The Port of Oakland reported record operating revenue of $358.7 million for Fiscal Year 2017. That was 6 percent higher than the previous record of $338 million set in FY 2016. Growth in all three of the Port’s business lines contributed to the performance.
FY 2017 operating income increased 20.6 percent to $63.7 million. That was the result of revenue growth outpacing a 3.4 percent increase in expenses. The Fiscal Year ended June 30, 2017.
Operating revenue in the Port’s Aviation Division increased 10.2 percent in FY 2017. The increase was driven by an 8.4 percent increase in passenger traffic at Oakland International Airport.
The Port reported a 1.8 percent hike in FY 2017 operating revenue for its Maritime Division. Revenue increased despite lost income from a bankrupt marine terminal operator that ceased operations at the Oakland Seaport in 2016.
Operating revenue in the Port’s Commercial Real Estate Division increased 2.9 percent last year. The gain was attributed primarily to a strong local property market.
FY 2017 operating revenue totals for the Port’s three business lines:
- Aviation: $190.6 million;
- Maritime: $151.4 million;
- Commercial Real Estate: $16.7 million.
The outlook for the Port’s three business lines is positive. Strong growth is expected in Aviation traffic and revenue. The Port anticipates continued stability at its seaport and in Commercial Real Estate.
Continued growth in operating income will be important so that the Port can continue to invest in capital improvements, address rising retiree benefit costs and make regular payments on a $1.1 billion in debt. The debt was incurred a decade ago to finance major capital improvements, primary at Oakland’s seaport.