Massachusetts Port Authority Board Meeting - July 21, 2022 - Boston
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Massachusetts Port Authority
Board Meeting
July 21, 2022
Public Session
2
Chairman’s Comments
3
John Nucci was reappointed to the Massport Board
• The Massport Community Advisory Committee
(Massport CAC) voted unanimously to reappoint
John Nucci to another seven-year term as the
committee’s appointee to the Massport Board of
Directors
• The Massport CAC was created in 2014 by the
Massachusetts Legislature to represent the interests of
communities impacted by Massport’s operations
• Member Nucci was first appointed to the Massport
Board by the Massport CAC in 2016
4
Report of the CEO
Lisa Wieland
5
Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
6
Massport Hosted CISA-Sponsored Public Wi-Fi Cybersecurity Training
• Massport partnered with DHS’s Cybersecurity
and Infrastructure Security Agency (CISA) to
offer Public Wi-Fi Cybersecurity Training to
aviation and government partners from around
New England, including airlines, airport
operators, state and local governments, and
the FAA
• The two-day course covered concepts in
wireless technology, common Bluetooth and
Wi-Fi attack methods
• As a result of the training, participants are now
better able to understand threats to their
wireless technology and steps to mitigate
potential vulnerabilities
7
Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
8
The City of Boston completed its review of the Seaport Circle development on Parcel H
• The Boston Planning & Development Agency Board approved
the Seaport Circle – Parcel H development in South Boston
on July 14, 2022
• Project includes:
o 600k sf lab/office building
o Life Sciences Career Training Center (the Pavilion)
o A new MBTA Silver Line Way station
o Significant public realm improvements
• DEI commitments throughout each phase of the project:
financing, design, construction and operations
• Next steps:
o Complete MEPA review and Massport design review/TAA
o Construction start anticipated in early 2023
9
Staff met with the Higher Education Consortium of Central MA to collaborate on ways
that Worcester Airport can support the air travel needs of the college community
• Discussed future collaborations to better serve the 36,000 college
students in Central MA, professors and administrative staff
• Massport shares upcoming marketing campaigns:
o JetBlue’s 2023 Education Vacation Campaign
o Delta’s fall college marketing campaign
o Massport’s plan to leverage college influencers and new social
platforms to reach the college market
• HECCMA Attendees:
o Mary Lou Retelle (Anna Maria College)
o David Fithian (Clark University)
o Alastair Cribb (Cummings School of Vet Med-Tufts)
o Jeanine Went (HECCMA)
o Glenn Sulmasy (Nichols College)
o Luis Pedraja (QCC)
o Barry Maloney (Worcester State)
o Dennis Lipka (Worcester Regional Transportation Authority)
10Fish Pier tenant Red’s Best raises consumer awareness of local seafood species
• Red’s Best distributes lesser-known local seafood species, including
monkfish, conch, halibut bellies, skate wings and black sea bass
• Popular species that dominate local seafood counters and
restaurants (e.g., cod, haddock, lobster, clam, scallop) are more
vulnerable to climate change than other species
• Regulations and climate change have driven fishing crews to
harvest a wider variety of species; however, much of this catch is
exported to overseas markets
• Local restauranteurs have begun to add lesser-known species to
their menus to help create more demand for species readily
available from New England waters
11Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
12Boston Magazine selected Logan Airport’s BOS2GO as a Best of Boston 2022 service
1384% of Logan Airport’s concessions are now open as recovery continues
Recently opened or re-opened concessions:
Open Concession Units at Logan Airport
• Santarpio’s Pizza in Terminal C
150
• Temazcal in Terminal B
126
109
106
96
86
71
54
Pre-COVID Sep 2020 Jan 2021 Apr 2021 Jul 2021 Dec 2021 Apr 2022 Jul 2022
14Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
15May Financials
May Activity Highlights May Financial Results
• Logan served 3.3M passengers Revenues $96.4M
• Conley Terminal processed 6,500 containers
Expenses ($61.3M)
• Real Estate revenues exceeded plan by $1.0M
• $3.3M of federal airport assistance was accrued Contribution $35.1M
• Expenses were $1.7M higher than plan
May contribution is being used to fund the FY22-FY24 Capital Program
16Logan finished FY2022 with 31M passengers on strong travel demand amid rising
economic and industry headwinds
Forecast of Logan Passengers FY22 to FY23
Positive Trends Continue but
July Estimate & Uncertainty Persists
August Outlook FY23
4,500,000
Pre-Pandemic 42.5 M (CY19) Actual FY22 33.6 M • Domestic leisure travel recovered
4,000,000
31.1 M • Restoration of many international
3,500,000 services for Summer 2022
3,000,000
• Domestic business travel increasing
2,500,000 Actual FY21 but well below 2019
12.2 M
