Massachusetts Port Authority Board Meeting

April 29, 2021

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 Public Session

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 1 Report of the CEO Lisa Wieland

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 2 Massport Goals

We are formulating strategies to:

• Maintain safe, secure and healthy facilities • Enhance the customer experience • Adapt our business model and mitigate financial risks • Embed DE&I into our organizational DNA • Re-establish environmental leadership • Bring about digital transformation • Maintain strong relationships with business partners, stakeholders, elected officials, surrounding communities and employees

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 3 Financial Performance: February FYTD

February Highlights February FYTD

• Logan served 733K passengers in February, as leisure demand was stronger than Revenues $413M anticipated Tenant Relief ($8M) • Logan aircraft landed weights were better than budget due to higher passenger and Expenses ($476M) cargo flight activity Deficit ($71M) • Conley processed fewer containers due to shipping line congestion and ship delays

• Workforce savings and lower Stevedoring • CARES Act funds used to off-set deficit costs from the lower container volume contributed to operating expense savings

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 4 S&P raised its transportation sector outlook, upgrading it to Stable

• S&P revised the outlook on transportation issuers including Airports to Stable from Negative • The improved outlook is based on: o Current “positive trends” as conditions for the transportation sector have improved o “substantial amount of federal grants” • Positive trends are in line with business activity estimates and sustainable demand o Faster GDP growth, lower recession risk, and higher disposable income leading to travel and economic activity (GDP forecast 2021 @ 6.5 %, 2022 @ 3.1%)

o Improving operating metrics across the sector o Improved liquidity due to federal grants providing flexibility for the next 24-36 months

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 5 Q3 FY2021: Massport Charitable Contributions Program

Chartable Contributions Program Q3 FY2021 Awards • The Charitable Contributions Program is a Board • In Q3 FY2021, Massport awarded a total of over voted program that awards grants monthly to local $49K to 11 organizations organizations o 7 organizations predominately serve people of color • Requests are reviewed by an Employee Evaluation o 64% of the total spend was awarded to Committee organizations that serve people of color • Grants of up to $10,000 are awarded to fund programs for youth & education, athletics & recreation, social services, and arts & culture

Commitment to DE&I • Massport set two DE&I goals for the Charitable Contributions Program:

1. Award 40% of the program budget to organizations that serve people of color

2. Award grants to non-profits and community organizations that are run by people of color

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 6 The FAA has agreed to expand eligibility for its sound insulation program

• Based on advocacy from elected officials including Congresswoman Clark, the FAA has extended eligibility of the sound insulation program to include homes insulated prior to 1993

• Massport also sent a supportive letter in January 2020 to the FAA

• Massport is committed to continuing the sound insulation program for all eligible homes including those treated before 1993

• To date, Massport has soundproofed over 11,000 homes, investing a total of about $170 million with 80% federal funding

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 7 Boston Fish Pier tenants received grant funding under the Commonwealth’s Food Security Infrastructure Grant Program

• $500K to pursue infrastructure upgrades to ice machines on the Atlantic Coast Boston Fish Pier that would improve current ice making capacity to Seafood meet the ice quantity needs of the New England fishing fleet

• $490K to build a new processing line and purchase a fish packing machine and an industrial freezing machine in order to adapt to Red’s Best demand disruptions to the seafood industry and prepare fish for distribution to grocery outlets

• $338K to expand new e-commerce operations to increase purchasing with fishing communities in MA, to boost opportunity Wulf’s Fish in food processing, to reduce food insecurity, and to expand nutritional education

• $115K to develop an automatic fish gutting and conveyor system on the deck of the fishing vessel Padre Pio to reduce the amount of F/V Padre Pio time a catch is exposed to ambient temperatures, allowing vessel to catch fish at a higher quality with longer shelf life

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 8 Massport subtenant Blue Atlantic Fabricators selected as 2021 MARAD Small Shipyard Grant Recipient

• Blue Atlantic Fabricators, a Boston Shipyard and Marina tenant, was awarded a $700K grant to perform significant facility and equipment upgrades

• Planned upgrades include:

o State-of-the-art blast cleaning machine

o Environmentally friendly VOC scrubbing paint booth

o Two energy efficient overhead gantry cranes

• These upgrades will grow their position as a premier waterfront marine fabricator

• Blue Atlantic has the potential to play an important role in the emerging off-shore wind supply chain

• Expected to bring long-term jobs to East Boston

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 9 The Biden Administration released a $2T American Jobs Plan that includes transportation and climate infrastructure funding

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 10 Massport Goals

We are formulating strategies to:

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 11 Massport Strategic Priorities 2021-2025

Aviation Maritime Real Estate • Reimagined Customer Journey • Full Global Connectivity & • Asset Optimization and Diversified Service Mix Diversification • Adaptive Terminal E Use • Infrastructure Modernization • Expanding the Massport Model • Terminal Connectivity • Cruise Rebound • Growth and Support of • Diversified Logan Maritime Industries and the Operators/Airfield Land-Use • Financially Self-Sustaining Seafood Cluster Planning • Public Realm and Placemaking • Asset/Area Optimization and Repurposing • ORH Rebound • Hanscom Operating Break-Even Authority-Wide • Safety, Security & Health • Technology Plan • Financial Sustainability • Operational Efficiency • DE&I (Internally and Externally) • Transportation Access and Mobility • Workforce Sustainability • Community Partnerships • Climate Action Plan • Telling our Story Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 12 Massport has a long history of firsts as we work to be a good environmental steward

1979 • Comprehensive Annual Environmental Reporting for Logan Airport – the longest detailed tracking of environmental impacts of any U.S. airport 1980s • Logan Airport Soundproofing Program began – first U.S. airport to do so using FAA funding 1986 • Braintree and Framingham Logan Express launched – one of largest airport-run HOV services among U.S. airports 2001 • Hanscom Field – first U.S. airport to earn ISO 14001 certification for its Environmental Management Systems (EMS) 2003 • Conley Terminal – first U.S. container terminal to implement an EMS and receive ISO 14001 certification 2005 • Terminal A redevelopment – first LEED® Certified airport terminal in the world 2014 • Massport develops Authority-wide Climate Resiliency Program – one of first among U.S. airports 2019 • Royal Dutch Shell installs its first electric vehicle (EV) charging stations in the U.S. at Logan Airport

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 13 Acknowledging our environmental stewardship, the Commonwealth awarded Massport with the 2019 Leading by Example Award

2019 Leading by Example Award • Massport received its second LBE award from the Commonwealth in the State Agency category • This award recognizes Massport for wide-ranging energy efficiency, renewable energy, and sustainable transportation programs across several sites • Some of the specific initiatives recognized include:

o Lighting retrofits to save 1.7M kWh of electricity o The design of a solar canopy at Logan Airport Terminal C o A commitment to procure approximately 200 pieces of electric ground service equipment

o LEED Gold certification for the Terminal B connector o The purchase of hybrid electric vehicles o Installation of electric vehicle charging ports

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 14 Massport continues to support the electrification of airside and landside equipment and vehicles across its airport facilities

eGSE Airside Charging Stations and Conversion Landside EV Charging Stations

• Installed 288 eGSE charging ports • Installed 123 EV charging ports across • Working with airlines to convert over multiple Massport parking facilities 250 GSE to electric • Provided fast charging stations at Logan • Partially funded by state and federal Convenience and Fueling Station, Ride grants with rest from Massport and App, Taxi staging lots airlines • Funded by state grants and Massport and tenant investment Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 15 Massport’s commitment to HOV initiatives aim to decrease traffic and reduce emissions at Logan Airport

• Massport embarked on expanding LEX service to multiple sites around the state including Back Bay station in order to provide a robust HOV option to Logan Airport • We were first airport in the country to initiate ticket-to-skip passes to incentivize HOV use • E-Ticketing for LEX will make it easier and more convenient for passengers and employees to book tickets

• Massport made Silver Line outbound free for passengers to incentivize usage • We continue to work with the MBTA to invest in the Silver Line and expand service in new ways

• Massport converted Logan Airport shuttles to bio-diesel and CNG in order to decrease emissions • We decreased idling times and improved route efficiency to decrease fuel expenditure and emissions • We continue to study the potential electrification of Logan shuttle buses

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 16 Environmental initiatives have also been underway in Maritime

Conley Terminal Soil Reclamation Conley Terminal Clean Truck Rubber-Tired Gantry Crane (RTG) & Reuse Program Program Retrofitting

• Eliminated the transport of urban • Conley Terminal received the • Massport has replaced five fill, oily soil or sediment for offsite national Breathe Easy rubber-tired gantry crane disposal Leadership Award for reducing engines with engines that o Prevented 8,700 truck trips harmful diesel emissions meet Tier 4 pollution controls beyond what is required by o Saved 34,750 gallons of fuel • Massport purchased two new law and promoting clean consumption Tier 4 RTGs as part of its port transportation in the o Eliminated 2.6 short tons of NOx expansion emissions and 391 short tons of Northeast CO2 emissions • Received the 2020 AAPA’s Comprehensive Environmental Management Award of Merit

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 17 Massport created and operates nearly 40 acres of public green spaces in East and South Boston • 37.5 acres of existing urban green spaces

South Boston

East Boston

• Adding 8.1 acres with the development of Piers Park 2 and Piers Park 3

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 18 Massport launched a Net Zero Team in fall 2019 to advance our leadership in environmental stewardship

Cross-Functional Team Some Initial Questions to Consider Impact of COVID-19

The Net Zero Team includes • What is the definition of • In March 2020 as COVID-19 staff from across Massport: Net Zero for Massport? affected Massport • Strategic and Business • What are the policy operations, the Net Zero Planning implications? Team paused its planning and operation, but still • Capital Programs • What investments are continued its research • Aviation required to achieve NET activities Zero targets? • Maritime • What are the operational • In the fall of 2020, the Team • Community Relations implications? reinitiated work to and Government formulate a comprehensive Affairs • What capabilities are Climate Action Plan that required? includes Net Zero • Real Estate • Who are our potential • A&F partners?

