Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021

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Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority
      Board Meeting

                    October 21, 2021

 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Public Session

                                                                                   1
Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Report of the CEO
                         Lisa Wieland

                                                                                   2
Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              3
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
State and Federal COVID‐19 Requirements

        State Requirement                                        Federal Requirement

                                                                                             4
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
TSA firearm catches at U.S. airport checkpoints set a 20‐year
record in first nine months of 2021
“The number of firearms that our TSA officers are stopping at airport checkpoints is alarming. Firearms, particularly loaded
firearms, introduce an unnecessary risk at checkpoints, have no place in the passenger cabin of an airplane, and represent a
very costly mistake for the passengers who attempt to board a flight with them” – TSA Administrator David Pekoskesrator
David Peko

• Nationally, 4,495 firearms violations surpasses
  the previous record of 4,432 firearms
  identified in 2019
      o This is despite national passenger volumes
         being 20% below 2019

• Rising trend at airports across the country
  (firearms per one million passengers
  screened):
      o 2021 – 11 firearms

      o 2020 – 10 firearms

      o 2019 – 5 firearms

• This data only represents firearms and does
  not include other restricted items or
  contraband caught by TSA

                                                                                                                               5
                   Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The uptick in TSA firearm/contraband catches at Logan Airport
checkpoints is consistent with the national trend
                                                    •   TSA at Logan has detected more firearms to date than in
                                                        2019
                                                                                   Firearms    Passengers

                                                               2021 YTD            15          15.2M

                                                               2020                11          12.6M

                                                               2019                18          42.5M

                                                    •   Firearms identified within carry‐ons tend to be loaded

                                                    •   Other restricted items including ammunition, stun
                                                        guns/tasers, knives, and other weapons are being detected
                                                        on a daily basis

                                                                                                                    6
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              7
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Boston Public Market opened a new concession at Logan Airport

                                                       Boston Public Market – Terminal C
                                                       •   Includes The Market Bar, Market Bagels,
                                                           Red’s Best (Boston Fish Pier tenant), and
                                                           more brands that feature ingredients
                                                           from New England farmers, artisans,
                                                           and food entrepreneurs to be added

                                                       •   The 6,000‐square‐foot location at Logan
                                                           reflects the same mission and high
                                                           quality food as the very popular and
                                                           innovative flagship market at 100
                                                           Hanover Street

                                                                                                       8
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massachusetts Port Authority Board Meeting - October 21, 2021 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan Airport concessions continue to re‐open, but adjust
schedules in line with flight activity

     Open Concession Units at Logan Airport                                      Stephanie’s – Terminal B

  150

                                                           105
                                                 96
                                      86
                           71
              54

Pre‐COVID   Sep 2020     Jan 2021   Apr 2021   Jul 2021   October      •   One of Boston's iconic neighborhood
                                                          2021 To
                                                           Date            restaurants, Stephanie’s serves
                                                                           sophisticated comfort food
                                                                           incorporating salads, pastas, meats,
                                                                           fish and chicken into seasonal menus

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                       Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
HOV options to Logan Airport continue to expand

                                                  Route
                                                  • P&B providing new daily bus service from the West
                                                     Bridgewater Park and Ride lot to South Station and
                                                     Logan Airport
                                                        o   New stop added to recently launched Woods Hole
                                                            route

                                                  • The service started October 16 with six round trips a
                                                     day and expects to add a seventh soon
                                                  • Parking is free at state‐owned lot on Route 106 and
                                                     bus tickets are $22 one‐way to Logan

                                                  Benefits
                                                  • “To me, this is a game‐changer for the West
                                                     Bridgewater area…People that live as far away as
                                                     Mansfield, Easton, Brockton, Norton, Bridgewater,
                                                     and Raynham can avoid the stress of driving in traffic
                                                     and of paying to park. And every bus can take up to 55
                                                     cars off the road, so it is the greener way to go”
                                                     – P&B President John Cogliano

                                                                                                             10
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              11
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Financial Performance: August

        August Activity Highlights                               August Financial Performance

  •   Logan served 2.6 million passengers,
      936K higher than plan                                     Revenues                          $68M

  •   Conley Terminal processed 9,614
      containers, 1,022 above plan                              Expenses                         ($55M)

  •   Real Estate revenue was $0.4M higher
      than plan due primarily to more                           Contribution                      $13M
      parking at SBWTC

  •   Expenses were $2.8M lower than
      budget for the month due to cost
      controls

                                                                                                          12
              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan Airport is trending better than forecast, but uncertainty
remains and we expect a full recovery will take 3‐5 years
Forecast Logan Passengers FY22 to FY23
4,500,000                                                                                Encouraging Trends Amid
            CY19 Actual 42.5 M
                                                                                          Continuing Uncertainty
4,000,000
                                                                                  FY23
                                                                                         • Vaccinations increasing
3,500,000                                                  FY22                 32.2 M
                            Actual FY21                                                  • COVID‐19 case counts
3,000,000                                                 23.1 M
                                 12.2 M                                                    declining
                                                                                25.5 M
2,500,000                                                                                • Strong domestic bookings
                                               Oct/Nov                                     for holiday travel
2,000,000
                                              Estimates
                                                                                         • International borders
1,500,000                                                 18.5 M                           opening in November

1,000,000
                                                                                         • Business travel recovery
                                                                                           progressing more slowly
                                                                                           than airlines anticipated
 500,000
                                                                                         • Impact of Delta variant in
       0                                                                                   Northeast/Midwest during
              Jul‐20

            May‐21

              Jul‐21

            May‐22

              Jul‐22

            May‐23
            Oct‐20

             Jan‐21

            Oct‐21

             Jan‐22

            Oct‐22

             Jan‐23
            Nov‐20

            Mar‐21

            Nov‐21

            Mar‐22

            Nov‐22

            Mar‐23
            Aug‐20
            Sep‐20

            Dec‐20

            Feb‐21

            Apr‐21

            Jun‐21

            Aug‐21
            Sep‐21

            Dec‐21

            Feb‐22

            Apr‐22

            Jun‐22

            Aug‐22
            Sep‐22

            Dec‐22

            Feb‐23

            Apr‐23

            Jun‐23
                                                                                           the winter months is
                                                                                           uncertain
              FY19 Actual          Estimate       Actual           Low   High

                                                                                                                        13
                   Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The IATA 77th Annual General Meeting took place in Boston from
October 3‐5
                    Conference

• IATA represents 290 members, 82% of total air
   traffic

• 600 delegates and media attended, including CEOs
   and senior leaders from across the aviation industry

• Governor Charlie Baker delivered an in‐person
   address to welcome members

• The keynote address was delivered by Rachel Kyte,
   Dean of the Tufts University Fletcher School, and
   former special representative of the UN Secretary‐
   General and Chief Executive Officer of Sustainable
   Energy for All

• U.S. Secretary of Transportation Pete Buttigieg
   addressed members virtually

• Massport coordinated with IATA on the conference
   and had the opportunity to meet with key aviation
   partners and stakeholders

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                 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
IATA expects a continued improvement in global airline recovery
even as the Delta variant tempers growth
                                                                      Recovery Outlook
                                                       • The COVID‐19 crisis will cost global
                                                          aviation $201B in losses before a return
                                                          to profitability in 2023
                                                             o 2020: $138B loss
                                                             o 2021: $52B loss
                                                             o 2022: $12B loss

                                                       • Passenger activity will remain 25% below
                                                          2019 levels in 2022
                                                       • North America will see a faster return to
                                                          profitability and passenger traffic

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          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
IATA called for an end to inconsistent COVID‐19 travel restrictions
that are hindering global airline recovery

                                                                   COVID‐19 Travel Measures
                                                         • IATA urged governments to implement
                                                            simplified regimes to manage the risks of
                                                            COVID‐19 as borders re‐open to
                                                            international travel
                                                         • IATA’s position:
                                                               o Vaccinated travelers should not face any
                                                                 barriers to travel
                                                               o Testing should enable those without
                                                                 access to vaccines to travel without
                                                                 quarantine
                                                               o Sunset strategies for COVID‐19 travel
                                                                 measures are needed
                                                               o Digital health credentials for vaccination
                                                                 status and test results are necessary
                                                         • The U.S. is planning to allow fully
                                                            vaccinated international travelers to
                                                            enter beginning November 8

                                                                                                          16
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
IATA approved a resolution for the global air transport industry to
achieve net‐zero carbon emissions by 2050
                                                                            Fly Net Zero
                                                       • This commitment aligns airlines with the
                                                           Paris Agreement goal for global warming
                                                           not to exceed 1.5°C
                                                       • Requires cooperation from all industry
                                                           stakeholders including:
                                                              o Fuel‐producing companies bringing large
                                                                  scale, cost‐competitive sustainable aviation
                                                                  fuels (SAF) to the market
                                                              o   Airport operators providing the
                                                                  infrastructure needed to supply SAF, at
                                                                  cost, and in a cost‐effective manner
                                                              o   Governments and air navigation service
                                                                  providers eliminating inefficiencies in air
                                                                  traffic management and airspace
                                                                  infrastructure
                                                              o   Aircraft and engine manufacturers
                                                                  producing radically more efficient airframe
                                                                  and propulsion technologies (e.g., electric,
                                                                  hydrogen, hybrid)
                                                              o   Use of approved offsets, including carbon
                                                                  capture and storage, is part of the strategy

                                                                                                            17
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The FAA awarded Logan Airport $7.7M in supplemental AIP
grant funding for Logan Airport infrastructure improvements

   Taxiway M Rehabilitation Project

    • Funding will be used to rehabilitate a
      portion of Taxiway M and improve
      airfield geometry

    • Massport’s 25% local match funded by
      the American Rescue Plan Act

    • This is in addition to the $10.6M in FAA
      FY21 AIP grant funding received for
      capital projects at Logan, Hanscom,
      and Worcester airports

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              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              19
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
FY22 Q1 Update: Charitable Contribution Program DE&I Initiative

Contributions                                                                         Organizations
• In FY22, 50% of Massport’s charitable giving budget                                 • The Dimock Center*
  will be awarded to organizations and programs that                                  • NO BOOKS NO BALL*
  serve predominately people of color
                                                                                      • HarborCOV*
      • Goal increased from 40% in FY21
                                                                                      • South Boston Chamber of Commerce
• As of Q1, eight organizations received grants totaling                              • Children's Trust
  $33,500
                                                                                      • Catholic School's Foundation*
• $23,500, was awarded to six organizations that
                                                                                      • YW Boston*
  predominately serve people of color
                                                                                      • ZUMIX*
      o    Four organizations are run by a person of color

          *Denotes an organization or program that serves predominately people of color
                                                                                                                           20
                     Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport selected Green International, an MBE firm, as prime
consultant for Haul Road Realignment and Signalization project

  • RFQ was issued in June 2021

  • Green International was awarded
    the contract

  • The MBE firm had been a sub‐
    consultant for more than 20 years
    and as a result of our continued
    partnership they were now able to
    win their first job as a prime

  • Project M/WBE goal is 60%

                                                                                               21
            Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              22
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The FAA awarded Massport a $4M Voluntary Airport Low‐
Emission (VALE) grant

   VALE Grant

   • VALE grants support clean air and airport
     emissions reduction initiatives

   • Massport to acquire electric charging stations for
     electric ground support equipment (eGSE)

   • Grant will help advance Massport’s collaboration
     with airlines to electrify their GSE fleets and lower
     Logan Airport’s greenhouse gas emissions

   • Massport’s 25% local match funded by the
     American Rescue Plan Act

                                                                                                23
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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, customers,
     stakeholders, elected officials, surrounding communities and
     employees

                                                                                              24
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
FlyLogan Mobile App will fully launch the beginning of
November before the holiday travel season
The FlyLogan Mobile app consolidates several Logan features into a single platform,
providing a new way for passengers to take advantage of our service offerings

                                                                           Current Features
  Google and Apple app stores
                                                                           •   Flight Information
                                                                           •   Logan Express E‐Ticketing
                                                                           •   Parking Reservations
                                                                           •   Food Ordering and Delivery
                                                                           •   Virtual Live Customer Service
                                                                           •   Airport Information
                                                                                 o Terminal Maps
                                                                                 o Accessibility
                                                                                 o COVID‐19 Information

                                                                                                            25
               Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport Goals

    • 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,
     customers, stakeholders, elected officials, surrounding
     communities and employees

                                                                                              26
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The ICA Watershed had a successful 4th season, bringing an
impactful art installation to the East Boston community
• Acclaimed artist, Firelei Báez installed her largest
  sculpture to date at the Watershed – Art Rises From
  the Deep Sea
     o The sculpture of tilted walls and archways surge from
        the seafloor and the perforated canopy covers the
        space like ocean’s surface, or the night sky
• Season 4 was a success from start to finish
     o Total attendance was 22K
     o Had this been a normal season attendance would have
        set a record
• Public interest was both local and national
     o Featured in the New York Times, Boston Globe, WBUR,
        and the PBS News Hour
• Water shuttle service served as a key transport link
     o 56% of visitors travelled to the Watershed by the ICA’s
        water taxi from South Boston (12K passengers)
     o 1K water taxi trips for the season

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                 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport continues its commitment to the Piers Park Sailing
Center
Piers Park Sailing Center (PPSC) provides accessible, recreational, and educational programs

   PPSC reported a successful Summer 2021 season:

      •   600 children participated, including 430
          from East Boston

      •   Two‐thirds identified as economically
          disadvantaged and attended for free or
          paid an enrollment fee of less than $50

      •   66 jobs created, many with the support of
          Massport’s Community Summer Jobs
          Program (the most ever in PPSC history)

      •   1,600 people participated in free
          community sailing & kayaking programs
          through other partnership programs

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

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 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan Airport activity levels dipped in September due to the
off‐season and the impacts of the Delta variant

                                 Logan Activity Summary
                                     September 2021

                                                                 % Change Over:
                                                                                Pre‐Pandemic
                                       Amount        Last Year   Last Month         (2019)

        Passengers                   2,226,035        252%          ‐14%            ‐37%

        Aircraft Operations            27,504         104%          ‐0.7%           ‐31%

                                                                                               30
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan reached a new pandemic milestone for outbound
passengers last week
 • 319,000 passengers screened last week (w/e 10/17)                                           • Highest weekly total since March
 • Up 6% compared to prior week (277K)                                                           8, 2020, when 351K outbound
                                                                                                 passengers were screened
 • Down 32% over 2019 (467K)

                                                Weekly TSA Screened Passengers Since Mid‐April 2020
  500,000
                 Sep to Mid Nov 2019: 431,000 weekly
  450,000

  400,000

  350,000                                                                                                                            319K
                                                                                                                         313K    300K
  300,000

  250,000

  200,000

  150,000

  100,000            Sep to Mid Nov 2020: 86,000 weekly
   50,000

           0
                 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

                 11/1/2020
                 11/8/2020

                 12/6/2020

                  1/3/2021
                 1/10/2021
                 1/17/2021
                 1/24/2021
                 1/31/2021
                  2/7/2021
                 2/14/2021
                 2/21/2021
                 2/28/2021
                  3/7/2021
                 3/14/2021
                 3/21/2021
                 3/28/2021
                  4/4/2021
                 4/11/2021
                 4/18/2021
                 4/25/2021
                  5/2/2021
                  5/9/2021
                 5/16/2021
                 5/23/2021
                 5/30/2021
                  6/6/2021
                 6/13/2021
                 6/20/2021
                 6/27/2021
                  7/4/2021
                 7/11/2021
                 7/18/2021
                 7/25/2021
                  8/1/2021
                  8/8/2021
                 8/15/2021
                 8/22/2021
                 8/29/2021
                  9/5/2021
                 9/12/2021
                 9/19/2021
                 9/26/2021
                 10/3/2021
                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   Apr   May   Jun    Jul  Aug   Sep
  Psgrs:       95K     203K    438K   738K   702K   634K   782K   756K   805K   740K   733K 1.07M 1.43M 1.74M 2.12M 2.57M 2.59M 2.23M

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                              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Delta plans to grow its hub at Logan Airport, confident about the
future of the city and airport

Expansion
•   By summer 2022, Delta expects that its Logan
    capacity will be at least 20% higher than pre‐
    pandemic, with nearly 4,000 additional daily seats

•   With new routes, larger planes, and more
    frequencies, travelers headed to or from Boston are
    expected to be the big winners

            “We’re expecting Boston to continue to
            grow…These are some long lead‐time
            decisions as to where you place your assets
            in your markets. We’re coming out of this
            stronger...there’s no question about it”
            – Delta CEO Ed Bastian

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                 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Delta announced new nonstop service to in‐demand domestic and
international destinations as well as new best‐in‐class aircraft
New Service Additions
International
• Athens commencing on May 27, 2022
• Tel Aviv commencing on May 26, 2022
Domestic
• Baltimore, Denver, and San Diego commencing on
   July 11, 2022
• Charlotte and Dallas, two key business routes,
   began this month
• Worcester Airport to LaGuardia commencing Nov. 1
Modernized Aircraft
• Delta is bringing new aircraft to Logan Airport that            “We are excited to welcome new Delta flights to
   will enhance the passenger experience                          Boston, connecting visitors and travelers to
      o Airbus A321neos: new aircraft will launch on              exciting destinations around the world…These
         Boston transcontinental routes                           flights coming to Logan Airport in 2022 will
                                                                  allow more people to access hundreds of
      o Airbus A220s: doubling the number of flights
                                                                  destinations and the global economy”
      o Boeing 767‐300s: retrofitted with significant             – Governor Charlie Baker
         updates will be used on the Lisbon and
         Edinburgh routes

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                   Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Delta delivered a profit in Q3 2021 for the first time without
government aid
                                                                 Logan Airport Outlook
                                             From Delta President Glen Hauenstein:

                                               “I think we were clear about our intentions to be Boston's preferred
                                               airline pre‐pandemic. If you go back and listen to the calls then, it was
                                               something that was our intent. And we saw some opportunities in the
                                               pandemic that availed themselves, and we're believing that next
                                               summer is going to be a relatively robust demand set to Europe. So we
                                               wanted to fill out some of the big demand international markets from
                                               Boston and then some of the opportunistic markets in the pandemic
                                               for Boston business. So very happy with our – we have a great team
                                               in Boston. They do a phenomenal job. We have a great facility in
                                               Boston, best in class up there. And I think when you put the suite of
                                               our products and services, it really is a winning hand for Boston.”

                                               “I think what we see is our products suit the Boston market quite well,
                                               being a premium carrier and having Boston be a very affluent city
                                               with a huge component of corporate travel. We think that we are
                                               best suited to deliver the best products and services to the
                                               customers of Boston. And we’re going to, as I said in previous calls,
                                               we don’t want to be the biggest, we just want to be the most loved
                                               and the most profitable”

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           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Frontier is planning to operate its first international flight from
Logan Airport
                                                         In September, Cancun and Mexico City were the busiest
                                                                   foreign gateways to/from the U.S.

New International Service                                 Demand
•   Daily seasonal service between Boston and             •   Mexico continues to be the top international
    Cancun to operate from December 16 to                     destination for U.S. passengers during the
    early April                                               pandemic

•   Will operate with the 186‐seat Airbus A320            •   This demand is propelled by beach seekers

•   Cancun will be Frontier’s 3rd Boston
    destination after Orlando and Miami

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               Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
There has been a surge in bookings for transatlantic travel
following reopening announcement by White House
                                                                 Logan Airport
                                                                 •   Logan is well situated to take advantage of
                                                                     any uptick in demand for transatlantic travel
                                                                     as the U.S. reopens to international
                                                                     passengers starting November 8

                                                                 •   A majority of Logan international flights are
                                                                     to the UK and Europe, including:
                                                                        o   London              o    Amsterdam

                                                                        o   Paris               o    Rome

                                                                        o   Madrid              o    Reykjavik

                                                                        o   Lisbon              o    Munich
 •   Virgin Atlantic reported that bookings to the U.S.                 o   Ponta Delgada       o    Frankfurt
     increased by 91% in the hour following the
     announcement on September 20, 2021                                 o   Terceira            o    Zurich

 •   British Airways reported searches for holidays to           o   Additionally, airlines continue to expand their
     big U.S. destinations like New York, Orlando, Las               transatlantic service at Logan – Delta is
     Vegas, Miami, Los Angeles and Boston had shot up                starting service to London on October 31

                                                                                                                     36
                  Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Airline services at Worcester Regional Airport will be restored to
pre‐pandemic levels as of November 2

                   Worcester Regional Airport Service Restoration Plan

                                             Aug 19        New York JFK
                                             Oct 21        New York JFK – 2nd daily flight
                                             Oct 21       Fort Lauderdale

                                             Nov 1         New York LaGuardia

                                             Nov 2         Philadelphia

                      Five daily departures by November 2, 2021

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           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport began a $2.1M taxiway rehabilitation project at
Worcester Regional Airport

Taxiway B Rehabilitation Project
• Rehabilitating Worcester’s longest taxiway, will:
     o Restore pavement condition

     o Install energy efficient LED edge lighting and
        signage

     o Reconfigure geometry

• Anticipated early November completion –
  in time for American and Delta service
  resumptions

• Funded by a $2.1M FAA AIP grant
     o Massport’s 10% match covered with funds from
        the American Rescue Plan Act

                                                                                                     38
                  Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Hanscom activity boosted by an uptick in private air travel
demand during the pandemic

                 6‐Month Aircraft Operations                                      Details
                                                                                  • Robust activity at Hanscom consistent
                                2019   2020   2021
14,000
                                                                                     with national trend of steady high
                                                              13K
                                                                                     demand for private aviation travel
12,000                                                            11K       11K
10,000                                                                            • Operations are still dominated by leisure
 8,000                                                                               travel consistent with national trend
 6,000
 4,000
 2,000
    0
                                                     August
         March

                                       June

                                              July

                                                                September
                               May
                   April

% Change
 vs 2019 ‐3%        ‐4%         ‐2%     9%    ‐16%   ‐5%       ‐16%

                                                                                                                                39
                           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Looking ahead, a sharp rise in the price of fuel threatens the
airline industry’s recovery in Q4 and beyond

                                                  Fuel Costs
                                                  • Oil prices are surpassing $83 a barrel, the highest level
                                                     in seven years, as demand recovers from the pandemic
                                                  • The price of jet fuel in the U.S. has more than doubled
                                                     over the past year to $2.26 per gallon
                                                  • Airlines will either have to pass on the increasing fuel
                                                     costs to passengers, potentially dampening travel
                                                     demand, or take a financial loss
                                                  • Delta Air Lines has already announced that the rise in
                                                     fuel prices will negatively impact Q4 financial
                                                     performance and ability to remain profitable:
                                                               “A $0.05 movement in fuel equates to
                                                               roughly $40 million of [quarterly] expense”
                                                               – Delta President Glen Hauenstein
                                                               "Higher jet fuel prices lead to higher ticket
                                                               prices…Ultimately, we’ll pass that through”
                                                               – United CEO Scott Kirby

                                                                                                               40
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Report of the Director of Maritime
                         Mike Meyran

                                                                                    41
 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
New ship to shore cranes successfully deployed on first vessel

                                                                                             42
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Severe port congestion hits the East Coast in September,
creating massive delays to ships headed for Boston

                                                   • 20+ ships waiting off of Savannah up to 12
                                                     days
                                                   • Ningbo port shutdown for two weeks in
                                                     August sent a wave of ships to the East
                                                     Coast in late September, early October
                                                   • 3 weeks of cargo arrived in one week
                                                   • Total delays to ships arriving in Boston are
                                                     30+ days

                                                                                                    43
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Extreme port and supply chain bottlenecks creating 30+ day
vessel delays to Boston, impacting port activity

                                  Monthly Containers – Actual and Forecast
                         16,000
                                                                                                                                                                           September 2021
                         14,000
                                                                                                                                                                 ASIA                N. EUROPE
Volumes (# containers)

                         12,000                                                                                                                                  • Total:   ‐100%    • Total:   ‐1%
                                                                                                                                                                 • Imports: ‐100%    • Imports: ‐2%
                         10,000
                                                                                                                                                                 • Exports: ‐100%    • Exports: ‐20%
                          8,000

                          6,000
                                                                                                                                                                               FYTD 2022
                          4,000
                                                                                                                                                                 ASIA                N. EUROPE
                          2,000
                                                                                                                                                                 • Total:   ‐73%     • Total:   12%
                             0                                                                                                                                   • Imports: ‐71%     • Imports: 12%
                                                                                                                                                                 • Exports: ‐42%     • Exports: ‐9%
                                                                       Apr‐21

                                                                                May‐21

                                                                                                  Jul‐21

                                                                                                                             Oct‐21

                                                                                                                                      Nov‐21
                                  Dec‐20

                                                              Mar‐21
                                            Jan‐21

                                                                                                                                               Dec‐21
                                                     Feb‐21

                                                                                         Jun‐21

                                                                                                           Aug‐21

                                                                                                                    Sep‐21

                                                                                                                                                        Jan‐22
                                           Current Year Actual + Forecast                                       Current Year Budget
                                           Previous Year Actuals                                                 Forecast

* October 2021 through January 2022 volumes based on forecasted scenarios as of 10.8.21, FYTD22 reflects actual volumes through September 30, 2021

                                                                                                                                                                                                       44
                                                 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
More containers are coming off ships than are being picked up
by trucks, causing ports like Savannah and LA to back up

  FACTORY           TRUCK           PORT

               ASIA                                                                            US

                                                   SHIPS
    Shut downs
                                               Dwell times:
   create uneven
                                               Up to 10 days
   waves of ships
                                                                                          TRUCK
                                                                   PORT
                                                                                                       WAREHOUSE
                                                                                         CHASSIS
                                                                Dwell times:                           Dwell times:
                                                                4.5 days ‐> 12                         3.5 days ‐> 14
                                                                     days                                   days

                                                                                                                45
                    Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Why not just ship everything through the Port of Boston?

                                                     Ship to Los Angeles through Boston?
                                                      • Lack of truck and rail capacity make long distance
                                                         moves between ports logistically unworkable at
                                                         scale
                                                     Box retailers divert Savannah cargo to Boston?
                                                      • Supply chains have been set up around
                                                         distribution centers and warehousing
                                                     Reroute ships while in transit to the next available
                                                     U.S. Port when other ports get backed up?
                                                      • Routing is planned well in advance and large
                                                         scale last minute changes create chaos which
                                                         further interrupts efficient flow

             SOME NETWORK SOLUTIONS ARE SLOWLY MOVING FORWARD
             • Alternate to nearby ports: Charleston or Jacksonville vs Savannah
             • Change port rotation: call least congested ports first ‐ Oakland vs LA
             • Cut port calls to speed up schedule: multiple port examples

                                                                                                            46
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Commercial priorities and efforts

SE Asia direct connection to Boston
 • Target: Alliance carriers on SE Asia to Boston direct service

 • Deployment is typically in May, decisions made by January ( 2‐3 months delayed this year)

Regional importers direct ship charters
 • Find importers in the region who are considering chartering their own ships and offer service

 • 1 opportunity in the pipeline ‐ Xiamen to Boston

Regional Port Strategy
 • Pitch carriers on development of a new regional port strategy, using small regional ports to remain
   fluid in 2022 and beyond

Smaller niche carriers / feeder services
 • Connect Boston to smaller markets ‐ North/South

 • Attract smaller non‐alliance carriers into the mix on transatlantic or transpacific

                                                                                                         47
                 Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Audit and Finance

                                                                                   48
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Independent Audit
  Massport FY21 Audited Financial Statements
                            Peter Breiling

                                                                                   49
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FY 2021 Financial Statement Highlights

   • Ernst & Young (EY) issued a “clean (unmodified) opinion” for the Authority’s FY
    2021 Financial Statements; no material weaknesses

   • Authority‐wide financial performance adversely impacted by business
    reductions caused by the pandemic
       o Operating revenue was $657M, $168M lower than prior year

       o Operating expenses of $404M were $103M less than last year

       o Depreciation expense of $308M increased $8M, as new assets were placed into
         service

   • As expected, we ended the year with a $55M operating loss and used CARES
    Act funding to eliminate the deficit

                                                                                                50
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
As anticipated, reduced business activity adversely impacted
FY 2021 financial results

       Logan Airport        Passengers        Parking Exits        LEX Riders
                FY21          12.2 M               585 K              408 K
                FY20          30.4 M             1,707 K             1,467 K
                FY19          41.9 M             2,472 K             1,880 K

                             Containers           Cruise           Real Estate
        Maritime               (TEUs)           Passengers          Revenue
                FY21            248 K                 0              $ 38 M
                FY20            283 K              298 K             $ 49 M
                FY19            307 K              396 K             $ 46 M

                                                                                             51
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
FY 2021 Revenue of $ 657M, 20% below Prior Year

Logan Airport: $523M, 21% decrease
• Airline Rates and Charges revenues declined with cost reductions, compensatory model
  prevented significant revenue fluctuation
• Activity based revenues tied to passenger activity declined the most
     o Parking revenue down $78M, Concessions and rental car revenue down $42M , Ground Transportation
       revenues (LEX, Ride App, other) declined $16M

Hanscom & Worcester Airports: $ 16M, $ 1M less than last year
• Hanscom produced $14 M in revenue, down only 3.4%
     o New FBO agreements increased ground rents

• Worcester Airport generated $2.0 M in revenue
     o New ground leases and rental car revenues softened impact of suspended commercial service

Maritime: $ 80M, 14% decrease
• Conley generated $70M, only $5M lower than previous year
• No Sail Order shutdown Cruise operations resulting in $8M revenue reduction
Real Estate: $ 38M, $ 10M decrease
• Real estate portfolio held up nicely against significant headwinds; revenue decrease a function of
  fewer transaction rents

                                                                                                         52
                Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Cost containment, sustainability plans, and liquidity strategies
lowered FY 2021 Operating Expenses by $ 100M
   Aviation expenses were $ 253M, a $ 43M or 17% decrease
   • Logan Express and on‐airport shuttle bus expense down by $10M
   • Logan terminals service agreements renegotiated to produce $9M in savings
   • Workforce sustainability plans lowered costs by $18M
   • Professional Services were reduced $4M
   • Utilities down by $3M due to reduced demand

