The California Governor’s Office of Business and Economic Development announced Thursday that it will award $27 million to support data systems development and interoperability at five ports that handle 40 percent of all U.S. container imports.
The California Container Port Interoperability Grant Program will fund 10 projects across the ports of Hueneme, Long Beach, Los Angeles, Oakland and San Diego. These projects will address key challenges in port operations, including cargo routing, integrating artificial intelligence, climate resilience, emissions reduction, truck reservation systems, strengthening cybersecurity protections and developing new data standards for cargo.
The project will also focus on improving data capabilities across the statewide port network.
“California’s ports are critical to the stability of domestic and global supply chains and the health of the global economy,” Department of Economic Development Director Dee Dee Myers said in a press release.
California is home to three of the country’s busiest ports – Long Beach, Los Angeles and Oakland – which are key entry points into global supply chains and have become increasingly popular targets for threat actors.
A successful cyberattack on America’s complex maritime ecosystem could have devastating consequences. According to a 2023 report by the Cyberspace Solarium Commission, more than 75% of U.S. trade relies on the maritime sector, totaling $5.4 trillion in economic activity, $1.5 trillion in imports, and more than 30 million jobs.
In 2021, the Port of Houston discovered a data breach and prevented attackers from disrupting operations or destroying or stealing data, and the Cybersecurity and Infrastructure Security Agency testified before a Senate committee that a nation-state actor was behind the attack.
To strengthen maritime cybersecurity, President Joe Biden signed an executive order in February authorizing the U.S. Coast Guard to respond to cybersecurity incidents and requiring the maritime sector to strengthen digital defenses and report cyber incidents affecting ports and waterways.
“California is the first state to provide enhanced policy and funding to strengthen the digitalization of our supply chain,” said Port of Los Angeles Executive Director Gene Seroka. “This GO-Biz funding will help the Port of Los Angeles accelerate our proven technology, Port Optimizer, to further improve efficiencies, reduce impacts on our communities and increase our competitiveness.”
