Port of Oakland operating revenue held steady in FY 2016 despite the departure of a bankrupt tenant. The Port said today its operating revenue for the year ending June 31 was $338 million. That was a record for the Port, up 0.4 percent from the old record of $336.6 million set in FY 2015, the company said in its press release.
Operating revenue in the Aviation Division increased 6.7 percent in FY 2016, the Port said. That offset a 6.2 percent decline in Maritime revenue resulting from the departure of a marine terminal operator. The operator, Outer Harbor Terminal, LLC, severed a lease agreement with the Port after filing for bankruptcy last February.
The Port said Aviation revenue increased due to an 8 percent jump in passenger traffic at Oakland International Airport. It said the Aviation Division also benefited from higher terminal rental rates.
The Port’s FY 2016 revenue by business line:
Aviation: $173.1 million, up 6.7 percent from FY 2015;
Commercial Real Estate: $16.2 million, up 2.7 percent from FY 2015;
Maritime: $148.8 million, down 6.2 percent from FY 2015.
The Port said the outlook for its three business lines is positive. It added that FY 2017 will be a transition year in Maritime.
On Oct. 14, Fitch Ratings upgraded the rating on the Port’s intermediate lien revenue bonds to A from A-. Fitch affirmed its A+ rating on the Port’s senior lien revenue bonds.
About the Port of Oakland
The Port of Oakland oversees the Oakland seaport, Oakland International Airport, and 20 miles of waterfront. Together with its business partners, the Port supports more than 73,000 jobs in the region and nearly 827,000 jobs across the United States.