The Pennsylvania Intermodal Cargo Growth Incentive Program (PICGIP), which looks to increase containerized cargo activity by incentivizing shippers to move cargo through Pennsylvania ports, is being extended to July 2024.
The Pennsylvania Department of Transportation (PennDOT) announced on Friday the extension of the program, which was scheduled to end in June 2023.
“Pennsylvania’s ports are a crucial part of our state’s transportation network,” PennDOT Secretary Mike Carroll said in a press release. “Increasing shipping activity will help ensure that goods are delivered to market in a timely manner, and the Cargo Growth Incentive Program is a critical tool in keeping Pennsylvania’s economy moving.”
PICGIP was created in 2015 through PennDOT’s Multimodal Fund, and it makes up to $1 million available annually to participating ocean carriers that move cargo through Pennsylvania’s ports. Increased cargo helps secure full-time employment at the terminals and also increases economic activity through indirect and induced jobs.
Used as a tool to compete with other ports in attracting new ocean carriers and trade lanes to Pennsylvania, the Intermodal Cargo Growth Incentive Program helps retain and reward loyalty as carriers return to Pennsylvania ports and have the chance to achieve incentive payment.
Since 2015, nearly 3 million units of cargo have been sent to Pennsylvania ports by participating ocean carriers. Over the same time, ocean carriers have been awarded approximately $6 million in incentive funds.
New service at a Pennsylvania port as well as existing carriers qualify for the program incentive. New carriers receive $25 per new container unit loaded or discharged from vessels to a Pennsylvania port. Existing participants who exceed established benchmarks also qualify for the incentive payment.