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Biden administration awards port funding ahead of Trump’s return

Before Donald Trump returns to the White House the Federal government has awarded $3.4 billion of grants tied to the 2021 Infrastructure Investment and Jobs Act (IIJA), a signature piece of legislation from the Biden administration.

Barry Parker, New York Correspondent

November 18, 2024

2 Min Read
Pete Buttigieg, US Secretary of Transportation
Pete Buttigieg, US Secretary of TransportationCredit: Official Portrait, US Department of Transportation

Included within the awards is $580 million under one element of funding- the Port Infrastructure Development Program (PIDP). When the legislation passed, the US Maritime Administration (MARAD, part of the US Department of Transportation (USDOT), received $2.25 billion, to be doled out in five installments through 2026, specifically for improving the infrastructure at ports.

Speaking about the just awarded grants covering 31 projects in 15 states, USDOT Secretary Pete Buttigieg had said: “We’re building on this good work and funding more projects that will expand capacity, improve efficiency, and facilitate the quicker movement of goods at ports in more than a dozen states.”

The largest award, nearly $54 million, will be directed towards modernization of wharfs at the Port of San Juan, in Puerto Rico.

A $53 million award is going to Port Everglades- in south Florida, a state continuing to experience rapid growth. The project includes the purchase of two tier-4 diesel reach stackers, a dozen hybrid powered pickup trucks, just under two dozen electric terminal tractors/yard trucks, and small fleet of electric 8k forklifts, approximately six electric top loaders, and two hybrid rubber-tired gantry (RTG) cranes, as well as six racks- 192 slots for refrigerated containers.

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The grant also includes funds for developing further plans for electrification. Garden City, Georgia, on the Savannah River, is set to receive $50 million, for developing a massive electric power network (drawn from existing Georgia Port Authority substations, as well as from a newly constructed substation) to serve the massive box terminal.

Similarly sized awards are going to Oakland, California for extensive quay repairs, and crane replacement, at this major container port on San Francisco Bay. Anchorage, Alaska is also receiving circa $50 million for construction of a new general cargo terminal. A number of smaller awards were also included in the package, with a concentration on ports in Alaska, the Great Lakes region, and the Pacific Northwest.

Uncertainty about Federal programs of all types abounds - including nearly $3 billion of awards in separate programs from a different agency- the Environmental Protection Administration, or EPA, aimed at “Green Ports”, as the Trump administration comes in.

Reflecting the need to move quickly on the infrastructure side before the next wave of funding programs, or not, the American Association of Port Authorities (AAPA), a leading trade association, weighed in. Its President and CEO, Cary Davis, commented following the PIDP awards announcement:  "Now comes the hard part. AAPA ports will continue working closely with our Federal Government partners to get the money deployed and shovels in the ground as soon as possible so we can complete these port infrastructure upgrades and realize the benefits to our nation's supply chain and people faster."

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About the Author

Barry Parker

New York Correspondent

Barry Parker is a New York-based maritime specialist and writer, associated with Seatrade since 1980. His early work was in drybulk chartering, and in the early 1990s he moved into shipping finance where he served as a deal-maker and analyst with a leading maritime merchant bank. Since the late 1990s he has worked for a group of select clients on various maritime projects, also remaining active as a writer.

Barry Parker is the author of an Eco-tanker study for CLSA and a presentation to the Baltic Exchange Freight Market User Group on the arbitrage of tanker FFAs with listed tanker equities.

 

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