2,000,000 FY22
26.6 M • Rising sustained inflation and high
1,500,000 fuel prices
1,000,000 • New COVID variants (BA4, BA5)
500,000
• Airlines have trimmed summer
0 schedules to deal with operational
challenges
Jul-20
Jul-21
Apr-21
Jul-22
Sep-20
Nov-20
Feb-21
Jun-21
Apr-22
Oct-20
Sep-21
Apr-23
Nov-21
Feb-22
Jun-22
Oct-21
Sep-22
Nov-22
Feb-23
Jun-23
Dec-20
Oct-22
Jan-21
May-21
Dec-21
Jan-22
May-22
Dec-22
Aug-20
Mar-21
Jan-23
May-23
Aug-21
Mar-22
Aug-22
Mar-23
• Possible economic recession ahead
FY19 FY21/FY22 Actual Forecast High Outlook
17Massport was awarded $62M in competitive BIL grant funding for Logan Airport
Terminal Projects
• US DOT/FAA announced $1 billion of Airport Terminal Grant
awards for FY22
• Logan Airport received grant awards for two projects:
o $50M - Terminal E Modernization Improvements: For replacement
of passenger boarding bridges, addition of ticket counters,
increased baggage claim capacity, and expanded arrivals level curb
o $12M - Terminal Roadways: To rehabilitate significant portions of
the terminal roadway system including the Terminal A arrivals
level, Terminal E arrivals level, and the roadway between Terminal
C and Terminal E
• FAA received over 650 applications from 532 airports for $14B
• Grants were distributed across airports of all sizes and
geographically
• The $5B Airport Terminal Grant Program is funded through FY26
18Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
19Massport exceeded its DE&I goal for Charitable Contributions in FY22
Contributions Funded Organizations Include:
• Artists for Humanity* • Museum of African American History*
• FY22 DE&I Goal: Award 50% of Massport’s Charitable
Contributions Program budget to organizations that • Boys & Girls Club of Worcester* • NO BOOKS NO BALL*
serve predominately people of color
• Catholic School's Foundation* • Revere Parks and Recreation
• FY22 Actual: 69% of funds was awarded to
organizations or programs that serve predominately • Children's Trust • South Boston Chamber of Commerce
people of color
• The Dimock Center* • Winthrop Little League
• 52 organizations received grants totaling $250,000 in • FamilyAid Boston* • YW Boston*
FY22
• HarborCOV* • ZUMIX*
o 33 organizations serving predominately people of color
*Denotes an organization or program that serves predominately people of color
received $173,300 in grants
o 23 organizations are run by or have a person of color on
the executive leadership team
20Massport held its 12th annual flag raising ceremony to celebrate LGBTQ+ Pride Month
• Joan Ilacqua, Executive Director of The History
Project, was the guest speaker
• Ms. Ilacqua spoke about the history of LGBTQ+
activism in Massachusetts and the need to keep the
Commonwealth a safe and equitable place for all in
the LGBTQ+ community
• The celebration of Pride month continued with a
video of Massport staff who spoke about their
personal experiences and what it means to them to
celebrate equal rights, self-expression and how to be
an ally
21Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
22Massport and our partners continue to take actions to reduce our carbon footprints
Massport Fleet Electrification
• By the end of the year, Massport Aviation will accept delivery
of 4 all electric light duty vehicles:
o 2 Ford F-150 Lighting Pro Electric trucks
o 2 Ford Electric Transit vans
Airline Fleet Electrification
• Delta has converted 50% of its GSE fleet at Terminal A to eGSE
Tenant Actions
• 10 World Trade project has committed to LEED Gold minimum
• Seaport Circle project has committed to at least LEED Gold
certifications, and is targeting LEED Platinum
• Omni Hotel submitted for LEED Silver Certification
• Commonwealth Pier project is targeting LEED Gold minimum
23Massport participated in the Reuters US Offshore Wind 2022 Conference in Boston
• Earlier this week, Andrew Hargens spoke at the conference on
Massport’s efforts to support the growing industry in Boston
Harbor
• Opportunities on Massport land include the South Boston
Marine Multiport (SBMMP), the Shipyard in East Boston, and
the Autoport in Charlestown
• Offshore wind will be a major and permanent source of jobs
and economic development in the Northeast
• Eastern Salt, Massport’s business partner, attended and
actively marketed the SBMMP Conceptual view of the South Boston Marine Multiport (SBMMP) cargo terminal
Eastern Salt plans to build at the Massport Marine Terminal in South Boston
24Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
25Logan Airport’s online parking reservations system is gaining in popularity and has
been extremely responsive to market conditions
FY2022 Parking Reservations • The parking reservations system went live
May 2021
20,000 12% Boston Logan Airport
Parking Reservations
• The use of parking reservations has grown
10%
and now accounts for 9-10% of monthly
Reservations as a % of Total Exits
16,000
exits, up from 5% a year earlier
Parking Reservation Exits
8%
12,000
• Because parkers who reserve have longer
6% parking durations, they account for about
