The Port of Oakland will be a recipient of California Governor Gavin Newsom’s economic relief for ports, according to the company's release. The Governor's proposed budget includes $250 million for public ports that have been financially challenged due to the pandemic. Governor Newsom made the announcement during the California Chamber of Commerce’s 2021 Virtual Capitol Summit & Host Breakfast last week.
Although trade has been booming for containerized ports, tourism and related businesses like restaurants and hotels on port property have been gutted by the pandemic. California ports have survived despite those revenue losses from port tenants; however, ports need financial assistance.
For example, the Ports of Oakland, San Diego, and San Francisco, have business partners who rely on robust tourism, which in turn pays for port leases. With COVID-19 impacts, ports have had to defer many capital projects and dig into budget reserves to meet the financial consequences presented by the pandemic.
The Port of Oakland served as an early responder during the Princess Cruise ship COVID emergency last year; it offered easy access to COVID testing for its employees, residents, and visitors; and it provided rent relief to small, local businesses at the Oakland waterfront during the pandemic.
Funding relief will help fill the financial gap generated by losses at California ports due to COVID. The funding is from the American Rescue Plan Act of 2021, also known as the COVID-19 Stimulus Package passed by Congress. With budget approval, the funding relief will be distributed by the Governor’s Office of Business and Economic Development (GO-Biz).
Some of California’s ports’ revenue streams were cut in half due to the pandemic’s impacts on tourism and hospitality industries. Despite those major losses, California seaports have not received direct state or federal relief up to this point.
California ports are critical components of the state’s supply chain, moving goods in and out of the United States. Ports make huge contributions to economic activity and tourism, provide regional employment, and boost revenue for local jurisdictions and the state. California’s ports comprise the most significant system of ports in the U.S.
About the Port of Oakland
The Port of Oakland oversees the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront including Jack London Square. The Port's 5-year strategic plan - Growth with Care - pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs.