The Biden administration is taking action to address supply chain issues at U.S. ports, which the White House said have been “strained” by the COVID-19 pandemic and outdated infrastructure.

What You Need To Know

  • The Biden administration on Tuesday announced two immediate actions to address supply chain issues at U.S. ports

  • The first action will allow port authorities nationwide to “redirect project cost savings toward tackling supply chain challenges”

  • The Georgia Port Authority can also reallocate $8 million to convert inland facilities into “pop-up container yards"

  • The recently passed $1 trillion Bipartisan Infrastructure bill will devote an “unprecedented” $17 billion to improve port infrastructure

On Tuesday, the White House announced two immediate actions: Allowing port authorities nationwide to “redirect project cost savings toward tackling supply chain challenges” and allowing the Georgia Port Authority to reallocate $8 million to convert inland facilities into “pop-up container yards,” alleviating congestion at the Port of Savannah, the country’s third-largest container port.

“That's an inland container yard where you're taking incoming containers — loaded containers — by rail to an inland site, in this case a couple hundred miles inland, where they can be transferred to truck,” a senior administration official said. “It’s a great way to add capacity and efficiency at the port. We expect that that kind of flexibility will help other projects as well.” 

The news comes weeks after the Biden administration negotiated a deal for the Port of Los Angeles to become a 24-hour, seven-days-a-week operation, in order to reduce supply chain constraints and move stranded container ships. That announcement followed a similar commitment from the Port of Long Beach; the two account for 40% of all shipping containers entering the United States. President Joe Biden also touted commitments from companies like Samsung, Target, Walmart and Home Depot, as well as shipping companies UPS and FedEx, in the same slew of announcements.

The recently passed $1 trillion Bipartisan Infrastructure bill, which awaits the president’s signature, will devote an “unprecedented” $17 billion to improve port infrastructure — the single largest federal investment in U.S. ports in the nation’s history, the White House said — but the president is “not waiting to take action” to address cargo and freight issues at U.S. ports.

In the near-term, the Biden administration also announced more than $240 million in grant funding for ports and marine highways in the next 45 days.

"It's the first and only federal grant program dedicated to port infrastructure and it's it's sorely needed," a senior official said.

In the next 60 days, the administration will also identify projects with the U.S. Army Corps of Engineers at coastal ports and inland waterways, which the administration official described as "a roadmap for more than $4 billion in funding."

Within 90 days, the administration will prioritize key ports of entry for modernization and expansion, which "will identify $3.4 billion in investments to upgrade obsolete inspection facilities." It will also open competition for the first round of port infrastructure grants made available by the bipartisan infrastructure bill, which an official said will add "$475 million in additional funding for port and marine highway infrastructure in general."

This is a developing story. Check back later for further updates.