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The San Pedro Bay Ports of Long Beach and Los Angeles. Photo Courtesy Port of Long Beach

The San Pedro Bay Ports of Long Beach and Los Angeles. Photo Courtesy Port of Long Beach

California Awards $1.5 Billion for Port Infrastructure Upgrades

Mike Schuler
Total Views: 4231
July 7, 2023

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

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

California will fund 15 projects with $1.2 billion to create 20,000 jobs, increase capacity for moving goods, and reduce environmental impacts. $350 million will also be awarded to 13 projects to eliminate street-level rail crossings for safety improvements, emissions reduction, and improved transportation.

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

“This investment in critical Port of Los Angeles projects, along with supporting regional projects, will accelerate our efforts to boost competitiveness, create jobs and enhance decarbonization efforts,” said Port of Los Angeles Executive Director Gene Seroka. “We owe a deep 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 going towards zero-emissions cargo-moving equipment and supportive infrastructure projects, and $158.4 million towards the planned Pier B On-Dock Rail Support Facility. The grant is aimed at accelerating the transformation to zero-emissions operations and enhancing the reliability and efficiency of cargo movement.

“This game-changing grant will make a tremendous difference in our efforts to bring more business and jobs to the harbor, enhance the efficiency of cargo movement and accelerate the Port of Long Beach’s ongoing transformation to zero-emission operations,” said Port of Long Beach CEO Mario Cordero. “I would like to thank Governor Newsom and the state Legislature for having the foresight to invest in California’s seaports and to secure our spot as an economic engine for the state and the nation.”

The Port of Oakland has been awarded $119 million in grant funding to support infrastructure improvements and electrify cargo handling equipment. The projects aim to expand green infrastructure, reduce Port congestion, and decrease diesel emission impacts.

“Ninety-nine percent of containerized goods in Northern California flow 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 Port of Oakland Maritime Director Bryan Brandes. “Implementing these projects will mean we can also address port-related supply chain congestion while continuing to ensure that we have modern, green, 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 an Oakland Seaport for the next generation that uses clean, zero-emissions energy like electricity and hydrogen,” added California Association of Port Authorities President and Port of Oakland Executive Director Danny Wan.

The Port of Hueneme received a $79.8 million grant to support its PACED program, which aims to improve container services and the import/export of automobiles. The PACED program in includes various upgrades and installations such as electric reefer plugs, fuel cell technology system, wharf repairs, shoreside power system upgrades, and new zero-emission cargo handling equipment.

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