The US government has announced over $653m in funding for port upgrades under the Port Infrastructure Development Program (PIDP).
The US Department of Transportation’s Maritime Administration (MARAD) said Friday that the funds would go to 41 port improvement projects.
Projects were said to have been selected based on their “ability to improve the safety, efficiency, or reliability of the movement of goods, as well as on how well they would improve port resilience”.
Other factors said to be considered during the project evaluation process included the amount of non-federal funding an applicant committed to the project and how well the project enhanced economic vitality, supported workforce development, addressed climate change and sustainability, and advanced equity.
“As part of President Biden’s Investing in America agenda, a key pillar of Bidenomics, this funding will help grow capacity and increase efficiency at coastal seaports, Great Lakes ports, and inland river ports,” MARAD said in a statement.
“The port improvement projects announced today will strengthen supply chain reliability, create workforce development opportunities, speed up the movement of goods, and improve the safety, reliability and resilience of ports.
“These investments are part of the largest dedicated funding for ports and waterways in history, nearly $17bn through the President’s Bipartisan Infrastructure Law,” the agency added.
US secretary of transportation Pete Buttigieg said the investments will help expand capacity and speed up the movement of goods through US ports.
The Covid-19 pandemic put enormous pressure on global supply chains, which were too weak to handle the strain.
At its height, more than 100 container ships were waiting to dock at US West Coast ports due to infrastructure bottlenecks.
Now, there has been more than a 90% decrease in the number of container ships waiting for berths at US ports and global container shipping costs are down by more than 80% from their peak in 2021, MARAD said.
“These investments represent the Biden Administration’s continued focus on improving US ports and strengthening our supply chains to be more resilient to shocks to the system in the future,” the US agency added.
“Modernising the nation’s port infrastructure is vital to the reinforcement of America’s multi-modal system for transporting goods. The advantages of cargo movement on water extend well beyond the maritime domain,” said Maritime Administrator Ann Phillips.
“By funding port infrastructure development, the Biden-Harris Administration is ensuring that goods move reliably and in greater quantities, strengthening supply chain resiliency across all modes of transportation, and addressing the negative impacts of port operations on public health and the environment that have harmed communities living near ports.”
