Massachusetts Port Authority Board Meeting - November 19, 2020 Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020 ...
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Massachusetts Port Authority
Board Meeting
November 19, 2020
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Chairman’s Comments
1
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Sam Sleiman is departing after over 27 years of service dedicated
to building the modern Massport we see today
• Sam came to Massport in 1993 as the Authority began our $4.4B Logan
modernization effort and has not stopped in reshaping facilities and
infrastructure across all of Massport
• Sam has been instrumental in completing some of the largest capital
projects in the Commonwealth and region and leading edge, first in the
nation innovations while also contributing heavily to the internal
management, professional development, and culture at Massport
Sam’s and his team’s accomplishments include:
Airports Maritime East and South Boston
• Building of Terminal A (Nation’s First LEED • Conley Terminal Expansion and • Pier Park
Certified Terminal) Renovation
• Butler Park
• Central Garage and CONRAC • New Berth 10
• SBWTC Project
• New TSA and CBP Infrastructure and Innovations • New Cranes
Terminal E Modernization and A380 Gates • Bremen St‐Dog Park
• Cruise Terminal Renovation
• Framingham LEX Garage • South Boston Dog Park
• Conley Terminal Dedicated
• Worcester Regional Airport Renewal Freight Corridor • Neptune Road Buffer Park
• Hanscom Field Projects • Omni/Summer Street
Project
• Terminal B Modernization
• Logan Forward Projects
• Award Winning Resiliency, Sustainability, and
Environmental Planning and Infrastructure
2
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
The Sam Sleiman effect…
Before (1990s) After (Today)
3
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
As seen all around us…
Airports Maritime East and South Boston
4
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Kenn Turner is departing after over 7 years committed to
enhancing and expanding DE&I across Massport
• Since arriving at Massport in 2013, Kenn has
focused on both expanding DE&I goals and actions
in each business line’s work while celebrating and
promoting DE&I internally among all Massport
employees
• Kenn has also served as a champion supporting and
promoting the importance and implementation of
diversity efforts on a state, local, and national level
• Kenn’s and his team’s accomplishments include:
o The Massport Model (nationally recognized,
awarded, and adopted) in CRE
o Diversifying Procurement
o Celebrating Heritage: Black, Hispanic, LGBTQ Months
o Enhancing Compliance Processes and Procedures
o Building Massport’s MWBE Supplier Program
o Helping Educate MWBEs on How to Apply for
Contracts
o Advocating for CRE and MWBE DE&I policies on the
local and state level
o And much more
5
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
The Kenn Turner effect…
Massport Model Celebrating DE&I Advocacy and Support
6
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Public Session
7
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Financial Sustainability Workforce Plan
(Lisa Wieland)
8
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020
Since August Logan passenger activity has been trending below
the Worst Case
Logan Passengers: Actual, Forecast and Short‐term Outlook
4.2 M FY19 Actual
42M
3.6 M
FY20/FY21 Actual Optimistic
3.0 M
22M
2.4 M
1.8 M Worst
Case
13M
1.2 M
0.6 M
Estimated Nov & Dec
0.0 M
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
FY20 FY21
9
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport’s revised Logan forecast is lower than the FY21 Worst
Case and we expect a recovery of only 50‐67% by FY23
Forecast Logan Passengers FY21 (Revised), FY22 and FY 23
2019 Actual 2020 Actual High Low
4,500,000
4,000,000
FY23
3,500,000 28.3 M
3,000,000
2,500,000 FY22
21.2 M
17.6 M
2,000,000 FY21
1,500,000 10.4 M 12.5 M
1,000,000
7.8 M
500,000
0
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
FY21 FY22 FY23
10
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport is facing an unprecedented $400 million financial
challenge
REVISED
Budget Preliminary Financial Forecast
Cumulative
FY 2021 FY 2021 FY 2022 FY 2023
Forecast Logan
12.8 M 7.8 M 12.5 M 21.2 M
Passengers
$ 600 M Revenue $ 540 M $ 600 M $ 687 M
Tenant Relief ($ 66 M) ($ 23 M) ($ 10 M)
$ 113 M Cares Act $ 113 M $0M $0M
($ 713 M) Expense ($ 713 M) ($ 718 M) ($ 810 M)
$0M Financial Gap ($ 126 M) ($ 141 M) ($ 133 M) = ($ 400 M)
11
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020All options are on the table to solve this financial challenge
Revenues Expenses Capital Budget
• New fees • Activity based • Debt restructurings
adjustments
• Adjustments to existing • Maintenance Reserve
fees • Restructuring and requirement changes
workforce reductions
• Variable pricing to • Deferral of additional
optimize revenues • Deferral of payments projects
• Real Estate • Others • Additional professional
development options fee reductions
• Others • Others
Technology & Innovation
12
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Four approaches to workforce restructuring will help solve
Massport’s financial sustainability challenge
Approach 1: Voluntary Retirement Incentive Program for Union Employees
Approach 2: Voluntary Separation Program for Administrative Employees
Approach 3: Involuntary Separation Program
Approach 4: Furlough Program
13
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Report of the CEO
Lisa Wieland
14
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
15
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020COVID cases on the rise nationally and locally
National
• Over 11 million infected in U.S.
