California ports to get major technology upgrades

The California Governor’s Office of Business and Economic Development on Thursday announced it will award $27 million to support data system development and interoperability across five ports that handle 40% of all of the United States’ containerized imports.

The California Containerized Ports Interoperability Grant Program will fund 10 projects across ports in Hueneme, Long Beach, Los Angeles, Oakland and San Diego. The projects will address key challenges in port operations, including cargo-routing, artificial intelligence integration, climate resiliency, emissions reduction, trucking appointment systems, increased cybersecurity protections and the development of new data standards for cargo.

The projects will also focus on improving data functionality across the statewide network of ports.

“California’s ports are critical to the stability of our national and global supply chains, as well as the health of our worldwide economy,” Dee Dee Myers, the economic development agency’s director, said in a press release.

California is home to three of the busiest ports in the country — Long Beach, Los Angeles and Oakland. They’re essential points of entry for the global supply chain, an increasingly popular target for threat actors.

A successful cyberattack against a complex maritime ecosystem in the United States could be devastating — more than 75% of the nation’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, according to a 2023 report by the Cyberspace Solarium Commission.

In 2021, the Port of Houston discovered a data breach and prevented attackers from disrupting operations or from corrupting or stealing data. The Cybersecurity and Infrastructure Security Agency testified before a Senate committee that a nation-state actor was behind the attack.

To bolster maritime cybersecurity, President Joe Biden signed an executive order in February giving the U.S. Coast Guard authority to respond to cybersecurity incidents. It also requires the maritime sector to strengthen its digital defenses and report cyber incidents that impact ports and waterways.

“California is the first state to step up with policy and funding to enhance supply chain digitalization,” said Gene Seroka, executive director for the Port of Los Angeles. “This GO-Biz funding will help the Port of Los Angeles accelerate our proven technology, the Port Optimizer, to further improve efficiency, lower impacts on our communities and make us more competitive.”