MINUTES MASSACHUSETTS PORTS COMPACT MEETING #2 SUBJECT: Ports of Massachusetts Strategic Plan LOCATION: State Pier, New Bedford DATE/TIME: April 30, 2013, 1:00 – 2:30 PM COMPACT MEMBERS: Lieutenant Governor Timothy Murray Senator Thomas McGee, Chairman, Joint Committee on Transportation Secretary Richard Davey, MassDOT Secretary Richard Sullivan, EEA Mayor Jonathan Mitchell, City of New Bedford Mayor Carolyn Kirk, City of Gloucester Chris Busch, Representing Boston Mayor Thomas Menino Deb Hadden, Representing Massport CEO & Executive Director Thomas Glynn Kathy Winn, Representing Salem Mayor Kimberley Driscoll Ken Fiola, Representing Fall River Mayor William Flanagan PUBLIC ATTENDEES: Approximately 15 members of the public attended PROJECT TEAM: Matthew Ciborowski, MassDOT Project Manager Jay Duncan, AECOM Al Raine, AECOM Andrew Cairns, AECOM Frank Mahady, FXM Associates Jack Wiggin, UMass Boston Urban Harbors Institute Allison Novelly, UMass Boston Urban Harbors Institute David Vine, GZA GeoEnvironmental Kate Barrett, Regina Villa Associates PURPOSE/SUBJECT: To present an overview and gather input on the strategic plan scope of work 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 Introductions Lieutenant Governor Timothy Murray opened the meeting at 1:00 PM and welcomed Compact members and the public. He noted that of all the transportation infrastructure modes, Massachusetts ports are the most historic. New Bedford was known for whaling, Gloucester for fishing and Salem and Boston for trade. There are a number of challenges facing the ports today: more stringent fishing regulations, the widening of the Panama Canal and associated short sea shipping, and the closure of Salem Station are all impacting the ports. The Patrick-Murray Administration asked the Massachusetts Department of Transportation (MassDOT) to prepare a strategic plan to address the challenges and plan for the future. He noted that all of the Compact participants are strong advocates of identifying ways to maximize use of port infrastructure to maximize support for our maritime resources and promote economic development. Lieutenant Governor Murray said the purpose of the meeting was to hear a presentation by the MassDOT team that was selected by the five port communities. He first asked Mayor Mitchell to say a few words. Mayor Mitchell thanked Lieutenant Governor Murray and welcomed participants. He noted the many ways that the state is helping New Bedford. Secretary Sullivan is providing state support to turn the Haskell property that is currently a nursery into a public park. Secretary Davey is supporting investments in rail infrastructure in the city. The administration recognizes that the city is a place to grow jobs and has value that needs to be activated. These and other initiatives demonstrate its commitment to economic development. New Bedford has many assets including the industrial area on Route 18, rail access and fishing. He is working to develop the port facilities to support the offshore wind industry. He appreciates Lieutenant Governor Murray’s interest in helping and his experience as a former mayor and with rail and ports. Mayor Mitchell thanked Secretary Davey for spearheading the ports initiative, which is a collaborative effort that benefits from his attention. He also thanked Secretary Sullivan for supporting the city in preserving public spaces and in making it a premier offshore wind industry port. Mayor Mitchell noted that Senator McGee and Representative Straus have been instrumental in growing rail and port infrastructure investment, and he appreciates their leadership. Mayor Mitchell welcomed Mayor Kirk and noted her support of the fishing industry. He added that Representative Markey also recognizes the many assets of the city. Mayor Mitchell reported on a recent trip to Germany. A delegation of 32 participated from New Bedford and elsewhere, including city officials such as the economic development and port directors, and representatives from the state’s clean energy center. The city wants to build a $100 million port facility to stage the Cape Wind construction. He said the delegation toured two cities to look at how they incorporated wind energy into Page 2 of 9 economic development. The cities had 25 percent unemployment, but are now in the single digits. New Bedford can experience similar growth with planning and infrastructure. Service industries that support wind energy have great potential and there is a palpable vibrancy. He noted that 25 percent of the nation’s wind resources are off Martha’s Vineyard. Public/private partnerships, regulations and tax incentives will help develop a multifaceted port. It is already home to the number one fishing fleet in the nation, due in part to the healthy scallop fishery, and cargo is expanding. The New Bedford waterfront also has many recreational opportunities. For instance, it is in the top 15 yachting destinations. Mayor Mitchell said he appreciates the state’s support, which is good for all ports. Presentation Lieutenant Governor Murray introduced MassDOT’s project manager for the strategic plan, Matthew Ciborowski. Mr. Ciborowski thanked Lieutenant Governor Murray and other Compact members, and Mayor Mitchell for hosting the meeting. Mr. Ciborowski said the purpose of the meeting is to summarize the Compact process, introduce the MassDOT strategic plan team, summarize the strategic plan process, obtain Compact and public input and define next steps. The ports are key to economic development. The strategic plan will define individual port strengths and niches and identify opportunities to sustain and strengthen their vibrancy. It will look at the ports individually, and as a cohesive group. The result will be a plan that identifies targeted and sensible investments. It is not a zero-sum game, but rather a question of collective investments. The goal is not to eliminate competition, but to increase the competitiveness of Massachusetts with collaboration and cooperation. Mr. Ciborowski described the key tasks of the Compact. Qualitative and anecdotal information will be used to identify the importance of the ports to economic viability. The Compact will connect the functions of the ports to environmental issues, tourism and jobs and develop a comprehensive mission for them. A key deliverable of the Compact is the strategic plan. Mr. Ciborowski displayed a slide showing the strategic plan team members, a skilled and experienced team chosen by the Compact communities. MassDOT Office of Transportation Planning is the overall project manager. AECOM is the consultant project manager focusing on cargo, economics and financing. GZA GeoEnvironmental will focus on infrastructure, FXM Associates on economics, UMass Boston Urban Harbors Institute on fisheries, KCUS/Portia Management on cargo and Regina Villa Associates on public involvement. Mr. Ciborowski explained the strategic plan scope of work. The team will review background data. It will develop evaluation criteria, infrastructure and operations inventories (marine and landside) and a cargo/use inventory. The team will look at maritime trade and nationwide and industry wide trends, such as short sea shipping. Page 3 of 9 These tasks will support an analysis of the Compact port system. The team will identify financing options and develop recommendations and a report with the Compact’s assistance. Mr. Ciborowski noted that the ports strategic plan initiative is similar to the Beyond Boston study completed last year, which helped position 15 Regional Transit Authorities to advocate for themselves more effectively. Mr. Ciborowski displayed a slide illustrating the strategic plan process. The inputs will be information collected in meetings with port staff and businesses that want access to the ports, a needs assessment and analysis of market opportunities. Metrics for the evaluation will include elements such as jobs and earnings by industry, support of existing industry, diversifying into new industries, environmental compatibility, timing of benefits, safety, compatibility with local plans and vision and budgets. The result will be a plan that fulfills the mandate to develop a strategy and solicit feedback, supports Compact planning and decision making, provides information to the public and key stakeholders and reduces uncertainty for the private sector on the direction for the ports. The team will develop a plan that has tangible, actionable steps that doesn’t sit on a shelf. Mr. Ciborowski reviewed the seven plan deliverables and the proposed schedule for each. The first step is to determine how to evaluate judgments and identify what is in each port and what each port is doing. Evaluation criteria will be developed in May (deliverable 1) and the inventory of maritime port infrastructure and operations (deliverable 2) will be completed in June. Financing options (deliverable 3) will be completed in June, but work to identify additional options will continue throughout the plan process. Identification of maritime transportation trends (deliverable 4) and an analysis of the Compact ports system (deliverable 5) will be completed in July. Recommendations with action steps (deliverable 6) will be completed in August and the final report (deliverable 7) released in October. Mr. Ciborowski reviewed the public participation program plan. Four stakeholder/Compact meetings are planned – a kick off (this meeting); to present deliverables one through four; to present deliverables five through seven; and to present the final report. The second meeting will be in late June (in Gloucester) and the third in late August (in Fall River) and are planned as Compact meetings. The fourth public meeting will be in September (in Boston) to present the recommendations, prior to completing the report. Secretary Davey asked if the intent is to present or listen at the public meeting. Mr. Ciborowski said the draft document will be available before the meeting. An overview of the document will be presented and feedback solicited. Secretary Davey suggested that the three remaining public meetings be held in Boston, the South Shore and North Shore in order to provide a good geographic balance. Mr. Ciborowski reviewed next steps. Ongoing activities include port meetings, infrastructure inventory and financial analysis. Deliverables one through four include Page 4 of 9 developing the evaluation criteria and reporting on the infrastructure inventory, maritime transportation trends and port systems analysis. The next meeting will report on the results of these activities. Key discussion points for today’s meeting are the evaluation criteria, key issues at each port and study area boundaries (a critical decision). He asked the Compact members if the meeting schedule and deliverable review seem realistic. He asked if they would like to receive the chapters as they are ready or all at once. Mayor Kirk requested to receive them as they are ready. She also requested they be sent enough in advance to provide time to review before the meetings. She suggested a week or two in advance. Mr. Ciborowski added that the draft documents will be posted on the website for public review after one round of internal reviews had been completed. Mr. Ciborowski explained that the evaluation criteria will help evaluate investments by determining how they are compared and judged. He reviewed a draft set of criteria the team had identified and asked for Compact members’ thoughts. The