• Over 166k daily new cases
• Multiple states recording daily highs
• New CDC definition of close‐contact (15 min
of cumulative contact within 24hr period)
Massachusetts
• 7‐day positivity rate rose to 3.25% Massport Response
• Cases up nearly 50% from 2 weeks ago • Alternative work schedules for operational units
where appropriate
• Averaging +1785 daily cases in the last week
• Reviewing PPE inventory and acquiring needed
Massport Trends Mirror State PPE
• October ‐ highest monthly testing total • Internal contact tracing ongoing
• Number of quarantined employees rising • Contact tracing indicates a majority of MPA
o Doctors are requiring people quarantine for 14 days positives/exposures originate outside of MPA
even with a negative test result
o Family related exposures on rise
16
DOI: Nov 16, 2020
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Governor Baker orders additional measures to combat COVID‐19
spread
• Revised Stay‐at‐Home Advisory Effective on Nov. 6
• Residents advised to stay home from 10:00pm ‐
5:00am
• Exceptions for work, critical errands, taking a walk
• Certain businesses and activities must close from
9:30pm to 5:00am. Some include:
• Restaurants (No impact to BOS concessions)
• Indoor and outdoor events (implemented winter hours at
parks early; stepped up enforcement for crowd size)
• Flight schools (No impact to MPA schools)
• Face coverings required for all persons in public • As of today: Only 4 states remain in
places, even when 6 feet of social distancing is Lower‐Risk category
possible
17
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan Airport’s COVID‐19 testing facility is now open in
Terminal E
XpresCheck began COVID‐19 testing on October 28
• Testing underway in preparation for Thanksgiving Holiday
travel period
• Overall reaction is positive and XpresCheck working to
increase traffic through signage and wayfinding
• Potential exists for expansion to other areas of Logan
along with partnering directly with airlines
• “We are thrilled to be opening XpresCheck today at Logan
International Airport, which is our first testing facility
outside of the New York metro area, and third to date” –
Doug Satzman, XpresSpa CEO
• “Having easy access to a testing site at the airport will
continue to provide a further sense of security for those
who travel through Boston Logan now or in the future” –
Paul McGinn, President of MarketPlace Development
18
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Safe Travel Technologies: Logan Airport has been ranked as one
of the nation’s safest airports for COVID‐19
Safe Travel Score
• Safe Travel Technologies compiles a Safe Travel
Score for the top airlines and airports around
the world
• Logan Airport rated highest at 4.3 out of 5.0
based on COVID‐19 safety protocols, traveler
convenience, and traveler experience, including
testing, cleaning, fast track security, and
restaurant openings, among others
• In August, Massport became the first airport in
North American to receive Airports Council
International’s (ACI) Health Accreditation
19
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Oneworld, Star Alliance, and SkyTeam announced that testing
could be part of an overall approach to restart international travel
Technology
Digital Health Pass
• The alliances cited recent tests of the CommonPass
digital health pass as a way to restart international
travel
• The Common Project and World Economic Forum
created the smartphone app, CommonPass, to assess
whether a traveler meets a country’s health screening
requirements
o Travelers upload their test results, health declarations,
and vaccination records to the app
• The platform was recently tested on a United Airlines
flight from London to Newark and a Cathay Pacific flight
between Hong Kong and Singapore
20
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport is collaborating with Harvard’s Aviation Public Health
Initiative on its study of COVID‐19 impact to aviation
The Aviation Public Health Initiative is a joint program of the Harvard T.H. Chan School
of Public Health and the Harvard Kennedy School of Government
APHI Study
• APHI is working with A4A, ACI‐NA, aircraft
manufacturers, airport operators, government
agencies, and others to study how aviation
industry and science can work productively
together to surmount COVID‐19 and its
challenges
• Logan Airport is working with APHI on sharing
information and data on the airport passenger
journey
• This study is being done in two phases:
o Phase 1: The Gate‐to‐Gate journey focused on
aircraft (Just released)
o Phase 2: The Curb‐to‐Curb journey focused on
airports, scheduled for release in early 2021
21
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
22
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The Federal Reserve’s October Beige Book reported a slow
regional recovery
The Beige Book is seen as a local barometer of business activity at present and
heading into the future in the markets that Massport is active in
Manufacturing and Related Commercial and Residential
Retail and Tourism
Services Real Estate
• “Retail respondents continued • “Five of six firms responding • “Industrial and lab space
to report major disruptions this cycle reported sales markets in the First District
related to COVID‐19, though growth from a year ago” continued to do well, while
several retailers cited strong • “Outlooks were generally retail and office continued to
recoveries through the positive among manufacturing struggle”
summer and into fall” respondents”
• “Lab space continued to be in
• “Restaurants staying open • “No contacts reported high demand, so investment in
reported difficulty sourcing significant revisions to capital these types of buildings hasn’t
winterized tents and propane spending plans” slowed”
heating units to continue
serving outside” • “Movement from urban areas
to suburban and rural
locations, with work from‐
home arrangements becoming
longer term”
23
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Major conventions and events are being rescheduled due to
COVID‐19, severely impacting local travel and hospitality industry
Postponed events and conventions represent millions of forgone passengers trips and
local spending
Conventions Events
• 2021 Seafood Expo North America • Boston Marathon
• New England International Auto • Head of the Charles
Show
• University Student Travel
• RV and Camping Expo
• PAX East Gaming Conference • Parents Visiting Weekends
• Spring and Winter Break
24
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The International Air Transport Association (IATA) has selected
Boston as the location for its 77th Annual General Meeting
IATA is an international industry group that focuses on inter‐airline cooperation in
promoting safe, reliable, secure and economical air services for the benefit of the
world's consumers
IATA Annual General Meeting
• The IATA Annual General Meeting and
World Air Transport Summit is the
world's largest gathering of airline
leaders
• The conference typically brings
together over 1000 industry leaders
that includes 300 worldwide airline
CEOs to discuss and analyze the air
transport industry
• The Conference is currently scheduled
for June 2021 in Boston but may be
postponed to fall 2021 depending on
COVID‐19 pandemic
25
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The Worcester Regional Airport 11‐29 Runway Rehabilitation
Project was completed at the end of October
Runway Map
Runway Rehabilitation Project
• Massport continues to invest in critical
infrastructure projects at Worcester
Regional Airport to position it for a strong
rebound when air travel resumes
• Massport took advantage of reduced
travel demand during COVID‐19 to
complete the project without major
disruptions to airlines or air passengers
• In addition to renewing the runway
pavement, the project included the Project Work (Video)
installation of energy efficient LED runway
distance remaining guidance signs
• Massport received $5.4M in federal
funding to complete the project
26
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The Commonwealth awarded $5.6M in its fourth round of
grants from the $36M program to address food insecurity
Fish Pier Tenant Food Security Infrastructure Grant Winners
• $500,000 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
• $490,000 to build a new processing line and purchase a fish
packing machine and an industrial freezing machine in order to
Red’s Best
adapt to demand disruptions to the seafood industry and prepare
fish for distribution to grocery outlets
• $337,500 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
• $115,000 to develop an automatic fish gutting and conveyor
system on the deck of the fishing vessel Padre Pio to reduce the
F/V Padre Pio
amount of time a catch is exposed to ambient temperatures,
allowing vessel to catch fish at a higher quality with longer shelf life
27
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
28
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport sub‐tenant KO Pies is celebrating its 10‐year anniversary
in the East Boston Shipyard
• Over the decade, KO Pies has served over
800,000 pies to the masses
• “To all the vendors and landlords, thank you” –
KO Pies Chef and Owner Sam Jackson
29
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport partnered with the Greater Boston Chamber of
Commerce on a Leadership Challenge for its Future Leaders cohort
• GBCC Future Leaders provided Massport
with creative solutions and we are currently
working to incorporate the ideas into our
Authority‐Wide innovation efforts
30
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
31
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport is advancing our Innovation Incubator concept
Partnering with private‐sector vendors, innovation pilots aim to introduce technologies
that increase safety and efficiency and generate new revenues
Innovation RFP
Update
• Goal: Find innovations in aviation including: passenger
flow management, virtual queue management, Digital
Twins/AI, and new COVID‐19 safety technology
• 38 proposals received from 27 vendors
• Innovation Committee is finalizing the selection process
Next Steps
• Communicate to vendors regarding awards
• Set up kick‐off meetings with selected vendors to begin
planning for implementation
• Assess RFP lessons learned
32
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020A diverse mix of Logan Airport concessions have been consistently
reopening, aided by new airport technology solutions
Open Concession Units Expansion of New Concession Technology
150
68 • Grab is a Singapore‐based technology company
offering ride‐hailing transport services, food
delivery, and payment solutions
43
• Grab has partnered with HMSHost and will expand
to Logan Airport
• Offerings at Logan will include:
o Mobile food ordering for pick up
o Mobile food ordering and delivery through a
Pre‐COVID‐19 July November partnership with AtYourGate
33
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The South Boston Waterfront Transportation Center opened its
Congress Street entrance providing greater ease of access
34
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
35
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Even with the election over, negotiations over a second stimulus
bill that would include airline and airport aid remains deadlocked
Second Stimulus Bill
• Senate Majority Leader McConnell said the
economic recovery justified a smaller aid bill,
while Speaker Pelosi again rejected more narrow
legislation
• As a result, a relief deal could prove just as
difficult to reach as it did before Election Day
• Areas of disagreement between the parties
included state and local government aid,
enhanced unemployment insurance and liability
protections for businesses
• This makes it unlikely that a bill will be passed
before inauguration day
• Nevertheless, Massport is engaging our federal
partners to educate and advocate for additional
relief
36
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 20201st Quarter budget deficit is $31M, or $7M above plan
Q1 FY 21
• Conley $7.4M higher due to 15K more containers
Revenue $155M • Logan $4.7M above plan
• Interest income up $1.4M from investments
Tenant Relief ($9M) • Q1 revenue offsets caused by tenant relief
• Operating expenses $1.7M lower than plan
Expenses ($177M) • Debt payments & Pay Go CAPEX in‐line with
budget
Deficit ($31M) • Federal CARES Act funds used to offset deficit
37
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport’s Annual Financial Report Earns Achievement Award
Government Finance Officers Association
awards Certificate of Achievement for Excellence in Financial Reporting
to Massport for 2019 Annual Financial Report
• The GFOA Certificate is the highest form of
recognition in governmental accounting and
financial reporting
38
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport Top 6 Goals – FY2021
I. Ensure safety, health, and security at all of our facilities
II. Generate broader and deeper economic impact for the
Commonwealth with a focus on enhancing access, opportunity, and
equity for people of color and diverse businesses
III. Maintain strong relationships with our customers, business partners,
stakeholders, and elected officials
IV. Enhance the customer experience
V. Sustain financial health and optimize operations and business practices
VI. Collaborate with our surrounding communities and reduce impacts to
the environment
39
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport’s Charitable Contributions Program has exceeded our
DE&I Q1 goals
• Goals
o Award 40% of the program budget to organizations serving predominately people of color
o Award charitable contribution grants to organizations run by people of color
• Q1 Charitable Contributions Totals
o $47,560 awarded to 11 organizations
o $37,000 awarded to 7 organizations serving predominately people of color
• Total Awarded to Organizations Serving People of Color in Q1
o 78% of budget expended
• Organizations Awarded Grants in FY21 Q1
o The Sports Museum* o Children's Trust Fund
o Dorchester Boys & Girls Club* o The Dimock Center*
o The McCourt Foundation o FamilyAid Boston*
o HarborCOV* o Harvest on the Vine/ Monument Square
o Revere Beach Partnership Neighborhood Association
o Catholic Schools Foundation* o Greendale YMCA/ YMCA of Central Massachusetts*
• 15 new organizations identified for outreach about our Charitable Contributions Program
*Denotes an organization that serves predominately people of color
40
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The Trustees have commenced the public engagement and
outreach process for the design of Piers Park 3
• Held an introductory meeting
with East Boston Pier PAC on
October 20
• Planning virtual information
gathering sessions with the
broader East Boston community
• Conducting preliminary
discussions with environmental
permitting agencies, with
Massport’s participation
41
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport celebrated Veterans Day virtually, highlighting
Massport team members’ service to our country
Veterans Day
• Massport staff learned from their colleagues
about what it means to serve your country
through military and armed forces active duty
• Massport also ran a successful Veterans Day
Donation Drive for the Chelsea Solders’ Home,
donating over a dozen boxes of personal care
items and more
Employees Featured
• Willie Hicks, Capital Programs Project
Manger, Infrastructure Assets
• Jacquelyn Denoi, Fire Fighter/EMT Trainee
• Jean Laguerre, Aviation Senior Customer
