The US Government announced on November 9 a port action plan to accelerate investment in US ports, waterways and freight networks.
The plan aims to mobilise federal agencies and establish the foundation for applying the recently approved $1.2trn Bipartisan Infrastructure Deal.
The action plan will also:
- Increase federal flexibilities for port grants;
- Accelerate port infrastructure grant awards;
- Announce new construction projects for coastal navigation, inland waterways and land ports of entry;
- Launch the first round of expanded port infrastructure grants funded through the Bipartisan Infrastructure Deal.
What is more, this investment aspires to relieve supply chain congestion and improve long-term supply chain resiliency.
The Army Corps of Engineers will now start designating port and inland waterway projects, where $4bn can be spent for their modernisation.
More specifically, the Port of Savannah has revealed that it will use money from a previous government grant to build a pop-up container terminal about 160 km inland to relieve its backlogs.
What is more, over the next 45 days, the government will also allocate $240m from the Port Infrastructure Development Program grants, jn order to improve capacity across the country.
Namely, the Biden-Harris Administration will take the following actions:
- Support creative solutions to current supply chain disruptions by allowing for flexibility in port grants. The U.S. Department of Transportation (DOT) will allow port authorities across the country to redirect project cost savings toward tackling supply chain challenges.
- Alleviate congestion at the Port of Savannah by funding the Georgia Port Authority pop-up container yards project. With this policy change, the Georgia Port Authority will be able to reallocate more than $8 million to convert existing inland facilities into five pop-up container yards in both Georgia and North Carolina.
- Launch programs to modernize ports and marine highways with more than $240 million in grant funding within the next 45 days. The Port Infrastructure Development Grant program is the first and only federal grant program wholly dedicated to investments in port infrastructure. DOT will award $230 million in funding for this program and $13 million for the Marine Highway Program to support waterborne freight service.
- Identify projects for U.S. Army Corps of Engineers construction at coastal ports and inland waterways within the next 60 days. This plan will provide a roadmap for more than $4 billion in funding to repair outdated infrastructure and to deepen harbors for larger cargo ships.
- Prioritize key ports of entry for modernization and expansion within the next 90 days. This plan will identify $3.4 billion in investments to upgrade obsolete inspection facilities and allow more efficient international trade through the northern and southern borders.
- Open competition for the first round of port infrastructure grants funded through the bipartisan infrastructure deal within 90 days. DOT will announce more than $475 million in additional funding for port and marine highway infrastructure.
