Ports Compact Meeting
September 9, 2013
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September 9, 2013
Agenda
Introductions
Meeting purpose
Approach to complete Strategic Plan
Analysis Technical Memorandum
Funding & Finance Technical Memorandum
Next Steps
Public input
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September 9, 2013
Meeting Purpose
Discuss remaining Plan process logistics
Summarize work completed since last meeting
Provide overview of Analysis and Funding Memos
Obtain public input
Discuss next steps
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September 9, 2013
Approach to complete Strategic Plan
Finalize & distribute technical memorandums
Develop preliminary recommendations
Discuss recommendations with Compact and
other stakeholders via individual meetings
throughout September and October
Finalize recommendations at Compact Meeting in
late October/early November
Hold public meetings in early November
Finalize and publish Strategic Plan
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September 9, 2013
Project Update
Tech Memo 4 (Analysis) identified gaps,
deficiencies, and unmet needs of the five compact
ports in terms of
Port operations (cargo, passenger transportation, fishing
and fish processing, new technology sectors)
Landside access (highway, rail)
Institutional context
Tech Memo 6 (Funding) reviewed funding and
financing options at federal and state levels
No recommendations yet made
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September 9, 2013
Tech Memo 4: Analysis
Major Points of Emphasis
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September 9, 2013
Compact-Wide Issues and Themes
Cargo
Major, multi-faceted cargo businesses in Boston and New Bedford
Common issues
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Dredging
Vertical and lateral clearance
Capacity in cargo facilities
Passenger Transport
Cruises – all ports could operate cruises with existing or planned
infrastructure; marketing is paramount
Ferries – all have or want to have ferries
Commercial excursion business - large operations in Boston, Salem, and
Gloucester; significant local spending and jobs
Private recreational vessels – important presence in all 5; private vessel
marinas not allowed in DPAs
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September 9, 2013
Compact-Wide Issues and Themes
(continued)
Fishing and Fish Processing
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Relevant to Gloucester, New Bedford, Boston
Need for modern infrastructure
Severe impact of groundfishery crisis in Gloucester and Boston
Local fleet landings and seafood processing largely disconnected
New Technology Sectors
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New Bedford – offshore wind energy
Gloucester – New Maritime Port Economy / Marine Sciences and Technology
Landside Access: Highway and Rail
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87% of freight tonnage moved by truck , 6.5% by rail
Relieve highway bottlenecks, maintain and improve existing infrastructure (major projects
underway or proposed in Boston, Fall River, and New Bedford)
Rail access in Boston, Fall River, and New Bedford; issues include passenger service
compatibility, bridge clearances, track conditions
Institutional Context
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DPA Structure – all 5 have DPAs that cover much of the study areas
Ownership & Control – Ports differ widely in organizational structure
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September 9, 2013
Boston Focus
Future of the container business at an expanded Conley
Terminal, as global and coastal markets evolve
Channel depth: Deep Draft Navigation Project affects
containers (Conley), liquid bulk (Chelsea Creek), break bulk
(Marine Terminal, Medford Street)
Adequacy of landside access network in South Boston for
containers, other cargo (fish, bulk), and Massport real estate
(which supports the Port bottom line)
Future trajectory of Boston’s ocean cruise business
Long-term future of the Fish Pier
Track 61 improvements and buildout of Marine Industrial Park
and Massport Marine Terminal
Long-term future of Medford Street Terminal
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September 9, 2013
Fall River Focus
The role of the DPA in the central waterfront
A State Pier passenger strategy involving ferries (Newport,
Block Island), cruises, and excursions
State Pier improvements for cargo and passenger uses
Reuse of City Pier, as its remediation concludes
An enhanced city/waterfront connection through reconfiguration
of the “spaghetti ramps” and the Route 79/Davol Street
waterfront boulevard
Opportunity for freight and passenger rail to the Port
Long-term future of Weaver Cove DPA site, taking into account
its highway, rail, and deep water attributes and need for
remediation
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September 9, 2013
Gloucester Focus
The New Maritime Port Economy, requiring a business
development strategy as well as infrastructure investment
Short- and long-term impacts of federal groundfishery regulation
and the condition of groundfish stocks
Extensive private ownership of DPA facilities and the opportunity
for a financing and reinvestment strategy in partnership with
MassDevelopment.
Dockage needs of fishing, excursion, and recreational vessels
Marketing Gloucester as a cruise port, taking advantage of
Cruiseport Gloucester and Cape Ann attractions
Channel and berthing depth in the DPA, and channel depth in
the Annisquam River
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September 9, 2013
New Bedford Focus
Short- and long-term improvements at State Pier and a
strengthened state-City management partnership
With South Terminal under construction, New Bedford’s role in
offshore wind business, workforce, supply chain
Future of New Bedford cargo, optimizing State Pier, North
Terminal, and Maritime Terminal, Inc., and advancing the
Marine Highway concept on the East Coast
Berthing needs of commercial fishing fleet, potentially extending
Leonard’s and Homer’s Wharves
Role of a waterfront access/excursion hub near the main
downtown/waterfront nexus
Future course of action on Route 6 Bridge clearance
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September 9, 2013
Salem Focus
Complete Salem Wharf, including full-length deepwater berth at
the coal pier
A cruise marketing opportunity connecting new Port facilities to
historic waterfront and downtown
Opportunity to expand commercial excursion sector, with Salem
Wharf complementing Pickering Wharf, depending on market,
dockage, access, and parking needs
South River Basin, which if dredged could bring small boat
activity into an integrated downtown/Pickering Wharf destination
Constrained vehicular access via Derby and Webb Streets
DPA plan for the Power Station site once the plant is gas-fired
and 2/3 of the site is developable
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September 9, 2013
Tech Memo 6: Funding & Financing
Major Points of Emphasis
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September 9, 2013
Introduction – Tech Memo #6
Provides the basis for
developing a strategy
Sources examined
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Federal
 State and local
Program domains
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Port-specific
 Broadly applicable
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September 9, 2013
Introduction – Tech Memo #6
Provides the basis for
developing a strategy
Sources examined
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Federal
 State and local
Program domains
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Port-specific
 Broadly applicable
Program types
Federal
State
PortSpecific
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Broadly
Applicable
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Grant funding
 Loan financing
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September 9, 2013
The Seaport Bond
Two bond bills: 1996 $280 million, 2008 $110 million
From 2007-2012, $50 million committed on 98 grants
For FY13, $11 million in bond cap
Harbor Coordinators and Port Security Grant Local Match
Representative Capital Grants:
Boston
• Charlestown Navy Yard Pier 4 Dredge
Fall River
• State Pier Improvements
• City Pier Remediation
Gloucester
• Harborwalk Design and Construction
• I4-C2 Development Parcel Acquisition
New Bedford
• South Terminal Offshore Wind Facility (via MA CEC)
• Phase III Dredging and CAD
• State Pier Improvements
Salem
• Salem Wharf and Ferry Pier
• South River Harborwalk and Dredging Design
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September 9, 2013
MassWorks
Companion or alternative to Seaport Bond
Consolidation of 7 former stand-alone capital grants
Annual bond cap amounts in the $40-65 million range
Can be used for a broad range of urban infrastructure
Funding guidance favors Gateway Cities, sites within ½ mile of
transit, reuse of previously developed sites
Gloucester a recent recipient for a port-related project
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September 9, 2013
Massport Capital Program
Maritime capital projects funded by internally generated
Massport revenues and federal grants—no state funding
FY13-17 Capital Program provides funding for $153 million in
Maritime projects
$117 million for improvements at Conley Terminal
The big one on the horizon: $300 million Deep Draft Navigation
Improvement—~$100 million non-federal share
Massport funding generally limited to its facilities—which do not
constitute the entire Port
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September 9, 2013
FHWA/MassDOT Surface Transportation
Programs somewhat realigned in MAP-21, but the structure is
familiar: FHWA, MassDOT, and the MPOs
State Transportation bond dollars match FHWA and fund NonFederal Aid projects
Funding levels (Boston MPO and SE Mass MPO TIPs, $million)
