DOT Secretary Buttigieg highlights ports-related components of IIJA

Up against the ongoing challenge of ever-surging cargo, more maneuverability is needed to clear docks of imports and empty containers has been a key priority for ports, like the Port of Los Angeles (POLA) in recent weeks, according to Gene Seroka, POLA Executive Director.

To that end, Seroka said POLA has seen significant improvement over the past several weeks, in the form of a 25% drop, going back to the week of October 4, from around 95,000 import containers to 71,000 containers on POLA’s docks, with cargo sitting nine days or longer has dropped by 29%.

“There is much more work to be done on this, but we have seen great progress by our dockworkers, shipping lines, truckers, marine terminal operators, and our railroad partners,” he said on POLA-hosted media call today.

And through the first 10 months of 2021, Seroka said POLA volumes are tracking 15% ahead of 2020, at 9,072,917 TEU (Twenty-Foot Equivalent Units), with POLA estimating to finish 2021 at around 10.8 million TEU. Seroka said that tally would represent far more cargo than any port in the Western Hemisphere has ever handled. What’s more, it would top the previous POLA record—at 9.5 million TEU—set in 2018 by about 14%.  

“Despite the surge in consumer demand that has triggered a strain on the global supply chain, it is important to remember that we continue to deliver record amounts of cargo,” he said. “Fortunately, we have leadership in Washington, D.C. that has made supply chain disruption a national priority.

Seroka explained that was highlighted on July 15, when U.S. Transportation Secretary Pete Buttigieg convened a joint ports supply chain solutions roundtable, which subsequently resulted in constant communication between DOT and various stakeholders to identify priority issues and develop solutions.

On the call, Secretary Buttigieg said that on the heels of President Biden signing the Infrastructure Investment & Jobs Act into law, it is now time to get to work on repairing the nation’s infrastructure.

“Decades of underinvestment in our supply chain infrastructure combined with unprecedented consumer demand, and the global pandemic all combined have put supply chains to the test,” he said. “We recognize that while supply chains are mainly in the private sector, there are moved that the Administration can and must take to help and are reflected in the President’s port action plan.”

Some examples of progress made to date by Buttigieg, included:

• working with the Georgia Ports Authority to provide flexibility for federal funds to create pop-up container yards in Georgia and North Carolina to transfer containers further inland via rail and truck and freeing up precious dock space at the port;
• a pending announcement in the next 25 days for $230 million in funding, for ports around the country, from the existing Port Infrastructure Development Grant Program; and
• in the next 90 days the next round of port grant funding will be issued, marking the first funds granted under IIJA

Shifting to trucking, Buttigieg said that with 70% of U.S. goods moving by truck, DOT is supporting its state partners in cutting red tape to make it easier for prospective drivers to obtain Commercial Drivers Licenses (CDL).

“To truly address driver shortages, we need to make truck driving a more attractive and well-paid profession,” he said. “We have been engaging with the trucking industry to highlight practices we think reduce the very high turnover levels. This includes things like paying drivers for all of the time they are away from home, providing better access to facilities, trucks equipped with the latest safety technology, and a recent partnership between DOT and the state of California to develop and finance a set of major infrastructure projects that strengthen supply chains throughout critical trade corridors.”

And he said that these are steps that will help improve the flow of goods for Americans and lay down the groundwork for the structural changes that are needed, which is where IIJA comes in.

“It is a once in a generation set of investments, including $17 billion to improve infrastructure in our ports and waterways,” he said. “It is the biggest federal investment in ports in U.S. history, and it includes provisions for electrifications so we have more throughput without an associated increase in pollution. We are rapidly working to unlock the potential of this deal with 45-day, 60-day, and 90-day deliverables per the President’s plan, as well as the resources to improve roads and bridges, which we know are such a big part of the puzzle here and millions of dollars into our programs to improve freight rail.”

Buttigieg also noted how in October POLA, the Port of Long Beach (POLB), and the International Longshore and Warehouse Union (ILWU) worked on establishing 24x7 port operations to boost throughput and efficiencies, with various name brand companies also stepping in and up commitments to move more containers off docks in off-peak hours.

And the major Class I railroads moving cargo out of the ports—BNSF and Union Pacific—have announced discounts to customers on each container moved by rail during the weekend, with Union Pacific now operating its station by the ports on a 24x7 basis.

When asked to outline the action plan for America’s ports and waterways, which is designed to connect the dots between now and the future, Buttigieg said that the approach is to be as creative as possible in order to facilitate support and, where appropriate, drive the kinds of steps that are going to help goods move more efficiently.

“The time clock the President has put us on is really going to drive action, as we are going to have little time to pass this round of Port Infrastructure Development Grant funding and preparing the notice to go out for the next round shows the sense of urgency that we have that bridges what has been done so far with what is next,” he said.