By CBSLA Staff

LOS ANGELES (CBSLA) — A multi-billion loan agreement was announced Thursday between the state and the U.S. Department of Transportation to fund infrastructure improvements to help clear the shipping bottleneck at the ports of Los Angeles and Long Beach.

The partnership will allow California to expedite work on port-specific upgrades, expand capacity for freight rail, develop inland port facilities to expand warehouse storage, and upgrade highways to improve truck travel times, including around the San Pedro Bay and in the Inland Empire. The loan will also help kick-start construction on electrifying railyards and trucks, establish land ports of entry to expand trade capacity and cross border commerce, and make rail crossings safer and more efficient.

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“California’s ports and infrastructure system is key to the country’s supply chain,” Gov. Gavin Newsom said in a statement. “Thanks to our collaboration with the Biden-Harris Administration, this innovative federal-state partnership will help us fast-track those projects that will make our ports and infrastructure even more efficient.”

SAN PEDRO, CALIFORNIA – OCTOBER 15: Cargo containers sit stacked on ships at the Port of Los Angeles, the nation’s busiest container port, on October 15, 2021 in San Pedro, California. As surging inflation and supply chain disruptions are disrupting global economic recovery, the Washington-based IMF has projected that global gross domestic product will grow by 5.9% this year — a 0.1 percentage point lower than its July estimate. The Port of Los Angeles is transitioning to 24/7 operations amid efforts to ease supply backlogs. (Photo by Mario Tama/Getty Images)

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The pandemic led to a number of factors that ground the global shipping chain to a halt. Outbreaks have closed factories overseas, and shortages of shipping containers and drivers have led to a historic backup at the ports of Los Angeles and Long Beach, which are already the busiest ports in the nation.

“Our supply chains are being put to the test, with unprecedented consumer demand and pandemic-driven disruptions combining with the results of decades-long underinvestment in our infrastructure,” U.S. Transportation Secretary Pete Buttigieg said in a statement.

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State and federal officials are still working on short-term solutions to help clear the current bottleneck at the ports. Some of that work includes the federal government leaning on private companies to expand their operations around the clock, a move that the ports, unions, Walmart, Target, FedEx, UPS, and Home Depot have committed to. The Department of Transportation is also working with local and state DMVs to expedite the process of obtaining a commercial driver’s license for truck drivers.