draft criteria include: Travel time Rail connectivity Highway connectivity Right-of-way impacts Consistency with community plans Capital costs Environmental impacts Socioeconomic impacts Preserve existing capability/strengths Create economic opportunity Build on other investments Be a good neighbor Seek the highest return on investment Lieutenant Governor Murray suggested adding jobs as part of the creating economic opportunity criteria. It is essential to making strategic investments. Secretary Sullivan suggested adding tourism. Mayor Kirk suggested including cross-connectivity between the port systems. For instance, some ports provide back-up services to other ports. An example is when the Gloucester US Coast Guard station responds to incidents in Boston, if Boston’s station is busy elsewhere, or when a wind turbine is delivered to Gloucester because it cannot be trucked into another community. Another example is when large ships are in Boston and smaller vessels dock in the other ports because there isn’t enough space for them in Boston. Chris Busch suggested adding vulnerability to sea level rise and climate change. Deb Hadden suggested looking at the strength of existing businesses and their ability to grow. Are they on the decline or upswing? Ability Page 5 of 9 to compete with ports outside of Massachusetts is also important. Lieutenant Governor Murray added that preserving and promoting individual and collective capabilities and strengths is important. Should the ports be branded individually or collectively for tourism and marketing budgets and campaigns? Ken Fiola said regulations should be looked at. Some designated port areas (DPAs) are still relevant, but others hinder economic development. Secretary Davey agreed that regulations should be looked at. The relationship between port owners, operators and MassDOT should also be considered. He urged the team to look at opportunities for the ports strategic plan to intersect with Massport’s current strategic planning process and with financing and the Public/Private Partnership Commission’s work. Global markets should be looked at, such as the Panama Canal and Europe and Asia, so investments are resilient and can react to global changes. Markets should be anticipated for the next 10 to 15 years with the goal to promote and preserve the state’s ports. Mayor Mitchell suggested looking at port governing capacity for market development and potential. He noted the different structures in New Bedford (Harbor Development Commission) and Boston (Massport). Senator McGee added that connection by water to the ports should be considered, not just rail and highway. Louis Elisa, Seaport Advisory Council, suggested looking at capital costs and environmental impacts of deep draft vessels. Panamax ships will require more demand for dredging and there will be bridge impacts. New York, Delaware and Pennsylvania have started to address this issue. It will be necessary in Fall River, New Bedford and Boston. Mr. Ciborowski thanked the group for their input. He said the team will take the suggestions made today and will report on how they have been implemented in modifying the evaluation criteria. He asked Jay Duncan, Team Project Manager, to lead the discussion of key port issues and boundaries. Mr. Duncan noted that what the team was looking for was some input similar to that offered by Mayor Mitchell in his opening remarks. Namely, what the Compact members feel are the assets of each port, the issues facing each and what they envision the future to be at each. Three areas that the team is seeking input on are evaluation criteria, key issues and study area boundaries. As for the study area boundaries, the team is starting with the DPAs, but would like Compact feedback on whether they should be expanded at specific locations. He said that the team will be meeting with officials at each port to obtain more detailed information, so just a high level summary would be good to hear at today’s meeting. He mentioned that the team had already met with Gloucester officials the prior day. Gloucester Mayor Kirk said it’s important to recognize the assets of the area north of Boston. There are really two different coasts. Gloucester has strategic access to the Gulf of Maine and competes with New Hampshire and Maine. It’s important to drive jobs and investment Page 6 of 9 into Massachusetts from these areas. Marine science and technology are an opportunity for the area north of Boston. Gloucester is second to Boston in investments of this type. It’s number two in number of patents, with private investment and innovation. This sector is a rich area of opportunity. Gloucester is accessible by land and sea. The science and technology sector is compatible with fishing and offers an opportunity to diversify. Mayor Kirk agreed that the DPAs should be looked at. They were established in the 1970s and may no longer be relevant. The strategic plan should not be restricted to the DPAs. She noted that the Annisquam River has potential but access is restricted by the drawbridge. The US Coast Guard in Gloucester can’t provide back-up assistance to Newburyport because it would have to go around Cape Ann rather than via the river. As she pointed out earlier, the interconnections are important such as offloading turbines and US Coast Guard patrols. She added that the Salem Ferry hauls out in Gloucester. She suggested the study area also be extended to Commercial Street on the south. Secretary Sullivan noted that there may be resources available within the Secretariats to assist ports, which are not apparent. For instance, fisheries disaster relief could be used for science and innovation of the type mentioned by Mayor Kirk. Boston Chris Busch, City of Boston, said container shipping and the cruiseport are important to Boston, as is fuel and LNG shipping. The harbor also has many recreational and public resources. The mayor established an innovation district in South Boston. The Marine Industrial Park is an innovation model for manufacturing, commercial, industrial and shore side leases. There are some infrastructure challenges. The DPA is an issue for Boston, limiting development opportunities. Deb Hadden, Massport, said that there are operators beyond Massport in Boston Harbor, such as private terminals. A key challenge is Conley Terminal. It receives about 200,000 containers a year, but that is a small number when compared to other ports. Massport wants to increase the volume of containers and the number of jobs. Container shipping is hard to break into. Ships calling are getting larger. There are three trade lanes serving Boston – northern Europe, the Mediterranean and the Far East. Ships from the Far East can transit either the Panama Canal or the Suez Canal to reach Boston. She noted that after 13 years of effort, the Army Corps of Engineers has approved the project to evaluate dredging Boston Harbor to handle deep drafts of 47 feet in the inner harbor and 51 feet in the outer harbor to handle Panamax ships. The estimated project cost is $300 million. Only half the cost will be paid by the federal government, so funding must be secured from other sources to pay for the remainder. Massport will also need to build larger cranes that can reach higher and further out to load/offload containers on the bigger ships. Financing for these improvements is key. The cruise side of the port is a success story for Massport. It is also picking up in other ports in the state for day tours or ship calls. The challenge on the cruise side is that a Page 7 of 9 second cruise terminal is needed. One terminal cannot process passengers from two ships. The Boston fishing industry is smaller than the other ports, but there are connections among the ports and Massport benefits from Gloucester and New Bedford fleets. The boats from these ports also visit Boston. She reported that the bulk terminals are privately managed. Wind turbine testing, new and used automobile distribution and road salt and granite storage also take place on Massport property. The DPA helps Massport protect its interests and property uses. No modification of the study area boundaries were suggested for Boston. Fall River Ken Fiola, City of Fall River Office of Economic Development, said the city wants to use the waterfront for non-water dependent uses, so the DPA is a problem. Its port is not of the industrial scale that the others are and it would like flexibility to include recreation and entertainment businesses in addition to water dependent ones such as cruise. The DPA regulations were implemented with the promise of state and federal investment, which hasn’t occurred. Fall River’s port is 17 miles from the ocean. He said a one size fits all approach will not work for the ports. Chapter 91 is a challenge and Fall River competes with Providence and Newport, which don’t have the same regulatory challenges in using their waterfront. The city would like to have restaurants on the waterfront but filled tidelands can’t be used and the DPA prevents it. Fall River could be a recreational port with landside development. He said there is no sense in maintaining the DPA if it’s not productive in terms of quality of life and jobs. No change of the study area was suggested. Salem Kathy Winn, City of Salem, said that Salem has been focusing on water transportation and the Salem Ferry has been a success story, but there are challenges such as financial constraints. The city would like to make water connections to other areas such as Lynn and South Boston to create a robust system. The city is dealing with the challenge of the build out of the power plant site. There is a deep water dock at the power plant and a public/private partnership would help spur development. No change of the study area was suggested. New Bedford Mayor Mitchell elaborated on his earlier comments. The focus should be on what ports do well, and do a lot. New Bedford’s fishing fleet is number one in the nation in value of landings. Alaska is second, but its catch is half the value. New Bedford will be an offshore wind port. It’s a recreational port with Pope’s Island, provides ferry service and is home to shipbuilding on the Fairhaven side. Loosening up the DPA will help communities connect residents to the waterfront by providing public access. There Page 8 of 9 should be a balance of retail, marine and industrial uses, but uses are complicated by Chapter 91 and the DPA. He said specialization won’t work for New Bedford. The city’s port is multifaceted and specialization isn’t necessary to grow. Extending rail to the South Terminal and pier infrastructure upgrades are necessary. Jeff Stieb, New Bedford Harbor Development Commission, asked the team to extend the study boundary to look at the potential of the Hicks Sawyer area north of the DPA. Louis Elisa, Seaport Advisory Council, said the team should focus on intermodal access and integration, because the US EPA’s new truck regulations may become a problem that integration can overcome. Mr. Ciborowski thanked the Compact members and public for their helpful input. He noted that the PowerPoint presentation will be posted on the Compact website. Secretary Davey closed the meeting, thanking the participants. He said the schedule is helpful with the public meeting planning. He realizes that MassDOT is expecting a lot from Compact members in a short timeframe and he appreciates their input greatly. The meeting was adjourned at 2:30 PM. Page 9 of 9