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Governor Newsom Announces $1.5 Billion in Port Infrastructure Upgrades to Power Nation-Leading Supply Chain

WHAT YOU NEED TO KNOW: 

  • Estimated to create 20,000 jobs.
  • Investments will support a more sustainable, efficient goods movement system and produce lifesaving safety improvements.
  • Includes $450 million to support zero-emission projects.
  • Projects receiving funding include modernizing upgrades at the ports of Los Angeles and Long Beach – the busiest ports in the Western Hemisphere.

SACRAMENTO – Governor Gavin Newsom today announced an investment of more than $1.5 billion – including approximately $450 million for zero-emission infrastructure, locomotives, vessels and vehicles – as part of the state’s work to build a more efficient, sustainable and resilient supply chain.

“No other state has a supply chain as critical to the national and global economy as California,” said Governor Newsom. “These investments – unprecedented in scope and scale – will modernize our ports, reduce pollution, eliminate bottlenecks and create a more dynamic distribution network.”

The $1.2 billion will fund 15 projects creating an estimated 20,000 jobs and increase the capacity to move goods throughout the state’s global trade gateways while lessening environmental impacts on neighboring communities. Administered by the California State Transportation Agency (CalSTA), $350 million was also awarded to 13 projects that eliminate street-level rail crossings to make critical lifesaving safety improvements, reduce emissions and keep goods and people moving.

“CalSTA’s ‘Core Four’ priorities are safety, climate action, equity and economic prosperity, and the strategic investments announced today shine in all those areas,” said Transportation Secretary Toks Omishakin during an event today announcing the awards at the Port of Long Beach. “These awards – a direct result of Governor Newsom’s visionary leadership – will help maintain our state’s competitive edge in our nation-leading supply chain infrastructure and will create a cleaner, safer and more efficient goods movement system that will have a lasting positive impact for the people of California. The historic level of state funding also puts these projects in a stronger position to compete for significant federal infrastructure dollars from the Biden-Harris Administration.”

Projects receiving funding will help boost capacity to move goods through the ports of Los Angeles and Long Beach – the busiest ports in the Western Hemisphere – as well as enhance all major trade centers throughout the state – from San Diego to the Central Valley to the Bay Area. The high-priority grade separation projects, the majority of which are funded through the Transit and Intercity Rail Capital Program, will improve safety and reduce conflicts and delays at railroad crossings, helping enhance the state’s freight and passenger rail systems.

“This game-changing grant will make a tremendous difference in our efforts to bring more business and jobs to the harbor, enhance the efficiency of cargo movement and accelerate the Port of Long Beach’s ongoing transformation to zero-emission operations,” said Port of Long Beach CEO Mario Cordero. “I would like to thank Governor Newsom and the state Legislature for having the foresight to invest in California’s seaports and to secure our spot as an economic engine for the state and the nation.”

“This investment in critical Port of Los Angeles projects, along with supporting regional projects, will accelerate our efforts to boost competitiveness, create jobs and enhance decarbonization efforts,” said Port of Los Angeles Executive Director Gene Seroka. “We owe a deep debt of gratitude to Governor Newsom, Secretary Omishakin and our state legislators for this historic commitment to building a more resilient California freight system.”

“The Port of Oakland thanks the State of California, Governor Newsom and all our legislative, business and community partners who worked with us in the grant application process,” said California Association of Port Authorities President and Port of Oakland Executive Director Danny Wan. “We look forward to our continued partnership with Secretary Omishakin in building an Oakland Seaport for the next generation that uses clean, zero-emissions energy like electricity and hydrogen.”

A complete list of projects is available at the following links:

The funding – particularly the investments in zero-emission projects, which account for nearly 40 percent of the Port and Freight Infrastructure Program awards – builds on a partnership between the governments of California and Japan announced this March to collaborate on strategies to cut planet-warming pollution at seaports and establish green shipping corridors as part of the state’s broader strategy to aggressively combat and adapt to climate change. The historic investments also follow the California Transportation Commission’s recent approval of $1.1 billion for infrastructure improvements on high-volume freight corridors as part of the Trade Corridor Enhancement Program (TCEP) – for a total state investment in supply chain infrastructure of more than $2.6 billion in just the past week.

The awards announced today are a direct result of the executive order Governor Newsom issued in October 2021 that called on state agencies to develop longer term budget proposals that support port operations and goods movement, building off the successful short-term actions by the state to address supply chain congestion.