California puts $1.5bn in port infrastructure

The state of California has recently announced a significant investment of more than $1.5 billion aimed at improving the operations of multiple ports within the state. A substantial portion of the funding, around $1.2 billion, will be allocated to 15 projects, generating an estimated 20,000 job opportunities. These initiatives will enhance the capacity for efficient movement of goods across California’s global trade gateways while also mitigating the environmental impact on surrounding communities.

The funded projects will primarily focus on bolstering the capacity for goods transportation through the ports of Los Angeles and Long Beach, both recognised as the busiest ports in the Western Hemisphere. Additionally, the initiatives will contribute to the advancement of major trade centres throughout the state, spanning from San Diego to the Central Valley and the Bay Area.

The remaining $350 million, under the administration of the California State Transportation Agency (CalSTA), has been allocated to 13 projects that address crucial aspects such as the elimination of street-level rail crossings, emissions reduction, and the facilitation of smooth transportation of goods and people.

Notably, the funding emphasises investments in zero-emission projects, accounting for almost 40% of the awards in the Port and Freight Infrastructure Program. This commitment builds upon a collaboration between the governments of California and Japan, announced earlier this year, which seeks to develop strategies for reducing greenhouse gas emissions at seaports and establishing green shipping corridors. It is part of California’s broader strategy to proactively combat and adapt to climate change.

These awards align with the longer-term budget proposals outlined in an executive order by California Governor Gavin Newsom. The order aims to support port operations and goods movement and acknowledges the vital role of California’s supply chain in the national and global economy.

Governor Newsom expressed his enthusiasm, stating, “No other state has a supply chain as critical to the national and global economy as California. These investments – unprecedented in scope and scale – will modernise our ports, reduce pollution, eliminate bottlenecks, and create a more dynamic distribution network.”

Leaders from the Port of Long Beach and the Port of Los Angeles welcomed the investment. Port of Long Beach CEO Mario Cordero highlighted the grant’s transformative impact on the efficiency of cargo movement and the ongoing transition of the Port of Long Beach towards zero-emission operations. Port of Los Angeles executive director Gene Seroka emphasised that the investment would accelerate efforts to enhance competitiveness, job creation, and decarbonisation endeavours within the port and the wider region.