Speaking as President of the California Association of Port Authorities (CAPA), the Executive Director of Port of Oakland Danny Wan has requested state help to ease the US supply chain crisis.
Wan called for increased collaboration and solutions from all levels of government as containerised cargo continues to back up at California ports. “Inaction could result in freight migration and job loss to other states,” warned the CAPA President.
“The current congestion that we see today is a result of decades of underinvestment in our ports and supply chain,” Wan said at the California Legislature’s Select Committee on Ports and Good Movement. Notably, there is an 11-to-1 imbalance in federal transportation and waterside spending on other port complexes around the country compared to those made in the state of California, according to Wan.
Therefore, Oakland Port’s Executive Director recommended everything from a state-funded supply chain investment fund to land dedicated to cargo container storage. His request came as scores of ships daily wait to berth at Southern California ports and cargo languishes on docks.
In addition to funding, Wan also asked for training centres throughout the state to develop a stronger supply chain workforce, as well as the creation of a California freight policy that can authorise emergency action in times of cargo congestion, and a long-term state and federal infrastructure investment at ports.
According to Wan, California ports have handled record cargo volumes in the past two years due to skyrocketing consumer purchasing during the pandemic that continues. The result has been a widespread supply-chain challenge not only for the United States but globally as well, which has subsequently enabled consumer good shortages and the spike in US inflation.
“Government assistance at all levels is needed to further ease supply chain congestion.” Wan urged legislators and he said that more federal port funding must go to California. Furthermore, he noted that West Coast ports were underfunded by comparison relative to their degree of national economic importance and jobs generation.
“The California Association of Port Authorities represents 11 ports accounting for 40% of the nation’s imports and 30% of US exports,” highlighted CAPA’s President to point out that assistance to the Californian ports is critical to supporting the US economy.
More than one million jobs in California and three million jobs nationally are linked to trade through CAPA member ports, while the state’s port activities generate an estimated US$9 billion in California and local tax revenue annually, according to CAPA.
