California: Major supply chain upgrade breaks ground at Port of Long Beach, backed by historic state and federal investments
The Californer/10286049

~ LONG BEACH - The Port of Long Beach has broken ground on a major supply chain upgrade, backed by historic state and federal investments. This flagship project is part of California's efforts to build a more efficient, sustainable, and resilient supply chain.

The new facility, known as the Pier B On-Dock Rail Support Facility, is expected to greatly expand the port's freight rail capacity while also reducing pollution by over 5 million tons per year. The groundbreaking ceremony was attended by members of the Newsom Administration, U.S. Transportation Secretary Pete Buttigieg, U.S. Representative Robert Garcia, and other dignitaries.

Governor Gavin Newsom expressed his pride in working with the Biden-Harris Administration on this and other projects that enhance California's supply chain while showcasing its power in global trade.

The $1.5 billion project, also known as 'America's Green Gateway,' is powered by nearly $250 million in state investments and will allow trains up to 10,000 feet long to be loaded and unloaded directly on the dock at the Port of Long Beach. This will help transition cargo more efficiently for a cleaner and more efficient distribution network.

Secretary Buttigieg praised the project for its potential to triple cargo volume, reduce costs, and decrease pollution. He also highlighted how this project is just one of many supply chain improvements being made across the country to make it more robust and resilient in the face of potential disruptions.

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The numbers behind this project are impressive - $228 million in state investments have laid the groundwork for over $300 million in federal grants from the Bipartisan Infrastructure Law. Once completed, an estimated 146 million truck miles will be eliminated annually. The new facility will be able to handle 4.7 million twenty-foot equivalent units (TEUs) per year - more than triple the current volume of on-dock rail cargo. It will cover 171 acres - more than double the size of the existing railyard.

The Port of Long Beach's announcement of their strongest June on record adds to the significance of this project. According to the Port, operators moved 41% more goods than the same month last year. Similarly, the Port of Los Angeles posted strong June numbers and is 14% ahead of the previous year at the halfway point.

This groundbreaking ceremony is a result of Governor Newsom's executive order in October 2021, which called for longer-term budget proposals to support port operations and goods movement. Last July, he announced awards for the $1.2 billion Port and Freight Infrastructure Program, with the Pier B On-Dock Rail project receiving the largest grant.

In addition to these historic state investments, the Port of Long Beach has also received $336 million in federal grants from the Bipartisan Infrastructure Law over the past year.

To find more projects building California's future, visit Build.ca.gov.

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