   Maritime expenses were $ 55M, $ 6M less than prior year
   • Conley expenses were lower by $3M due to fewer containers
   • Cruise expenses were cut $3M due to no activity

   General & Administrative and Other Expenses were $ 82M, down by $ 51M
   • G&A expense down due to cost containment of professional fees, marketing, computer
     services and workforce sustainability plan
   • Pension & OPEB expense were lowered due to strong investment returns

                                                                                                 53
              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
As expected, we ended the year with a $ 55 million operating
loss and used CARES Act funding to eliminate the deficit

                                         FY21           FY20            $ Change % Change

            Revenue                     $ 657 M       $ 825 M           ($ 168 M)      (20.4%)

            Operating Expenses         ($ 404 M)      ($ 507 M)         ($ 103 M)      (20.3%)

            Capital Depreciation       ($ 308 M)      ($ 299 M)             $8M           2.8%
            Income/(Loss)               ($ 55M)        $ 19M              ($ 74M)

    • Non operating income was $76 M for the year, a $10M decline
         o PFCs, CFCs, and Interest Income was down $66M, Federal Cares Act and CRRSA funding
           increased $60M, and interest on bonds declined $10 M

    • Capital Contributions from Federal & State Grants was $ 62 M, up $ 2 M

                                                                                                 54
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The Authority’s Balance Sheet increased 3% from capital grants
and non‐operating revenues

                          June         $     %
                          2021      change change Observations
         Assets          $ 6.2 B    $ 372 M 6.4% • Capital Assets $4.1B
                                                        •   Cash and Investments $ 1.9B ($1.3B
                                                            are restricted)

         Liabilities     ($ 3.4 B) ($ 234 M) 7.3%       •   Debt outstanding $3.1B
                                                        •   Accounts Payable $0.2B
                                                        •   OPEB liability $0.1B

         Other Items    ($ 103 M) ($ 55 M)      115% •      Deferral of Pension and OPEB gains
                                                            to future periods

         Net Position     $ 2.6 B    $ 83 M     3.3%

                                                                                                 55
           Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The pandemic’s disruption caused the Authority’s cash balance
to decline by $45M at year end

                                                       Change
                                          FY 2021      vs FY20               Observations
       Net Cash from Operating            $ 207 M     ($ 119 M)   •   Lower business activity produced
       Activities                                                     less cash

       Net Cash used for Capital &        ($ 149 M)   ($ 151 M)   •   New borrowing used for debt
       Financing Activities                                           restructuring and capital project
                                                                      expenses. Cash also used to make
                                                                      annual debt payments

       Net Cash from Investing Activity   ($ 201 M)   ($ 49 M)    •   Cash generated from operations
                                                                      was invested

                                                                  •   Cash received from CARES Act
       CARES Act Funds                     $ 98 M      $ 63 M
                                                                      funding for airport operations

       Net Cash Increase/(Decrease)       ($ 45 M)    ($ 256 M)

                                                                                                          56
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Conclusions

  • Staff and EY presented the audited results and financial statements to the
    Audit & Finance Committee on October 14.

  • The Authority received clean (unmodified) audit opinions from Ernst & Young
    for the Financial Statements and Retiree Benefits Trust (OPEB) with fewer staff
    than in prior years and with much work done remotely;
    Thank you to the team for successfully completing the audits on time

  • Massport ended FY2021 with a $55 million loss, but was trending favorably at
    the end of the year

  • Liquidity actions, cost reduction strategies, and investment returns on
    Pension/OPEB assets mitigated revenue loss caused by the pandemic

  • Looking ahead, Massport’s financial performance should improve as
    vaccination rates increase, but full recovery is still a few years away

                                                                                               57
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Community Outreach

                                                                                   58
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Massport CAC Update
             Alaina Coppola and Flavio Leo

                                                                                   59
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Massport CAC – RNAV Block 2 Study Information Session Recap

• Massport hosted a public information
 session on the RNAV Block 2
 Procedure Recommendations
 produced by MIT

• Massport, the FAA and MIT
 participated and answered questions

• Public comment period ended on
 October 4th

• The Massport CAC plans to gather in
 December to vote on Block 2
 recommendations

                                                                                               60
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Strategic Plan

                                                                                   61
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Ground Transportation Update
                           Dan Gallagher

                                                                                   62
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Agenda

 1.   Provide update on Logan Ground Transportation activity
      •   Logan Express
      •   Parking
      •   Pickup/Drop‐off
      •   Ride‐apps (Uber/Lyft)

 2. Outline plans for the restoration of services
      •   Peabody Logan Express
      •   Back Bay Logan Express

 3. Next Steps

                                                                                               63
            Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Q1 initiatives have reduced the impacts of pickup/drop‐off
(PU/DO) on congestion, but new challenges emerging
    Summary:
      • Logan Express initiatives have helped restore passenger utilization to the pre‐
        pandemic rate

      • Virtual Economy parking pilot contributed to an increase in parking, especially for
        longer‐duration stays, but gains plateaued in August

      • Pickup and drop‐off mode share is down (from 37% in Q4 FY21 to 26% in
        September 2021)

      • Ride apps, taxis, and limos are increasingly absorbing most of the shift in ground
        access activity

      • Ride app deadhead rate is 50%, the lowest recorded, and down from 70% prior to
        centralizing operations in Central Parking

    Next Steps:
      • Continue to strengthen HOV services, ensure ride app compliance with trip
        reduction strategy, and develop strategies to respond to evolving ground access
        trends

                                                                                                64
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan Express utilization on restored services increased to the
pre‐COVID rate
                                                                Logan Express Ridership per 1,000 Enplanements
                                60
                                                                                                                                51
Riders per 1,000 Enplanements

                                                                                                                                                50
                                50                                                              43             45
                                                           40                 39
                                40       34
                                30
                                20
                                10
                                0
                                       Mar‐21            Apr‐21            May‐21           Jun‐21           Jul‐21            Aug‐21          Sep‐21
                                                Framingham           Braintree         Woburn        Pre‐COVID (Excludes Suspended Services)

                                              • Overall LEX ridership per 1,000 enplanements up 17% since June
                                              • Factors contributing to the increase:
                                                     o Online ticketing – March 1
                                                     o Woburn restoration – June 1
                                                     o Online discount – July 1
                                                     o Increase to 30 minute service – July 24

                                     Note: Excludes employees and suspended services

                                                                                                                                                        65
                                              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
The Virtual Economy pilot converted some PU/DO to parking, but
a changing passenger mix requires more nuanced pricing
                                Commercial Parking Duration per Exit (Days)
 7
 6                                                                                5.5
                                                            5.1
                                     4.8                                                                 4.8
 5             4.2
         3.9                  3.8                    3.9                   4.0
 4                                                                                                 3.6
 3
 2
 1
 0
          May‐21                Jun‐21                 Jul‐21                Aug‐21                 Sep‐21
                                              Drive Up     Reservation

 •   Passengers on long‐duration trips primarily choose inexpensive PU/DO modes over on‐
     airport parking

 •   Over the summer, the Virtual Economy product was attractive to leisure passengers on
     longer‐duration trips

 •   This trend lessened in September, as leisure travel slowed down

 •   Staff is evaluating a pricing strategy that would attract leisure and long‐term parkers to the
     airport as a way to decrease PU/DO vehicle trips

                                                                                                               66
                Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Initiatives are helping divert use of pickup/drop‐off to parking and
HOV, but Ride Apps/Taxis/Limo are also gaining ground
 Recovery: Passengers vs. Vehicles                      Logan Air Passenger Ground Access Mode Share (estimates)
          (Avg Q1 FY22 vs. June)

 20%                                    40%     37.0%                                  Q4 FY19
                                                                                       Q4 FY21                        32.7%
          15%                                                                          Jul FY22
 15%                                    30%                                                                      27.1%
                                                        26.1%                          Aug FY22
                          12%                                                          Sep FY22
 10%                                    20%

                                                                10.2% 11.3%
 5%                                     10%
                                                                                3.2% 4.3%         2.7% 3.3%
 0%                                      0%
            Air         Ground                Pickup/Drop‐off   Long‐Term     Logan Express   Private Sched. Ride App, Taxi &
        Passengers    Access Trips                               Parking                           Bus             Limo

  •    In July/August, PU/DO diverted primarily to LEX, other HOV, and parking
  •    In September, PU/DO continued to decline, but Ride App/Taxi/Limo increasingly absorbed
       passengers from all modes
  •    These mode shifts reduced passenger vehicle trips by an average of 1,300 per day in Q1

                                                                                                                         67
                     Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Logan Express System

                                                       • Currently operating:
                                                              o Braintree

                                                              o Framingham

                                                              o Woburn

                                                       • Currently suspended:
                                                              o Peabody (target: early 2022 relaunch)

                                                              o Back Bay (under review)

                                                                                                        68
         Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport’s target to launch a new Peabody Logan Express
service is early 2022
                                                      North Shore Mall site offers:
                                                      • Better proximity to population base
                                                      • More convenient access to/from major
                                                         highways
                                                      • Ability to expand
                                            12
                                            8

                       12
                       8
                                                      Service Launch:
         North Shore
         Mall                                         • Currently working with City of Peabody to
                                                          repurpose site use to LEX use (zoning,
                                                          permit, utilities)
                                                      • Hourly service
                                                      • Currently negotiating a longer term
                                                          agreement with property owner
                                                      • Will evaluate use of existing Peabody site
                                                          upon successful launch of new location

                                                                                                     69
            Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
We will evaluate Back Bay LEX service relaunch in 2022

    • Our goal is to always provide a variety of transportation options for
      passengers

    • Like other transportation agencies, we continue to have challenges with the
      ongoing bus driver shortage

    • Prioritizing the four suburban Logan Express sites focuses our resources
      where we can have the biggest impact

    • Back Bay passengers can still use MBTA services to connect to all Logan
      terminals

    • We will continue to monitor and evaluate the restoration of the Back Bay
      service in 2022

                                                                                                70
             Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Next Steps

    • Target is to restore Peabody Logan Express in early 2022

    • Present long‐term lease agreement for new North Shore LEX site at
      November Board meeting

    • Evaluate future use of existing Peabody site (Route 1)

    • Continue to monitor ground access trends and develop additional strategies
      for reducing vehicle trips

                                                                                                71
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Safety and Security

                                                                                   72
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Director of Cybersecurity
                            Lisa Wieland

                                                                                   73
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Jarret Wright – Deputy Director of Corporate Security –
appointment to Director of Cybersecurity

                                                 • Jarret has served as Deputy Director of
                                                    Corporate Security for over 2 years

                                                 • In this role, Jarret has focused on maintaining a
                                                    safe and secure environment at all Massport
                                                    facilities while working with departments, law
                                                    enforcement partners, and stakeholders to
                                                    strengthen our capabilities to prevent and
                                                    respond to different threats and emergencies

                                                 • Prior to Massport, Jarret was Senior terrorism
                                                    official at the National Counterterrorism Center
                                                    (NCTC), DHS Protective Security Advisor for New
                                                    England, and a U.S. Navy Intelligence Officer

                                                 • He is a graduate of Boston College and holds a
                                                    Masters in Cybersecurity Policy

                                                                                                     74
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Operation Ready Drill
                              Hank Shaw

                                                                                   75
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Massport and our partners conducted the 2021 BOS Operation
Ready exercise on October 1
Purpose
• FAA requires a full‐scale demonstration of the
  emergency plan every three years
• Comprehensive test intended to evaluate our
  operational capabilities
• Stress induced environment requiring actual
  mobilization and deployment to test coordination and
  response
• All resources are utilized; requiring reaction from
  personnel/equipment normally available during an
  actual emergency
Exercise
• Eight months of planning/preparation (w/COVID
  considerations)
• Massport Fire‐Rescue led ‐ conducted in partnership with
  over 20 federal, state, and local agencies, airline partners,
  and Massport departments
• Five distinct training modules
• Exercised critical elements required in the coordinated
  response, rescue, and recovery to an Alert 3 (plane crash)
  within Boston Harbor

                                                                                                     76
                  Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
BOS Operation Ready 2021 – Recap

Training Objectives
•   Exercise and refine interagency emergency response procedures for a waterborne aircraft crash
Scenario – Alert 3
•   Report of a small explosion in airplane cabin 8 miles out on approach; 52 souls onboard
•   Aircraft crashes 1,000 feet short of runway into the water
•   Confirmed casualties and fatalities
•   Captain of the Port elevates to MARSEC Level II
Goals Achieved
 Made proper incident announcements and notifications
 Conducted initial response to the accident location
 Performed search and rescue of trapped/injured patients
 Established unified command
 Triaged patients at casualty collection area
 Decontaminated patients
 Activated EOC
 Mobilized MPA Care Team
 Established Family and Friends Reception and Reunification area

                                                                                                        77
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Real Estate and Strategic Initiatives

                                                                                    78
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Parcel A‐2 Section 61 Finding
                         Andrew Hargens

                                                                                   79
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Parcel A‐2 (401 Congress) Section 61 Finding to approve
extensive environmental mitigation package
• 17‐story lab/office building / development team led by BGI
• Fully permitted under MEPA and BPDA
• Under 301 CMR 11, certain Agency actions (in this case,
  executing a ground lease) require Agency approval known as a
  Section 61 Finding to certify projects include adequate
  measures to mitigate its impacts
• The building design/engineering and other commitments
  associated with the 401 Congress project feature a slate of
  mitigation measures, which address the project’s projected
  impacts (e.g., environmental, traffic)
      o $500K funding to MassDOT/MBTA for Silver Line and
        adaptive signals at key intersections
      o Transportation oriented development leverages adjacent
        Silver Line station
      o LEED Gold and WELL certified building
      o Building enabled for future all‐electric operations
      o 100,000 sf of indoor/outdoor programmed public realm,
        extensive landscape plantings throughout
      o First project in Boston to achieve SITES certification

                                                                                                     80
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Mixed Income Housing
                         Andrew Hargens

                                                                                   81
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Introducing mixed‐income housing

• A mixed‐income residential development project on Massport’s Parcel D‐4 would
  respond to the prominent issues of housing availability and affordability and diversity,
  equity and inclusion in the South Boston Waterfront

• Massport worked with the Central Artery / Tunnel Project to engineer and build the I‐
  90 tunnel to support a larger parking garage, and the remaining proportion of this
  structural capacity is well‐suited for a residential project

• RE&AM has engaged a number of area leaders experienced in developing mixed‐
  income projects

• Defining project program and affordability categories are critical
• Funding strategies are complicated and project timelines are lengthy, and based on
  RESI Committee feedback, staff is exploring options to accelerate the development
  process

• The Massport RFQ/RFP process would apply the “Massport Model” regarding active
  DEI project participation and add housing affordability as a key outcome

                                                                                                 82
              Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Parcel D‐4 is in the heart of Massport’s mixed‐use
Commonwealth Flats section of the South Boston Waterfront

                                                                                             83
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Parcel D‐4 is located on D Street adjacent to the SBWTC

                                                                  Parcel D‐4
                                                                 Development
                                                                     Site

                                                                                             84
          Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Massport real estate portfolio overview

Existing Portfolio                                    Future Build‐Out (currently planned)
   • Office: 2.58M SF                                   • Office: 3.05M SF
   • Lab: 150K SF                                       • Lab: 1.4M SF (includes 601 Congress conversion)
   • Residential: 1,784 units                           • Residential: 2,144 units
   • Hotel: 1191 rooms                                  • Hotel: 2,245 rooms
   • Restaurant / Retail: 247K SF                       • Restaurant / Retail: 336K SF
   • Maritime Industrial: 2.51M SF                      • Maritime Industrial: 2.55M SF

                                                                                                            85
               Visual Materials for Massachusetts Port Authority Board Meeting October 21, 2021
Housing affordability is a high priority for the State and City

                                                                                 City of Boston: Concentration of Income
                                                                                   Restricted Housing by Neighborhood

 •   In Boston, 19.1% of all housing units are
     income‐restricted
 •   In the South Boston Waterfront, it is only 8% –
     one of lowest among all neighborhoods
 •   Residential (rental and ownership) options are
     expanding in the South Boston Waterfront;
     however, no affordable housing projects have
     been developed in the district

       *Source: City of Boston Income Restricted Housing in Boston 2020 Report
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Defining mixed‐income and workforce housing

•   Successful mixed‐income projects often                          2021 Boston Area Median Income (AMI)
    include the following characteristics:                                   Single           Family of 4
    o   A combination of affordable, workforce and                           Person
        market‐rate units                                     30% AMI        $25,400          $36,250       Low‐income
    o   Include a range of affordability categories           60% AMI        $50,750          $72,500       Low‐income
    o   A range of unit types (i.e., studios, 1‐3             70% AMI        $59,200          $84,550       workforce
        bedrooms)                                                                                           workforce
                                                              80% AMI        $67,700          $96,650
    o   A mix of rental apartments and                                                                      workforce
                                                              100% AMI       $84,600          $120,800
        condominiums
                                                              110% AMI       $93,050          $132,900      workforce
•   Requires diverse financing from both
    private and public funding sources                        Job                                    Salary
•   Affordability is based on % of                            Starting Salary for a JetBlue Flight   $25,000‐$35,000
    individual/household’s income relative to                 Attendant

    area’s median income (AMI)                                Entry‐level Seafood Industry           $25,000‐$50,000
                                                              Employee
•   Workforce housing targets those who do                    Starting Salary for a TSA Screener     $28,000‐$44,000
    not meet low‐income affordability                         Mid‐level Seafood Industry             $80,000‐$100,000
    thresholds, but are not able to afford                    Employee
    market‐rate housing options
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Proposed schedule

   • A key funding round in affordable housing financing accepts applications
     annually in September
       o Streamlining Massport selection process will put selected developer in the best
         position to be prepared for 2023 round or perhaps earlier
       o Continuing to explore other options for Massport to reduce project financing
         timeline

   • Outreach underway now to alert the market about the offering

   • Issue RFQ document in December

   • Issue RFP in early 2022 to a short‐listed group of RFQ respondents

   • Designate developer team in spring of 2022

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