The US plans to spend billions of dollars to upgrade seaports

The US government is planning to spend billions of dollars to upgrade seaports to address the immediate challenges in shipping and moving goods and overcoming supply chain disruptions.

Containers are congested at the Port of Los Angeles on September 28, 2021. Photo: AFP

Some unnamed senior officials of the administration of US President Joe Biden shared with CNBC about investment plans to upgrade the seaport. Accordingly, within the next 60 days, the US government will work with the Army Corps of Engineers (ACE) – the leading construction management and design agency in the US – on an investment plan of 4 billion USD. construction of works at coastal ports, inland waterways as well as other infrastructure of this agency.

The US has identified and prioritized upgrading $3.4 billion for seaport works to improve international trade flows across the northern and southern border areas. “This is the process of upgrading aging infrastructure that has clearly been a bottleneck in the past,” the official said, speaking on condition of anonymity.

Biden administration officials added that the United States planned to standardize data-sharing regulations for shipping lines, wharf and terminal operators, railroads, trucks, and homes. warehouse, and shippers.

“There’s not much data sharing between the private sector and those involved in the freight chain,” said one US official. Lack of data exchange causes delays and inefficiencies in freight.

The US Digital Services Administration is working with the Federal Maritime Commission and the General Programs Office at the Department of Transportation to develop a data framework that enables more efficient transportation.

Global supply chains have been heavily impacted by the Covid-19 pandemic for the past two years and are straining to meet rising consumer demand, labor shortages and production activities. interruption. These factors have pushed up transportation costs and inflation.

President Biden is expected to visit the port of Baltimore tomorrow 11/11 to discuss the implementation of the infrastructure investment bill worth more than 1 trillion USD, upgrade the seaport system and strengthen the supply chain.

The infrastructure investment bill of more than 1 trillion USD is the largest federal investment in the history of “the United States”, in which a huge amount of spending will be allocated to invest in upgrading roads, bridges, airport, seaport, and railway system. Particularly for seaports and inland ports, waterways and ports of entry along the border, the US is expected to spend 17 billion USD to invest in upgrading these works.

In addition, the US will also add about 110 billion USD to repair bridge roads and invest in major traffic projects across the country.

At the G20 Summit in late October, the President of the United States, the European Union, and leaders from 14 other countries agreed to strengthen cooperation to overcome supply chain disruptions during this time. next time.

“Supply chain is a problem that most of us don’t think about, until it has a problem. During the pandemic, we see goods stagnant and circulation halted, from cars to electronics. , to footwear, furniture,” President Biden assessed.

The White House boss said: “Ending the pandemic is the key to solving the bottleneck (supply chain – BTV). But we, together with our private sector partners, must act now to limit the situation of goods. stagnant as it is now”.

In order to relieve the long-standing congestion of cargo, in October the US government operated 24/7 the Los Angeles and Long Beach ports of California. These are the two busiest port complexes in the United States, handling up to 40% of the goods imported into the country.