California Set To Invest $2.3 Billion In The Port Sector

California governor Galvin Newsom has come up with his 2022-23 state budget plan, known as ‘The California Blueprint’, comprising of a planned record investment of $2.3 billion for California ports.

California Set To Invest $2.3 Billion In The Port Sector
The San Pedro ports of Los Angeles and Long Beach, which lies along the coastline of California has been witnessing record congestion throughout the past year (2021) and onto 2022 | Image Courtesy: Port of Los Angeles

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The governor’s announcement has been commended by port of Los Angeles executive director Gene Seroka. “The Governor’s budget allocates US$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,” he stated.

“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,” mentioned Geroka.

The projects take in a goods movement workforce training campus, cargo support facilities, digitalization enhancements, zero-emission equipment and charging infrastructure, that aim at operational efficiency, sustainability, and job creation, according to a statement.

The governor’s $2.3 billion plan for ports comprises of:

  • Port infrastructure and goods movement: An investment of $1.2 billion for port-related projects aiming to boost goods movement capacity on rail and roadways serving ports and terminals, encompassing railyard expansions, new bridges, and zero-emission modernization projects.
  • Zero-emission equipment and infrastructure: An investment of $875 million for zero-emission port equipment, short-haul (drayage) trucks, and infrastructure.
  • Workforce training: An investment of $110 million for a training campus to back workforce resilience in the face of supply chain disruptions and advance the deployment of zero-emission equipment and technologies.
  • Commercial driver’s licenses: An investment of $40 million will be assigned to improve California’s capacity to issue commercial driver’s licenses.
  • Operational and process improvements: An investment of $30 million for the governor’s Office of Business and Economic Development to deliver backing for operational and process improvements at the ports.

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The last investment is likely to contain the betterment of the movement of goods and the advancement of data interconnectivity between the ports seeking to enable efficient cargo movement, minimize congestion, and create opportunities to improve cargo volume by promoting and building supply chain efficiency.

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