Opening of pedestrian tunnel, reaching PILTs agreement, investing in environmental and community initiatives among the highlights of 2015
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TORONTO, May 11, 2016 /CNW/ - PortsToronto today released its 2015 Audited Financial Statements, marking the organization's eighth consecutive year of profitability and demonstrating PortsToronto's continued role as an investor in the infrastructure, community and economic performance of Toronto.
All three of PortsToronto's core business operations – Billy Bishop Toronto City Airport (Billy Bishop Airport), the Port of Toronto and the Outer Harbour Marina – were profitable in 2015, generating $55.9 million in overall revenue, an increase of 10.7 per cent from the $50.5 million reported in 2014. Net income was down in 2015 to $5.9 million from $14.9 million in 2014, due primarily to costs associated with the opening of Billy Bishop Airport's award-winning pedestrian tunnel; PortsToronto's settlement with the City of Toronto on Payments in Lieu of Taxes (PILTs); and studies related to the Porter Proposal.
Billy Bishop Airport continued to see ongoing success in 2015 serving 2.5 million passengers, up from 2.4 million in 2014, reflecting the airport's continued managed growth policy. Billy Bishop Airport generated revenue of $43.5 million, which included $19.4 million in revenue from Airport Improvement Fees. The Port of Toronto experienced another strong year facilitating the delivery of more than 1.6 million tonnes of cargo from around the world directly into the heart of the city. The port and its activities reported operating income from all sources of $1.5 million, up from $1.2 million the year prior. The Outer Harbour Marina's 2015 operating income remained at $1.2 million on revenues of $3.6 million, as PortsToronto continued to make important investments in this popular facility, including building a second heated, winter storage building for boats and opening a new retail store for food and supplies.
"As a financially self-sufficient organization that does not receive public funding, we are very proud of our financial record and achieving our eighth consecutive year of profitability in 2015. We are particularly pleased to note that this profitability has enabled PortsToronto to continue to invest in the infrastructure and initiatives that strengthen Toronto and entrench it as a world-class city," said Geoffrey Wilson, CEO of PortsToronto. "Since 2009 we've invested more than $8 million in community initiatives, charitable organizations, and environmental programmes that benefit the communities which we serve. It is these opportunities for reinvestment that are behind our efforts to work toward continued strong financial performance."
Of this more than $8 million in community investments, $5.6 million was dedicated to environmental initiatives, including the removal of millions of pounds of debris from Toronto's Harbour, the building of fish and wildlife habitats at the Leslie Street Spit, and the construction of a new butterfly garden in an effort to increase biodiversity. PortsToronto also continued to invest in measures that minimize the environmental impact of its businesses, such as purchasing 100 per cent of its electric power from renewable sources, such as wind and hydro through Bullfrog Power. These efforts are detailed in PortsToronto's 2015 Sustainability Report which is available on the company website.
In 2015, PortsToronto also invested heavily in new infrastructure, the most significant investment being that of the new pedestrian tunnel to Billy Bishop Airport. The tunnel was built at no cost to taxpayers and was financed through a public-private partnership (P3) model.
Beyond PortsToronto's community and infrastructure investments, PortsToronto contributed just under $8.6 million in PILTs to the City of Toronto, including $3.1 million for 2015 and an additional $5.5 million for prior years as a result of a settlement with the City. In 2015, PortsToronto also paid $3.1 million toward realty taxes and more than $2.4 million to the federal government for the gross revenue charge. When combined with PILTs, this resulted in a total contribution of $14.1 million that can be used to benefit taxpayers in Toronto and across the country.
In 2016, PortsToronto will continue to work on an important element of its long-term financial sustainability – a joint venture with Oxford Properties and OMERS/Canada Pension Plan to redevelop the 1.82-acre site on the southwest corner of Bay and Harbour streets (referred to as the 30 Bay development project.) The development would be a significant provider of jobs during the construction period and a new source of tax revenue for all three levels of government.
PortsToronto will hold its Annual General Meeting on June 14, 2016, at the Fleck Dance Theatre in the Queen's Quay Terminal, 207 Queens Quay West, Toronto, Ontario. Detailed financial statements are available here.
About PortsToronto (http://www.portstoronto.com)
For more than 100 years PortsToronto, (formerly the Toronto Port Authority), has worked with its partners at the federal, provincial and municipal levels to enhance the economic growth of the City of Toronto and the Greater Toronto Area. PortsToronto owns and operates Billy Bishop Toronto City Airport, which welcomes more than two million passengers each year; the Outer Harbour Marina, one of Canada's largest freshwater marinas; and, Terminals 51 and 52, which provide transportation, distribution, storage and container services to businesses at the Port of Toronto. PortsToronto is committed to fostering strong, healthy and sustainable communities and has invested more than $8 million since 2009 in charitable initiatives and environmental programs that benefit communities along Toronto's waterfront and beyond. PortsToronto operates in accordance with the Canada Marine Act and is guided by a nine-member board with representation from all three levels of government.
For further information: Media Contact: Erin Mikaluk, Senior Manager, Communications & Media Relations, PortsToronto, Tel: (416) 863-2065, Cell: (647) 298-0544, E-mail: firstname.lastname@example.org