The Oakland Board of Port Commissioners has approved a US$465.3 million fiscal year (FY) 2021-22 budget, which is increased by 7.6% from the budget of the last year.
Maritime activity at Oakland has reached record levels in recent months due to increased consumer demand for goods and is expected to increase by 5.5% from anticipated FY 2021 levels.
“Despite record cargo volumes, we are being cautious with the budget increase considering that aviation passenger traffic is still projected to be short of pre-pandemic levels,” said Port of Oakland Executive Director Danny Wan.
As California reopens and global pandemic uncertainty continues, coronavirus-induced business declines in aviation and commercial real estate are reversing, but not at a pace that will eliminate uncertainty for these revenue divisions at the Port of Oakland during the new fiscal year, according to an announcement.
“Our budget strategy is to maintain long-term financial strength, resiliency, and prioritise and plan for major capital projects,” stated Danny Wan, who went on to add, “We aim to control increases in operating expenses while expanding our investment in capital infrastructure.”
The Port of Oakland’s FY 2022 capital budget is US$102.9 million, focused on regulatory compliance and infrastructure upgrade projects, according to the port.
The Californian port noted the FY 2022 budget, which includes operating expenses, capital investments and debt service, also supports addressing near-term operational and financial challenges that may arise.
