort to continually reduce vehicle to the airport and has put measures indicated as much as a 75 per cent traffic associated with the airport, in place to encourage this shift. For drop in vehicles queued northbound PortsToronto has incorporated bike example, ease of airport access by along Eireann Quay. Vehicle queues racks on both the island and mainland alternate forms of transportation, decreased from an average of 15-18 side of the airport’s property. With four such as by bicycle and by foot, was cars observed during afternoon peak covered racks on the island, cyclists prominently featured in the award- hours, to no more than five vehicles. can leave their bikes for the duration winning It’s My Airport marketing The study also noted a more even of their trip knowing that they are campaign. distribution of shuttle ridership, secure and safe from the elements. virtually eliminating overcrowded or The Billy Bishop Airport pedestrian empty departing shuttle-runs, and The airport Bike Share station at tunnel is having a positive impact more frequent and gradual turnover the Bathurst Street/Eireann Quay on traffic flow in and around the of taxis. intersection is one of the top 10 airport, according to a research study busiest stations in the city’s network. conducted by Dillon Consulting on The study also indicated that, on Since July 2016, it has generated behalf of PortsToronto. On average, average, 10-16 per cent of all traffic in approximately 90 rides per day, with 40 per cent of travellers observed the surrounding area can be attributed 49 per cent of these rides starting at to Billy Bishop Airport. Specifically:

Community Engagement during the study done in October 2015 the station and 51 per cent ending walked, biked or took transit from the at the station. The City of Toronto is airport. This represents the highest • on Lake Shore Blvd., only 2-4 per currently considering plans to expand percentage of non-single-vehicle cent of traffic can be attributed to the 19-bicycle docking station due to usage for any airport in North America the airport; its popularity. and is a significant component of our • on Bathurst Street north of traffic management strategy. Prior Queen’s Quay, 50-60 per cent of to the tunnel’s opening in July 2015, the traffic is airport -related; passengers arrived at and departed from the airport by ferry in large • in the area to the west, including groups every 15 minutes, causing Stadium Road, 5-8 per cent of surges in traffic demand at the traffic can be attributed to the mainland terminal and along airport; and, Eireann Quay, the entrance road to

36 PortsToronto | Annual Report 2016 Environmental Stewardship

Keeping the Toronto Harbour clean and sustainability were identified as areas protecting the waterfront environment that would be taken into consideration are among PortsToronto’s most during the proposal evaluation stage to important priorities. We recognize determine a suitable contractor. the importance of sustainability The project was awarded to a and employing environmental best contractor offering a solar-powered practices throughout our business and solution, helping prevent an increase to operations. our overall carbon footprint.

In 2016, PortsToronto’s key environmental initiatives included: Warehouse 52

Ten centimetres of insulation were Solar-Powered added to the roof of Warehouse 52 at the Port of Toronto as part of the Saving Intrusion overall roof membrane replacement program. The addition of insulation 46,000 kWh Detection System increases the resistance-value or “R-value” of the roof by 22.5, improving The Warehouse 52 at Billy Bishop overall facility energy efficiency by LED retrofit will reducing heat loss in winter and heat save approximately Airport gain in summer within the warehouse 46,000 kWh and office space of the building. As a commitment to security and In addition, 15 existing 1000w metal annually in sustainability, in 2016 the airport halide rooftop light fixtures have been energy use. Environmental Stewardship issued a request for proposals to replaced with 300w equivalent LED identify a contractor capable of lighting. The LED retrofit will save designing and implementing a security approximately 46,000 kWh annually in solution that would assist in protecting energy use. airfield assets and restricting access. Environmental responsibility and

PortsToronto | Annual Report 2016 37 Monarch Butterfly Garden 4 Bee Hives

700-sqaure foot garden to help PortsToronto worked with Alvéole support their declining population. to install urban hives to support the local bee population. Each Displaced hive contains 10,000 bees in the spring, and grows to more than 14,175 tonnes 50,000 in summer. of C02 Since joining the bullfrogpowered community, PortsToronto has displaced more than

14,175 tonnes of C02.

