California Governor announces new partnership to improve supply chain infrastructure


Gavin Newsom, Governor of California, has announced a new strategic partnership with the US Department of Transportation (USDOT) to help facilitate innovative projects and financing opportunities for infrastructure improvements in California.

This federal-state partnership comes as part of the ongoing efforts of the Biden-Harris Task Force on Supply Chain Disruptions in the wake of the current congestion crisis at the Ports of Los Angeles and Long Beach.

The agreement allows California to expedite work on a network of related projects that will help collectively grow the economy, protect the environment, facilitate the movement of imports and exports, and bring supply chain processes into the modern age to create resilience throughout the trade corridors of California.

“California’s ports and infrastructure system is key to the country’s supply chain. Thanks to our collaboration with the Biden-Harris Administration, this innovative federal-state partnership will help us fast-track those projects that will make our ports and infrastructure even more efficient,” said Governor Newsom.

“This partnership will help us jumpstart and support multiple infrastructure projects to improve our supply chain, making sure goods get to where they need to go faster, cheaper, and more environmentally friendly.”

The partnership could help kick-start construction to deliver benefits to both the transportation supply chain and US consumers in the future. 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 the California State Transportation Agency (CalSTA)

Pete Buttigieg, US Transportation Secretary, added “Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure. That’s why this administration is working around the clock to address both near-term and long-term challenges to our supply chains, including investments such as those in the bipartisan infrastructure deal.

“Today’s announcement marks an innovative partnership with California that will help modernise our infrastructure, confront climate-change, speed up the movement of goods and grow our economy.”

Both the State of California and USDOT have made clear that infrastructure projects must be considered on their potential for strengthening supply chain resilience.

The latest update on the ongoing congestion crisis in southern California saw 79 vessels waiting at berth at the Port of Los Angeles and Long Beach on 25 October 2021.

This has also led to the City of Long Beach temporarily waiving enforcement of current shipping container stacking and height limits at the Port of Long Beach for a 90-day period. Affected operations will now be allowed to stack up to four shipping containers without being cited for a code violation.

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