America is upgrading its port infrastructure – with an eye on China

The US government is channeling Detective McNulty in season 2 of The Wire and turning its attention to potential bad actors at its maritime ports. The Biden admin announced a series of actions yesterday to strengthen the cybersecurity of ports across the country, which collectively employ 31 million people and generate over $5.4 trillion/year for the US economy.

The announcement includes a plan to invest $20+ billion over the next five years to upgrade port infrastructure and replace China-made cranes – which comprise ~80% of all cranes at US ports – with those built in America. The project is intended to counter fears that the widespread use of Chinese cranes, which are remotely controlled via advanced software, poses a potential national security risk.

Other actions include:

• An executive order that ensures all critical port infrastructure adheres to international and industry recognized safety regulations, and mandates reporting of maritime cyberattacks to the Coast Guard.
• A new directive ordering all Chinese-made cranes in the US to follow a strict set of protocols until they can be replaced in the coming years.
• A Coast Guard rule establishing minimum cybersecurity requirements for maritime companies that are in-line with international standards.

Zoom out: The funds for upgrading America’s ports were tapped from the ~$1 trillion bipartisan infrastructure bill that was passed in 2021. As of this past November, the federal government had committed ~$400 billion in infrastructure funding from the bill to a combined total of 40,000+ specific projects across all 50 states.

These investments are coming in a time of need. The US currently holds a “C-” grade on the American Society of Civil Engineers’ quadrennial infrastructure report card, which found 43% of all public roadways are in poor or mediocre condition – a level consistent with the previous several years.