White House unveils funding to ease ports and supply chains
The Biden administration rolled out plans on Tuesday to identify and pay for possible upgrades to U.S. ports within the next 90 days — hoping to ultimately tamp down the inflation being caused by ships waiting to dock and a shortage of truck drivers to haul goods.
As the U.S. emerges from the coronavirus pandemic, the economic recovery has been hampered by congested and aging ports. The mix of inflation and the potential for empty store shelves during holiday shopping has created a sense of frustration for many Americans and hurt President Joe Biden and Democrats politically.
Senior administration officials said Tuesday that the Transportation Department would allow port authorities to redirect any leftover money from grant projects to address the supply chain issues. For example, the Georgia Port Authority will use $8 million to convert its inland facilities into container yards, freeing up dock space and speeding the flow of goods to their final destinations.
The officials spoke on condition of anonymity to discuss the forthcoming plans, which come on the heels of the House passing a $1 trillion bipartisan infrastructure package late Friday. The package includes $17 billion to improve coastal and land-based ports that can help to tackle the challenges in the longer term.
Biden will highlight the administration’s efforts by visiting Baltimore’s port on Wednesday. It’s part of a broader effort to show that the administration will tackle the inflation that has left Americans feeling more pessimistic about the economy. Updated figures for the consumer price index will be released Wednesday, with the previous report showing prices were 5.4% higher than a year ago.
The Baltimore trip is designed to highlight the types of investments that the administration believes will help unclog the supply chain. The port in Baltimore is adding container cranes and adding a 50-foot berth where ships can be unloaded. The administration has also approved grants so that the Howard Street Tunnel — a train artery that opened in 1895 — can be expanded to ferry double-stacked containers on railcars.
The administration earlier helped broker an agreement to increase the hours of operation at the Port of Los Angeles, but it’s been difficult to immediately fix this challenge. Officials said the new initiatives would make the supply chain faster, more efficient and environmentally friendly in the medium to longer term.