Biden government signs agreement with California to improve supply chain in the state

Cargo trucks in Port of Los Angeles.

Photo: Mario Tama / Getty Images

The President’s Administration Joe biden, and the government of California announced this Thursday that they will collaborate with the objective of financing projects that improve the infrastructure of the Golden State to face the supply chain crisis.

According to the White House, the agreement between the Department of Transportation and the governor of California, Gavin newsom, will accelerate a series of projects that “will help to grow the economy, protect the environment, facilitate the movement of imports and exports and bring the processes of the supply chain to the 21st century.”

It’s a statement, Newsom He assured that California’s infrastructure and ports system, including Los Angeles, Long Beach and San Francisco, “is key to the country’s supply chain.”

“This partnership will help us drive and support multiple infrastructure projects to improve our supply chain, ensuring that products get where they need to go faster, cheaper and more environmentally friendly,” Newsom noted.

The federal-state agreement will promote specific updates in the different ports of California, the expansion of the capacity of the freight rail system, the development of port facilities on land to increase the storage area and improve the roads.

It also aims to reduce the number of intersections between roads and streets, to improve the safety and efficiency of driving for truckers, and to invest in land ports of entry to expand the commercial capacity of cross-border trade.

In the same statement, the Secretary of Transportation Pete buttigieg He explained that these actions are necessary to face an “unprecedented” demand and the interruptions caused by the coronavirus pandemic.

“That is why this Administration is working around the clock to address short-term and long-term challenges in our supply chains, including investments such as the bipartisan infrastructure agreement,” Buttigieg added.

This announcement comes after Newsom last week issued an executive order that aims to address the shortage of truck drivers and containers needed to transport merchandise from the ports of Los Angeles and Long Beach, the two largest in the United States. .

The decree mandates that various state agencies search state, federal and private land for short-term container storage and identify routes for trucks.

On the other hand, the White House created in June a task force to tackle the problems in global supply chains, and in August it even appointed a “czar” in charge of alleviating congestion in ports, John Porcari.

Biden also ordered the port of Los Angeles to begin operating 24 hours a day, following the strategy of its neighboring dock, Long Beach.