Federal Transportation Department Scraps Funding for 12 Port Projects in Pursuit of 'Authentic Infrastructure Investment'

The United States Department of Transportation (USDOT) has made a significant move in its Nationally Significant Freight and Highway Projects (INFRA) programme, withdrawing funding for several port projects, including the Humboldt Bay Heavy Lift Marine Terminal Project, which was granted around USD 427 million (approx. EUR 364 million) in 2024. This decision is part of a broader strategy to redirect resources towards restoring America's maritime dominance.

The USDOT's decision affects a total of twelve port projects, amounting to USD 679 million (approximately EUR 580 million) in funding. Among the projects terminated are the Sparrows Point Steel Marshalling Port Project, the Portsmouth Marine Terminal (PMT) Development, the Redwood Marine Terminal Project Planning, and the Salem Wind Port Project.

The Sparrows Point Steel site, once the largest steel production facility in the world, holds historical significance for the United Steelworkers. The Sparrows Point Steel marshalling site, operated by Spain-based manufacturer Haizea Wind Group, was designed to manufacture steel components for the US wind industry, including monopiles and towers. The operation was set to support fabrication operations at the new facility, with US Wind, among others, planning to procure components from the factory for its Maryland project.

However, US Wind's project offshore Maryland is now at risk of being cancelled. The US Department of the Interior (DOI) recently revealed it would soon submit a motion to the district court in Maryland to remand and vacate its approval of the project's Construction and Operations Plan (COP).

Secretary Duffy has been vocal in his criticism of the Biden administration's prioritization of wind projects over the needs of the shipbuilding industry. He has stated that wasteful wind projects are using resources that could otherwise go towards revitalizing America's maritime industry.

In addition to the projects within the INFRA programme, the Maritime Administration's (MARAD) Port Infrastructure Development Program (PIDP) has also seen several projects withdrawn or terminated. MARAD has withdrawn six and terminated five projects within its PIDP, totalling USD 252 million (approx. EUR 215 million) in funding.

The companies affected by these decisions include Ørsted, Equinor, and RWE, whose projects have been halted, causing partner withdrawals and financial losses. The USDOT's focus on maritime dominance has raised concerns within the renewable energy sector, as several key projects are now at risk of being cancelled.

The USDOT has maintained that these projects were not aligned with the administration's goals and priorities. This shift in focus towards maritime infrastructure reflects the administration's commitment to strengthening America's position in global trade and commerce.

Federal Transportation Department Scraps Funding for 12 Port Projects in Pursuit of 'Authentic Infrastructure Investment'