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Finance: Massport, Virginia

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Massport Sets Fiscal Year 2016 Total Budget of $667 Million

The Massachusetts Port Authority (Massport) board has approved a Business Plan and Budget for Fiscal Year 2016 of $667 million. Massport says the budget reflects its commitment to safety and security at its facilities, customer service at Boston Logan International Airport, supporting initiatives in neighboring communities, and improving the financial performance of maritime operations.

About 67 percent of the budget – $446.8 million, a 4-percent increase from FY 2015 – will fund day-to-day operations of the aviation, maritime and real estate business lines as well as the authority’s support departments. This includes an increase in snow removal operations and the staffing and equipping an aircraft firefighting operation at Hanscom Field. Some $220 million – a 3 percent increase – is earmarked for capital program to maintain the runways, terminals, roadways and docks that support the regional economy, and make payments to Massport’s bond holders.

Massport will spend more than $78 million on personnel, technology, training and inspections to keep the people who use and who work at its facilities safe.

"Massport is making critical investments to increase safety and security and customer service by hiring more firefighters and customer service employees,’’ said Massport CEO Thomas P. Glynn. "Our overall headcount is below where it was in 2000. This comes as Logan is handling more passengers flying to more destinations than at any time in the history of the airport.’’

As part of the budget, Massport will spend nearly $40 million on high occupancy vehicle (HOV) access programs. Among the programs: continue to offer free Silver Line service from the airport to South Station. In addition, Massport will spend $5 million on the mid-life rehabilitation of eight Silver Line buses which connect the airport to the Red Line and Commuter Rail at South Station. With a new $34 million 1,100 space parking garage opening this year, operating costs at the facility will increase by $800,000.

The budget calls for $26 million to be spent in being a good neighbor by supporting summer jobs, donating to community causes and spending $20 million in payments in lieu of taxes to Boston, Winthrop as well as supporting the city of Chelsea. More than $5 million will be spent maintaining and growing the park system Massport operates in East Boston and South Boston.

Virginia Port’s May Operating Profit was $4.5M

Thanks in part to record container throughput, the Port of Virginia reports earning a $4.5 million operating profit in May, its best monthly financial result of the fiscal year that closes June 30.

"The results we are seeing, in terms of monthly cargo volumes and the accompanying finances, are encouraging," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "Continuing on this track is important because it allows us to continue to reinvest these profits into the operation."

"We have made significant investments in people, technology and equipment, but we have a long way to go in all of those areas in order to get our service levels where they need to be. We have shown some improvement in these last months with our delivery of service, but our goal is consistency: week-to-week and month-to-month."

In May, the port set its single-month record for TEU volume; truck containers, rail containers and ship calls were also up compared with the same month last year. In fiscal 2015, the port has processed monthly TEU volumes of 200,000 units or more nine times, with one month left in the fiscal year.

"This type of volume requires significant upkeep for our equipment, so we are investing heavily in regular maintenance of our equipment," Mr. Reinhart said. "Thus far in fiscal 2015, we have invested $3.2 million more in maintenance when compared with last year. We will continue along this path in addition to adding new conveyance equipment to our fleet."

May’s financial performance represents an improvement of $4.1 million compared to May 2014. The fiscal-year-to-date result is an operating profit of $14.5 million.
 

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