The Port of Oakland has curtailed its fiscal year 2021 spending plans having approved a budget for next year down 15.84% from 2020 due to coronavirus-related business declines.
The US$432.5m set aside in operating and capital expenditures and debt service payments next year, reduced from last year’s US$513.6m, reflects anticipated declines in Oakland’s aviation and maritime business.
Port of Oakland’s executive director, Danny Wan, said: “This budget is based on neither unsubstantiated hope nor speculation of any worst-case scenario.
“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 port has said its new budget would help achieve key financial objectives that include protecting cash reserves, ensuring adequate revenue to pay down debt and maintain full operations at its airport, seaport and commercial real estate holdings.
It is likely that the economic impact of COVID-19 will continue to affect revenue in FY2021 and the port has speculated that the maritime industry could recover faster than the aviation sector.
Oakland International passenger volume plummeted 80-96% in spring while Oakland’s total cargo volume is down just 7.8% so far in the calendar year.
The budget includes US$19.1m of federal coronavirus relief funding and an additional US$25.5m will be used in 2022 and 2023.