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 19 A broader Climate Action Plan that includes a roadmap to Net Zero is a key priority of Massport’s 2025 Strategic Plan

As we define goals and objectives and In addition, we need to evaluate and formulate strategies, we are assessing: consider: • What Massport has today • Complementary frameworks and concepts • Work in progress • Recent and evolving State and Federal • What is needed policies

Climate Action Plan

Sustainability Net Zero Resiliency

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 20 While Massport develops a longer-term Climate Action Plan, we are pursuing near-term opportunities that advance our goals

Advocacy on Sustainable Aviation Fuel Plan elements in progress

• Pursuing federal funding opportunities and Green Bonds • Finalizing Maritime baseline emissions inventory • Conducting Building Conditions Assessment • Establishing eGSE policy for tenants at Logan • Installing remaining landside EV charging stations • Working with Lincoln Properties to pursue LEED Platinum certification • Collaborating with Cape Air to test electric aircraft

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 21 Report of the Director of Aviation Ed Freni

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 22 In March, Logan Airport’s passenger volume reached about 30% of pre-pandemic levels

March 2021 Logan Airport Activity Summary

YoY March 2020 2019

Passengers 1,070,171 -35% -69%

Aircraft Operations 15,600 -46% -55%

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 23 Logan Airport saw strong passenger volumes for the MA and NH school vacation weeks

• Almost 200K weekly passengers for the back-to-back vacation periods • Down about 55% over 2019

Weekly TSA Screened Passengers Since Mid-April 2020 260,000 240,000 220,000 School vacation weeks: 199K 200,000 188K 180,000 160,000 140,000 120,000 100,000 Summer 2020 80,00080,000 60,000 40,000 20,000 0 1/3/2021 2/7/2021 3/7/2021 4/4/2021 5/3/2020 6/7/2020 7/5/2020 8/2/2020 8/9/2020 9/6/2020 1/10/2021 1/17/2021 1/24/2021 1/31/2021 2/14/2021 2/21/2021 2/28/2021 3/14/2021 3/21/2021 3/28/2021 4/11/2021 4/18/2021 4/25/2021 4/19/2020 4/26/2020 5/10/2020 5/17/2020 5/24/2020 5/31/2020 6/14/2020 6/21/2020 6/28/2020 7/12/2020 7/19/2020 7/26/2020 8/16/2020 8/23/2020 8/30/2020 9/13/2020 9/20/2020 9/27/2020 10/4/2020 11/1/2020 11/8/2020 12/6/2020 10/11/2020 10/18/2020 10/25/2020 11/15/2020 11/22/2020 11/29/2020 12/13/2020 12/20/2020 12/27/2020 Actual Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Psgrs: 95,000 203,000 438,000 738,000 702,000 634,000 782,000 755,877 805,000 740,000 733,000 1.07M

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 24 Domestic capacity restoration at Logan lags the national trend as airlines focus on leisure rather than business markets

June 2021 Domestic Seat Capacity Compared to 2019

Total U.S. Airports Logan Airport Average Average 64% JetBlue 78% 85% JetBlue 59%

Delta 82% Delta 72%

American 92% American 77%

Southwest 97% Southwest 66%

United 68% United 39%

0M 10M 20M 30M 40M 0.0M 0.5M 1.0M 1.5M

2021 2019

Note: Based on published schedules as of April. Subject to changes.

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 25 Airlines have made changes to adjust to the rise in domestic leisure travel

Change Fees Are Returning Pilots Coming Back • Delta recalled all of its 1,713 Policy Status idled pilots on April 1 • Delta and United: April 30 • On Sunday, it had to cancel • JetBlue: May 31 100 flights due to a pilot shortage • American: Expired • United is hiring 300 new pilots • Spirit: Expired • Southwest is returning 209 • Frontier: Expired pilots on June 1

Rush to Add Routes Adding Capacity/Upgauging

• U.S. airlines plan to add • On April 26th, JetBlue flew more than 250 new routes its first commercial A220 by Memorial Day flight between Logan and Tampa • Nationally, passenger volume is already up in • The new A220 service was destinations like Colorado, pushed up by two months Key West and Myrtle to meet passenger demand Beach • The A220 has 40% more seats than the E190 it will replace

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 26 Competition at Logan Airport has intensified as top airlines are working to be the dominant carrier for the future

WSJ: Delta and JetBlue have been battling to be biggest in Boston, but American is now expanding, too, making Logan Airport one of the most competitive in the country

Airline Competition at Logan Airport • Boston, Austin, and Raleigh-Durham are among the mini-hubs the major carriers will be fighting over this year, to the benefit of air passengers • Although domestic capacity at Logan still lags the national trend, airlines are working to expand their presence at Logan by adding new destinations • JetBlue and American justify their new alliance as a necessary counterweight to competition from Delta in the Northeast

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 27 Delta is launching service from Logan Airport to Iceland for vaccinated U.S. passengers

Boston to Iceland Service New Flight • Starting on May 20, Delta will add daily service from Logan Airport to Keflavík International Airport in Reykjavík, Iceland

• The flights will be operated in conjunction with Air France-KLM and Virgin Atlantic

New Model • Fully vaccinated Americans traveling with Delta will be exempt from Iceland’s ban on non-essential travel and other restrictions like mandatory testing and quarantines

• “As confidence in travel rises, we hope more countries continue reopening to vaccinated travelers, which mean more opportunities to reconnect customers to the people and places that matter most” – Delta Senior Vice President Joe Esposito

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 28 JetBlue recently received slots at London Heathrow for 2021 service – most desirable UK airport for passengers

New Slots • Daily service could start as early as the week of August 2, when the first slots become available to JetBlue • The remaining slots become available in September/October • JetBlue was also previously provided slots at Gatwick for JFK service and Stansted for Logan service

Service out of Logan • Even though it has secured slots in UK, JetBlue has still not announced a decision on whether it will begin this 2021 service out of JFK, Logan, or both

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 29 JetBlue and American alliance is adding new routes out of Logan for fall 2021/2022, even as it faces new antitrust scrutiny

Service Expansion Antitrust Scrutiny

Destination Date San Antonio (SAT) October 2021 Kansas City (MCI) Q2 2022 Milwaukee (MKE) Q2 2022 Asheville, NC (AVL) Summer 2022 - Seasonal Vancouver (YVR) 2022 • Spirit and Southwest have lodged complaints about the alliance • It was approved previously, but Destination Date now the USDOT and DOJ are evaluating the partnership for Cincinnati (CVG) November 2021 antitrust issues St. Louis (STL) November 2021 • The main concern is that the alliance could lead to higher Toronto (YYZ) November 2021 fares and worse service in NYC and Boston

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 30 Major airlines reported continued losses in Q1 2021, but pointed to optimism in passenger demand and financial future

Q1 2021 Losses Future Outlook

Q1 2021: $1.2B loss – fifth “When I look at the first quarter, what’s been clear to us is that our business has straight quarter of losses made a turn…we’ve seen a huge surge in bookings just over the last couple of months”– CEO Ed Bastian

“While we initially anticipated trends improving during the quarter, we saw a Q1 2021: $347M loss bigger than expected step up in demand for leisure travel beginning in mid- February” – Joanna Geraghty, JetBlue’s President and Chief Operating Officer

Q1 2021: $1.25B loss – “As our world makes daily strides in COVID-19 vaccination efforts, customers are fourth straight quarter of returning to travel and there is no doubt the pace of the recovery is accelerating” losses – President Robert Isom

Q1 2021: $1.36B loss – fifth “We’re encouraged by the strong evidence of pent-up demand for air travel and straight quarter of losses our continued ability to nimbly match it” – CEO Scott Kirby

“While the pandemic is not over, we believe the worst is behind us, in terms of the Q1 2021: $116M profit – severity of the negative impact on travel demand” – CEO Gary Kelly driven by expense relief from PSP funds

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 31 Logan Airport concessions continue to re-open, but adjust schedules in line with flight activity

Open Concession Units

150

83 86 • Hudson Stores reports that travelers are 71 spending more than they did before the 54 pandemic • However, while domestic travel is recovering, international and business travel may not recover for several years dampening a full recovery of airport concession spending • Logan Airport: Passenger spending has shifted to news and gift concessions where Pre-COVID Sep 2020 Jan 2021 Mar 2021 Apr 2021 passengers can pick up quick grab-and-go food and beverage options

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 32 In March, Hanscom Field operations rebounded to near pre-pandemic levels, driven by leisure travel

6-Month Aircraft Operations Highlights

2019 2020 2021 • March operations were 97% of March 12,000 2019 activity 10.0K 10,000 9.7K • Jets were up 9% over March 2019 Operations are still dominated by leisure 8,000 7.5K • travel consistent with the national trend

6,000

4,000

2,000

0 March January October February December November

% Change -9% -8% 3% -5% -25% -3% vs 2019

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 33 Report of the Director of Maritime Mike Meyran

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 34 Big Ship Ready: Conley Terminal’s new cranes departed Shanghai on April 13 (Video)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 35 Big Ship Ready: Integrated Marketing Campaign

Trade Advertising Media Interviews Social/Industry

•AJOT •Boston Globe •JOC •JOC •American •AJOT Shipper •LinkedIn Trade Media Advertising Interviews

Industry Social/Digital Engagements

•TPM •LinkedIn •CONECT •Facebook •Twitter

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 36 The Ever Given container ship blocked the Suez canal for six days, causing disruption for European and Asian supply chains

• Evergreen’s megaship, Ever Given, ran aground on the banks of the Suez Canal near Cairo, Egypt on March 23 o The 224K-metric ton and 400-meter long ship was stuck for six days o The incident occurred in the southern section of the canal where ships must pass through a single narrow waterway • The issue of empty container inventory shortages at foreign ports in China will potentially resurface in the coming months o Delays caused by imposed blank sailings and redirecting of ships following the blockage o U.S. East Coast ports that receive transshipments moved on routes utilizing the Suez Canal are poised to bear the brunt of these issues

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 37 Congestion in North Europe’s major ports is increasing as a result of backlog from Suez Canal causing some delays for Boston cargo

Congestion in North Europe Ports • “The situation in North Europe is critical, mainly at the large ports such as Rotterdam, Southampton, and Felixstowe."

"We expect most services will miss one to two sailings, which will impact available capacity in the second quarter.” – Hapag-Lloyd CEO Rolf Habben Jansen • To mitigate delays, instead of completing a port rotation in Asia or Europe, carriers are considering offloading cargo at major hub ports and turning around early, leaving ships arriving a week later to collect the cargo and carry to its destination port Impact to Conley Terminal • North Europe to Boston service is facing minor delays for now • Some impact to freight volume is expected

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 38 Conley finished March up 4% YOY

After declining in February, Conley volumes were back to trending above the "Most Likely" Forecast in March 2021 MAR 2021 YOY

Monthly Containers – Actual and Forecast Total: 4%  18,000 FY20 Imports: 0% Actuals ̶ 161,171 16,000 Exports: 31% 

FY21 14,000 Actual + Forecast FYTD

12,000 FY21 Total: -13%  Most Likely 133,012 10,000 Imports: -14%  FY21 Budgeted Exports: 7%  8,000 104,000

90-Day Outlook YOY 6,000 APR MAY JUN -17%  -8%  28% 

*April 2021 through June 2021 volumes based on forecasted scenarios. FYTD reflect actuals as of 3.31.21 Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 39 The cruise industry moved to Phase 2A of the CDC Conditional Sail Order

• CDC moved the cruise industry into Phase 2A after 5 months in Phase 1 • Phase 2A continues policy development and requires cruise lines to establish port, medical and housing agreements to be agreed upon by ports and local health • Details on Phase 2B – Phase 4 have not been released • Cruise industry growing frustrated with the slow pace and lack of transparency

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 40 Cruise lines and states are reacting to the CDC’s updated Conditional Sailing Order, which industry finds “largely unworkable”

Cruise Lines Regulatory Battle

• RCCL, Celebrity, NCL finalize plans to relocate • Florida and Alaska, two of the states hardest to the Caribbean to homeport ships, including hit by the current pause in cruising, launched the Gem efforts to resume cruises as the cruise lines and their trade association also called for citizens to • The NCL Gem will now homeport at La Romana write their congressional representatives in (Dominican Republic) support of restarting cruises

• Should the CDC grant NCL’s request to start • Senators Scott, Rubio (Florida) and sailing from the U.S. in July, Alaska, Hawaii and Sullivan (Alaska) introduced the CRUISE Act to Bermuda are the places NCL would prioritize revoke CDCs Conditional Sailing Order by July 4, which was blocked by the Senate

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 41 The CDC sent out a letter indicating that it is “committed” to the resumption of cruise operations in the U.S. by mid-summer

• Cruise ships can sail with 98% crew and 95% passenger vaccination rates

• CDC has shortened review window for test sailings from 60 days to 5 days prior to taking guests

• Vaccinated guests will be allowed to take rapid tests

• Multi-port agreements will be allowed, streamlining the administrative burden that was slowing startup

• Local port and health authorities will be signatories to startup agreements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 42 Strategic Plan

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 43 Technology Plan (Kwang Chen)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 44 Executive Summary

• Over the past several years, Massport has focused on enhancing our IT capabilities to meet the expanding needs of our organization, customers, and business partners • COVID-19 and other circumstances rapidly changed our operating and business environment, leading Massport to re-assess our approach and focus around technology • We are in the process of developing an Authority-wide Technology Plan that supports Massport's 2021-2025 goals and priorities • Massport’s Technology Plan is based on three main pillars: o Core IT Infrastructure o Business Optimization o Innovation/New Technologies • As we pursue enhancements in these areas, Massport expects to generate cross- functional efficiencies and savings, address the IT needs of a new operating environment, and meet the evolving expectations of our passengers and business partners

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 45 Massport's Technology Plan will support multiple Authority- Wide goals

We are formulating strategies to:

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 46 Massport 2025 Strategic Priorities: Technology Plan is included as key initiative and is critical to achieving other priorities

Change Management

Innovation/ Business Optimization New Technologies

Leveraging technology and Evaluating emerging process improvement to technologies with the potential increase operational to support ever- efficiency changing business needs Technology Plan Technology

Core IT Infrastructure Ensuring our technology foundation supports current and future IT, operating, and business requirements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 48 Technology Plan Framework

Change Management

Innovation/ Business Optimization New Technologies

Core IT Infrastructure Ensuring our technology foundation supports current and future IT, operating, and business requirements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 49 Massport's Core IT Infrastructure is built to support Authority- wide operations and business needs

Sampling of Core IT Infrastructure includes:

Commodity Technologies Business Specific Technologies

• VMWare for server virtualization • Tideworks for Maritime TOS

• EMC for Storage • Ascent for Terminal Gate Control • CheckPoint Firewalls • SITA for Kiosks • MS Office products for productivity • Four Winds for content • Extreme networking equipment management

• PeopleSoft for Financial Systems • HID for Access Control

• Neogov for HR Information Systems • Avigilon for Video

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 50 Current Focus: Core IT Infrastructure

Goal: Build out and adapt our Core IT Infrastructure in multiple areas so that the Authority is capable of supporting existing operations and future growth

Current Focus Areas Strategy Initiative Disaster Recovery • Build multiple external entry • Boost connectivity at our off-site data points center

Redundancy and • Build a more agile network • Move more services into the cloud Resiliency with increased capacity • Continue to advance network capacity

Cybersecurity • Shifting from • Update and implement an an "if" mindset to a "when" appropriate Incident Response Plan mindset • Build-out an Authority- wide business continuity plan for when systems are not available

COVID-19 • Align tools with the Future of • Test and implement new remote IT Tools Work working tools and shift to more mobile technology and applications

