A coalition of trade associations representing diverse sectors of California's economy has issued a joint letter to Governor Gavin Newsom, warning that the state's economic vitality hinges on maintaining robust cargo transportation capacity. The letter underscores California's ports as critical trade gateways, with their competitiveness directly tied to both statewide and national economic stability.
The associations called for proactive state measures to ensure ports can efficiently handle growing freight volumes while fending off competition from rival domestic and international harbors. Key priorities include infrastructure modernization , technological upgrades , and policy reforms to enhance operational efficiency and attract shipping traffic.
Stakeholders cautioned that declining port competitiveness could trigger cascading consequences: job losses, reduced tax revenue, supply chain disruptions, and ultimately higher consumer costs. The letter urges the governor to prioritize port competitiveness through collaborative solutions with industry and federal partners.
The appeal reflects growing concerns about California's ability to retain its historic dominance in global trade amid intensifying competition from Gulf Coast and East Coast ports, as well as foreign hubs investing heavily in automation and capacity expansion.