Governor Wolf Extends Intermodal Cargo Growth Incentive Program for Ocean Carriers

Statement

Governor Tom Wolf announced today that Pennsylvania's Intermodal Cargo Growth Incentive Program (PICGIP), which aims to increase cargo activity by incentivizing shippers to move cargo through Pennsylvania ports, will be extended through 2022. The program was previously slated to end in June 2020.

"Right now, Pennsylvania's ports are more vital than ever," Governor Wolf said. "Increasing shipping activity will help ensure that essential goods are delivered to stores in a timely manner, while strengthening the supply chain well into the future."

Originally established in 2015 through PennDOT's Multimodal Fund, the PICGIP makes up to $1 million available annually to participating ocean carriers that move cargo through Pennsylvania's ports. The fund helps secure fulltime employment at the terminals and increase economic activity through indirect and induced jobs.

All carriers who have not been to the Port of Philadelphia in the past six months must fill out an application on PennDOT's website, while existing participants are required to complete the data verification form to be eligible for the program.

"The Intermodal Cargo Growth Incentive Program is essential for us to compete with other ports in attracting new ocean carriers and new trade lanes to Pennsylvania. This program supports the ocean carrier during the difficult initial phase of entering a port for the first time, or starting a new service," said PhilaPort CEO and Executive Director Jeff Theobald. "Once the carrier is up and running, and we have the business, the incentive ends. This is a well designed program, and PennDOT has done a great job assisting us with implementing it."

New carriers enrolled in the program receive $25 per new container unit loaded or discharged from vessels to a Pennsylvania port. Existing participants qualify for the incentive payment by exceeding established benchmarks.

In the past five years, over 1.8 million units of cargo passed through Pennsylvania ports with 175,000 units exceeding benchmarks resulting in $4.1 million in incentive funds awarded to 10 grantees.

Carriers already participating in the program should have received grant information directly from the program managers. For more information and to view PennDOT's Intermodal Cargo Growth Incentive Program application/ guidelines visit PennDOT.gov, and click on the "Rail Freight and Ports" page.

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