Biden unveils actions to solve US supply chain issues

ANKARA

The administration of US President Joe Biden unveiled a series of actions Tuesday to solve supply chain issues in ports, waterways and freight networks as the world's largest economy is grappled with post-coronavirus pandemic supply bottlenecks.

To lay the foundation of Biden's $1.2 trillion bipartisan Infrastructure Deal that passed Friday in the House of Representatives, the actions will mobilize federal agencies to increase flexibilities for port grants, accelerate port infrastructure grant awards and allow new construction projects for coastal navigation, inland waterways, and land ports of entry, the White House said in a statement.

Actions include the Department of Transportation (DOT) to allow port authorities to redirect project cost savings toward tackling supply chain challenges. The DOT will announce more than $475 million in additional funding for port and marine highway infrastructure.

To alleviate congestion at the Port of Savannah, the fourth busiest US seaport, Georgia Port Authority will reallocate more than $8 million to convert existing inland facilities into five container yards in the states of Georgia and North Carolina.

Further near-term actions include launching programs to modernize ports and marine highways with more than $240 million in grant funding within the next 45 days and identifying projects for the US Army Corps of Engineers construction at coastal ports and inland waterways within the next 60 days with more than $4 billion in funding to repair outdated infrastructure and to deepen harbors for larger cargo ships.

"American ports are a cornerstone of the US economy, outdated infrastructure and the COVID-19 pandemic have strained their capacity and jeopardized global supply chains," the statement said, noting American ports supported more than 30 million jobs and around 26% of US GDP in 2018.

"Only four US ports are among the top 50 busiest ports in the world and no US port is in the top 10. Many US ports also have bridge or depth limitations that restrict their ability to receive the larger, post-Panamax vessels that are the future of ocean shipping," it added.

Biden also wants to prioritize modernization and expansion of key ports of entry within the next 90 days by identifying $3.4 billion in investments to upgrade obsolete inspection facilities and allow more efficient international trade through the northern and southern borders.

Biden's Infrastructure Deal includes $110 billion to repair roads and bridges, while US states will receive more than $50 billion annually in federal-aid highway funding.

The deal also includes data sharing to support supply chains with investment in digital infrastructure to prevent delays and inefficiencies in cargo movement.