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 51 Technology Plan Framework

Change Management

Innovation/ Business Optimization New Technologies

Core IT Infrastructure Ensuring our technology foundation supports current and future IT, operating, and business requirements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 52 Back-office functions are spread across disparate systems, creating inefficiencies in performing daily business activities

Massport Data Systems

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 53 Massport identified opportunities to use digital solutions to optimize operational efficiency and improve business outcomes

Systems Integration/Consolidation: Disparate systems handling many back-office functions within IT, with limited interfaces between systems Process Improvement – Numerous manual data entry processes were identified that diminish staff capacity and operational efficiency, and ultimately increase costs Data Visualization: Opportunity to increase data driven-decision making through the utilization of Business Intelligence (BI) tools

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 54 Current Focus: Business Optimization

Goal: Implement data management and process improvement solutions to enhance decision- making, increase Authority-wide operational efficiency, and produce savings

Current Focus Areas Strategies Initiatives Systems • Reduce the number of systems we • Perform a gap analysis to Consolidation currently utilize identify potential to consolidate Systems Integration • Continue to integrate systems that • Asset Management System we cannot consolidate • Diversity Compliance System

Process Improvement • Increase efficiencies and reduce • Accounts Payable costs by leveraging existing systems’ Digitization functionality or implementing new • Purchase technologies Order Improvement • Advancing e-billing • Increase utilization of Asset Management System Data Visualization • Increase data-driven decision • Champion projects to making highlight business benefits • Data Warehouse

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 55 Example Case: By digitizing invoice processing, IT has increased efficiency and decreased work time, creating savings

Process Improvement Initial Benefits from IT Pilot • Streamlining the workflow and using PeopleSoft to digitize the invoice payment process results in: o 50% reduction in invoice payment and approval time o 10-minute reduction in work time required to approve an invoice

Potential Future Impact • On average Massport processes 2,900 invoices a month o Applying similar approach across departments could result in ~480 hours of savings per month

• Massport plans to identify step reduction and digital transformation across all departments in the Authority, after completing deployment in IT and A&F

• Phase 2 will comprise the remaining LOC departments (anticipated completion is May 26)

• Phase 3 will include Aviation and Maritime

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 56 Example Case: By converting aviation data into dynamic dashboards, GTU can more efficiently deploy Logan shuttle buses

Smart Bus Deployment Dashboards New Approach and Benefits TSA Checkpoint Counts • GTU has already modified Logan shuttle bus service to meet changes in demand during the pandemic based on current passenger data • In the future, GTU can use multiple sources of data such as current and future flight schedules and historical TSA passenger data to help predict passenger demand for Logan shuttle bus Flight Schedule service, in particular during peak days/times • GTU can then more proactively shift shuttle bus resources to meet this demand Potential Future Impact • Savings in fuel and maintenance costs from avoiding running shuttle buses that are empty Shuttle Bus Ridership or near empty • Benefits to environment from more efficient bus usage

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 57 Technology Plan Framework

Change Management

Innovation/ Business Optimization New Technologies

Core IT Infrastructure Ensuring our technology foundation supports current and future IT, operating, and business requirements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 58 Current Focus: Innovation/New Technologies

Goal: Enhance the customer experience and decrease travel anxiety while increasing operational efficiency using new innovative technologies

Current Focus Areas Strategies Initiatives

Contactless Passenger • Minimize touchpoints at the airport • Virtual PSR and Touchless Journey Technologies

Less Stressful Travel • Give customers the information • Provide wait times Experience necessary to reduce uncertainties and • Manage Flows make decisions tailored to their needs • Parking Reservations • E-ticketing

Experiment with Digital • Deploy assets more efficiently to provide • Digital Twin Tools to optimize: re-imagined service • CrowdVision Passenger Experience

Easy Access to Digital • Encourage utilization of technologies by • FlyLogan APP Features making it easily accessible • Shift website to a more transactional platform

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 59 Example Case: Massport will roll out a FlyLogan App to make the passenger journey less stressful and more convenient

Phase 1 Features Phase 2 Features

• Profile; Custom Flight Info; • Logan Express E-Ticketing Announcement/Updates • Loyalty Program • Parking Reservations • Reserve Your Spot In Line • Food Ordering and (Virtual Queuing) * Purchasing • Wayfinding * • Virtual PSR • Wait times * • Enhanced Wi-Fi

* Pending results of pilots For illustrative purposes only

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 60 The FlyLogan App will enable passengers to connect with PSRs both contactlessly and on-demand

Passenger Experience • Provide our passengers the opportunity to interact with our Customer Service Staff in a safe and touchless way • This has been piloted by airlines with success and is a type of digital feature customers have demanded across industries during the pandemic Operational Efficiency • Interaction through Multiple channels

o Kiosk o Website o Mobile Device • Allows our staff the ability to cover multiple physical locations without the need to leave the safety of their office

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 61 The FlyLogan App will enable passengers to book LEX tickets seamlessly and reserve parking

Passenger Experience

• Logan Express E-ticketing: App allows user to see service schedules and purchase tickets online

• Parking reservations: App allows passengers to perform all transactions with their mobile device

o Reserve parking spots

o Check on parking status

o Pay for parking

o Parking spot location reminder (exploring)

