MINUTES MASSACHUSETTS PORTS COMPACT MEETING #3 SUBJECT: Ports of Massachusetts Strategic Plan LOCATION: Cruiseport, Gloucester DATE/TIME: July 10, 2013, 1:00 – 2:30 PM COMPACT MEMBERS: Secretary Richard Davey, MassDOT Senator Thomas McGee, Chairman, Joint Committee on Transportation Mayor Carolyn Kirk, City of Gloucester Mayor Kimberley Driscoll, City of Salem Jeff Stieb, Representing New Bedford Mayor Jonathan Mitchell Deb Hadden, Representing Massport CEO & Executive Director Thomas Glynn Ken Fiola, Representing Fall River Mayor William Flanagan OTHER ATTENDEES: Colleen Gorman, Voice of the Port Damon Cummings Ed Washburn, Port of New Bedford Kathryn Glenn, MA CZM Kathy Winn, City of Salem Lisa Garland, Gloucester Marcia Hart, Citizen Melissa Abbott, Cruiseport Gloucester Mike Driscoll, DCR - Waterway Patti Page, City of Gloucester Waterways Board Peter Parsons - LICSW Louis Elisa, Seaport Advisory Council Rich Hersey, GIF CDC Saul Garcia, City of Gloucester Steven Smalley, Senator McGee’s Office Valerie Nelson, Gloucester Resident PROJECT TEAM: Matthew Ciborowski, MassDOT Project Manager Leading the Nation in Transportation Excellence Ten Park Plaza, Suite 4160, Boston, MA 02116 Tel: 857-368-4636, TDD: 617-973-7306 www.mass.gov/massdot David Mohler, MassDOT Jay Duncan, AECOM Project Manager Andrew Cairns, AECOM Cheryl Coviello, GZA Jack Wiggin, UMass Boston Urban Harbors Institute Kate Barrett, Regina Villa Associates Kerri Chace, Regina Villa Associates PURPOSE/SUBJECT: Summarize work completed since the last meeting and obtain feedback on the evaluation criteria/ratings, existing conditions and market trends deliverables. Introductions MassDOT Secretary Richard Davey opened the meeting at 1:00 PM and welcomed Compact members and the public. Secretary Davey is now Chair of the Compact, succeeding former Chair Lieutenant Governor Timothy Murray. Mr. Davey thanked Gloucester Mayor Carolyn Kirk for hosting the meeting. Ms. Kirk welcomed the Compact members, public, and study team to Gloucester, and gave a brief background on the Cruiseport building. She said the Cruiseport facility is part of the City’s vision for a mixed-use port and economic development vision stemming from port operations. She said that Gloucester is home to several fishing vessels and the port holds a Homeland Security Certificate, allowing international cruise vessels to dock in the port. Mayor Kirk noted the three new wind turbines in Gloucester located off Route 128; and said the goal of the port is to find new ways to support a robust and modern economy while preserving the core economy. Presentation Secretary Davey introduced MassDOT’s project manager for the strategic plan, Matthew Ciborowski. Mr. Ciborowski welcomed the Compact members and the public, and said three deliverables have been sent to Compact members for review. They include Tech Memo 1 (Evaluation Criteria), Tech Memo 2 (Existing Conditions) and Tech Memo 3 (Trends). Mr. Ciborowski said the purpose of the meeting is the summarize work that has been completed since the last Compact meeting, obtain concurrence on evaluation criteria/ratings, obtain feedback on existing conditions, summarize trends, obtain public input and discuss the next steps. The Evaluation Criteria memo outlines the process that will be used to screen and rate proposed recommendations to be developed; the Existing Conditions memo identifies the existing status/physical conditions and economic facilities at each port; and the Market Trends memo takes a global, national and local look at past and predicted trends for the areas evaluated in the Strategic Plan. Mr. Page 2 of 10 Ciborowski said comments on these draft technical memos can be submitted today during the meeting or in writing by July 24. After the comments have been reviewed and incorporated into the reports, the final memorandums will be posted to the MassDOT website. Preliminary Evaluation Criteria Mr. Ciborowski said the preliminary Evaluation Criteria included the following factors: travel time, rail connectivity, highway connectivity, ROW impacts, consistency with plans, capital costs, environmental impacts, socioeconomic impacts, preserve existing capabilities/strengths, create economic opportunities/strengths, build on other investments, be a good neighbor and seek the highest return on investments. Since the last meeting, the Evaluation Criteria has been expanded and organized into five categories. Mr. Ciborowski said he is seeking feedback about the Evaluation Criteria (Tech Memo 1) in the following capacities: are these appropriate items to evaluate, are some more important than others and therefore should be weighted/scored more heavily. Evaluation Criteria – Tech Memo 1 Mr. Ciborowski outlined the five categories the Evaluation Criteria has been organized into. They include operational (efficiency, capacity, road & rail connections); economic (maritime jobs, regional jobs, new industry); land use (consistency with plans and investments, ROW, DPA); environmental (impacts, ease or complexity of permitting); and financial (capital cost, payback period, prospects for federal or P3, availability of O&M funding). For each of the five categories, the sub-elements are evaluated based on a 0-2 score. (For more detailed information about the evaluation criteria, please view slides 7-11 of the presentation.) Tech Memo 1 provides preliminary ratings for each category, and Mr. Ciborowski described each category and asked for feedback on the criteria/ratings. Mr. Elisa asked what type of feedback Mr. Ciborowski is seeking. Mr. Ciborowski said the team is seeking