To boost the supply chain, Buttigieg donates $241M to US ports

WASHINGTON (AP), -- Transportation Secretary Pete Buttigieg will award more than $241 Million in grants to U.S ports. This is part of the Biden Administration's immediate plan to fix America's clogged supply chains with infrastructure improvements that speed up the flow of goods.

To boost the supply chain, Buttigieg donates $241M to US ports

Transport money will be made immediately available to 25 projects in 19 States. Under President Joe Biden's new Infrastructure Law, port improvements funding will almost double next year to $450million in grants each year for five years.

"U.S. Buttigieg announced Thursday that maritime ports play a crucial role in our supply chain. These investments in the nation's ports will support American jobs, efficient operations and more rapid delivery of goods to the American people.

On Wednesday, Biden referred to the forthcoming grants as part of a series that will reduce supply bottlenecks in the short- and long-term.

Biden stated that earlier this fall, there were many dire warnings about supply chains problems leading to a holiday crisis. So, he acted. "We brought together labor and business leaders to solve problems, and the much-predicted crisis didn't happen. The packages are moving. Presents are being delivered. "Shelves are not empty."

The grant money is $52.3 million and will be used to increase rail capacity at Long Beach, Calif. with a new locomotive facility, 10,000-foot supporting track, and extensions to five tracks. This will allow freight movement to accelerate while reducing the number of truck trips.

Others recipients include:

Portsmouth, Virginia -- $20 million to build a supply chain for offshore wind industry.

Brunswick, Georgia $14.6 million to build a fourth cargo berth at Colonel's Island Terminal.

Houston, $18.3 Million to pay for a 39-acre greenspace at Bayport Container Terminal.

Tell City, Indiana: $1.6 million to build a 40-foot-diameter pier on Ohio River for barge-to truck unloading of cargo.

Delcambre, Louisiana $2 million for climate resilience and dock restoration

Recent months have seen higher prices eat into wages and turn public opinion against Biden. Backlog ports, which hold ships awaiting to dock at major transit hubs in order to reduce inflation during a coronavirus epidemic, have been a significant obstacle to reducing inflation. This has caused shortages and left some stores shelves empty.

Buttigieg's announcement builds on recent Transportation Department moves to reduce supply chain congestion. For example, port authorities can redirect money left over from grant projects. The Georgia Ports Authority has used $8 million to transform its Savannah inland facilities into container yards. This will free up dock space and increase the flow of goods to their destinations. Last Friday, Buttigieg visited the port. His department claims that the number of ships at anchor has fallen from more than 30 to six, and long-dwelling containers have been reduced in half.

The Biden administration attempted to minimize delays earlier this year by moving major ports to 24/7 operations. Administration also seeks to increase trucking industry worker recruitment and retention.

Supply chain problems persist, and the steps taken so far by the administration have not shown that there is a quick fix for the problems that have been affecting smaller businesses and driving up prices for consumers. According to the Transportation Department, the readiness of projects that are receiving grants varies widely. It could take several months for consumers to start to see the benefits.

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