USDOT, California address supply chain woes with $5B investment
California – In response to supply chain disruptions, the state of California and the U.S. Department of Transportation (USDOT) entered a strategic partnership to finance $5 billion in infrastructure improvements and facilitate innovative projects at seaports and other ports of entry.
Port of Long Beach
The agreement allows California to expedite work on a network of related projects – rather than using a piecemeal approach – that collectively will help grow the economy, protect the environment, facilitate the movement of imports and exports, and modernize supply chain processes to create resilience throughout the trade corridors of California and the U.S., including around San Pedro Bay and the Inland Empire.
Under the Emerging Projects Agreement, the Build America Bureau at USDOT will support the California State Transportation Agency (CalSTA) in developing California infrastructure projects designed to improve the capacity and resiliency of the goods movement chain and will assist project sponsors in exploring innovative financing opportunities for billions in infrastructure investment, in part through the USDOT credit assistance programs Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF).
Projects that could receive support through this agreement include:
- Port-specific upgrades.
- Expanding capacity for freight rail.
- Developing inland port facilities for increased warehouse storage.
- Railyard and truck electrification.
- Highway upgrades to improve truck travel times.
- Grade-separated crossings to reduce the number of rail-street intersections and improve safety and efficiency.
- Land ports of entry to expand trade capacity and cross-border commerce.
- Other eligible projects of critical importance identified by CalSTA.
Prior to announcing the partnership, California Gov. Gavin Newsom issued an executive order that directs state agencies to identify additional ways to alleviate congestion at California ports.
California’s recently enacted budget includes $250 million for ports, $280 million for infrastructure projects at and around the Port of Oakland, and $1.3 billion over three years for zero-emission trucks, transit buses and school buses, including the deployment of more than 1,000 zero-emission port drayage trucks.