Disruption Report #39: New Spending on Ports, bridges and highways, and Container Dwelling Times Are Down

Progress at Ports of Long Beach and Los Angeles

The White House issued the above bar graph showing a decline in the number of containers staying too long (9 days +) in Long Beach and Los Angeles ports. That is good news, as long dwell times have been a problem as they take up valuable space needed for more recently landed containers.

The White House went on to state:

The Ports of Los Angeles and Long Beach—which handle 40 percent of the country’s containerized imports—have moved 17 percent more containers between January and mid-October than they did in 2018, which held the previous record.

What Infrastructure is Covered by the $1.2 trillion infrastructure Bill

The recently passed infrastructure bill represents the nation’s most significant investment in bridges, tunnels, ports, and highways since the 1950s. Here is a breakout:

$110 Billion to repair highways, bridges, and roads.

$39 Billion for public transit repair.

$66 billion to improve Amtrak Northeast Corridor service.

$25 Billion for airports.

$17.1 Bill for port improvements

I am uncomfortable with the number of dollars directed toward our ports. It seems surprisingly low when you consider the current backups. According to Ben Werschkull, writing for Yahoo Finance:

The $17.1 billion for ports will go through the U.S. Army Corps of Engineers, and 68% of it – more than $11.5 billion – will be focused on new construction. That money appears set to literally reshape ports in the years ahead with projects on the docket like dredging to allow bigger boats to enter or allow more boats to dock at once.

Ben Werschkull, writing for Yahoo Finance:

Whatever they do, let’s hope they do it soon but don’t hold your breath.

Kevin DeGood, director of infrastructure policy at the Center for American Progress…said new construction projects in ports can be 10 or 15 years in the making. The process historically involves “four congressional authorizations in order for you to go from idea conception to finalized project.”

Ben Werschkull, writing for Yahoo Finance: