Congestion and disruptions in the logistics chain. The Biden administration is taking action by announcing an important, economically substantial plan of interventions aimed at solving the problems of the stars and stripes ports in the short term.
A press release issued yesterday by the White House stated that, although U.S. ports are a cornerstone of the U.S. economy, aging infrastructure and the COVID-19 pandemic have strained their capacity and put global supply chains at risk.
Based on data from America’s Infrastructure Report published by the American Society of Civil Engineers (ASCE), U.S. ports provided over 30 million jobs and produced about 26 percent of the national GDP in 2018. However, the ASCE report warns that ports face major challenges to modernize infrastructure and maintain essential facilities threatened by rising sea levels and other climate challenges. Only four U.S. ports are among the top 50 busiest ports in the world, and no U.S. port is among the top 10.
Recognizing the critical role that U.S. ports play in the global economy, the White House points out that the $1 trillion-plus infrastructure maxi plan, advanced by President Joe Biden, thanks to the agreement reached between progressives and moderates in the Democratic Party, and approved recently in the U.S. House of Congress, includes $17 billion to improve infrastructure at coastal ports, inland ports and waterways, and ports of entry along the border. According to the Biden administration these resources will provide short-term assistance and long-term investments to strengthen supply chain resilience.
President Biden then announced a series of practical measures to accelerate investment in ports, waterways, and goods transport networks. Above all, new grants for port infrastructure will be awarded, with greater flexibility than in the past, and new construction projects will be announced for coastal shipping, inland waterways, and ports of entry.
The Bipartisan Infrastructure Deal includes $548 billion in additional spending that, when combined with existing baseline infrastructure spending, allows for total infrastructure funding of approximately $944 billion over five years and $1.2 trillion over eight years.
According to Mr. Biden, these investments will create new, well-paid jobs and help America outperform China.
Translation by Giles Foster
