US awards over $241M in grants to bolster ports

Transportation funds to rise to $450M annually for 5 years starting in 2022

WASHINGTON — Transportation Secretary Pete Buttigieg is awarding more than $241 million in grants to bolster U.S ports, part of the Biden administration’s near-term plan to address America’s clogged supply chain with infrastructure improvements to speed the flow of goods.

The transportation money is being made available immediately to 25 projects in 19 states. Next year, the amount of money for port improvements will nearly double to $450 million in grants annually for five years under President Joe Biden’s new infrastructure law.

“These investments in our nation’s ports will help support American jobs, efficient and resilient operations and faster delivery of goods to the American people,” Buttigieg said Thursday.

Biden on Wednesday touted the coming grants as one of a series of efforts that will alleviate supply bottlenecks over the short and long term.

“Earlier this fall we heard a lot of dire warnings about supply chain problems leading to a crisis around the holidays, so we acted,” Biden said.

The grant money includes $52.3 million to help boost rail capacity at the port in Long Beach, California, with a new locomotive facility, 10,000-foot support track and extensions of five existing tracks to speed up freight movement while cutting down the number of truck trips required to do that.

Other recipients include:

Portsmouth, Virginia, $20 million, to help build out a supply chain for the offshore wind industry.

Brunswick, Georgia, $14.6 million, to build a fourth berth for cargo ships at Colonel’s Island Terminal.

Houston, $18.3 million, to facilitate more export and import cargo by significantly boosting storage capacity at the Bayport Container Terminal.

Tell City, Indiana, $1.6 million, to construct a 40-foot diameter pier on the Ohio River that can be used direct barge-to-truck unloading of cargo.

Delcambre, Louisiana, $2 million, for dock restoration and climate resiliency.

In recent months, higher prices have eaten into wages and turned public sentiment on the economy against Biden in polls. One of the obstacles for reducing inflation amid the coronavirus pandemic has been backlogged ports with ships waiting to dock at major transit hubs, causing shortages and leaving some store shelves depleted.

Buttigieg’s announcement seeks to build upon recent moves by the Transportation Department to reduce supply chain congestion, such as by allowing port authorities to redirect leftover money from grant projects.

For example, the Georgia Ports Authority is using $8 million to convert its inland facilities for the port of Savannah into container yards, freeing up dock space and speeding the flow of goods to their final destinations.

Buttigieg recently toured the port, which his department says has seen the number of ships waiting at anchor fall from over 30 to six last week, while long dwelling containers have been cut in half.