8,000 17% of parking revenue (June)
4%
• The online reservations system allows staff
4,000
2% to adjust parking capacity and pricing (within
board approved limits) based on market
conditions to best serve our mission to:
0 0%
Reduce passenger pick up and drop-off
Oct
Sep
o
Feb
Jan
Aug
Nov
Dec
Jul
Mar
Apr
May
Jun
Reservations % of Total Exits o Encourage 2 versus 4 trips
o Optimize asset utilization
26Massport is improving the recruitment process by expanding the use of digital systems
Digital Transformation of HR
• Automating several manual processes to enable HR to focus on the value-added steps in the
recruiting process
• Enhancing the experience for hiring managers to reduce the time for hiring
• Improving the look and feel of our digital recruitment footprint
27Massport launched a new, interactive map to inform developers of building height
limits in real-time to protect Logan’s airspace
28Massport Goals – FY 2023
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
29Massport recently kicked off the 2022 Community Summer Jobs Program
• The annual program provides funds to civic and social service
agencies to hire youth employees from neighboring communities
• 29 organizations are receiving grants to support nearly
300 youth jobs this summer
• Since 1991, over 8,000 local students have gained valuable work
experience in various positions supported by the grant funding,
such as camp counselor, office assistant, maintenance worker
and lifeguard
Revere Parks and Recreation
30Massport has been supporting the Boston Harbor Islands’ dual anniversary –
th th
25 year as a national park and 50 as a state park
• The Boston Harbor Islands (BHI) encompass 34
islands and peninsulas in Boston Harbor
• Massport is a founding member of the BHI
Partnership, an 11-member collaborative that
governs the BHI National and State Park
• To kick-off the season, the Partnership hosted
Free Ferry Day, an annual tradition that brings
thousands of visitors to the islands
• Massport’s Conor LeBlanc (RE&AM) is serving as
the Anniversary Communications Committee
Chair
o The campaign theme “Find Your Better Nature”
is focused on making the islands more accessible
and inclusive
31Massport’s East Boston tenants are supporting Eastie Week festivities (July 10-26)
• The East Boston community celebrates the neighborhood’s history,
culture and arts each year during “Eastie Week”
Events Supported by Massport Tenants:
• Outdoor Movie Night (July 13) - at the Boston Harbor Shipyard &
Marina
• Taste of Eastie (July 26) - hosted at The Tall Ship
32Massachusetts artists painted Massport-owned utility boxes in South Boston as part
of our public realm initiative
• Original RFP, issued in late 2019, requested artwork
proposals focused on the theme: “Our Waterfront:
Past, Present, and Future”
• Five artists were selected covering a range of
interpretations of the theme and artistic styles:
o James Connelly
o Eli Portman
o Molly Scannell
o Sophy Tuttle
o Cynthia White
• Massport is promoting the artwork on social media
33Report of the Director of Aviation
Ed Freni
34Major Marc A. Lavoie is selected as new commanding officer for Troop F
With over 29 year’s of service to the Massachusetts State Police (MSP), Lavoie brings a wealth of experience in leadership, law
enforcement, investigations, and security to Massport
• Most recent senior-level positions include:
o Deputy Division Commander for the MSP Homeland Security Division
o Deputy Director of Forensics Services
• A wide range of uniform, investigative, and Task Force
assignments:
o Plymouth County Narcotics Unit
o Bristol County Homicide Unit
o Southeastern Massachusetts Gang Task Force
o Interstate Narcotics Reduction Team
• Currently a Major in the United States Army Reserve:
o Previous overseas deployments to Iraq and Africa
• Education:
o Master’s Degree in Criminal Justice from UMass-Lowell
o Bachelor’s Degree in Criminal Justice from Western New England
o Broad array of training from US DOD and federal law enforcement on
national security, intelligence, and criminal enforcement
35Logan Airport passenger activity levels – June 2022
Logan Activity Summary
June 2022
Prior Pre Pandemic % Change Over
June Year 2019 2019
Passengers 3.4M 2.1M 3.9M -13.6%
Month:
Aircraft Operations 33.7K 23.6K 37.5K -10.2%
Passengers 16.3M 7.8M 20.4M -20.1%
CYTD:
Aircraft Operations 175.6K 99.9K 205.1K -14.4%
36th
Logan outbound travel leading up to the July 4 holiday was very strong
July 4th Holiday Travel (6/27 to 7/3)
Logan Outbound Passengers*
80,000 • Over 405,000 passengers departed from Logan
Airport in the week leading up to Independence Day
70,000 2019:
443,500
60,000
2022: • 45% increase over the same period last year (2021)
405,600
50,000
40,000 • 91% of pre-pandemic (2019) travel for the same
period
30,000
20,000 • The previous week (June 20-26) had 424,000
outbound passengers, the highest weekly total since
10,000 2019
0
Jun 27 Jun 28 Jun 29 Jun 30 Jul 1 Jul 2 Jul 3
* Comparisons are based on same dates (not days of week)
Source: TSA screened passenger counts.
