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| Tay Yoshitani |
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2003 is shaping up to be an extraordinary year for all three of the Port of
Oakland's lines of business, full of both promise and huge challenges. Aviation, Maritime, and Commercial Real Estate (CRE) are all showing encouraging growth in a constrained economic environment. At the same time, however, the tremendous capital investment requirements for new facilities means that the Port must constantly be diligent in controlling expenses. It often seems like a cycle of both feast and famine at the same moment.
This year Aviation is leading the way in both passenger growth, estimated to top 13 million passengers for the first time in the Port's history, and in revenue with a projected budget of nearly $118 million. To accommodate Oakland's extraordinary passenger growth, the Port has already invested heavily in roadways and other infrastructure. In early 2004 construction at Oakland International Airport will be more evident to the traveling public as we begin a highly visible transformation with improvements to Terminal 2 and the construction of a near-terminal parking garage. These enhancements will ensure the citizens of Northern California have easily accessible, convenient, and cost-effective air travel available in the East Bay. The Airport Development Program will transition Oakland International Airport from a 1960's vintage regional facility to a modern international transportation hub.
The Maritime Division has already recorded a total 9.5% cargo increase through August, bolstered by double-digit growth of 13.7% in imports. Engineering and Maritime have done an extraordinary job in building our new marine terminals, relocating several of our ocean carriers, and at the same time coordinating new business opportunities. Having completed many of the Vision 2000 projects, Maritime is poised to initiate the next phase of development with the acquisition of property from the former Oakland Army Base.
There are three projects in CRE that also merit special attention. In June the Port closed escrow on the Simeon Property Development located at the corner of Hegenberger and Interstate 880. We are now awaiting the Development Submittal for this site, and I believe this twenty-two acre parcel will soon showcase the attractiveness of the Hegenberger Gateway.
In September of this year Oakland's Board of Port Commissioners approved the sale of various parcels totaling sixty acres located in the Oak to 9th area to Oakland Harbor Partners. One of Oakland's few remaining waterfront development sites, in the next few years you will see the transition of this area from largely industrial utilization to a vibrant mixed-use waterfront neighborhood.
Thirdly, Jack London Square will continue to see dramatic improvements over the next few years. Already Oakland's favorite waterfront destination, JLS Partners will be effectively doubling the amounts of office and retail space, increasing parking, and making more hotel rooms available for business travelers and tourists.
Through our development, the Port of Oakland has established itself and our City as a transportation hub, an economic engine, and a good neighbor. It can be said that challenges and opportunities always walk hand-in-hand, and the Port of Oakland has always had its share of both. For the present and into the future we look forward to continuing our proud 76-year tradition of serving the people of our City, our region, our State, and the nation.