9.3 Hectares

Habitat was created for a variety of fish and wildlife, as well as more green space for nature lovers to enjoy the great outdoors just Environmental Stewardship Environmental minutes from Toronto’s downtown.

New refill stations

New refill stations enable airport Green Marine passengers to refill their water bottles and the reusable glasses available to The Port of Toronto increased its certification in the them in the lounge—thus eliminating 5-level Green Marine environmental program from the need for plastic water bottles. Level 1 in 2009 to Level 4 in 2015.

38 PortsToronto | Annual Report 2016 In September 2016, the Cell 2 wetland Dredging and was officially completed, providing a Harbour Clean-Up new 9.3 hectare habitat to a variety Wetland Creation of fish and wildlife, as well as more Program and green space for nature lovers to enjoy Every year, thousands of tonnes of the great outdoors just minutes from Hotline sediment buildup in the area where Toronto’s downtown. The third of three the Don River empties into the Keating As part of our commitment to keeping cells, Cell 3, continues to be used for Channel. If not removed, this build- the harbour clean, PortsToronto containment of dredged materials, up could cause the river to back manages a 24/7 Harbour Hotline with approximately 30 to 40 years of up and result in flooding. As such, (416-462-3937) and responds capacity remaining. maintenance of the river mouth is immediately to reports of pollution, imperative to avoid siltation and debris spills and debris in the harbour. In 2016, PortsToronto purchased spilling into the harbour. Through the program, we remove updated dredging and marine spill approximately 150 million pounds response equipment to operate more Each year, PortsToronto removes the (more than 68,000 tonnes) of efficiently and effectively. A spud barge, sediment by way of dredging, which dredgeate, debris and driftwood from one of the pieces of equipment that helps to maintain a navigable river the harbour each year—the equivalent replaced the derrick, was used for depth that allows for the smooth flow weight of about 102 cars’ worth of dredging efforts and the Iron Guppy of water and ice through the Keating material removed every day. tugboat replaced the William Rest, Channel. Annually, PortsToronto which was built in 1961. The tugboat removes approximately 40,000 cubic is now used for flood control dredging, metres of material from the mouth of harbour cleanup, placement of critical Keeping Vehicles the Don River. Marine Exclusion Zone and navigation channel buoys, marine-access ice off Toronto’s Roads Not only does this process help to breaking, ice management for airport prevent flooding and debris from ferry operations, and emergency and Highways entering the harbour, but it also response year-round in Toronto’s Port provides a home to marsh birds, Shipping bulk cargo through the Port and Harbour. turtles, small mammals and native of Toronto helps to reduce traffic fish. In 2007, PortsToronto and the congestion on Toronto’s roads and Environmental Stewardship

Toronto and Region Conservation highways and is a more energy-

Authority (TRCA) completed the Cell 1 efficient way to transport goods. Wetland Creation Project, converting With the expansion of Toronto’s urban the Confined Disposal Facility into landscape, construction materials a seven-hectare coastal wetland. based at the Port of Toronto’s storage

Cell 1 is now home to marsh birds, and staging areas travel shorter including nesting common terns, distances to get to the worksite, cutting turtles, amphibians, small mammals down on construction costs, congestion and native fish. Cell 1 has been very and unnecessary fuel emissions. successful to date with reports of significantly increased fish populations and the return of pike and walleye to the harbour.

PortsToronto | Annual Report 2016 39 PortsToronto’s hives are located on that serve as the butterflies’ primary Harbour Honey one of our buildings in the Port Lands food source along their route. and provide the ideal location for the The world’s bee population is in peril. bees, given the building’s proximity to In spring 2016, students from Voice Habitat loss, pesticide use and new vegetation and water – and probably Integrative School returned to the diseases are taking their toll on the the best view of Toronto possible. The Outer Harbour Marina to visit and pollinators that play an integral role hives were installed in June 2016 and maintain the butterfly garden they in the food chain. For this reason, this the first harvest of honey took place in helped PortsToronto plant in the fall past summer, PortsToronto worked October, yielding more than 700 jars of 2015. Just in time for the monarch with Alvéole to install urban hives to of sweet, delicious amber-coloured butterflies’ spring migration, the support the local bee population. With honey. garden is designed to help support Ontario’s colonies in rapid decline, the their threatened populations. bees need help now more than ever. Maintaining In an effort to help bring back the According to Alvéole, since 2007, up to monarchs, students ranging from 35 per cent of Ontario’s bee colonies Biodiversity by Grade 2 to Grade 4 rolled up their have died annually – a significant sleeves to plant wildflowers and increase compared with historic Protecting the create unique paths throughout losses of 15-20 per cent. In fact, last the garden. Designed by Evergreen year’s losses were reported to be as Monarch Butterfly Canada, the 700-square-foot garden high as 58 per cent. It may come as a features several species of native surprise to some that cities provide a Every year, monarch butterflies plants that provide food and perching thriving environment for bees as there migrate south along the shores of the areas for monarch butterflies and are strict anti-pesticide laws, ample Great Lakes before making their way to other pollinators, as well as an avian untapped floral diversity and largely Mexico for the winter season. However, habitat for the wide variety of birds unused rooftop space. The benefits of the number of monarch butterflies that use the Leslie Street Spit as a urban beekeeping include local honey completing the journey has reached critical stopover point during seasonal and garden pollination throughout the record lows over the past couple of migration. city. years. This is partially due to the loss of native plants, such as milkweed, Environmental Stewardship Environmental

40 PortsToronto | Annual Report 2016 Environmental Stewardship 41 2. Tonnes of CO Renewable Energy Renewable reduces One of the ways PortsToronto is by footprint its environmental energy green choosing 100 per cent 2010, Since Power. Bullfrog from all of its has powered PortsToronto renewable clean, with operations Power. Bullfrog from electricity Bullfrog our agreement, Through inject renewable generators Power’s on the grid back into electricity the amount of match our behalf to used by PortsToronto’s electricity operations. is one of the top PortsToronto of in the country 10 purchasers Power. Bullfrog from energy green Bishop Airport and Billy PortsToronto and airport port authority the only are entirely be powered in Canada to all across electricity by renewable including the and facilities, operations tunnel pedestrian 853-foot airport’s buildings. and connecting PortsToronto | Annual Report 2016 PortsToronto 2,984 1 year. for off the road cars The equivalent of taking of taking The equivalent 14,175 Since joining the bullfrogpowered joining the bullfrogpowered Since has PortsToronto community, than more displaced These six participating schools were were participating schools These six by identified and selected among 18 process a careful through Evergreen including location, based on criteria with curriculum, existing integration of innovativeness and conditions project a naturalization For approach. it is crucial successful, be truly to the opportunity to that schools have monitoring the development, integrate with of the grounds and maintenance classroom. what happens in the the for selected Many of the schools in high-traffic located are program neighbourhoods in the downtown ability is a limited there where core a lack to due nature with connect to that have The projects of greenspace. PortsToronto’s through been supported range this program to contribution asphalt and planting removing from to gardens plants and vegetable native seating and establishing stone creating outdoor enable to shade trees These newly experiences. classroom a wide provide school grounds greened an from for children, of benefits range and an environment learning enhanced positive activity to in physical increase engagement. community

In 2016, PortsToronto entered its entered In 2016, PortsToronto with Evergreen of working year third at six spaces playground “green” to primary and downtown waterfront schools: The schools that received playground greener create funding to Dundas Junior in 2016 were spaces Collegiate Public School, Eastdale Junior Middle Street Second Institute, John Redmond Catholic School, Father Arts School and Regional Secondary St. Louis Catholic School and Centre, School. Elementary St. Mary’s Program signed a three- In 2014, PortsToronto Evergreen in invest to agreement year helping Program, Children’s Canada’s into school grounds turn downtown to where dynamic, outdoor classrooms with and learn reconnect kids can play important, and, most about nature outdoors. in the great Ground Greening Greening Ground Evergreen School Evergreen PortsToronto Sustainability Committee