Services Supervisor
42
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Report of the Director of Aviation
Ed Freni
43
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Airlines are adding capacity over Thanksgiving, but warn of slower
increase in bookings than expected due to surge in COVID‐19
• Delta Airlines will be
increasing capacity
around the holidays with
over 3,800 peak‐day
flights during
Thanksgiving
• JetBlue announced that
it is expanding service
from New York City over
the peak Thanksgiving
travel weekend
• United is adding 1,400
flights to its schedule, a
more than 9% increase
during the week of
“Demand is softening, and in the wake of the
news, it’s probably not hard to figure out why” – November 23
Nicholas Calio, President of Airlines for America
44
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Airlines continue to announce the restart of service at Logan
Airport
Service Restart
• Hawaiian Airlines will operate twice‐weekly nonstop
service between Honolulu and Logan beginning
December 18
• “We’re pleased with increased demand for travel to
Hawai‘i, and we’re excited to once again offer our East
Coast guests the convenience of our nonstop flights as we
welcome them to the islands with new health and safety
measures” – Brent Overbeek, Senior Vice President of
Revenue Management and Network Planning at
Hawaiian Airlines
State Restrictions
• Hawai’i began exempting travelers from its 14‐day
quarantine with a negative state‐approved COVID‐19 test
within 72 hours of the final leg of departure
• Hawaiian is offering travelers a mail‐in PCR saliva test
through Vault Health, which they can express ship
overnight to a lab for results within 24 hours
45
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Surging COVID‐19 cases and ongoing travel restrictions continue
to hinder the restart of Canadian airline passenger service
Schedule Change
• Porter had hoped to restart service on
December 15
• Porter Airlines said they chose to start
planning to restart flights after the
traditionally slow post‐holiday January
period to give more time for the
government to lift travel restrictions
• It says that this will also give it more time
for the development of rapid testing
solutions
46
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Transatlantic airline capacity is being cut as the UK and EU see
rising COVID‐19 cases and reinstate restrictions and lockdowns
UK EU
• Overseas leisure travel prohibited until December • Europe’s major carriers are cutting through year
2 to help curb a COVID‐19 resurgence end as they grapple with rising COVID‐19 cases
• London is normally Logan’s top international • IAG, the owner of British Airways and Aer Lingus,
destination is reducing capacity to 30% of 2019 level, versus
• BA is flying cargo only flights to Logan during the earlier plans of 40%
lockdown • Lufthansa has said it will ground another 125
• Delta service to/from Logan Airport to London aircraft and reduce its planned capacity to 25%
Heathrow has been suspended until April 1st of last year’s
47
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan Airport activity levels continue to be impacted by the
pandemic
October 2020 Logan Activity Summary
CYTD
October YOY % YOY %
October
Passengers 781,298 ‐79% 11,055,636 ‐69%
Aircraft Operations 14,013 ‐63% 178,288 ‐50%
48
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan passengers declined for four consecutive weeks following
the October holiday peak
• 83,000 passengers screened last week (week ending 11/08) • Passengers still well below financial
o Down 2% over prior week sustainability
o Down 79% over prior year o October passenger volume
≈60% below breakeven
(2 million passengers)
Weekly TSA Screened Passengers Since Mid‐April
120,000
104K
100,000
83K
80,000
80,000
60,000
40,000
20,000
0
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
5/3/2020
6/7/2020
7/5/2020
8/2/2020
8/9/2020
9/6/2020
10/11/2020
10/18/2020
10/25/2020
11/15/2020
Actual Psgrs: April 95,000 May 203,000 June 438,000 July 738,000 Aug 696,000 Sept 633,000 Oct 781,000
49
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan’s passenger recovery lags the national trend
TSA Passengers Screened: 2020 as Percent of 2019
100% Logan more reliant on corporate and international
95%
90%
passenger demand:
85% • Business travel is typically 40% of Logan’s passengers
80%
75% • 20% of Logan’s 2019 volume was international
70%
65%
60%
55%
50%
45%
40% U.S.
35% 35%
30%
25% Logan
20% 20%
15%
10%
5%
0%
3/1/2020
3/8/2020
3/15/2020
3/22/2020
3/29/2020
4/5/2020
4/12/2020
4/19/2020
4/26/2020
5/3/2020
5/10/2020
5/17/2020
5/24/2020
5/31/2020
6/7/2020
6/14/2020
6/21/2020
6/28/2020
7/5/2020
7/12/2020
7/19/2020
7/26/2020
8/2/2020
8/9/2020
8/16/2020
8/23/2020
8/30/2020
9/6/2020
9/13/2020
9/20/2020
9/27/2020
10/4/2020
10/11/2020
10/18/2020
10/25/2020
11/1/2020
11/8/2020
11/15/2020
50
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020No recovery in Logan’s international passengers as COVID‐19
cases surge and travel restrictions increase
Daily FIS Inbound Passenger Throughput (July 13 – Nov 15)
2,000 1,825
Peak Day:
1,800 Saturday
1,600
1,400
1,211 1,161
1,200 1,080
1,000
800
600
400
200
0
7/13/2020
7/20/2020
7/27/2020
8/3/2020
8/10/2020
8/17/2020
8/24/2020
8/31/2020
9/7/2020
9/14/2020
9/21/2020
9/28/2020
10/5/2020
10/12/2020
10/19/2020
10/26/2020
11/2/2020
11/9/2020
Weekly 4,220 3,712 5,039 5,416 6,147 7,061 8,027 7,012 6,177 5,647 5,448 6,103 5,920 5,700 5,003 4,265 4,333 5,021
51
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Airlines cautiously adding capacity for holiday travel, but could
pull back if bookings don’t materialize
Daily and Monthly Scheduled Airline Seats at Logan (August 1 to December 31, 2020)
August 1.7M Sept 1.4M Oct 1.5M Nov 1.6M Dec 1.8M
• Down 7% vs July • Down 20% vs August • Continuous adjustments • Holiday capacity added • Subject to change
• Typical seasonal reduction • >80,000 seats cut in • Subject to change • Most bookings within 30 days
70,000 is 7% to 8% last 3 weeks
60,000
50,000
40,000
30,000
20,000
10,000
0
08/01/2020
08/08/2020
08/15/2020
08/22/2020
08/29/2020
09/05/2020
09/12/2020
09/19/2020
09/26/2020
10/03/2020
10/10/2020
10/17/2020
10/24/2020
10/31/2020
11/07/2020
11/14/2020
11/21/2020
11/28/2020
12/05/2020
12/12/2020
12/19/2020
12/26/2020
52
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Hanscom Field activity continues to slowly rebound
Monthly Aircraft Operations
14,000
12,082
13,099 12,777 12,801 • October jet/turboprop operations
12,013
12,000
10,273
11,123 10,783 have surpassed their level in
10,571
10,000 9,429 9,860 March – this is an over 240%
8,139
8,000 increase from its low in April
6,000
3,652
• Most of the jet traffic continues
4,000
2,358 to be leisure
2,000
‐
• The COVID‐19 pandemic
continues to impact the business
travel segment
2019 2020
YOY
‐75% ‐70% ‐33% ‐22% ‐13% ‐17% ‐9%
Change
53
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Takeaways: COVID‐19 has changed air travel as 2020 ends and
we look ahead to 2021
Passenger Behavior
• Corporate travel is nearly nonexistent and the trend is expected to extend into 2021
• Gradual, growing interest in getaways, especially to Southeast (FL) and visiting friends and relatives (VFR)
• Most bookings within 30 days of departure
• Recurring domestic and international restrictions/quarantines/recession causing frequent fluctuations in
passenger bookings and demand
Airlines
• Domestic leisure fares down > 10% YOY
• Materially higher breakeven load factor, leading to airlines no longer blocking middle seats
• U.S.‐Mexico/Caribbean/C. America bookings faring better – Logan seeing Dominican Republic VFR travel
• Initiatives to capitalize on air‐cargo opportunities amid reduced capacity
COVID‐19 Measures in Air Travel
• Continued enhanced cleaning measures and PPE
• Efforts to deploy preflight COVID‐19 testing in key transoceanic corridors
• Expansion of mobile app self‐service functionality
• Expansion of touchless technology across passenger journey
54
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Report of the Director of Maritime
Mike Meyran
55
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Evergreen, Conley Terminal’s second biggest customer, ranks 3rd on a
list of 100 Most Sustainably Managed Companies
• WSJ ranked over 5,500 publicly traded
companies on 26 sustainability categories
• Evergreen is the main vessel operator on
OCEAN Alliance’s weekly service from Asia
and accounts for 23% of Conley’s annual
volume
• Evergreen has been doing business at
Conley Terminal since 2014
Evergreen Growth through Conley
Terminal
60,000
Need WSJ 50,000
pdf to get 40,000
clearer image TEUs 30,000
20,000
10,000
0
CY2014 CY2020 YTD
56
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020EU places $4B of tariffs on U.S. exports
• The WTO awarded the EU $4B in tariffs on US
goods
• The EU tariffs include:
o A 25% tariff on products including chocolate,
frozen orange juice, ketchup, rum, vodka,
video games, and exercise equipment
o A 15% tariff on large civilian aircraft
• The US (via USTR) is contesting the tariffs,
stating that it withdrew the offending law as
of April 2020
• The Trump Administration has stated that the
US will respond with 100% tariffs on EU
goods
• If the U.S. imposed 100% tariffs on imports
from the EU, imports to Boston would be
affected
57
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020E‐commerce has saved the US shipping peak season in 2020,
favoring west coast ports
• The global small parcel market is expected to
more than double from 103 billion to 262 billion
by 2026, driven by China and U.S. e‐commerce
• Amazon delivered 1.9 billion packages in the US
through its in‐house delivery network, a 155%
YOY increase from 2019
• Dedicated premium “E commerce express
services” have launched between China and the
US West Coast catering to the high demand and
competing with air cargo
• Conley Terminal has benefitted from the
e‐commerce demand in New England in 2020 as
we see more work/learn‐from‐home products
imported, including electronics, exercise
equipment, and office furniture
• 2020 Container growth in Boston is now trailing
behind other East Coast ports; US imports are
down in by 4.4% Sep YTD, but Boston is down by
7.8%
58
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Continued container growth is causing supply chain congestion
issues between Asia and the U.S.
• Most large US ports are very congested
• Industry indicators point to strong demand for
container shipping through February 2021
• Ocean carriers expect significant container
shortage through Chinese New Year in mid‐
February; US exports are not being accepted by
carriers who prefer to ship empties in order to
capture the import rush
• Consumer demand, as reflected in container trade,
has rebounded
• Inventories are historically low and there is rising
concern that companies will not be able to import
and deliver enough goods to meet consumer
demand during the holiday season
• Future outlook is contingent on the extent of the
fall/winter COVID resurgence, the outcome of the
presidential and congressional elections, and the
fate of new federal stimulus
59
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Conley October volume fell 27% as retailers are cautious about
holiday inventory, but exports to SE Asian countries increase
Conley cargo volumes are trending above the “Most Likely” scenario for the
remainder of CY2020, but the year is anticipated to finish down ‐11% compared to CYTD 2020 YOY
CY2019
Monthly Containers – Actual and Forecast Total: ‐12%
18,000
FY20 Imports: ‐10%
Actuals
161,171
16,000
Exports ‐6%
FY21
14,000 Actual +
Forecast October 2020 YOY
FY21 Most
12,000 Likely Total: ‐ 27%
133,012
Imports: ‐23%
10,000
FY21
Budgeted
104,000 Exports: 0.6%
8,000
90‐Day Outlook YOY
6,000
NOV DEC JAN
‐8% +2% ‐11%
*November 2020 through June 2021 volumes based on forecasted scenarios
60
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020The CDC dropped the No Sail Order on October 30, replacing it
with a framework for the Conditional Sailing Order
• The CDC's Framework For Conditional Sailing
Order details the phased‐in approach and return
to service for cruise resumption in the United
States
• The plan is to be implemented in 4 phases
o Phase 1 – Establish crew testing facilities on
board
o Phase 2 – Conduct simulated voyages to test
protocols and performance of operations
o Phase 3 – Certification process
o Phase 4 – Return to passenger voyages in a
manner that mitigates risk
• Cruises from the U.S. can be no longer than
seven days (through November 2021)
• Increased procedures, testing capability and
response plans
• Ship capacity, itineraries, ports of call, on‐
board activities will be influenced by the
order
61
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020CLIA announced a voluntary suspension of cruising in the United
States through December 31
• CLIA members, including Norwegian
Cruise Line, Royal Caribbean and
Carnival have cancelled sailings through
December to prepare to meet CDC’s
framework guidelines
• CLIA members are committed to
implementing stringent measures,
including 100% testing of passengers
and crew, expanded onboard medical
capabilities, and trial sailings
• The CDC’s Level 3 Travel Warning
cautions U.S. citizens to defer both
ocean and river cruise travel
62
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Cruise Lines are taking the first steps to resume sailing
• NCL Chairman Frank Del Rio in Q3 earnings
update:
o Continued discussion with CDC in November
o 6‐9 months to get fleet back up and running
o 2021 will be a transition year
o Entire fleet should be running end of 2021
o Business should be normalized end of 2022
o Dependent on
Port closures
Air Capacity
Travel restrictions
o Test sailings should start in January
• Royal Caribbean opens website for testing
volunteers
o Short sailings to private island in Bahamas
o 100,000 responses
• Viking Cruises installs first PCR laboratory aboard
a ship with capacity for daily testing of all crew
and guests
63
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Strategic Plan Implementation
64
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan Forward Construction Update
(Sam Sleiman)
65
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Logan Forward: Our commitment to build a better Logan Airport
• Modern and efficient
terminals
• 7 new aircraft gates
for international
flights
• New roadways for
better traffic flow on
airport
• Dedicated Ride App
areas in Central
Parking
• New parking
availability and
reservations system
• More options for
getting to/from the
airport
66
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020B‐C Roadways
CONSTRUCTION SITE
67
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Progression of the Project
JUNE 2020
JULY 2020 68
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Progression of the Project
OCT. 2020
NOV. 6TH, 2020
69
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Temporary Bridge to be Demolished
(BY THE END OF NOV.) (BY THE END OF DEC.)
70
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Car Routes Departures Level
PAST
CURRENT
PAST
71
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020C2B Connector Topping Off Event
October 22, 2020
72
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020C2B Connector Topping Off Event (Video)
October 22, 2020
73
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Safety and Security Update
74
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Security Update
(Jarret Wright)
75
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Array of threats face the transportation sector
Cyber International Terrorism
• APT threat to critical infrastructure to steal • FTO‐inspired lone actors continue to
information, disrupt supply chain, or deny present an imminent threat to the
access in the event of hostilities Homeland; uptick in Europe
• Cyber criminals exploiting increase in remote • Predominantly simple attacks
work through ransomware, phishing and o ISIS and al‐Qa`ida maintain an
social engineering interest in attacking the US –
o especially the aviation sector –but
their primary threat remains
overseas
Domestic Violent Extremists Civil Unrest
• Primary threat within the U.S. • Social, political, pandemic,
o Violent Militia Extremists and environmental tensions
o Anti‐government Groups create potential for unrest
o Racially‐Motivated Violent Extremists • Vast majority of protests are peaceful, but
WSE (most lethal) flashpoints could include:
• Focus on perceived racial grievances, o Law enforcement/military
government overreach, immigration, and presence
