Over the past several months, major shipping ports across the United States have been facing significant congestion issues, with vessels waiting offshore for extended periods before being able to dock and unload their cargo. This gridlock has been linked to factors such as labor shortages and COVID-related challenges, exacerbating the country’s supply chain woes. In response, President Joe Biden has approved a $450 million aid package to support US ports and alleviate these challenges.
The allocated funds, a provision of the Bipartisan Infrastructure Law, will be distributed to privately owned ports nationwide to finance various improvement projects. Port operators must submit proposals detailing the intended use of the funds, encompassing initiatives like port expansion, new pier and rail yard construction, and other enhancements.
According to a senior official from the Biden administration, “Fundamentally, all selected projects must enhance goods movement.” The objective is for this investment to expedite shipping in the short term while bolstering the long-term resilience of the US shipping sector.
This is the largest investment ever in modernizing American ports.
It is focused on proven measures to make goods move faster and cheaper, which means better outcomes for consumers.
And it is a crucial part of how we build more resilient supply chains. https://t.co/BulwPyFGL3
— Brian Deese (@BrianDeeseNEC) February 23, 2022
“President Biden is spearheading the largest federal investment in modernizing our nation’s ports, a move that will enhance our supply chains and benefit Americans reliant on them,” stated Transportation Secretary Pete Buttigieg.
Buttigieg further emphasized, “We are excited to announce this funding to assist ports in enhancing their infrastructure, streamlining goods movement, and maintaining cost control for American households.”
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