37Airlines have restored approximately 90% of Logan’s pre-pandemic seat capacity this
summer
Logan Airport Seat Capacity vs 2019
Additional Restorations and New Services
Domestic
100% 86% 89% 87% 89% 90% 90% 92% 91%
New Domestic Service: 80% 78%
80% 70% 70% 72% 73%
• Asheville, NC – JetBlue seasonal service (eff. June 16) 62%
60%
40%
Resumption of Suspended International Services: 20%
• Hong Kong - Cathay Pacific (eff. August 5) 0%
• Panama City – Copa (eff. July 14)
• Calgary - West Jet (eff. June 30) International
100% 89% 90%
82% 82% 84%
80% 71% 72%
63% 64%
New International Service: 60% 48% 52%
38% 40% 40% 43%
• London Gatwick – JetBlue (eff. August 4) 40%
• London Heathrow – JetBlue (eff. Sept 20) 20%
0%
*August seats subject to change
38Massport is working closely with MassDOT on mitigation for Sumner Tunnel closures
to improve on-airport traffic flow, alerting passengers and promoting HOV modes
Alerts and Promotion of HOV on Social Channels and Radio: Text Messages:
Re-tweeting Airport Signage: Partner Messaging:
MassDOT
Messaging:
39JetBlue is using the A320 narrow body jet at Worcester Regional Airport for the
Ft. Lauderdale service
• JetBlue started deploying the A320 on the Ft.
Lauderdale (FLL) service in July and it will continue
through at least the end of October
• The A320 is configured with 162 total seats
• The service to FLL has seen strong load factors
• Worcester now has 28% more seats than pre-
pandemic, recovering faster than other regional
airports
40Hanscom continues to see strong demand for private jet aviation, offset by declines in
recreational GA and training activity
Hanscom Field June Highlights
Jet Operations
• Jet activity was up 26% compared to June 2019 (pre-
4,000 pandemic)
3,500 • Total June activity was up 2% compared to pre-
pandemic
3,000
• CYTD 2022 total operations are down 4% versus 2019
2,500
o Recreational and pilot training operations continue to
decline
2,000
1,500
1,000
500
0
Jan Feb Mar Apr May June
2019 2022
41Report of the Acting Director of Maritime
Joe Morris
42Massport and the U.S. Army Corps of Engineers are pleased to announce the
completion of the Boston Harbor Dredging Project
• This was a partnership between the U.S. Army Corps
of Engineers (USACE), the Commonwealth of
Massachusetts, and Massport
• The project deepened the Reserved Channel to
- 47 feet and the berths to -50 feet, while expanding
the Turning Basin to 1,725 feet
• Conley Terminal can now service 14,000 TEU vessels
and large tankers carrying dry bulk and petroleum can
better access terminals along Chelsea Creek
43Dredging and Conley Terminal Modernization have resulted in more global connections
opening up new markets and industries for the Commonwealth and New England
Conley Terminal – Direct Connections (September 2022)
• Two new services this summer will
provide additional connectivity to/from
China, Southeast Asia, the Middle East,
and the Mediterranean
• Boston now offers direct coverage to
nearly two dozen global ports, offering
more selection and variety than ever for
importers and exporters
• Conley’s infrastructure upgrades have
made it possible to welcome a 13,800
TEU vessel – the largest ever in the Port’s
history – planned for early September
44Conley Terminal finished FY22 with over 79,000 containers as infrastructure
investments near completion and Maritime welcomes new direct services
Monthly Containers – Actual and Forecast • In June, Conley had its strongest month since
last August, with nearly 8,900 containers
16,000
14,000
12,000
• Port congestion in Europe and in Savannah
continue to impact schedule reliability
Volumes (# containers)
10,000
8,000
• August volume is forecast to be the strongest
6,000
month this calendar year with the addition of
4,000 more connections
2,000
0
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Current Year Actual Current Year Budget
Previous Year Actuals Forecast
45The Ocean Shipping Reform Act (OSRA) will allocate more power and funding to the
Federal Maritime Commission to monitor international ocean transportation
• President Biden signed into law on June 16 the first major
shipping reform in the U.S. in more than 20 years
• The Federal Maritime Commission (FMC) now has greater
oversight of container storage fees and the ability to monitor
whether ocean carriers are adhering to rules on loading
exports
• The goal is to reduce shipping costs and ensure that
agricultural goods and other U.S. exports are treated fairly
• The FMC has 6 months to create new rules related to vessel
space for exporters and 45 days to draft language related to
demurrage and detention fees
• The FMC will also look into best practices for chassis pools and
inland ports for overflow cargo
46Flynn Cruiseport Boston welcomed 23 vessels and nearly 44,000 passengers through
June 2022
Cruise Passengers CY22
20,000
17.9K • Both homeport partners currently sailing (Norwegian
18,000 Cruise Line and Holland America) reached nearly 100%
16,000 capacity in June
14,000
13.6K
12.4K
12,000
• 9 cruise ships from 5 different lines, including Cunard,
10,000 Princess Cruises, and Oceania Cruises, scheduled this
8,000 July
6,000
4,000
• Flynn Cruiseport Boston continued its 4th of July
2,000
tradition, welcoming the Queen Mary 2, which has
0 been visiting Boston every Independence Day since