feedback about any missing or unnecessary items, the scoring system and whether some items should be weighted more heavily than others. Operational Mr. Elisa said the upland and immediate laydown areas at the ports and linkage between the laydown area and the port itself should be considered. Mayor Driscoll said connectivity should not be limited to highway and rail only, and sea to sea connections ought to be considered in the criteria. Mayor Kirk echoed this Page 3 of 10 feedback, and said the new maritime economy has much broader operations offshore, including the relocation of several fish processing centers. Mr. Elisa said MassDOT issued a report on intermodal transportation, highlighting the need to minimize impacts to the environment and ship more goods by water. Ms. Hadden said the word “capacity” does not reflect appropriately what it is being evaluated here and should be changed to the volumes of cargo, fish and passengers and how much the ports are currently handling. Mayor Driscoll said the connectivity piece should be given some more thought, and the “why” question should be incorporated into the evaluation process. Mr. Ciborowski said the criteria will be weighed against each other to prioritize the final recommendations. Mayor Driscoll asked if economic, jobs and internal investments will be evaluated. Mr. Ciborowski responded that all those elements are included, and continued to explain the proposed evaluation criteria. Economic Mayor Driscoll asked if “new industry” included opportunity at the port itself or a new product. Mr. Ciborowski said probably both, and that “new industry” is intended to evaluate port operations bringing new business to Massachusetts. Mayor Kirk said Gloucester will submit written comments to the project team, but wanted to highlight the importance of retaining port jobs to create a sustainable system, while protecting and growing the existing economy. Mr. Fiola asked how underperforming ports would be scored. For example, if the community has alternative plans for the land (rather than port operations), how would this be scored? Mr. Ciborowski said the evaluation should look broadly at the economy of the entire City, not just the port. Secretary Davey said the purpose is to broaden the job market, not just maritime specific jobs. Mr. Elisa said it should be noted how the port supports itself. For example, Southeastern Massachusetts has a tremendous opportunity. New Bedford has tremendous potential for growth in new markets in the Northeast region and is currently working on a longrange plan. Mr. Elisa added that making improvements to transport goods closer to their markets is critical. Mr. Ciborowski said hyper-local, city and regional connections to markets for goods needs to improve, and the evaluation criteria should help address it. The group discussed evaluating jobs on a variety of levels – port, city, and region – and the importance of balance in considering transition ports versus newer ports. Page 4 of 10 Land Use Mr. Stieb said a bullet about individual Harbor Plans should be added to “Consistency with Transportation Plans.” Mr. Fiola said not every community has an approved Harbor Plan. Mr. Ciborowski said the category will be expanded to include plans from individual communities, as appropriate. Mr. Stieb said investments to highway systems located near ports should be considered under the “Leveraging Other Major Investments” criteria. Mayor Driscoll said the Designated Port / Chapter 91 category appears more regulatory than DPA-compliant, and asked how the permitting issue would be evaluated. Secretary Davey said the evaluation assumes the DPA appropriate. Mayor Kirk echoed the permitting evaluation concerns, and said more general language would be helpful, especially with the modernization of technology and evolution of port activities beyond maritime/industrial relationships. Mr. Elisa urged the project team to meet with the Department of Conservation and Recreation (DCR) for their perspective on future use and growth at the state piers. Mr. Ciborowski said the project team met with DCR last month to discuss the Plan, operations at the ports they are engaged with and DCR’s involvement in this process. The group discussed that the team should be cautious on how impacts to other ports are graded, consider compatibility and that ports serve as back up for each other, that the state shouldn’t look at funding as zero-sum but rather encourage competition, and areas of opportunity and cooperation should be identified. Environmental The group discussed the importance of considering residential areas under the “Community” category, as well as Environmental Justice populations. Secretary Davey said “Approval and Permitting” should be omitted from the Evaluation Criteria. He said although smaller projects are positive for budget and cash flow, evaluating a project based on permitting complexities could hinder complicated but beneficial projects. Secretary Davey recommended evolving this criterion into an implementation plan theme. Mayor Kirk said the language used throughout the Evaluation Criteria is biased towards land transportation infrastructure, and suggested broadening definitions to include reverse transportation from ports out to the ocean instead of ports onto land based infrastructure. She urged the project team to think “ecosystem” wide – broadening the investments around maritime potential. Impacts beyond traditional air, water and land should also be considered. Page 5 of 10 Financial Secretary Davey discussed the “Magnitude of Capital Cost” category. He said