ideologies they oppose o Immigration‐related
facilities/personnel
o Pollution emitters
76
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Community Outreach
77
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport CAC Update
(Thomas Butler and Flavio Leo)
78
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Massport CAC – Annual Meeting
• Election for MCAC Executive Committee
officers took place during Annual
Meeting
• MCAC voted unanimously to support
implementation of Block 1 ideas
• FAA and Massport provided briefing on
RNAV Study Block 2
• FAA presented one a broad range of
topics:
o New FAA Community Involvement web
accessible service for BOS
o 4L Environmental Assessment
o Wake Re‐Cat
79
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020A key RNAV Study goal is to implement overwater procedures
80
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020MIT designed R33L arrivals – RNP
B737‐800 60dB LA,max Noise Exposure
B737‐800 60dB LA,max
Population Exposure
60dB
Straight In 2,954
RNP 0
Difference (Straight In–
2,954
RNP)
• Implement an overwater RNP
approach procedure to Runway 33L
that follows the ground track of the
JetBlue RNAV Visual procedure as
closely as possible
• 1‐A1b: RNAV Visual procedures are
distributed through the Lead Carrier
who developed the procedure
81
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020MIT designed R15R departures – RNAV/RNP
B737‐800 60dB LA,max Noise Exposure B737-800
Population Exposure (LA,MAX)
60dB
Current RNAV 5,838
.41 RNAV 4,815
Current RNAV – .41 RNAV 1,023
• Modify RNAV SID from Runway
15R to move tracks further to the
north away from populated areas
82
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020RNAV Study, Next Steps
Block 1
MCAC recommendation letter to Massport
Massport letter to FAA for implementation
• FAA final design and implementation
Block 2
• R33L departures divergent heading option
• R22L/R departures design with stakeholder
input
• R27 departures waypoint relocation
• R22L arrival, briefing to north shore
communities
• R4R arrivals work completed, need MCAC
feedback
• MIT to complete final report
83
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Real Estate and Strategic Initiatives
84
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Real Estate Market Update
(Andrew Hargens)
85
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020CBRE Research Report: The Boston‐Cambridge region ranks as
the top life sciences supercluster in the nation
• The Northeast dominates the nation in markets
where life science is a growing industry
• Additionally, five of the ten top markets are just
under 400 miles from one another and connected by
the densest network of road, rail, and air
infrastructure in the nation
Logan has flights to each of
these locations and daily
shuttle service to four East
Coast superclusters
86
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Alexandria Acquired Two Parcels on E Street
87
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Deal Continues Growth of Life Science Cluster in South Boston
• Alexandria purchased two South Boston properties along E Street for $168.5M
o 420 E Street, DHL site – 88,256 sf
o 380 E Street, Seaport Self Storage – 58,849 sf
o Combined site is 5.5 acres
o $682 per land sf; $30.6M/acre
• Alexandria is a major player in lab / R&D development
o Part of a JV that previously purchased the 6.5‐acre former GE site for $252M ($38.8M/acre)
o Lab on this site will add to the nearly 1 million sf of life science use existing in South Boston
• Several areas of Massport relevance
o Provides a noteworthy value comp for Massport’s adjacent property
o Development fronts on the E Street / Cypher Street corridor long planned for an improved
truck route connecting Summer Street to the South Boston Bypass Road
o Existing tenant DHL must relocate
o Development approvals will involve community input
o Limited long‐term parking supply in the area may generate demand for SBWTC
88
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Audit and Finance
89
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Amended and Restated Commercial Paper
Resolution
(John Pranckevicius)
90
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Four FY 2021 Liquidity Strategies
Management is pursuing four financing strategies to increase liquidity:
1) Expand Commercial Paper Program
2) Refinance existing bonds
3) New Money Bond Sale
4) Federal Municipal Liquidity Facility
91
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Strategy #1 ‐ Expanding Massport’s Commercial Paper Program
Current Program:
• Massport’s Commercial Paper Program consists of the following:
o $150 million Direct Pay Letter of Credit issued by TD Bank, expires June 2022
o Buyer Broker – Citibank
o Paying Agent – U.S. Bank National Association
• $22 million of CP has been issued and remains outstanding
• Only Tax exempt CP can be issued (AMT & Non AMT)
• The Authority’s Enabling Act:
a) Limits CP program to 10% of total debt outstanding ($240 Million)
b) Authority can not borrow for operating expenses, only to fund capital
projects
92
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020New Commercial Paper Program Recommendation
New Commercial Paper program Recommendation:
1. Increase overall CP program to $200 million by vote of this resolution
2. Increase letter of credit with TD Bank to $200 Million, a $50 million
increase
o An origination fee of $58,500 was paid for the $50M expansion; accessibility
charge consistent with initial program.
3. Allow new CP program to include both tax exempt and taxable issuances
o Taxable Commercial Paper can be used for private use projects, to redeem debt,
and capitalize interest on bonds, if needed
4. All other components of the existing program remain in effect
93
Visual Materials for Massachusetts Port Authority Board Meeting November 19, 2020Next steps to execute FY 2021 liquidity strategies
• Strategy # 1: Commercial Paper
o Board vote in November 2020
• Strategy # 2: Debt Restructuring
o Bond refinancing being targeted for January/February 2021
• Strategy # 3: New Money Bond Sale
o $500M‐$600M of new money bonds targeted for April/May 2021
94
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