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FY13
FY14
FY15
FY16
FY17
Boston
368.0
264.9
138.6
156.5
148.7
SE Mass
260.8
58.1
24.3
48.8
16.0
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September 9, 2013
FHWA/MassDOT Surface Transportation
Port area projects
Boston
Fall River
Gloucester
New Bedford
Salem
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Chelsea Street Bridge
East Boston Haul Road
Summer & Congress Street Bridges
Brightman/Route 6 Bridge
Braga Bridge/Route 79 Mega-Project
Annisquam River Bridge
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Route 6 Bridge Preservation
Route 18/JFK Boulevard
Fisherman/Homer Wharf Electrification
Bridge Street & Bypass (Route 1A)
Canal Street Reconstruction
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September 9, 2013
TIGER
Most versatile, competitive, and over-subscribed of all federal
grant programs
Five rounds completed, but still not permanently authorized
Eligible projects include any federally-eligible highway or bridge,
port infrastructure, freight rail
In TIGER I through IV, 26 port or related winners, including New
Bedford Fast Track
In TIGER V results, announced last week: 7 of the 52 winners
were port projects, grants up to $14 million
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September 9, 2013
Specialized Federal Programs
Program
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Status and Applicability
Water Resources
Development Act
(US ACE)
• Multi-year reauthorization pending.
• Harbor Maintenance Trust funds Army Corps of Engineers dredging projects.
• Primary funding for Massport’s proposed Deep Draft Navigation Improvement.
Ferry Boats and
Facilities (US DOT)
• New formula program allocated to state DOTs replaces prior discretionary grant.
• Salem (Fast Ferry) and BRA (East Boston Ferry) got grants under old program.
• Also a new set-side of FTA 5307 funds; program details pending.
Port Security Grant
Program (Homeland
Security)
• Over $90 million a year nation-wide, for technology and management .
• Fall River, Gloucester, New Bedford, and Salem have received grants.
• Seaport Advisory Council provides local match.
Small Shipyard
Program (MARAD)
• Highly competitive grant program makes awards in $.5-$1 million range.
• Can be used for capital improvements or workforce development.
• Gladding-Hearn Shipbuilding in Somerset has received 3 grants since 2008.
Clean Diesel
Program (EPA)
• EPA makes competitive grants of up to ~$1 million for diesel emission reduction.
• Especially applicable to vessel power while in port.
• Massport received grant for Fish Pier on-shore power.
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September 9, 2013
Key Concept: Infrastructure Debt Finance
US DOT TIFIA Credit Program
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Direct loans at low rates and favorable terms
Expanding and deepening TIFIA a major thrust of MAP-21
Any FHWA- or FTA-eligible project is TIFIA-eligible
State value capture mechanisms using bond finance
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Traditional municipal tax increment: District Infrastructure Finance
(“DIF”)
Special assessment district: Local Infrastructure Development
Program (“LIDP”)
Unique “state TIF” using income and sales taxes: Infrastructure
Investment Incentive (“I-Cubed”)
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September 9, 2013
Key Concept: Business Development
MassDevelopment: multi-faceted finance and TA
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Taxable and tax-exempt industrial bonds
Seafood Loan Fund and SE Revolving Loan Fund
Deep, widely respected capacity for geographic and market sector
development
MA Clean Energy Center Offshore Wind program
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Business development support to complement South Terminal
Federal programs targeted to private stakeholders
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Small Shipyard Program
National Marine Fisheries Service vessel financing
Saltonstall-Kennedy funding for R&D partnerships
| Leading the Nation in Transportation Excellence | www.mass.gov/massdot
September 9, 2013
Next Steps
Finalize Memos 4 and 6
Publish Memos 1, 2 and 3
Develop of Preliminary Recommendations
Discuss/Confirm Recommendations
Hold Compact/Public Meetings
Finalize Plan
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September 9, 2013
Public Input & Contact Information
www.massdot.state.ma.us/planning/Main/StatewidePlans/PortsStrategicPlan.aspx
Matthew Ciborowski - MassDOT - (857) 368-8845 - matthew.ciborowski@state.ma.us
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September 9, 2013