Newsom, Buttigieg announce billions in loans to address bottlenecks and upgrade California ports
Funds unlikely to resolve current problems with ports but will benefit 'US consumers in the future'
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In an effort to address supply chain bottlenecks and upgrade California's clogged ports, Gov. Gavin Newsom and Transportation Secretary Pete Buttigieg announced Thursday a partnership worth billions going to the state.
The loans will "help grow the economy, protect the environment, facilitate the movement of imports and exports, and bring supply chain processes into the 21st century," according to an online press release from the U.S. Department of Transportation (DOT).
Aerial view of the Long Beach and Los Angeles ports.
"California’s ports and infrastructure system is key to the country’s supply chain," Newsom said in a statement. "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."
Newsom also insisted that the 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."
California Gov. Gavin Newsom during a news conference on Oct. 8, 2021, in Oakland, California. (Justin Sullivan/Getty Images)
While it does not appear that the pricey partnership will have an impact on the port and supply chain bottleneck crisis California is currently facing, the press release noted the "partnership can help kick-start construction to deliver benefits to the transportation supply chain and U.S. consumers in the future."
"Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure," Buttigieg said in a statement. "That’s why this administration is working around the clock to address both near-term and long-term challenges to our supply chains, including investments such as those in the bipartisan infrastructure deal."
Pete Buttigieg speaks during a confirmation hearing to be transportation secretary on Capitol Hill, Thursday, Jan. 21, 2021, in Washington. ((Ken Cedeno/Pool via AP))
Buttigieg also claimed the partnership will "help modernize our infrastructure, confront climate change, speed the movement of goods and grow our economy."
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As proactive solutions seem out of reach, the DOT also stated in the press release that "the State of California and the Biden-Harris administration are actively working on short-term solutions to address bottlenecks."
Biden administration port envoy John Porcari said the partnership will provide 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…"