The Oakland Port Board has approved a $480 million budget for fiscal year 2023.
The operating budget projects a 9% increase in passenger traffic at the Port of Oakland International Airport (OAK) and a 2% increase in cargo traffic at the port of Oakland.
“Our economy has overcome the initial pandemic shock and our employees have done a good job of controlling expenses. However, rising inflation and the threat of recession mean we must remain vigilant, “commented Port of Auckland Executive Director Danny Wan.
The Port of Oakland, meanwhile, expects revenue to grow by $35 million in 2023. “Port operations are supported by a strong and diversified local economy. The Bay Area remains an important commercial center, while the port remains a key gateway for domestic and international trade and a top tourist destination, “the port said in its budget outlook.
The Port of Auckland warned that its business faces challenges in the next fiscal year, including fears of a recession that could hamper passenger growth at Auckland International Airport (now at 83 percent of pre-pandemic levels), ongoing supply chain congestion and higher costs from inflation.
In addition, the port commissioner approved a $112.4 million capital budget for infrastructure improvements at the Auckland International Airport and the Auckland Seaport for the next fiscal year.
The five-year capital improvement plan for the port is estimated at $907.8 million.
About one-third of the port capital improvement plan is expected to be allocated to various environmental, utility and electrification initiatives.