Apr May Jun 2006
Avg. Psgr. 47% 68% 82%
Sailing
Capacity 69% overall
47Maritime participated in the first Cruise Canada New England Symposium since 2019,
welcoming cruise lines back to our region
• The Cruise Canada New England Alliance (CCNE)
hosted its first Cruise Symposium since 2019 in
Portland, Maine
• Nearly 150 cruise industry professionals
attended, including 25 cruise line executives
based in Miami, Seattle, Los Angeles, and Europe
• Massport attended with our colleagues at the
Greater Boston Convention & Visitors Bureau
(GBCVB) to educate and engage with our cruise
line partners on long-term strategic planning
• The 3-day conference covered various topics in
the industry, including health & safety, industry
outlook, itinerary planning, sustainability,
infrastructure development, and tourism
expansion
48Safety and Security
49Security Training Update
Hank Shaw
July 21, 2022Massport Fire Rescue, mutual aid departments, and first responders participated in a
fuel farm fire exercise
The exercise tested notification, response, and water supply procedures
Key Objectives
Notification and Communications Unified Command Emergency Staging
Fire Alarm notifies internal and external agencies Establish command/control to coordinate across multiple Stage/deploy responders and apparatus to fight fire
to respond; channels assigned agencies
Highlights
Scenario
Simulated fuel tank fire; water supply operations for fire apparatus
Impacts and discussion
Airport operations; environmental concerns;
media & community relations; recovery and restoration
Participants
51Massport supported JetBlue’s 2022 Safety & Security Fair
State Police and Corporate Security provided Active Shooter Awareness training:
• Reviewed Run, Hide, Fight protocols and the Massport Active
Shooter video
• Discussed importance of vigilance and See Something, Say
Something mindset
• Provided an overview of Airside Assembly Area procedures if
airside evacuation is required during a hostile event
• Participants were encouraged to apply the security lesson to
situations outside of work and share their knowledge with
family and friends
52Massport provided first responder training at Logan Airport cargo facilities
FedEx hosted the Massport Safety & Security Team “Trunk Top” exercise and cargo familiarization
Scenarios and coordinated responses reviewed:
• Active shooter, suspicious package, HAZMAT, fire, and insider threat
• Potential Unified Command locations, notification, and communication practices
Familiarization and overview:
• Walk-thru evaluated physical security and access control in a cargo environment
Key takeaways:
• Extremely valuable exchange due to unique obstacles and processes specific
to cargo
• Enhanced planning and refined procedures to facilitate a more informed
response
• Will continue trainings with cargo carriers to strengthen relationships and fine
tune communications
53Human Resources, Diversity, and Compensation
54Election of Officers
July 21, 2022Joseph Morris, Acting Port Director - appointment to Port Director
• Joe joined Massport in March 2020 as Deputy Port
Director, Operations and has been serving as the
Acting Port Director since February 2022
• He has more than 25 years of global port
experience having served in a variety of capacities
for APM Terminals and for A. P. Moller–Maersk
Group
• Prior to joining Massport, Joe was the Chief
Operations Officer for APM Terminals, Moín, Costa
Rica where he was responsible for operations,
customer service, maintenance, safety and
security, Continuous Improvement, budgeting,
capital investment planning, business
development and labor relations
56Lauren Gleason, Deputy Port Director, Business Development - appointment to
Chief Administrative Officer of Maritime
• Lauren joined Massport in 2017 as the Deputy
Port Director, Business Development
• Prior to joining Massport she was the Senior
Manager, International Supply Chain at Wayfair
• Lauren previously served as the New England
General Manager for Hanjin Shipping Company,
Ltd where she managed 55 Beneficial Cargo
Owners (BCOs) based in New England and
Montreal
57CEO Accomplishments Report
Lisa Wieland
July 21, 2022FY 2022 Overview
Advancing Massport’s Rebound and Recovery
• Last fiscal year started with renewed optimism, but was colored by uncertainty and many challenges
o Only 12.2 million passengers at Logan
o No commercial service at Worcester
o No cruise activity
o Volatility in our container business
• Financial sustainability and the preservation of health remained top priorities
o Omicron wave in Fall and Winter
o Evolving COVID related rules and regulations
• But we also focused on:
o Restoration of business activity
o An improved travel experience
o Stakeholder engagement
59Maintain safe, secure and healthy facilities
• Kept our airports and maritime facilities open throughout the crisis for the essential movement of
people and goods
• Improved Massport’s cybersecurity posture and ability to respond to an attack or incident
• Conducted trainings and assessments across all facilities to prepare staff and business partners for a
security incident
• Raised awareness about drone safety to protect aviation and maritime facilities
60Enhance the customer experience
• Restored Logan Express services and increased ridership