For illustrative purposes only

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 62 Virtual Queuing offers the potential for passengers to reserve a spot in the security line and other locations

Passenger Experience

• Provides a virtual queuing opportunity for passengers that promotes social distancing and provides an alternative to standing in long security lines

• Allows the passenger to put themselves in a queue without the need to stand in line

• Passengers can schedule an appointment by scanning a QR code during operational times (pictured)

Location and Activity

• Terminal B, Pier B, American Airlines

• About 93 users a day currently

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 63 Potential Predictive Analytics could enable passengers to navigate the airport more easily, expediently, and safely

Passenger Experience

• Uses Lidar sensors to detect people in motion

• Software algorithms built into the product takes advantage of movement detection to provide several benefits:

• Wait times at checkpoints and concessions

• Predictive analytics to identify future congestion areas

• Measures throughput rates to help with operational planning

• Able to identify social distancing alarms if needed

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 64 Technology Plan Framework

Change Management

Innovation/ Business Optimization New Technologies

Core IT Infrastructure Ensuring our technology foundation supports current and future IT, operating, and business requirements

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 65 Current Focus: Change Management

Goal: Initiate steps to communicate, teach, and prepare Massport staff for the new operating environment brought about by these new IT tools and corresponding business processes and activities while strengthening adoption and buy-in

Preparing for Change Managing Change Reinforcing Change Awareness Training/Knowledge Feedback • Present full technology plan • Lead training and learning • Actively solicit and analyze across departments, working sessions on new tools and staff feedback from trainings with key staff business processes, focusing on and early adoption key users and stakeholders Communication • Adjust program as needed, Action/Implementation focusing in particular on staff • Illustrate necessity, rationale, needs and requests and benefits of new changes for • Assign trainers, point-of- Massport and its customers contacts, and troubleshooters Continuous Engagement • Demonstrate how new changes • Use LMS for repeatable and • Continue to provide learning will affect staff members’ work expanded learning opportunities refreshers over time as well as new knowledge on tools and o Build momentum/buy-in processes o Address concerns

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 66 Next Steps

• Incorporate Board feedback into existing initiatives and development of overall Technology Plan

• Continue with implementation of current focus areas and measure results

• Identify additional opportunities and technology needs to meet Massport 2025 goals and objectives

• Assess operating and capital resource requirements

• Continuously assess and update Technology Plan to meet evolving business needs

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 67 Safety and Security

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 68 COVID-19 Update (Hank Shaw)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 69 CDC issues new domestic air travel guidelines for vaccinated individuals; international rules remain unchanged

Domestic Travel International Travel • Fully vaccinated travelers do not need to get • Vaccinated Americans traveling internationally are tested before or after travel, unless their required to have a negative COVID-19 test before destination requires it boarding a flight back to the U.S. • Fully vaccinated travelers do not need to self- • They should also get tested again three to five days quarantine after their return home • Fully vaccinated travelers should still follow CDC’s • The recommendation is predicated on the idea that recommendations for traveling safely including: vaccinated people may still become infected with the o Wear a mask over your nose and mouth virus o Stay 6 feet from others and avoid crowds • Numerous destination countries still have their own o Wash your hands often or use hand sanitizer travel restrictions in place that must be followed • Some states and local governments can still choose • This new guidance does not apply to foreigners to keep travel restrictions in place entering the U.S. from countries with a travel ban

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 70 The State Department updated its travel advisories to more closely align with CDC travel health notices

The State Department considers 141 countries • 80% of countries deemed Level 4: Do Not Travel and territories to be a Level 4 risk • The CDC considers existing epidemiological assessments of a country while the State Department considers logistical factors, including in-country testing availability and current travel restrictions for U.S. citizens

• The State Department noted that the COVID-19 pandemic continues to pose unprecedented risks to travelers

• The CDC currently recommends delaying international travel until an individual is fully vaccinated

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 71 European Commission President announced that the EU is set to allow vaccinated U.S. tourists visit this summer

• Since March 2020, the E.U. has banned nonessential travel to Europe for Americans • As the U.S. transitions from being among the countries hardest hit by the pandemic to one at the forefront of global vaccine rollout, travel restrictions may finally change • “The Americans, as far as I can see, use European Medicines Agency-approved vaccines,” said Ursula von der Leyen, president of the European Commission. o “This will enable free movement and the travel to the European Union.” o “Because one thing is clear: All 27 member states will accept, unconditionally, all those who are vaccinated with vaccines that are approved by E.M.A.” • No timeline was given for the lifting of restrictions, nor how proof of vaccination will be required • Member E.U. states reserve the right to impose stricter travel guidelines on visitors, including quarantine and testing requirements, even for fully vaccinated individuals

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 72 The CDC, Massachusetts, and City of Boston have released updated COVID-19 guidance CDC Potential Implications for Massport • Easing outdoor mask guidance for the vaccinated • No change to face mask requirements within our • Still required on planes, buses, trains, and other facilities forms of public transportation including • Guidance across state and city is consistent for parks; transportation hubs such as airports no masks required if social distancing possible • Subject to change based on public health data Massachusetts • Relaxing the Face Covering Order effective April 30 • Large venues permitted to 25% capacity on May 10 • Gathering limits increased; allowance for street festivals and bar openings on May 29 • All industry restrictions and capacity limitations are expected to be lifted on August 1

