federal grant

Federal Grant Fuels San Diego Port Upgrades

DanAgri-Business, Exports/Imports, Funding, Trade

Major Federal Investment Targets San Diego’s Marine Freight Infrastructure

federal grant

The Port of San Diego has been awarded a $5.55 million federal grant from the U.S. Department of Transportation’s Maritime Administration. This funding will support critical berth repairs at the National City Marine Terminal, a vital cargo hub located on San Diego Bay.

Reported by Lorrie Boyer for AgNet West.

Federal Grant Fuels San Diego Port Upgrades

The grant is part of the United States Marine Highway Program (MARAD)—a nationwide initiative aimed at enhancing waterborne freight transportation, reducing highway congestion, and strengthening U.S. supply chains.

M5 Coastal Connector Will Expand West Coast Freight Routes

This federal support is tied to a broader initiative involving the Port of San Diego, Caltrans, the Oregon Shipping Group, and the Port of Bellingham. Together, these partners are advancing the West Coast M5 Coastal Connector, a proposed short-sea shipping route designed to move freight more efficiently by sea.

The M5 route aims to shift cargo from trucks to ships, easing traffic congestion and cutting emissions along the heavily traveled North-South transportation corridor from California to the Pacific Northwest.

Local Funding and Environmental Approval in Place

To complement the federal grant, the Port of San Diego has committed $9.7 million in matching local funds through its 2021 Economic Recovery Program.

The berth repair project has also cleared a key hurdle, receiving environmental approval under the National Environmental Policy Act (NEPA). This approval allows construction to begin soon, accelerating progress toward modernizing the terminal.

Benefits for Agriculture and Coastal Supply Chains

The project will have wide-reaching impacts, particularly for agricultural producers and exporters. A more efficient maritime route supports faster and more reliable transportation of perishable goods, reduces logistics costs, and reinforces food supply chain resilience.

Conclusion

With a combination of federal funding, state collaboration, and local investment, the Port of San Diego is positioning itself as a key player in sustainable freight transportation along the West Coast. The M5 Coastal Connector and berth upgrades mark a significant step forward in modernizing the region’s infrastructure for the future.