AAPA Seaports Advisory

Finance: Boston, Oakland

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Boston: Massport Sets Fiscal Year 2017 Total Budget of $721 Million

The Massachusetts Port Authority (Massport) board on June 23 approved a business plan and budget for fiscal year 2017 of $721.5 million. Massport says the budget reflects its commitment to safety and security, customer service, high occupancy vehicle use, being a good neighbor, investing in assets, and maintaining an AA credit rating.

About 65 percent of the budget -- $468.2 million, a 4.2 percent increase from FY 2016 when excluding one-time maintenance expenses – will fund the day-to-day operations of its aviation, maritime and real estate business lines and support departments. Some $253.3 million -- a 15 percent increaser – is allocated to capital investments in runways, terminals, roadways and docks and for payments to Massport’s bond holders. The will help fund $1 billion in new debt the port authority will incur to finance future projects.

The $85 million allocated to safety and security will pay for personnel, technology, training and inspections.

Promoting the use of high occupancy vehicles to and from the airport is critical for environmental reasons and to ensure traffic can flow on airport roadways and there is space at the terminal curbs for vehicles. As part of the budget, Massport will spend nearly $1 million more on Logan Express by adding a daily 2:15 a.m. bus from the four suburban sites to support the passenger growth at Logan, increasing Saturday frequency on the busiest routes, and extending the Back Bay Logan Express. In addition, Massport will continue to offer free Silver Line service from the airport to South Station.

"Massport is making critical investments in safety and security, customer service, public transit to and from the airport, and preparing for the future while keeping what we have in good shape,’’ said Massport CEO Thomas P. Glynn. "Our overall headcount is where it was in FY 2002. This comes as Logan is handling more passengers – up 9 percent so far this year -- flying to more destinations than at any time in its history; and Conley Container Terminal is busier than it has ever been.’’


Port of Oakland Budget for Fiscal Year 2017: $477 million

A $477 million fiscal year 2017 budget for the Port of Oakland has been approved by its harbor commissioner and took effect July. That equates to a 1.7 percent increase from the FY 2016 budget.

The 2017 budget forecasts increases from last year of 3.9 percent boost in 2017 and 6.4 percent in expenses (mostly due to rising personnel costs).

The budget earmarks $113 million for capital improvements. Chief among them are two projects at the port’s Oakland International Airport: $43.6 million for renovations at Terminal 1 and $24.8 million for upgrades to the International Arrivals Building. It also includes $9.5 million for development of a cold-storage facility at the seaport.

The port operates three businesses: maritime, aviation and commercial real estate. It collects no local tax revenue and funds operations from its own revenue sources.


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