City of Boston • Aligned with the state to lift outdoor mask mandate and increase capacity at large venues • Will move into a modified re-opening plan; will delay by three weeks the lifting of restrictions and capacity limits to June 1 and June 19 • On August 22, all restrictions are expected to be lifted

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 73 Training Update (Hank Shaw)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 74 Security Training Update

Massport employees are our first line of defense, so we continue to reinforce protocols by updating policies and conducting training Protected Information Program • Updated the Protected Information Policy, including information on working remotely and common cyber related issues • Developed a mandatory “in-house” training based on the new policy that explains how to properly handle, mark, store, and destroy Protected information Active Shooter Preparedness • In light of recent events across the country, Massport reinitiated active shooter training • Employees were required to watch our custom active shooter video and we shared the video with the greater airport community Updated Bomb Response Protocol • Airports have seen a spike in hoax bomb threats, therefore, Massport updated its Guidance and Response Protocols and Checklists, and disseminated it to the workforce

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 75 Community Outreach

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 76 Massport CAC Update (Alaina Coppola)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 77 MIT provided RNAV Study update at the April 8 Massport CAC General Meeting

• 5 procedures being evaluated as part of Block 2 • Communities and stakeholders will have the opportunity to provide input in coming months • Based on this input, MIT will issue a final report to be presented to the CAC (prior to being sent to Massport and the FAA)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 78 Facilities and Construction

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 79 Terminal C Optimization and Terminal C to Terminal B Connector Logan International Airport (Luciana Burdi)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 80 Project Scope / Conditions of Satisfaction

Project Scope:

• Project Purpose: Post security connection from Terminal C, • Passenger Experience Gate C25 to Terminal B, Gate B38 o Continuity of passenger experience and built form • Total Project Cost: $218,000,000 between Terminals B and C

• Status: Construction 75% complete o Passenger throughput is better than existing • CM@R: Suffolk Construction o Maximize exposure and sightlines to emplaning passengers • Architect: Fennick McCredie (WBE) • Efficiency in project delivery • Connector Temporary Certificate of Occupancy: July 15, 2022 o High level of design coordination (BIM/VDC) o Integrated approach between design and Technologies Implemented: construction (BIM/VDC)

• View© Electrochromic o Architecturally cohesive on interior and exterior Glazing for passenger • Project achieves LEED Silver certification comfort • Info Bars with interactive • Seamless coordination with Canopy, Roadways, passenger information Terminal B, and JetBlue interface • Flexibility in tenant fit-out space • Toosh Lighting Technology in restrooms o Adequate support/storage space and access for concessions (15-25% target depending on use)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 81 Program & Milestones

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 82 Strategic Priorities

Environmental Benefit • Building energy modeling to optimize energy performance • Advanced energy metering • Three new eGSE dial charging stations • View Glass® dynamic glazing in curtain walls – estimated overall HVAC energy consumption/cost savings attributable to dynamic glazing is up to 18% annually

M/WBE Reaching Projections Process Improvement Efforts • LEAN Design & Construction: LPS, A3s M/WBE Projected Participation 45% • BIM/VDC: Design & Construction Coordination 39.3% 40% 35% 30% 25% 20% 15% 10% 6.3% 5% 0% Design Construction

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 83 Rehabilitation of Runway 14-32, Taxiways J/J1 and Other Airfield Improvements Logan International Airport (Luciana Burdi)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 84 Logan Airport Airfield Rehabilitation and Improvements

Project Need • Based on an Airport Pavement Management System update completed by Applied Research Associates (ARA), Runway 14-32 and Taxiways J/J1 were deemed in need of rehabilitation Funding • Massport anticipates the FAA to provide 75% reimbursement for eligible items • The DBE requirement for this project is set at 16% Project Timeline • The project is anticipated to commence July 2021 and take approximately 25 days to complete Environmental Sustainability • The project will replace existing lighting with energy-efficient LED lighting and all materials removed will be recycled

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 85 Audit and Finance

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 86 FY20 Uniform Guidance Audit of Federal Awards and Passenger Facility Charges (John Pranckevicius)

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 87 FY20 Audit of Federal Awards & Passenger Facility Charges (PFCs)

1. Ernst & Young (EY) audit opinion states that Massport was in compliance with all Federal requirements 2. Federal Grants: Received $84.0M ($55.6M above last year) • $59.9M from Federal CARES Act • $21.0M from FAA Airport Improvement Program o Logan Runway 9/27 Rehabilitation ($11M), Logan Resurface North Cargo Apron ($4M), Logan GSE Electrification at all terminals ($4M) • $2.4M from U.S. Department of Homeland Security o FEMA ($1.7M) o Port Security ($0.7M) • $0.7M from U.S. DOT Maritime Administration o Conley Terminal Berth 11 & 12 Rehab ($0.3M) o Tractor Replacement ($0.3M) 3. Passenger Facility Charges: Collected $73.5M ($12M less than last year) • $70.6M of PFC funds expended during the year o $50.2M to pay for projects in the Capital Program o $20.4M for Debt Service primarily related to Logan Terminal A

Visual Materials for Massachusetts Port Authority Board Meeting April 29, 2021 88