President Joe Biden has announced $17bn in funding to improve US infrastructure at coastal ports, inland ports and waterways.
The unprecedented investment — part of his bipartisan infrastructure deal — will "deliver near-term assistance and make long-term investments", he said.
"While American ports are a cornerstone of the US economy, outdated infrastructure and the Covid-19 pandemic have strained their capacity and jeopardised global supply chains," Biden said.
"Only four US ports are among the top 50 busiest ports in the world and no US port is in the top 10.
"Many US ports also have bridge or depth limitations that restrict their ability to receive the larger, post-panamax vessels that are the future of ocean shipping," he said.
Biden said the surge of cargo coming off larger vessels can also strain outdated landside infrastructure and that as a result, more container traffic flows through a smaller number of US ports with the offshore and onshore capacity to handle the largest vessels and their cargo.
"Taken together, America’s underfunded port and waterway infrastructure has real costs for our families, our economy, and our global competitiveness," he said.
Biden said he was not "waiting to take action", announcing an immediate set of steps he said would "accelerate investment in our ports, waterways, and freight networks".
"This action plan will 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; and launch the first round of expanded port infrastructure grants funded through the bipartisan infrastructure deal," he said.
Initial plans include supporting creative solutions to current supply chain disruptions by allowing for flexibility in port grants.
"The US Department of Transportation (DOT) will allow port authorities across the country to redirect project cost savings toward tackling supply chain challenges," Biden said.
"The Biden-Harris Administration will continue to look for additional flexibilities and other solutions to support infrastructure needs in the goods movement supply chain."
The president also said he would 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 $8m to convert existing inland facilities into five pop-up container yards in both Georgia and North Carolina," he said.
"Under the plan, the Port of Savannah will transfer containers via rail and truck further inland so that they can be closer to their final destination, which will make available valuable real estate closer to the port.
"The effort will free up more dock space and speed goods flow in and out of the Port of Savannah, which leads the nation in containerised agricultural exports,” he said.
Further near-term actions will see the launch of programmes to modernise ports and marine highways with more than $240m in grant funding within the next 45 days.
"The Port Infrastructure Development Grant programme is the first and only federal grant programme wholly dedicated to investments in port infrastructure," said Biden.
“DOT will award $230m in funding for this … and $13m for the Marine Highway programme to support waterborne freight service.”
Biden said his administration will also identify projects for US Army Corps of Engineers construction at coastal ports and inland waterways within the next 60 days.
“This plan will provide a road map for more than $4bn in funding to repair outdated infrastructure and to deepen harbours for larger cargo ships,” he said.
Prioritise key ports of entry for modernisation and expansion within the next 90 days. This plan will identify $3.4bn 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 $475m in additional funding for port and marine highway infrastructure.