At PortsToronto, every employee is responsible for acting in an environmentally responsible manner and is required to perform his or her duties with sustainability in mind. In 2016, PortsToronto formed a Sustainability Committee comprising staff from each business unit. The committee meets monthly to share ideas and strategies for sustainability while employing environmental best practices throughout PortsToronto’s business units and operations. Did you know? PortsToronto’s 2016 Sustainability From the implementation of a no-idling policy and eliminating the use of coffee Report won the award for Best pods and plastic water bottles to placing compost and recycling bins in every External publication from the office and moving toward a paperless workplace, many of these ideas were Canadian Public Relations Society generated by members of the Sustainability Committee. (CPRS).

Sustainability AVAILABLE ONLINE Report 2016 PortsToronto.com

PortsToronto has also implemented • Implementing an anti-idling policy 2016 Sustainability a number of initiatives to reduce our for vehicles on all PortsToronto environmental footprint in other areas, properties; Report including: • Updating all runway and taxiway In 2016, PortsToronto released its • Discouraging the use of plastic lighting at the airport to LED to be second annual Sustainability Report water bottles in all offices; more energy efficient; to build upon the strong foundation set out in our inaugural sustainability • Continued use of Safety-Kleen, the • Continuing to choose green report and on a longstanding legacy largest re-refiner of used oil and electricity from Bullfrog Power of environmental stewardship, social provider of parts-cleaning services across all PortsToronto’s responsibility and collaboration with in North America, to collect, businesses; other government agencies and recycle, reuse and/or properly stakeholders to manage Toronto’s dispose of the antifreeze, oil, oil • Creating new green spaces and waterfront. The annual sustainability filters, vehicle batteries and other natural habitats to increase report details the organization’s equipment used to service the Port biodiversity; and, performance on three key priorities of Toronto, harbour operations and associated with its sustainability Billy Bishop Airport; • Investing more than $9 million Environmental Stewardship Environmental efforts – environmental protection, in community and environmental community engagement and economic • Phasing out vessels with two- initiatives since 2009, supporting performance. stroke outboard motors, shifting to such organizations as Evergreen cleaner and more efficient four- Brickworks, Lake Ontario This year, as part of the next steps stroke models; Waterkeeper and Ireland Park identified in its inaugural report, Foundation. PortsToronto worked with the Delphi • Using hybrid vehicles for airport Group to gather baseline metrics on maintenance operations; the ways in which the organization generates and/or reuses waste. • Phased replacement of all PortsToronto will also work with operational vehicles to hybrid Delphi Group to improve its models by 2020; sustainability-related record keeping and data-management practices.

42 PortsToronto | Annual Report 2016 Financial Sustainability

PortsToronto is a financially self- The year 2016 marked PortsToronto’s The Outer Harbour Marina’s operating sufficient government business ninth consecutive year of profitability, income remained at $1.2 million on enterprise that receives no public with operating net income of revenue of $3.9 million in 2016. funding from any level of government. $6.7 million and all four of The marina’s summer berthing This means that no taxpayer dollars PortsToronto’s business units occupancy rate remained at are used to finance the organization’s reporting strong results. approximately 85 per cent in 2016. activities or operations. Revenue is instead generated through Billy Bishop Airport welcomed PortsToronto’s operating ratio—an PortsToronto’s four core business 2.7 million passengers in 2016 and indicator of profitability—decreased operations—Billy Bishop Airport, the generated revenue of $47.4 million, slightly from 1.28 in 2015 to 1.20 in Port of Toronto, the Outer Harbour which included $20.8 million in Airport 2016. This was mainly due to operating Marina and Property and Other. Profits Improvement Fees. This is expected expenses related to the opening of from these businesses are then to moderately increase in 2017, with Billy Bishop Airport’s pedestrian reinvested to continue improving the slightly higher passenger volumes tunnel. However, despite these infrastructure and services that make forecast. expenses, the ratio continues to Toronto a world-class city and a great reflect steady revenues and efficient place to live, work and play. In 2016, 1.87 million tonnes of operations. cargo from around the world was Beyond PortsToronto’s community delivered directly into the heart of PortsToronto’s 2016 audited financial and infrastructure investments, the city through the Port of Toronto. statements were prepared in PortsToronto contributed just under This increased economic activity at accordance with International Financial $3.2 million in Payments in Lieu of the port helps to support the city’s Reporting Standards and were audited Taxes (PILTs) to the City of Toronto. booming construction industry and by Deloitte LLP. Complete financial PortsToronto also paid $3.5 million demonstrates the port’s position as statements and the Auditor’s Report toward realty taxes and more than a vital part of Toronto’s economic are available at www.portstoronto.com. $3.3 million to the federal government infrastructure. The port and its The following information has been for the gross revenue charge. When activities reported revenues of extracted from the audited financial combined with PILTs, this resulted in $6.3 million and operating income statements of the current and prior a total contribution of $10 million that from all sources of $1.2 million, years. can be used to benefit taxpayers in representing slightly lower Toronto and across the country. performance compared with 2015, when operating income was $1.5 million. Financial Sustainability

PortsToronto | Annual Report 2016 43 PortsToronto

STATEMENT OF REVENUE AND EXPENSES (as extracted from the Financial Statements) (in thousand of dollars)

Year ended December 31 2016 2015 2014 2013 2012 REVENUE Port operations $6,319 $6,416 $5,969 $5,740 $6,145 Outer Harbour Marina 3,891 3,596 3,263 3,255 3,025 Billy Bishop Toronto City Airport 47,373 44,763 39,567 39,534 38,720 and net airport improvement fees Property rental and other 1,941 2,074 1,353 1,332 1,206 Investment income 172 272 363 432 482 $59,696 $57,121 $50,515 $50,293 $49,578 EXPENSES Port operations 5,086 4,894 4,814 4,671 4,773 Outer Harbour Marina 2,659 2,378 2,080 1,905 1,748 Billy Bishop Toronto City Airport 30,708 27,023 16,084 18,466 14,669 Property rental and other 1,005 878 832 939 1,053 Corporate services 7,141 6,804 6,410 5,685 5,237 Charge on gross revenue 3,294 2,748 2,425 2,411 2,368 $49,893 $44,725 $32,645 $34,077 $29,848 NET INCOME FROM OPERATIONS BEFORE THE FOLLOWING 9,803 12,396 17,870 16,216 19,730 Payments in respect of land disposition - - - - 1,812 Payments in lieu of taxes (3,249) (6,343) (2,932) (2,866) (2,137) Gain (loss) on interest rate swap 130 (156) (51) 315 207 NET INCOME $6,684 $5,897 $14,887 $13,665 $19,612

44 PortsToronto | Annual Report 2016 2017: A Look Ahead

Host Sail-in Cinema ☐ August 17-19, 2017

CN Tower Photo Exhibit Boat Season ☑ 2017

Ground Run-up Enclosure PortsToronto Photo Outer Harbour Marina ☑ Opening ☑ Exhibit 2017 2017 Boat Launch Ice and Cold Water Host The Great Gulf Doors Open ☑ Sale of 30 Bay Training ☑ 2017 at Billy Bishop Airport Canada 150 Beaver Hat Launch of Southern Ontario ☐ Commemoration Ceremony ☑ Airport Network ☑ Ice and Cold Water PortsToronto 2017 Year-Two of Airfield Rehabilitation Training ☐ ☐ Sustainability Report ☑ Beaver Hat Ceremony ☐ Billy Bishop Airport Master Plan ☑ Marine Safety Day 2017 Cruise Ship Season ☐ opens

Ground Run-up Enclosure PortsToronto team helps clean Ribbon Cutting Little Norway Park as part of Clean Toronto Together.

PortsToronto | Annual Report 2016 45