Digital Data Connections Should be Key to Any Supply Chain Infrastructure Plans

Recent supply chain disruptions suggest that President Biden’s physical infrastructure plan must reflect the changing nature of the 21st century economy.

When Colonial Pipeline – a U.S. fuel supplier charged with providing 45 percent of the East Coast’s supply of diesel, gasoline, and jet fuel – fell victim to a ransomware attack last week, it caused the company to shut down its 5,500-mile pipeline operations temporarily.

Though the physical infrastructure network to control the fuel transportation was not breached, the company went offline as a safety precaution.

Meanwhile, the date of restart remains unknown, with fuel consumers and the major infrastructure in the South and on the East Coast left vulnerable with uncertainty as impacts to the supply chain are already taking hold.

Current disruptions include limited alternative transport options for fuel, higher prices, low fuel availability, and lowered production at the Gulf Coast refineries.

Cherian George, Global Head of Infrastructure, Fitch Ratings, observes that digital data connections have become as important to life and commerce as legacy water, power and transportation infrastructure.

“For the largest economy in the world with decades of disinvestment and the need to compete in a changing world, a multi trillion-dollar, multi-year investment on physical infrastructure is not unreasonable,” he says.

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