it is critical to be mindful of the issue or lack of budget, but it should not be at the forefront of the Evaluation Criteria, and recommended eliminating the category. He noted that the grading favors large magnitude projects and ignores projects that might have a small budget that could achieve big gains. Mayor Kirk said other operations that may not occur at the port itself but are beneficial to the port should be considered in the criteria (including water and sewer, seawall construction and dredging). Mayor Kirk said these types of beneficial but not portspecific elements often slip through the cracks, and are common in wastewater systems. Mayor Kirk said other indirect investments that may not create jobs, but could facilitate development should also be evaluated as an opportunity. Mayor Driscoll questioned the costs associated with not investing in ports and said that could be a reason to recognize the real value of investment at these locations. Mayor Driscoll recognized some element of competition among ports, but questioned what type of investments could have positive impacts at other ports. Mr. Ciborowski agreed and cited as an example the Salem and Gloucester partnership, whereby the Salem Ferry is maintained and repaired in Gloucester. He said secondary impacts will be an important factor in this study. Secretary Davey said the state is not interested in making significant investments with zero gain for the Commonwealth as a whole; and noted it will be important to balance the inherit competiveness and similarities. There was a discussion about the importance of cooperative opportunity and improvements to the statewide ports system. Mr. Ciborowski asked the Compact members if “Prospects for Federal Funding” should be removed from the criteria after the discussion about eliminating the funding criteria. Secretary Davey said the funding criteria should be collapsed into one category and the likelihood of funding through all vehicles evaluated, and noted the importance of public/private partnerships to the state. Mr. Stieb asked how these criteria will be calculated. Mr. Ciborowski said they will be proxies for evaluation criteria previously developed by MassDOT. Secretary Davey said the evaluation should focus on the overall benefit to the community, not specifically the bottom line, adding that investments for the community are critical. Tax base, job creation and tourism are important to consider when evaluating. Page 6 of 10 Existing Conditions – Tech Memo 2 Jay Duncan, Team Project Manager, presented Tech Memo 2 (Existing Conditions). Mr. Duncan said the 100 plus page report has been distributed to the Compact members, and he requested that members review the information and submit comments. The overview of the ports includes the study area; location and access; organization and management; and issues and opportunities. The analysis of port activities includes cargo transport; passenger transport; and commercial fishing and seafood. Mr. Duncan showed a map of each port and identified areas where the study area was expanded beyond the DPA boundary (based on individual port community feedback) and briefly identified the strengths of each port. The Boston study area has been expanded to include the downtown ferry terminals. The strengths are cargo (multiple types: container, fuel, automobiles, bulk), passenger (cruise, ferry, excursion), fishing and seafood. The Fall River study area now includes the Marina and the Heritage State Park and Central Waterfront. The strengths are cargo (fuel) and tourism (with potential for passenger transport). The Gloucester study area now includes the Annisquam River, Blynman Canal and Drawbridge, Stacey Boulevard, the seaward side of Commercial Street and Marine Sciences Facility. The strengths include fishing and seafood, passenger (excursion, cruise potential), and embracing the new maritime economy. The New Bedford study area has been expanded to include the Hicks-Logan-Sawyer Master Plan area, Pope’s Island and Route 6 Bridge and the South Terminal support parcels. The strengths are passenger (ferry, excursion, cruise potential) and cargo (fuel). The Salem study area now includes South River Basin and SESD Treatment Plant. The strengths are passenger (ferry, excursion, cruise potential) and cargo (fuel). Ms. Hadden said rail access within Boston (in South Boston and Charlestown) is a potential that has not yet been realized. Although there are rail lines, they are not active. Ms. Hadden said she recently attended a meeting with Chelsea Creek terminal representatives, who are concerned because larger vessels cannot travel into the Creek. The terminals are not part of Massport. This should be included in the report, since it is in Boston’s DPA and should be in the study area. Mr. Elisa said Fall River’s strength should include the import/exports to the Azores and Cape Verde. He pointed out that Fall River does not have a Port Master Plan. He also suggested adding shipping to Mexico and Latin America to New Bedford’s strengths. Mayor Driscoll said commonalities among the ports should be identified to create greater shared opportunities to benefit everyone. She said an example of a potential commonality is the cruise industry. An extensive marketing campaign could create a stronger industry for the state. Marketing and infrastructure investments can benefit areas outside a port. The North End in Boston is an example. She pointed out that Maine and Canada are growing cruise markets. Lastly, Mayor Driscoll said themes that Page 7 of 10 support shared commonalities will be important