Newsom and Buttigieg announce multibillion-dollar loan deal to improve shipping infrastructure at Los Angeles and Long Beach ports – CBS Los Angeles


LOS ANGELES (CBSLA) – A multibillion-dollar loan deal was announced Thursday between the state and the US Department of Transportation to fund infrastructure improvements to help remove the shipping bottleneck at the ports of Los Angeles and Long Beach.

The partnership will allow California to accelerate work on port-specific upgrades, expand freight rail capacity, develop inland port facilities to expand warehouse storage, and modernize highways to improve truck travel times, including around San Pedro Bay and in the Inland Empire. The loan will also help start construction of electrifying railway stations and trucks, establish land ports of entry to expand trade capacity and cross-border commerce, and make level crossings safer and more efficient.

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“California’s ports and infrastructure system are critical to the nation’s supply chain,” Governor Gavin Newsom said in a statement. “Through our collaboration with the Biden-Harris administration, this innovative federal-state partnership will help us accelerate projects that will make our ports and infrastructure even more efficient.”

SAN PEDRO, CALIFORNIA – OCTOBER 15: Cargo containers are stacked on ships in the Port of Los Angeles, the country’s busiest container port, on October 15, 2021 in San Pedro, California. As soaring inflation and supply chain disruptions disrupt the global economic recovery, the Washington-based IMF has forecast global gross domestic product to grow by 5.9% this year, or 0. 1 percentage point lower than his estimate for July. The Port of Los Angeles is moving to 24/7 operations as part of efforts to reduce supply backlogs. (Photo by Mario Tama / Getty Images)

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The pandemic brought about a number of factors that crippled the global shipping chain. The epidemics have closed factories overseas, and the shortage of containers and maritime drivers has led to a historic save at the ports of Los Angeles and Long Beach, which are already the country’s busiest ports.

“Our supply chains are under strain, with unprecedented consumer demand and disruption from a pandemic combined with the results of decades of underinvestment in our infrastructure,” the US Secretary of State said. Transports Pete Buttigieg in a statement.

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State and federal authorities are still working on short-term solutions to help remove the current bottleneck in ports. Part of that work includes the federal government relying on private companies to expand their operations around the clock, a move to which ports, unions, Walmart, Target, FedEx, UPS and Home Depot have committed. The Department of Transportation is also working with local and state DMVs to speed up the process of obtaining a commercial driver’s license for truck drivers.


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