The U.S. Army Corps of Engineers requested — and received — $12.5 million for the project. The funding will be used for continued planning, engineering and design, and to initiate the first phase of construction.

The project would deepen the 43-mile channel between the port and the San Francisco Bay to 35 feet from 30 feet. It initially started in 1989 and stopped in 1991 as a result of a since-resolved utility matter. About 35 more miles need to be dredged.

The channel’s current depth allows less than 40% of fully loaded ocean-going freight ships to access the port. If the channel was dredged to 35 feet, more than 75% of such ships could serve the Sacramento region.

It would take about $80 million to finish dredging the channel, with about $60 million expected to come from the federal government.

While the federal budget for fiscal year 2010 included $10 million for the project, that amount went back to the U.S. Treasury when it was not used. Dredging was originally expected to start in mid-2010, but enviromental permits took longer than anticipated, setting the project back about six months.

The project is still expected to be completed in 2013.