The port said revenues for the fiscal year ticked up slightly to a new record, as revenues lost from the Outer Harbor Terminal closing were offset by higher aviation revenues.
Sea to air – this isn’t how the term is usually used, but for the Port of Oakland’s ledger book, it fits.
The port, which is owned by the City of Oakland, said its operating revenues held steady for FY 2016, which ended June 30, 2016, because the revenues it lost from the departure of a bankrupt tenant, Outer Harbor Terminal, LLC, was made up for by the increase in revenues from its airport.
Outer Harbor Terminal, a joint venture between Ports America and MSC affiliate Terminal Investment Ltd., filed for Chapter 11 protection and was shut down earlier this year. Last week, TraPac said it would expand into part of the area abandoned by Outer Harbor.
The Port of Oakland said its operating revenues for the fiscal year set a record, totaling $338 million, a 0.4 percent increase from the $336.6 million set in FY 2015.
In FY 2016, operating revenues in the aviation division rose 6.7 percent from the prior fiscal year to $173.7 million, while commercial real estate revenues ticked up 2.7 percent to $16.2 million. Those increases offset a 6.2 percent drop in maritime revenues to $148.8 million for the fiscal year.
Aviation revenues increased due to an 8 percent jump in passenger traffic at Oakland International Airport. The aviation division also benefited from higher terminal rental rates.
The port said the outlook for its three business lines is positive, noting that FY 2017 will be a transition year in the maritime division.
Last week 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.
Port of Oakland’s FY operating revenues hold steady
