Linking Sustainability Opportunities to PDX Airport Financial Goals and Decisions

Transcription

1 Linking Sustainability Opportunities to PDX Airport Financial Goals and Decisions Philip Ralston, General Manager, Aviation Environmental & Safety Port of Portland ACI NA Environmental Conference, Seattle, Washington Tuesday, April 7, 2009 Topics Financial Viability and Business Decisions Making Commitments: Airport Futures at PDX Linking Commitments to Decisions: Some Examples

2 PDX in 1940s PDX in 2009

3 The Future.. Financial Viability Goals and Targets: Bond Ratings revenue supported and PFC Cost Per Emplaned Passenger (CEP) Debt Service Coverage Ratios Will not use property taxes Capital Reserves Decisions and Deals: Revenue Generating Property Transactions Capital Improvements Operations and Maintenance

4 Financial Viability (continued) Life Cycle Costs Analyses Supports Decisions Net Present Value (NPV) Modified Internal Rate of Return (MIRR) Payback Period Inputs Some Key Assumptions: Discount Rate CPI Escalation Rate Construction Escalation Rate Deal Elements Labor Rates and Burden Financial Viability (continued) Other Inputs Capital Investment Cash Inflow (Revenue) and Savings Cash Outflows Sensitivity Analyses Discount Rate: what if 8, 10, or 12%? Fair Market Value: what if 1.05, 1.10, or 0.95? Fuel Prices: what if 1.2, 1.5, 2.0?

5 Airport Futures Sustainability Framework Airport Futures Planning Process

6 Sustainability Overview Guiding Principles for a Sustainable PDX (D) 1. Air Transportation Provide adequate capacity while minimizing delays for current and future demands. Reduce taxi times and distances and explore transportation demand management. Example Goal = less than % of total flights delayed per year (non weather related) Reduce and mitigate noise impact in residential areas. Employ regular noise monitoring, encourage quieter engines, and provide noise mitigation measures. 2. Surface Transportation 3. Traveler Safety and Comfort 4. Climate and Air Quality 5. Energy 6. Water 7. Natural Resources 8. Materials and Waste 9. Land Use and Development 10. Workforce 11. Community and Economic Development

7 Strategies Airport Functions and Areas (D) Conditions Strategy Implementation Function Current Sub area al Area Conditions Forecasted Conditions Sustainable Approach Actions Level of Control Barriers Solutions to Barriers Ground Transp. Curbside Adequate Facilities capacity Additional capacity required at 50th percentile forecast by 2017 ((PAL 2) for deplaning and 2022 (PAL 3) enplaning. Assume 90 second dwell time and support by providing additional staffing to insure vehicle turnover at curbside. Prioritize parking and transit use over curbside facilities. Employ transportation demand management to better balance use of upper and lower roadways. Offer cell phone lot Port has control Pick up/dropoff to minimize for planning, behavior circling; incentives design and difficult to for transit and management of affect, airport parking use; terminal trips viewed increase staffing to roadway lower dwell times; facilities. explore options for reducing pedestrian crossing of terminal differently from other area trips; construction impacts can be highly disruptive. roadways; explore options for relocating existing terminal roadway functions to garage; consider additional terminal curb; Consider remote bag check in Example Airport Futures Demand Forecast

8 How would PDX passenger traffic be different in 2035 if..? PASSENGER SENSITIVITY TEST RESULTS Enplanements (Millions) SENSITIVITY TESTS OF PDX ENPLANEMENTS 90% 21.3 million in % 13.4 million in % 8.4 million in 2035 Historical Data Higher oil prices 12.8 million Leakage to other airports 12.3 million Leakage to other transportation modes 13.2 million Video conferencing 13.2 million Airline mergers 13.4 million Year 26 Example Deicing System Enhancements

9 Some Thoughts. 1. Financial viability is imperative and a sustainability goal. 2. How do we give social equity and environmental goals parity with financial/economic goals in business decision making? 3. How do we define our sustainability commitments do we strive, consider, encourage, balance or, we will? Affects parity with financial/economic goals. 4. Do I know enough about Airport Finances and what my opportunities are in the decision making processes. 5. How are we going to report progress toward meeting our commitments? We are accountable to our commitments. Thank You.. Thank You

10 Contacts Mr. Philip Ralston; Gen Manager, Aviation Environmental & Safety telephone: Mr. Sean Loughran; Sr. Aviation Planner telephone: