Massport Sets Fiscal Year 2020 Total Budget of $907 Million

Funds growth in operations, strategic initiatives, and safety enhancements

BOSTON – The Massachusetts Port Authority (Massport) Board of Directors yesterday voted to approve a Business Plan and Budget for Fiscal Year 2020 at $907 million. The budget reflects Massport’s commitment to safety and security at all facilities, improving the customer experience, and boosting the region’s economic growth. The Authority remains focused on advancing ground transportation access at Boston Logan International Airport, supporting initiatives in our neighboring communities, and improving the financial performance of maritime operations throughout the Port of Boston.

Massport’s summary of activity for calendar year 2018

• Logan International Airport served 40,941,925 passengers, the 8th straight year of growth;
• Conley Terminal processed 298,036 TEUs (Twenty-foot Equivalent Units) during 2018, surpassing 2017 total volume by 10 percent;
• With four straight years of records, the Port of Boston’s national profile has risen and was recently ranked 20^th in the American Association of Port Authorities’ Top U.S. Ports;        
• Flynn Cruiseport Boston welcomed a record 389,619 visitors to Boston during the 2018 cruise season and approximately 400,000 passengers are expected during the 2019 season.

Responsibly moving people and goods

Record growth across Massport’s businesses is projected to continue in FY’20. About 60% of the budget, or $544 million, will fund the day-to-day operations of the Aviation, Maritime, and Real Estate, business lines as well as the Authority’s support departments. This operating budget helps propel the Massachusetts’ economy, enhances customer offerings and strengthens our commitment to safety and security. Operating expenses, excluding next year’s new public safety initiatives, will grow $15 million or 2.9% next year.  Funding for a new State Police class, new firefighters, and a new consolidation of Logan curbside truck deliveries, and new technologies adds $13 million in new expense to keep the people who use and who work at our facilities safe. This budget in total dedicates over $100 million toward safety and security resources next year.

In addition to the operating budget, $363M is set aside for capital improvement projects throughout Massport’s facilities in the current $2.6B capital program. This will require $56M, which is primarily in new debt service capacity to fund $1.2B of new debt over the next five years.

Importance of the working Port

A recent study by Martin Associates shows that the Port of Boston contributed $8.2 billion in economic activity in 2018, up from $4.6 billion in 2012. Smart investments and partnerships have led to growth in jobs, business revenues, and tax contributions. Businesses throughout the Commonwealth and New England rely on Boston’s Port to import and export their products and compete in the global economy.

Massport and the Commonwealth are also spending $215 million to create a new 50-foot deep berth and procure three new ship-to-shore cranes to better serve the larger container vessels that are calling the Port today and the even larger vessels that will call in the future. This modernization project is expected to be completed by the end of 2020.

Flynn Cruiseport welcomed nearly 390,000 passengers last year from April through November via a record 151 ship calls from 34 vessels representing 20 different international cruise lines. In October, the Cruiseport will host its largest ship ever– the MSC Meraviglia, which carries 4,500 passengers.

Improving transportation to and from Logan

Logan International Airport currently serves 133 nonstop flights to destinations throughout the U.S. and the world (75 domestic and 58 international). Massport has a strategic agenda to move passengers to and from the airport efficiently. The recently announced ground transportation initiatives at Logan, to double Logan Express ridership and reduce TNC deadheads, adds $8M to the budget, including new employees, additional bus service and construction. All TNC pickups and a majority of drop offs at Logan will be moved to the Central Garage. By doing this, the TNCs can implement Rematch, Shared Ride options with discounted fares, and a better passenger experience. To increase ridership on Back Bay Logan Express, we reduced the fare and added head of the security checkpoint priority at the airport. As of May 1, a ride on Back Bay LEX to Logan costs $3, and passengers from Logan to the Back Bay ride FREE.

Logan parking revenue is expected to be flat even as a $3 rate increase goes into effect July 1. This increase will offset the loss of 2,200 spaces in FY’20 due to construction (1,200 spaces), and the new TNC program in Central Garage (1,000 spaces). This rate increase was previously voted by the Massport Board in a series of increases over multiple years.

• Economy parking at Logan is currently $26 for 24 hours, and is increasing to $29 on July 1.
• Other on airport parking is $35 for 24 hours, increasing to $38 on July 1.
• The daily $7 parking rates at the four suburban Logan Express parking facilities in Braintree, Framingham, Peabody and Woburn are not included in these increases.

The FY’20 budget also includes increasing parking meter hourly rates to $3.00 per hour, for the Authority’s 100+ meters in South Boston beginning September 1. These parking rates have not increased in over a decade and will be closer to the hourly rates the City charges in the area.

Partnering with our communities

Massport operates in collaboration with our surrounding communities. The budget includes funding for the East Boston, Winthrop and South Boston Foundations, Community Health Centers in East Boston and Winthrop, PILOT payment to the City of Boston, maintenance and security of the 40 acres of green space and parks surrounding Massport facilities, community programs and scholarships, among other initiatives.