The Oakland (US) Board of Port Commissioners has approved a 2023 fiscal year budget of US$480 million.
This operating budget projects a 9% increase in passengers at the Port’s Oakland International Airport (OAK) and a 2% growth in cargo volume at the Oakland Seaport.
“Our economy has overcome the initial pandemic shock and our employees have done an excellent job containing expenses. However rising inflation and a threatened recession mean we have to remain vigilant,” commented Port of Oakland executive director, Danny Wan.
Meanwhile, the Port of Oakland expects revenue growth of US$35 million in 2023. “Port operations are supported by a strong and diverse local economy. The Bay Area remains an important center of commerce, and the Port remains a key gateway for both domestic and international trade and a top travel destination,” said the port in its budget outlook.
Port of Oakland has warned that its businesses face challenges in the next financial year which include fears of a recession that could hinder Oakland International Airport passenger growth (now at 83% of pre-pandemic levels), ongoing supply chain congestion and higher costs due to inflation.
Additionally, Port Commissioners approved a US$112.4 million capital budget for the upcoming fiscal year aiming to improve the infrastructure of Oakland International Airport and Oakland Seaport.
The port’s five-year capital improvement plan is projected to be US$907.8 million.
Around a third of the port’s capital improvement plan is expected to be allocated to various environmental, utility and electrification initiatives.
