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.