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  March 17th, 2022 | Written by

New Leases Will Make State-Owned Properties Available for Storing Up to 20,000 Shipping Containers to Help Alleviate National Supply Chain Issues

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  • Partnership with national warehouse marketplace, Chunker, targets storage needs

The Newsom administration announced today that six California sites have been identified and leases have been signed to allow for the storage of shipping containers on state property to help alleviate congestion at California ports.

The effort is a result of Executive Order N-19-21, which aims to strengthen the resilience of California’s and the nation’s supply chains.

“California has taken swift action to keep goods moving at the state’s ports, leveraging our strategic partnerships to develop multifaceted solutions, including securing additional storage space for thousands of shipping containers,” said Governor Newsom. “These efforts are a vital investment to help meet the needs of not only Californians, but our entire nation, and we’ll continue advancing innovative solutions to address this global challenge.”

Chunker, the national warehouse marketplace, has leased the six sites from the California Department of General Services for one year, with an option for a second year. The sites include three armories (in Lancaster, Palmdale and Stockton), a former prison site (Deuel Vocational Institute in Tracy), and two fairground sites (San Joaquin County and Antelope Valley Fairgrounds). Chunker will coordinate between California ports, shipping/trucking companies, and cargo owners to help move containers and free up needed space elsewhere.

“The unprecedented challenges we face to resolve supply chain issues require action, and today’s announcement is just one of the many ways the administration is working to ease congestion to help keep goods moving,” said Yolanda Richardson, Secretary of California’s Government Operations Agency.

Department of General Services Director Ana M. Lasso said her department is continuing to build on partnerships to ease supply chain issues.

“California is on top of prioritizing the storage needs that have slowed distribution at ports on our coast,” she said.

Since the governor signed Executive Order N-19-21 in October, notable actions have included:

  • A strategic partnership between the California State Transportation Agency (CalSTA) and the U.S. Department of Transportation for up to $5 billion in loan financing to advance a comprehensive, statewide portfolio of freight, goods movement and supply chain resiliency projects.
  • Issuing temporary permits allowing trucks to carry increased loads on state highway and interstate routes between the ports of Los Angeles, Long Beach, and other statewide ports to expedite transport of international commerce between ports and distribution centers.
  • Doubling the Department of Motor Vehicles’ capacity to conduct commercial driving tests to address the national shortage of workers in the industry.

Securing a 22-acre pop-up site, in partnership with the California Department of Food and Agriculture and the U.S. Department of Agriculture, located at the Port of Oakland to assist agricultural exporters in storing products and getting them onto containers. This site is expected to be operational on March 1.

“The ongoing supply chain crisis requires an all-hands-on-deck approach, as we work with our partners to meet the needs of California’s families and businesses,” said Dee Dee Myers, Director of the Governor’s Office of Business and Economic Development. “By creating additional storage space for shipping containers, we can relieve some of the congestion at our ports, keep our imports and exports flowing and strengthen our economy.”

In addition, the Governor’s California Blueprint proposes $2.3 billion for supply chain investments next fiscal year, including $1.2 billion for port, freight, and goods movement infrastructure and $1.2 billion for other related areas such as workforce training and zero-emission vehicle equipment and infrastructure related to the supply chain.

This funding would improve supply chain resiliency and be used to leverage federal funding.

The state also worked with the Biden-Harris administration to implement a new 24/7 environment across the supply chain, to improve collaboration, and to explore policies to remove obstacles and improve the movement of goods.

“Container storage is a major component of the congestion at the ports as well as a part of the nationwide supply chain crisis,” said Brad Wright, CEO of Chunker. “We are thrilled to partner with Governor Newsom and the state of California to create a solution that will have a major impact on the problem. Having access to the state property will allow us to store 20,000 containers or more, which will free up a significant amount of space at the ports.”