• Landed new non-stop international destinations and restored suspended routes
• Advanced key Logan Forward projects
• Restored commercial service at Worcester Regional Airport
• Advanced Conley Terminal’s “Big Ship” Capabilities
• Attracted new South East Asia services to Conley Terminal
61Adapt our business model and mitigate financial risks
• Successfully implemented a financial sustainability plan to close the $400 million budget gap
• Restored discretionary revenue sources
• Improved Hanscom Field’s financial performance
62Embed DE&I into our organizational DNA
• Expanded the Massport Model with mixed-income housing project in South Boston
• Achieved 50% goal for Charitable Giving to organizations predominately serving people of color
• Launched Pathways Program to create intentional pipeline of diverse talent
• Initiated new diversity programming for staff
63Re-establish environmental leadership
• Developed and launched Roadmap to Net Zero by 2031
• Secured grant from MassCEC to help convert the Ride App industry to EVs
• Successfully issued Green Bonds to fund the Terminal E Modernization Project
64Bring about digital transformation
• Launched the FlyLogan App
• Increased efficiency and reduced cycle times for key internal processes utilizing technology
• Initiated Authority-wide website redesign
65Maintain strong relationships with business partners, customers, stakeholders,
elected officials surrounding communities and employees
• Continued to build relationships with external stakeholders
• Completed design for Piers Park II with the community
• Closed out the RNAV Study
• Took actions to retain, develop and attract talent
66FY 2023 Goals
• Ensure safe, secure and healthy facilities
• Generate economic impact for the Commonwealth
• Enhance the customer experience
• Improve financial and operational performance
• Embed DE&I into our organizational DNA
• Advance our environmental leadership
• Bring about digital transformation
• Maintain strong relationships with business partners, customers, stakeholders, elected
officials, surrounding communities and employees
67Massport Strategic Priorities 2025
Aviation Maritime Real Estate
• Reimagined Customer Journey • Full Global Connectivity & Diversified • Asset Optimization and Diversification
Service Mix
• Adaptive Terminal E Use • Expanding the Massport Model
• Infrastructure Modernization
• Terminal Connectivity • Growth and Support of Maritime Industries
• Cruise Rebound and the Seafood Cluster
• Diversified Logan Operators/Airfield Land-
Use Planning • Financially Self-Sustaining • Public Realm and Placemaking
• Asset/Area Optimization and Repurposing
• Worcester Rebound
• Hanscom Operating Break-Even
Authority-Wide
• Safety, Security & Health • Technology Plan
• Financial Sustainability • Operational Efficiency
• DE&I (Internally and Externally) • Transportation Access and Mobility
• Workforce Sustainability • Community Partnerships
• Climate Action Plan • Telling our Story
68Strategic Plan
69Workforce Diversity Business Plan
2022-2023
Tiffany Brown-Grier & David Gambone
July 21, 2022Executive Summary
• Massport has a long track record of efforts to develop a diverse and inclusive workforce
Attract
• Recently launched initiatives are advancing our DE&I goals
o The first year of the Pathways Program, a partnership with Bridgewater Sate University to help build
a diverse pipeline, is underway and will be expanded Develop
o 13 females and persons of color are currently participating in our robust professional development
programming to retain diverse, high-performing employees Retain
o To support the recruitment and retention of diverse employees, Massport continues to engage
employees in a variety of programming to continue fostering an inclusive workplace
• Every two years, we formally assess the effectiveness of our outreach, recruitment and other employee
practices in the Workforce Diversity Business Plan; the most recent analysis shows our efforts are working
o Massport meets placement goals in all 21 job categories for people of color, and in 20 of 21 job categories for females
• Today, we request that the Board approves Massport’s 2022-2023 Workforce Diversity Business Plan
71The Pathways Program was created to help build a diverse workforce pipeline
The Pathways Program
Partner with local universities to provide diverse talent with:
• $5,000 scholarships
• 13-week Summer Internships • New Partner: UMass Boston (“UMB”)
• Employment upon graduation
• Massport mentor relationship • Target Areas:
o Resiliency/Environmental (Capital Programs)
o Data Analytics (Information Technology)
o Accounting/Finance (Administration & Finance)
• Partner: Bridgewater State University • Status:
o Gained consensus with department Deans on program
• Target Area: Aviation Management direction and expectations
• Status: o Three students to be selected this fall with internships
o Two students selected (both female, one person of color) starting May 2023
o Rotational program with Aviation immersion commenced • Scope Internship/Curriculum development:
May 2022
o Massport departmental subject matter experts working
with UMB faculty to align curricular areas with
Massport needs
72We have expanded professional development programming
Massport Emerging Leaders: The Partnership, Inc.
