California pledges $1.5 billion to modernize port infrastructure

California Governor Gavin Newsom announced an investment of over $1.5 billion to build a more efficient, sustainable and resilient supply chain, including $450 million in zero-emission infrastructure, locomotives, ships and vehicles.

“No other state has a supply chain that is as important to the national and global economy as California,” Governor Newsom said. “These investments, unprecedented in scale and scope, will modernize our ports, reduce pollution, eliminate bottlenecks and create a more dynamic distribution network.”

California will fund 15 $1.2 billion projects to create 20,000 jobs, increase capacity to move goods and reduce environmental impact. In addition, $350 million will be awarded to 13 projects to eliminate street-level railroad crossings to improve safety, reduce emissions and improve transportation.

The Port of Los Angeles has been awarded $233 million to complete infrastructure projects that will create a more efficient and sustainable supply chain. The grant funding will support projects such as the expansion of the Maritime Support Facility, construction of a pedestrian bridge over freight rails, and improvements at the Navy Way/Seaside Avenue intersection. The total cost of the project is $318.08 million, with $84.99 million in matching funds provided by the Port of Los Angeles, LA Metro and other sources.

“This investment in key Port of Los Angeles projects, along with support for regional projects, will accelerate our efforts to increase competitiveness, create jobs and enhance decarbonization efforts,” said Gene Seroka, executive director of the Port of Los Angeles. “We owe a great debt of gratitude to Governor Newsom, Secretary Omishakin and our state legislators for this historic commitment to building a more resilient California freight system.”

The Port of Long Beach has received a $383.35 million grant, with nearly $225 million for zero-emission cargo transportation equipment and supporting infrastructure projects and $158.4 million for the proposed Pier B On-Dock Rail Support Facility are used. The aim of the grant is to accelerate the transition to zero-emission operations and improve the reliability and efficiency of freight transport.

“This groundbreaking grant will make a tremendous difference in our efforts to bring more business and jobs to the port, increase cargo handling efficiencies and accelerate the Port of Long Beach’s ongoing transition to zero-emissions operations,” Port of Long said Beach CEO Mario Cordero. “I want to thank Gov. Newsom and the state legislature for having the foresight to invest in California’s seaports and secure our place as the economic engine for the state and nation.”

The Port of Oakland has received $119 million in grants to support infrastructure improvements and electrify cargo handling equipment. The projects aim to expand green infrastructure, reduce port congestion and reduce the impact of diesel emissions.

“Ninety-nine percent of Northern California’s containerized cargo flows through the Port of Oakland, and with these much-needed infrastructure updates, we can continue to improve the flow of goods through our seaport,” said Bryan Brandes, Maritime Director, Port of Oakland. “Implementing these projects will also allow us to address port supply chain congestion while ensuring we have modern, environmentally friendly and efficient maritime facilities for the benefit of our customers, tenants and local residents.”

“We look forward to our continued partnership with Secretary Omishakin in building a next-generation Oakland seaport that uses clean, zero-emission energy such as electricity and hydrogen,” added Danny Wan, president of the California Association of Port Authorities and executive director of the port of Oakland.

The Port of Hueneme received a US$79.8 million grant in support of its PACED program, which aims to improve container services and automobile import/export. The PACED program includes various upgrades and installations such as electrical refrigeration hookups, a fuel cell technology system, wharf repairs, shore power system upgrades and new zero-emission cargo handling equipment.

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