Biden administration pledges $580 million to strengthen U.S. power

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced an investment of nearly $580 million to enhance port infrastructure across the United States. Funded by the bipartisan Infrastructure Act, the initiative will support 31 improvement projects across 15 states and one U.S. territory aimed at increasing the efficiency and capabilities of the nation’s maritime transportation system.

Transportation Secretary Pete Buttigieg emphasized the importance of this investment, saying, “America’s ports are critical to our supply chain. These projects from Long Beach to Monroe will expand capacity, increase efficiency, and provide Help reduce household costs.”

The funding is allocated through MARAD’s Port Infrastructure Development Program (PIDP), a $2.25 billion program launched under the bipartisan Infrastructure Act. PIDP provides comprehensive support for planning, capital investment and project management to modernize urban and rural ports.

Maritime Administrator Ann Phillips highlighted the impact of these upgrades, noting that U.S. waterways handle 2.3 billion short tons of cargo annually. She described the benefits of port improvements as far-reaching, driving economic growth beyond the maritime sector.

Key projects include:

Port Don Young, Alaska: $50 million to build a general cargo terminal to support remote communities.

Port of Oakland, Calif.: $49.5 million to modernize the Outer Harbor Terminal to accommodate larger ships and increase demand in West Coast markets.

This announcement builds on the recent success of PIDP, which includes the allocation of $653 million in November 2023 for 41 projects across the country. Since December 2021, the program has delivered nearly $2.2 billion in port improvements, demonstrating an ongoing commitment to strengthening America’s maritime infrastructure.

The government links these investments to broader efforts to strengthen supply chains and reduce inflation. Strengthening of the supply chain will contribute more than 80% to the fall in inflation in 2023 through improved logistics systems. Initiatives like FLOW (Freight Logistics Optimization Engineering) have proven effective in mitigating disruption during events such as the closure of the Port of Baltimore.

Through the bipartisan Infrastructure Act, nearly $17 billion is earmarked for ports and waterways, marking the largest federal investment in maritime infrastructure in U.S. history and reinforcing the critical role of ports in the nation’s economy and supply chain resiliency.