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Long Beach Commences $1.5B Railyard Expansion to Strengthen U.S. Supply Chain

June 24, 2024 3 min read
author Anamika Mishra [Sub Editor]

On Thursday, U.S. Transportation Secretary Pete Buttigieg and other officials went to the port of Long Beach to start construction on a $1.5 billion railyard extension project, which will increase the dock's yearly capacity for rail cargo by more than three times.

Known as "America's Green Gateway," the project will connect the port to thirty significant rail terminals around the nation and enlarge the current railyard. In order to lessen the influence that cargo trucks have on the environment, traffic jams, and air pollution, it attempts to streamline train operations.

"With benefits to every region of this nation, this work establishes a rail network on a port that more than triples the amount of cargo that can move by rail to nearly five million containers annually—the kind of throughput that will keep America's economy booming and keep costs down," Buttigieg stated.

According to him, the goal of this effort and others supported by the Biden administration is to repair supply chains disrupted by the epidemic and strengthen American supply chains' resistance to future disruptions.

Forty percent of all shipping containers in the United States pass through the ports in Los Angeles or Long Beach, making it one of the busiest seaports in the nation. These ports saw an extraordinary backlog during the pandemic, with scores of ships sitting offshore and shipping containers accumulating on the docks due to a shortage of trucks for their transportation.

The project is expected to be finished in 2032. Given the railyard development, there will be a depot where up to 30 trains can be serviced and fueled simultaneously, as well as a location where trains up to 10,000 feet long may be assembled and disassembled. In total, it will increase the daily train capacity from seven to seventeen and add 36 rail tracks to the current twelve, helping the port of Long Beach achieve its target of transporting 35% of containers by on-dock rail.

A single train may carry as much freight as 750 vehicle trips. Project materials claim that in the absence of that train, the cargo would have to be transported by vehicle to the railyards in downtown Los Angeles, which would have increased traffic on Interstate 710 and truck pollution in the neighbouring areas.

Former Long Beach mayor and U.S. Representative Robert Garcia stated, "We should never forget the single most important piece of all of this is the health impacts." "Families should be able to raise their children in a cleaner and safer community, breathe cleaner air, and be free from cancer and asthma."

In addition, Mario Cordero, the port's CEO, Long Beach Harbour Commission President Bobby Olvera Jr., and current mayor Rex Richardson all made remarks.

The train renovation is one of 41 projects nationwide that will get $283.4 million in funding from the federal government through the U.S. Department of Transportation's Mega Grant Program. It has received more than $643 million in grant money thus far. Included in a bipartisan law signed by President Joe Biden in 2021, the funding is a portion of the $1 trillion in infrastructure projects.

 




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India to Expand Fleet with 1,000 New Ships in Major Maritime Boost

June 10, 2024 5 min read
author Anamika Mishra [Sub Editor]
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The new firm will be a joint venture between international and state-run entities.

In an effort to reduce its dependency on foreign shipping services and take advantage of growing trade revenue, India plans to create a new shipping firm and increase the size of its fleet by at least 1,000 ships over the course of the next ten years. This programme is a component of Prime Minister Narendra Modi's plan to make India a developed country by 2047.

The new shipping company, which has not yet been given a name, will be a joint venture between the state-owned Shipping Corporation of India, international partners, and state-run businesses in the oil, gas, and fertiliser sectors. By 2047, this strategic partnership hopes to cut India's freight costs to foreign carriers by one third, according to anonymous government sources.

As we increase our exports and imports by 2047, current projections indicate that freight expenses will grow to $400 billion, a government source with firsthand knowledge of the situation told Reuters. Indian businesses spent $85 billion on goods in the 2019–20 fiscal year, of which $75 billion went towards employing foreign boats.

India's slow growth of its shipping fleet in comparison to its rapid trade, especially in energy imports and refined oil product exports, is the reason for the country's considerable reliance on foreign carriers. Approximately 1,500 large boats, including tankers, LNG carriers, cargo ships, and dry bulk carriers, make up India's fleet at the moment.

The oil and shipping ministries of India came up with a plan to bridge this gap by utilising the Shipping Corporation of India's expertise in tanker ownership, purchase, and operations to enable state-run oil corporations to work with the new shipping company. To create a comprehensive plan for this endeavour, a cooperative working group comprising leaders from the government and industry was formed in January.

The newly formed company would have its headquarters at Gujarat's GIFT IFSC, a financial hub created to compete with centres like Singapore by offering tax breaks and streamlined rules. A maritime development fund worth over 300 billion rupees ($3.6 billion) in collaboration with major port authorities will provide seed money to the company. Furthermore, rather than arranging one-way trips or brief charters, state-run companies are urged to enter into 15-year charter agreements with the new company in order to provide low-cost, long-term loans for shipbuilding. By using this strategy, state-run businesses can also invest in the newly formed shipping and leasing company.

With the help of this strategic strategy, India hopes to become more independent in its maritime trade and drastically cut the amount of goods it sends overseas.

The new firm will be a joint venture between international and state-run entities.

cargo ships, and dry bulk carriers, make up India's fleet at the moment.

The oil and shipping ministries of India came up with a plan to bridge this gap by utilising the Shipping Corporation of India's expertise in tanker ownership, purchase, and operations to enable state-run oil corporations to work with the new shipping company. To create a comprehensive plan for this endeavour, a cooperative working group comprising leaders from the government and industry was formed in January.

The newly formed company would have its headquarters at Gujarat's GIFT IFSC, a financial hub created to compete with centres like Singapore by offering tax breaks and streamlined rules. A maritime development fund worth over 300 billion rupees ($3.6 billion) in collaboration with major port authorities will provide seed money to the company. Furthermore, rather than arranging one-way trips or brief charters, state-run companies are urged to enter into 15-year charter agreements with the new company in order to provide low-cost, long-term loans for shipbuilding. By using this strategy, state-run businesses can also invest in the newly formed shipping and leasing company.

With the help of this strategic strategy, India hopes to become more independent in its maritime trade and drastically cut the amount of goods it sends overseas.

The new firm will be a joint venture between international and state-run entities.

In an effort to reduce its dependency on foreign shipping services and take advantage of growing trade revenue, India plans to create a new shipping firm and increase the size of its fleet by at least 1,000 ships over the course of the next ten years. This programme is a component of Prime Minister Narendra Modi's plan to make India a developed country by 2047.

The new shipping company, which has not yet been given a name, will be a joint venture between the state-owned Shipping Corporation of India, international partners, and state-run businesses in the oil, gas, and fertiliser sectors. By 2047, this strategic partnership hopes to cut India's freight costs to foreign carriers by one third, according to anonymous government sources.

As we increase our exports and imports by 2047, current projections indicate that freight expenses will grow to $400 billion, a government source with firsthand knowledge of the situation told Reuters. Indian businesses spent $85 billion on goods in the 2019–20 fiscal year, of which $75 billion went towards employing foreign boats.

India's slow growth of its shipping fleet in comparison to its rapid trade, especially in energy imports and refined oil product exports, is the reason for the country's considerable reliance on foreign carriers. Approximately 1,500 large boats, including tankers, LNG carriers, cargo ships, and dry bulk carriers, make up India's fleet at the moment.

The oil and shipping ministries of India came up with a plan to bridge this gap by utilising the Shipping Corporation of India's expertise in tanker ownership, purchase, and operations to enable state-run oil corporations to work with the new shipping company. To create a comprehensive plan for this endeavour, a cooperative working group comprising leaders from the government and industry was formed in January.

The newly formed company would have its headquarters at Gujarat's GIFT IFSC, a financial hub created to compete with centres like Singapore by offering tax breaks and streamlined rules. A maritime development fund worth over 300 billion rupees ($3.6 billion) in collaboration with major port authorities will provide seed money to the company. Furthermore, rather than arranging one-way trips or brief charters, state-run companies are urged to enter into 15-year charter agreements with the new company in order to provide low-cost, long-term loans for shipbuilding. By using this strategy, state-run businesses can also invest in the newly formed shipping and leasing company.

With the help of this strategic strategy, India hopes to become more independent in its maritime trade and drastically cut the amount of goods it sends overseas.


Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.

Discover all our upcoming events and secure your tickets today.


Journal of Supply Chain is a Hansi Bakis Media brand.

Leave Comment

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