Spotlight On IE's Mega Warehouses, Logistics Just Got Bigger

INLAND EMPIRE, CA — As Gov. Gavin Newsom and the Biden-Harris Administration tackle ongoing supply chain issues, California and the U.S. Department of Transportation announced a strategic partnership Thursday that promises to bring more goods through the Inland Empire's ever-expanding logistics centers.

But state and federal officials promised that freeway bottlenecks and poor air quality around the massive shipping centers will be tackled.

The Emerging Projects Agreement, a first of its kind, is designed to help jumpstart projects and financing opportunities for multi-billion infrastructure improvements across California's trade corridors, including from San Pedro Bay ports to the Inland Empire. Some projects will be fast-tracked, with the federal government helping to identify funding, according to the announcement.

The effort aims to "bring supply chain processes into the 21st century," according to the announcement.

Specific projects that could receive support and would affect the IE include:

• Expanding capacity for freight rail;
• Developing inland port facilities for increased warehouse storage;
• Railyard and truck electrification;
• Highway upgrades to improve truck travel times;
• Grade-separated crossings to reduce the number of rail-street intersections and improve safety and efficiency;
• Land ports of entry to expand trade capacity and cross-border commerce;
• Other eligible projects of "critical importance" identified by the California State Transportation Agency.

Infrastructure projects will be considered based on their potential for strengthening supply chain resilience in a manner that addresses equity and environmental justice, according to officials, who did not provide specific project details during a phone call with reporters.

Not everyone wants to see the logistics sector expand in the Inland Empire. Mega warehouses that bring bottlenecked traffic and air pollution are plaguing several IE communities.

Projects will be viewed under an "equity-environmental lens," promised California State Transportation Agency Secretary David S. Kim in the phone call with reporters.

These "projects serve people, not the other way around," the Biden-Harris Administration’s Port Envoy John D. Porcari said during the call.

In a released statement, Newsom said the partnership will help California "jumpstart and support multiple infrastructure projects to improve our supply chain, making sure goods get to where they need to go faster, cheaper, and more environmentally friendly."

The Build America Bureau at the U.S. DOT will support the California State Transportation Agency in developing the infrastructure projects and will assist "in exploring innovative financing opportunities for billions in infrastructure investment," according to the announcement.

The financing could come, in part, through the U.S. DOT credit assistance program's Transportation Infrastructure Finance and Innovation Act (TIFIA) and Railroad Rehabilitation and Improvement Financing (RRIF), according to the announcement.

"Today’s announcement marks an innovative partnership with California that will help modernize our infrastructure, confront climate change, speed the movement of goods and grow our economy," U.S. Transportation Secretary Pete Buttigieg said in a released statement.

While Thursday's announcement was about long-term solutions, officials said the state and the Biden-Harris Administration "are actively working on short-term solutions to address bottlenecks" in the shipping pipeline. From tennis balls to pet medications, consumers are sometimes waiting months for products to arrive.

Last week, Governor Newsom issued an executive order that directs state agencies to identify additional ways to alleviate congestion at California ports.

The Biden-Harris Task Force said it is working with private companies to expand supply chain operations to 24 hours a day, seven days a week. So far, both the ports of Los Angeles and Long Beach, the International Longshore and Warehouse Union, Union Pacific Railroad, and retailers — including Walmart, Target, FedEx, UPS, and The Home Depot — have committed to expanding hours, according to officials.

The U.S. DOT is also working with local and state DMVs to cut red tape and make it easier for truck drivers to obtain commercial driver’s licenses, officials said.

“The COVID-19 pandemic put a spotlight on California’s ports and the importance of our state’s infrastructure in moving goods throughout the U.S. and around the world,” Kim said. “Today’s agreement will go a long way toward quickly upgrading infrastructure to support a more efficient and resilient supply chain that will flex California’s power in global trade."

RELATED: CA's Inland Empire Suffers Warehouse Pollution Crisis