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Image of Port of Oakland Oks FY 2021 budget midst COVID-19 crisis

Port of Oakland Oks FY 2021 budget midst COVID-19 crisis

Near 16 percent drop from 2020 spending plan due to decline in cargo, air traffic

Press Releases, Seaport, Airport, Commercial Real Estate, Community
June 29th, 2020

Oakland, Calif. – June 29, 2020:  Coronavirus-induced business declines have prompted the Port of Oakland to curtail Fiscal Year 2021 spending plans.  Port Commissioners last week approved a budget for next year down 15.84 percent from FY 2020 levels.

The Port budget projects $432.5 million in operating and capital expenditures and debt service payments next year.  That’s reduced from last year’s $513.6 million budget. According to the Port, lower spending reflects anticipated declines in its Aviation and Maritime businesses.

The Port said its new budget would achieve key financial objectives that include:

• Protecting cash reserves
• Ensuring adequate revenue to pay down debt; and
• Maintaining full operations at its Airport, Seaport and Commercial Real Estate
holdings

“This budget is based on neither unsubstantiated hope nor on speculation of any worst-case scenario,” said Port of Oakland Executive Director Danny Wan.  “It is based on best estimates of how our business may recover, assuming that our communities and country make slow but steady progress in containing the COVID-19 virus.”

The economic impact of COVID-19 is likely to continue depressing revenue in FY 2021, the Port said.  Oakland International Airport passenger volume plummeted 80-to-96 percent this spring, the Port said.  It warned that recovery in the aviation sector could take 2-to-3 years.  Maritime business could recover faster, the Port said, but Oakland’s total cargo volume is off 7.8 percent so far, this calendar year.

The Port said its FY 2021 budget includes $19.1 million of federal coronavirus relief funding.  An additional $25.5 million will be used in 2022 and 2023, the Port added.

The Port’s FY 2021 budget takes effect July 1, 2020.

About the Port of Oakland

The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port's 5-year strategic plan - Growth with Care - pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs. Connect with the Port of Oakland and Oakland International Airport through Facebook, or with the Port on Twitter, YouTube, and at www.portofoakland.com.

Media Contacts

Mike Zampa
Port of Oakland
Communications Director
(510) 627-1565
mzampa@portoakland.com
Marilyn Sandifur
Port of Oakland
Port Spokesperson
(510) 627-1193
msandifur@portoakland.com

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