• 12-month program for 12 high performing employees • Premier local organization focused on attracting, retaining,
and developing professionals of color
• Participation: 42% people of color and 50% women
• Two employees participating in 12-month program
• Program includes: o One female
o Access to a mentor panel comprised of senior leaders from
across the Authority • Two programs, one for “beginning of career professional”,
and the other for mid-level professionals
o 3-day on site Bentley Executive Education Program
o Training sessions include:
Communicating in the Public Sector The Commonwealth Institute
Effective Presentations and Telling Stories with Data
• Highly-rated Strategies for Success leadership development
Business Writing, Finance & Resource Mgmt.
program for women
Strategic Planning
Managing Teams & Relationships • Two employees participating in 3-month program for high
Operational Tours performing women
o Will culminate in a graduation presentation and ceremony in o One person of color
December
• Access to a mentor panel made up of six mentors from
different areas across the Authority
73HR and Diversity have expanded our programming to continue fostering an inclusive
workplace
• Diversity STEM Scholarships
o Awarded $3,000 to two neighboring community high school graduates
• Employee-led Women’s and Multicultural Employee Resource Groups
• DE&I Book and Media Club
• Employee Diversity Recruitment Partnership
• Cultural Awareness Speakers Program
• Authority-wide DE&I Performance Metrics
• DE&I Certificate Program
o Three course series: Diversity, Equity & Inclusion Awareness; Building an Inclusive
Workplace; and Unconscious Bias
74Today’s Board Action: Approve Massport’s 2022-2023 Workforce Diversity Business Plan
• Since 1976, Massport (the “Authority”) has adopted and pursued programs to provide employment opportunities in a
non-discriminatory manner, consistent with federal and state law
• The Workforce Diversity Business Plan looks at the Authority’s employment of females and people of color across 21 job
groups and develops placement goals for underrepresented groups
• Massport made progress towards the 2020-2021 goals established for people of color in Skilled Craft jobs and females in
the Service Maintenance - Internal category and outlined in the previous plan
• For the 2022-2023 Plan, Affirmity, a nationally recognized expert in diversity plan preparation, analyzed the composition
of each of the 21 job groups and compared it with availability in the job market to determine if people of color and/or
women are being underutilized. Their analysis shows:
o People of color are not underrepresented in any of the 21 job groups
o Females are underrepresented in only one of the 21 job groups
• The Authority has established internal performance/tracking methods (benchmarks), best practices and initiatives to
ensure that we are best in class with our recruitment efforts
75Service-Maintenance Internal is the only category with a proposed placement goal in
the 2022-2023 Workforce Diversity Business Plan
• The 2022-2023 Plan establishes a Females placement goal of 41% for the Service-Maintenance Internal job group:
Job Group Class Actual Placement Goal
Service-Maintenance Internal FEMALES 20.41% 40.70%
• This job group includes Skilled Laborer, Ground Transportation Agent, and Private Carrier Agent positions
• To achieve the placement goal, we will continue efforts to diversify the candidate pool for these jobs
o Conduct additional informational sessions with current employees who are eligible to educate them about licensing requirements
for these jobs and connect them with training opportunities
o Continue outreach efforts to target diverse candidates for entry level positions that comprise the feeder pool for these jobs
Participate in targeted job fairs (e.g., El Mundo, Urban League of Massachusetts, Benjamin Franklin Institute, etc.)
Advertise job opportunities and promote diversity and inclusion initiatives on social media platforms
Distribute job announcements to relevant community, government and trade organizations (e.g., local unions, Empower DEI, Women In The
Building Trades, etc.)
Utilize speaking engagements to market job opportunities
76Requested Board Vote
Approve and adopt the 2022-2023 Workforce Diversity Business Plan
77Facilities and Construction
78Airfield and Terminal Fueling Improvements,
Logan International Airport
Full Project Budget
Luciana Burdi
July 21, 2022L1584 – Airfield and Terminal Fueling Improvements- Project Schedule
The project is being constructed in two phases and will be completed in early 2024
Demolition of Building 6 and Spill Containment Wall and
Relocation of Underground Utilities Installation of 5th Jet Fuel Tank
Design Complete Design Jan 2021
Bid and Award June 2021 Bid and Award June 2022
Construction Start Sept 2021 Construction Start Nov 2022
Construction Complete Sept 2022 Construction Complete April 2024
80Requested Board Vote
Approve an additional $19 million for a revised full project budget for
MPA Project L1584, Airfield and Terminal Fueling Improvements,
in the not-to-exceed total amount of $50.5 million
81Piers Park II – Logan International Airport
Full Project Budget
Luciana Burdi and Nhuy Hoang
July 21, 2022Project Scope and Conditions of Satisfaction
Project Scope:
• Through a robust collaborative community design process,
construct a 4.5 acre park and a new community sailing
center
• Public Bidding Chapter 149 (MA Regulations)
Conditions of Satisfaction
• Community Commitments:
o Construct a community benefit project identified by the Logan
Impact Advisory Group (LIAG), City of Boston, and the East