in this process. Mr. Duncan added that the cruise industry is growing worldwide, despite recent poor economic conditions. Trends – Tech Memo 3 Mr. Duncan presented Tech Memo 3 (Trends). He said the memo addressed the growing global, national and local trends for cargo freight, commercial fishing and waterborne passenger transportation. Other trends to consider are wind power and climate change. Cargo Freight Mr. Duncan described the trends of cargo freight. By 2040, U.S. cargo volumes will double and container cargo will see the greatest increase; exports will see strong an increase including elevated trade with India and East Asia; Panama Canal expansion and expanded Suez traffic will benefit East Coast ports; container shipping will have opportunities and challenges in Boston; Marine Highway, hub-and-spoke, and short-sea concepts could benefit a range of ports. Mr. Duncan said the trend shows that East Coast ports will have more cargo freight over the next few decades; and short sea shipping, a port-to-port shipping method, poses an opportunity for more business in the ports. The Jones Act (limiting the number of U.S. ports foreign flagged vessels can travel to) may be a federal issue in terms of regulatory viability of short sea shipping. Commercial Fishing Mr. Duncan said there is a strong demand worldwide in the commercial fishing industry. Over time, the US demand for commercial fishing will increase, but growth varies depending on the species. Mr. Duncan said ground fishing is more regulated, therefore less predictable. Waterborne Passenger Travel Mr. Duncan said waterborne passenger travel generally posted gains despite the economy; more cruise providers are entering the market worldwide; Boston is growing as a cruise port despite the loss in overall U.S. share; and smaller cruises, excursion and ferry use are expected to continue growing. Other Issues Wind power and climate change are two issues that affect trends. For wind power issues, Mr. Duncan said New Bedford seeks to become Cape Wind’s new port, and if successful, there is future potential for an off-shore wind industry; and Gloucester and Boston see potential in wind power as well. Climate change will require port infrastructure to address sea level change, and rising water temperatures could shift some fish stocks to colder water. Page 8 of 10 Mayor Kirk said Gloucester will submit written comments about the Trends Memo. Mr. Fiola said Fall River has three seafood processing centers that do not have a direct connection to the state pier. He said it is common to truck the seafood to alternate locations considering the high value of waterfront property. Mr. Fiola said analysis of short sea shipping should be incorporated into cargo freight evaluation. Lastly, he said the concept and the reality of these types of evaluations often encounter problems at the implementation stage. Mr. Elisa said the evaluation should address the impacts on infrastructure, a common national challenge. He said thinking about how goods are shipped and how larger vessels can be accommodated in ports is worthwhile, and support at the federal level is necessary. Nest Steps Mr. Ciborowski said the next steps are to finalize deliverables 1, 2 and 3 (Evaluation Criteria, Existing Conditions and Trends). The team will begin to develop deliverables 4, 5 and 6 (Port System Analysis, Preliminary Recommendations and Financial Analysis). Mr. Ciborowski said the next Compact meeting will be in Fall River on September 9, with a time and location will be announced as the date nears. The team will incorporate today’s feedback and the written comments into the Tech Memos and post the revised documents on the website. Mr. Ciborowski opened the floor to public comments. Mayor Driscoll thanked the team for the opportunity to participate in the study, and said she is looking forward to a targeted strategy to improve the port assets in the region. Mayor Driscoll said the City of Salem will submit additional written comments. Valerie Nelson, a Gloucester resident, said she agrees with the Compact members that the Evaluation Criteria is too transportation focused. It’s not just a transportation issue and requires holistic thinking. She said the focus should be on building education and investing in and promoting companies and institutions. She suggested science, technology and product development, such as nutraceuticals, offer opportunities beyond seafood. Ms. Nelson said international matters should not crowd out local necessities, including localized manufacturing and food sources, as the proximity of where goods are made and consumed is critical and is a current paradigm shift. Ms. Nelson again urged the team to avoid a transportation focus and be mindful of the local needs. Secretary Davey thanked Ms. Nelson for her comments, and said transportation will not override the vision of the ports, and the team will reflect more broadly in the revised Tech Memos. Secretary Davey said the Compact is comprised of each port’s Mayor for a broader representation (that is not transportation focused). An attendee asked if the project team has reviewed the FEMA coastal flood maps to evaluate the climate change impacts. He said Gloucester is essentially an island with the Page 9 of 10 only two roads in and out located in low-lying areas. Mr. Ciborowski said the team is looking at climate change, and will take the maps into account when developing the recommendations for appropriate investments. There were no further comments, and Secretary Davey thanked the participants and closed the meeting at 2:40 PM. Page 10 of 10