The Port of Oakland in California is facing a severe revenue shortfall. Photo: Port of OaklandA California port has asked for help to stabilise its finances days after it issued a warning about the effect of COVID-19 on cargo volume.
The Port of Oakland in California said it is facing a severe revenue shortfall and it is seeking assistance from government relief programme to enable it to adapt its business model to better cope with the impact of the pandemic. It has asked the State Lands Commission to advocate for this application.
“The Port of Oakland is operational in these unprecedented, challenging times and has stepped up for the state’s emergency response,” Port of Oakland Executive Director Danny Wan told the State Lands Commission. “But we will need to adapt our business model to new realities and ask the Commission to continue to work with us to find creative, workable solutions to stabilize our finances.”
Mr Wan was speaking during a video conference with Commissioners who are assessing the impacts of COVID-19 in California, reported the port on 30 April. The Commission regulates the use of land entrusted to the Port nearly a century ago under the State Tidelands Trust.
Full operations are being carried out at the port currently, although total cargo volume dropped 11% in April. The port said on 27 April that it could see "a 5-to-15 percent drop in containerised cargo volume heading into summer".
The Port doesn’t receive tax revenue, the Executive Director pointed out to commissioners during the recent meeting. With income falling, steep financial losses are expected in fiscal years 2020 and 2021.The port has stopped discretionary spending and suspended hiring and travel.
“We can no longer expect any semblance of business as usual in our operations,” the executive director declared.
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May 04, 2020 at 06:54PM
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Californian port seeks financial help - Port Strategy
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