USDOT Awards Loan to California for Supply Chain Improvements

As part of the ongoing efforts of the Biden-Harris Task Force on Supply Chain Disruptions, California Governor Gavin Newsom and the U.S. Department of Transportation (USDOT) have formed a strategic partnership to help facilitate innovative projects and financing opportunities for multi-billion infrastructure improvements in California, the department announced.

The agreement allows California to expedite work on a network of related projects that collectively aims to help facilitate the movement of imports and exports and bring supply chain processes into the 21st century to create resilience throughout the critical trade corridors of California and the U.S., including around San Pedro Bay and the Inland Empire, USDOT officials said.

“California’s ports and infrastructure system is key to the country’s supply chain. Thanks to our collaboration with the Biden-Harris Administration, this innovative federal-state partnership will help us fast-track those projects that will make our ports and infrastructure even more efficient,” said Newsom. “This partnership will help us jumpstart and support multiple infrastructure projects to improve our supply chain, making sure goods get to where they need to go faster, cheaper, and more environmentally-friendly”

Projects that could receive support through this agreement include:

  • Port-specific upgrades
  • Expanding capacity for freight rail
  • Developing inland port facilities for increased warehouse storage
  • Railyard and truck electrification
  • Highway upgrades to improve truck travel times
  • Grade-separated crossings to reduce the number of rail-street intersections and improve safety and efficiency
  • Land ports of entry to expand trade capacity and cross-border commerce
  • Other eligible projects of critical importance identified by CalSTA

Under the Emerging Projects Agreement, the USDOT will support the California State Transportation Agency (CalSTA) in developing California infrastructure projects designed to improve the capacity and resiliency of the supply chain.

Last week, Newsom issued an executive order that directs state agencies to identify additional ways to alleviate congestion at California ports.

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