Port of Boston: Revival of a

Regional Economic Engine

Deborah Hadden

Port Director

Massachusetts Port Authority

Environmental Business Council of New England

Energy Environment Economy

THE PORT OF BOSTON A Regional Economic Engine

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Presentation to Environmental Council February 29, 2014

BENEFITS OF THE PORT OF BOSTON

• Economic Engine

$2.4 billion annual economic impact 34,000 jobs Makes local business more competitive Keeps prices on goods more affordable for consumers

• Better for the environment

• Key cargos (14M tons/year):

petroleum products road salt scrap metal seafood footwear and clothing furniture beer/wine

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MASSPORT’S STRATEGIC VISION

• Increase the amount of foreign and domestic water-borne commerce (primarily containers) through the Port of Boston

• Develop facilities and related access infrastructure to support growth in container, cruise, bulk cargo and commercial fishing business lines

• Develop other Maritime properties to support core businesses and provide financial return to make capital investments in port facilities

• Operate in a fiscally, environmentally and socially sustainable manner

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LOCATION AND OWNERSHIP OF THE PORT OF BOSTON

North End

Financial District

South Boston

East Boston

Chelsea

Charlestown

Everett

Massport Property Other Public (USCG & BRA)

Private Port Facilities

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• Largest container terminal in New England

– 101-acre facility with two 45’ deep berths

– Owned and operated by Massport

– Approx. 200,000 TEUs and 1.5 million tons per year throughput

– Weekly services to North Europe, Med, and Far East.

CONLEY CONTAINER TERMINAL

• Over $150 million invested in capital improvements over past 20 years

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Port of Boston Advantages

• Only full-service container port between NY/NJ and Canada

• Closest U.S. port to Europe and Suez Canal

• Strong Boston export market

• Loyal New England shipper base

• Cost savings to import NE cargo through Boston vs. NY/NJ

• Adequate terminal capacity

• Direct interstate connections

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Drivers: • Global Trade Volumes Projected to Increase • Shipping lines want larger ships to reduce costs and maximize profits. • Expanded Panama Canal to open mid-2015 – EC ports racing to deepen!

To preserve the Value of the Port of Boston: – 34,000 jobs and 2.4 Billion annual economic benefit connected to

Port

– $11.4 billion in Commodities move through the Port of Boston annually

– 67% of region’s petroleum and all jet fuel for Logan imported through Port

– 1600 companies (over 600 in MA) use the Port to receive and ship their goods

Why Deepen Boston Harbor?

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BOSTON HARBOR, MASSACHUSETTS

DEEP DRAFT NAVIGATION IMPROVEMENT

FEASIBILITY STUDY – FACT SHEET FIGURE 2

MAIN CHANNELS IMPROVEMENT

FOR CONTAINERSHIP TRAFFIC

PLANS A & B

Note: Reserved Channel area in this Drawing shows

the Northern Turning Basin Alignment Alternative.

Please see Detailed Maps of the Reserved Channel

Area for Details on All Alternatives.

Widen and Deepen Lower Main Ship Channel and Lower Reserved Channel, Turning Basin and Anchorage to -47 Feet and to -51 Feet in the North Entrance Channel, Widened in the Bends

Extend Main Ship Channel Deepening above the Turning Area to the Massport Marine Terminal at -45 Feet by 600 Feet Wide

Deepen Portion of 35-Foot Area of Mystic River Channel to -40 Feet

Deepen and Widen 38-Foot Chelsea River Channel to -40 Feet

BOSTON HARBOR DEEP DRAFT NAVIGATION PROJECT

FIGURE 46 RECOMMENDED PLAN OF IMPROVEMENT

BOSTON HARBOR, MYSTIC RIVER AND CHELSEA RIVER

CONLEY TERMINAL

MARINE

TERMINAL

Un-Scaled

N

Finns Ledge

Broad Sound North

Entrance

Channel

Chelsea

River

Mystic

River

Reserved

Channel

LOGAN AIRPORT

T.W. TUNNEL

Deer Island

Spectacle Island

Castle Island

President Roads

Anchorage

Lovells Island

Turning

Area

MEDFORD ST

TERMINAL

WINTHROP

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What is Recommended Plan for Port of Boston?

• 3 ExistinCarrier Services Use Larger Ships and New England Cargo Currently Handled by NY/NJ Shifts to Boston Harbor

• 218,800 TEUs annually shift to ships via Boston

• 18.5 million less truck miles annually

• 3 million gallons of diesel fuel saved annually

• On-Road Truck air emissions reduced

• Traffic safety and congestion improved.

Key Project Assumptions & Benefits

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CONLEY GREEN INITIATIVES

• Conley Terminal Environmental Management System and ISO 14001 certification

• Recycling of specialized waste

• ULSD conversion for yard equipment

• Equipment retrofits

• “Green” equipment replacement program

• Truck idling reduction

• Clean Truck program

• Designated/dedicated truck routes

• Buffer zones

PROPOSED CONLEY DEDICATED HAUL ROAD and BUFFER ZONE

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CRUISE PORT BOSTON

• Largest cruise terminal in NE; owned and operated by Massport

• Over 380,000 passengers on 116 vessels visited Boston in 2013 – expect double volume by 2025 – 50% home port/50% port-of-call

• 4 ships based in Boston offer cruises to Bermuda, Canada and Europe

• Estimated $18M in annual economic benefit to city, state and region

• Existing terminal built in 1980’s for much smaller ships – fender system was upgraded in 2009 and an $11M upgrade completed in 2010.

• Need for a modern 2nd terminal to handle ships carrying up to 5,000 PAX

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• 80-acre auto import, export, processing and distribution facility in addition to salt terminal, passenger vessel maintenance and various port support activities

BOSTON AUTOPORT

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BOSTON FISH PIER

• Home of the Boston fishing fleet

• Owned/operated by Massport – tenants run seafood processing, auction and restaurant on 1st floor; offices on 2nd floor

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• 40-acre site created by Massport as filled land and leased from EDIC through 2070

• Site offers excellent highway access, deep water berth and potential for future rail service

• Two seafood processing facilities currently in operation

• Construction expected to begin shortly totaling over 400,000 sq ft of cold storage and additional processing space.

MASSPORT MARINE TERMINAL

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PETROLEUM

East Boston

Chelsea

Charlestown

Everett 1

2

3

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• Approximately 415 ships per year

• 41% of New England’s petroleum products

• Provides 66% of distillate oil, 79% of gasoline, and 100% of jet fuel consumed in Mass

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1 Global

2 Irving

3 Gulf

4 C. Philips

Atlantic Fuel 5

6 Exxon Mobil

7 Suez

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KEY PORT CHALLENGES

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• Capital Intensive • Ships Keep Getting Bigger

• Very Competitive Business Drives Port Rates

• Geographic Location Not Ideal

• Proximity to Residential Neighborhoods

• Proximity to Logan Airport

QUESTIONS ?

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