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Port of Oakland adopts $480 million budget for FY 2023

[ July 18, 2022   //   ]

The Oakland Board of Port Commissioners approved a 2023 fiscal year budget of $480 million at their June 23rd meeting.

The $480 million operating budget projects 9% passenger growth at the Port’s Oakland International Airport (OAK). Cargo volume at the Oakland Seaport is expected to increase 2%.

“Our economy has overcome the initial pandemic shock and our employees have done an excellent job containing expenses,” said Port of Oakland Executive Director Danny Wan. “However rising inflation and a threatened recession mean we have to remain vigilant.”

The Port of Oakland said it anticipates a $35 million revenue increase in FY 2023. A vibrant Bay Area economy is one reason why. According to the Port, 83% of its airport passengers begin or end their trip at OAK, with the remainder taking connecting flights. Eighty-five% of its seaport cargo goes to or comes from regional markets. That makes the Port particularly connected to the economic health of its home market.

“Port operations are supported by a strong and diverse local economy,” the Port said in its budget outlook. “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.”

The Port cautioned that its businesses face headwinds in the upcoming fiscal year that include:

  • Fears of a recession could hinder Oakland International Airport passenger growth, now at 83% of pre-pandemic levels;
  • Ongoing supply chain congestion; and
  • Higher cots of doing business due to inflation.

The Port’s Commissioners approved a $112.4 million capital budget for the next fiscal year. Most of that spending is earmarked for Oakland International Airport and Oakland Seaport infrastructure improvements. The Port’s 5-year capital improvement plan, an estimate of future capital spending, is projected to be $907.8 million. Approximately one third the Port’s capital improvement plan is anticipated for various environmental, utility, and electrification initiatives across its business lines.