Monday, November 1, 2021

Logistics: "U.S. to Provide California Billions in Loans for Port Infrastructure"

I'm not sure that port infrastructure is the holdup. But I suppose an advance payment against the infrastructure bill, should it ever pass is probably a good thing.

However, should the problem really be the much complained-about California truck emissions rules, infrastructure won't help. There had been talk of expanding either the port of Manzanillo  or the Port of Lázaro Cárdenas, both on Mexico's Pacific coast. And if the trucking is the actual bottleneck, from what I understand, the cartels and the coyotes can move anyone and anything across the border.

Plus, in the case of Lázaro Cárdenas, the federales seized it from the gangs in 2003 so they should still remember where everything is.

From The Maritime Executive, October 29:

Promoting that it is the first time the federal government has joined with an individual state to develop and fund a comprehensive approach to managing the supply chain, the U.S. Department of Transportation (USDOT) and California announced a strategic partnership focusing on California’s ports. The federal government will provide loans valued up to $5 billion to support a comprehensive, long-term approach towards enhancing California’s supply chain infrastructure.

Not waiting for the broader infrastructure legislation that remains bogged down in the U.S. Congress, USDOT plans to tap existing programs to help California expedite work on a network of related projects that collectively will help facilitate the movement of imports and exports, and modernize and expand the supply chain. The program focuses on the area around San Pedro Bay and the Inland Empire. 

Earlier this year, the heads of the ports of Los Angeles and Long Beach had called for the federal government to support the expansion for the future of the supply chain. Speaking at the launch event in California, officials said these efforts were focused on the longer-term to maintain the flow of goods while other programs were focused on addressing the current backlog at the ports.

“The Emerging Projects Agreement today provides the State of California with a foundation to build a comprehensive program of public and public-private projects that will help build a stronger, more resilient goods movement chain that grows the economy by exporting and importing more goods,” said the Administration’s Port Envoy John Porcari. 

Speaking at the announcement, they said they believe the partnership between the federal government and state can help kick-start construction to deliver benefits to the transportation supply chain and U.S. consumers in the future. A broad range of projects was outlined including expanding the rail freight yards, developing inland port facilities for increased warehouse storage, highway upgrades to improve truck travel times, and increased railyard and truck electrification....

....MUCH MORE