California plans $2.3bn investment in ports and supply chain

Unveiling his proposed budget on Monday California Gov. Galvin Newsom said that while action had been taken to alleviate supply chain disruption more investment was necessary.

Congestion at the key gateway Ports of Los Angeles and Long Beach became a global news story last year with containerships queuing for more than three weeks to enter port.

The proposed budget includes $2.3bn in supply chain investments. These include $1.2bn  for port-related projects that increase goods movement capacity on rail and roadways serving ports and at port terminals, including railyard expansions, new bridges, and zero-emission modernization projects, and $875m for zero-emission port equipment.

While $110m has been earmarked for worker training, $40m for commercial drivers licenses, $30m for operational and process improvements.

“This funding will improve supply chain resiliency and will be used to leverage federal funding,” the budget summary said.

The proposed budget was applauded by the Port of Los Angeles.

Port of Los Angeles Executive Director Gene Seroka. “The Governor’s budget allocates $2.3 billion for ports to address bottlenecks in our supply chain, advance our efforts to decarbonise the freight system, and ensure a robust and resilient workforce continues to move goods on behalf of the state and nation.

Related:Boxship newbuilds will just join port queues unless landside bottlenecks fixed

“These funds, together with our own dollars, private investment and new federal port investment in the Infrastructure Investment and Jobs Act, will prove to be a powerful combination that accelerates delivery of critically needed projects like a first-of-its-kind goods movement workforce training campus, cargo support facilities, digitalisation enhancements, and zero-emission equipment and charging infrastructure.”