Wednesday, January 15, 2025
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Port of Long Beach, California, launches $1.5 billion upgrade with $250 million in state investments

A transformative project at the Port of Long Beach is under construction, a significant milestone in enhancing California’s supply chain efficiency and sustainability.

“The groundbreaking of Pier B marks an important day for the future of Long Beach, signifying our dual commitment to both environmental and economic progress,” said Long Beach Mayor Rex Richardson. “This project will make our Port more economically competitive in the coming decades supporting 1 in 5 jobs in Long Beach, improve the health of residents, and create more than 1,100 quality union jobs through construction.”

Funded by nearly $250 million in state investments and totaling $1.5 billion, this project, dubbed ‘America’s Green Gateway,’ aims to substantially increase the port’s freight rail capacity. The new facility will enable 10,000-foot-long trains to be loaded and unloaded directly at the dock, improving cargo transition efficiency and reducing pollution by more than 5 million tons annually.

“This project exemplifies our commitment to creating jobs, reducing pollution, eliminating bottlenecks, and building a dynamic supply chain faster,” said Governor Gavin Newsom. “California is proud to collaborate with the Biden-Harris Administration on projects that enhance our state’s supply chain and reinforce our role in global trade.”

The announcement coincides with record-breaking performance at the Port of Long Beach, which saw a 41% increase in goods movement in June compared to the same month last year. Similarly, the Port of Los Angeles reported a 14% year-over-year increase in goods movement at the year’s midpoint.

“Today, we begin work on a rail network that triples cargo volume, lowers costs, and reduces pollution, thanks to the historic funding from the Biden-Harris Administration,” said U.S. Transportation Secretary Pete Buttigieg. “Through projects like America’s Green Gateway and numerous other supply chain improvements nationwide, we are making our supply chains more robust and resilient against future disruptions.”

Project highlights:

  • State Investment: $228 million for the Pier B On-Dock Rail Support Facility.
  • Federal Grants: Over $300 million from the Bipartisan Infrastructure Law.
  • Environmental Impact: Annual elimination of 146 million truck miles.
  • Capacity Increase: Facility to handle 4.7 million twenty-foot equivalent units (TEUs) annually, tripling current capacity.
  • Facility Size: 171 acres, more than double the existing railyard.

The Pier B On-Dock Rail project received the largest grant from the $1.2 billion Port and Freight Infrastructure Program announced by Gov. Newsom last July. This investment follows an executive order from October 2021, directing state agencies to propose long-term budget plans supporting port operations and goods movement, building on successful short-term measures to alleviate supply chain congestion.

In addition to state funding, the Port of Long Beach has secured $336 million in federal grants from the Bipartisan Infrastructure Law over the past year.

For more information on California’s infrastructure projects, visit Build.ca.gov.

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