Boston PierPAC Advisory Committee
o Improve community waterfront access and create new open
greenspace
o Involve community in the design process through
collaboration with the PierPAC Advisory Committee
• Efficiency in Project Delivery:
o Improve flood resiliency with raised grade and landscape berm
o Lean Design and Construction process
o Seamless transition from Piers Park I to Piers Park II
83Project Timeline, Sustainability and MWBE Components
Initial Design Concept
PP II Design Begins PierPAC Approved PP II Design Complete Construction Complete
(September 2017) (November 2019) (June 2022) (Late 2023)
East Boston Community Design Final Design Construction Starts
Charrette PierPAC Approved (Fall 2022)
(April 2019) (November 2021)
Sustainability: MWBE:
Planting New Trees: Replacing a gravel lot with a Consultant Goal:
4.5-acre greenspace creates a carbon sink that o Goal: 18%
o Expected: 33%
reduces the heat island effect in the dense East
Boston neighborhood Construction Goal: 4.8%
Energy Efficiency and Conservation:
o Electric heat pumps will heat and cool the new
sailing center building
o LED lighting throughout the park
o Drinking fountains with bottle filling at the
sailing center
Resiliency: Site elevation will be raised providing
flood protection at a critical flood water pathway
84Requested Board Vote
Approve the full project budget for MPA Project L1540, Piers Park II
in the not-to-exceed amount of $20M
85Audit and Finance
86S&P Credit Rating Upgrade on MPA Bonds
John Pranckevicius
July 21, 2022S&P Global Ratings upgrades Massport’s bond rating to ‘AA’ on improved market
position
• S&P Global Ratings cited the following key credit strengths:
o Logan’s leading market position as the main large hub airport in
the region, a primarily origin-destination market, and good airline
diversity
o Massport’s historically very strong financial performance
o Extremely strong governance and management
• Fitch Ratings and Moody’s Investor Services also affirmed Massport’s AA bond rating
• The bond rating upgrade and the sale of “green bonds” helped lower Massport’s interest costs
• A&F and Aviation finance teams did an “excellent job” securing this bond rating upgrade
• The rating upgrade reflects the efforts of all Massport employees for staying focused, being creative and
innovative, for keeping expenses low, and maximizing revenues were possible throughout the pandemicIssuance of Revenue Green Bonds Series 2022-A Results
Anna Tenaglia
July 21, 2022Massport issued $121M of Green Bonds to fund the Terminal E Modernization Project
Highlights:
• $120.9 million of Series 2022-A (AMT) Green Bonds
• Only two other airports have issued Green Bonds with a • Sale Date: July 12, 2022
2nd Party Opinion • All-in true interest cost: 3.91%
o LAWA (Los Angeles International) and Portland, ME • Funded $116.4M of the Terminal E Project as well as
capitalized interest, a deposit to the 1978 Reserve Account,
and costs of issuance
• Achieved a ratings upgrade from S&P to “AA” to restore all
three of the Authority’s ratings to the “double-A” level Terminal E Debt Service Profile
(AA/AA/Aa2) 50
$Millions
45 Series 2022-A - Term. E Modernization
• Bonds were issued in a programmatic approach with a 40 Series 2021-E - Term. E Modernization
portion of the Series 2021-E Bonds to create a target debt 35
service profile for all bonds issued for Terminal E 30
25
o This approach proved to be highly beneficial given the rise in
20
interest rates since 2021
15
10
5
0
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
2045
2047
2049
2051
90The sale of the Series 2022-A Bonds was very successful despite a more challenging
market backdrop in 2022 relative to the past several years
• Massport benefitted from a relatively good day in the market, an attractive structure, the Green Bond
designation, and its status as one of the highest rated airports in the country
• 32 Investors participated in the sale including Massachusetts retail investors
• ESG Investors were allotted $50 million in bonds (Eaton Vance, *Alliance Bernstein, *Allspring, and
*Nuveen)
• The Authority was able to tighten spreads along the curve between 5-7 basis points in most maturities
reducing interest costs
• The value of the S&P rating agency upgrade by 1 notch to AA provided an approximate savings of
$500,000 in debt service
• Only a few other airports have issued “Green” bonds and only two used a second party opinion
* Not initially designated as ESG
91The 2022 bond issue completes financing for the Terminal E Modernization
• Lead Senior Manager – UBS Financial Services Inc.
• Co Managers
o Stern Brothers (WBE) and Cabrera Capital (MBE)
• Selling Group
o Janney Montgomery
o Cabrera Capital (D/VBE)
• Green 2nd Party Opinion Verifier – Kestrel (WBE)
• Financial Advisors – Public Financial Management
• Bond and Tax Counsel - Kaplan Kirsch and KutakRock
• Disclosure Counsel – Locke Lord
• Co Underwriters Counsel - Hinckley Allen and D. Seaton (MBE)
92FAA BIL Grant Matching Funds
John Pranckevicius
July 21, 2022Federal FAA BIL grant matching funds recommendation
Grant Awards and Required Matching Funds:
Federal Massport
BIL Grant Project Name Total
Funding Match
Terminal E Improvements (L1757) $88M $50M $38M
Logan Roadway Improvements (L1597) $15M $12M $3M
Total $103M $62M $41M
Local Match Funding Recommendation & Board Vote:
Amount
New I&E transfer from FY22 earnings $28M
Capital Project L1682 - Jet Bridge Replacement adjustment $10M
Capital Project L1597 – Roadway Improvements existing funding $3M
Total Matching Funds required for Federal BIL Grant funds $41M
94Assent Agenda
95You can also read
