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The funding was part of $4.6 billion appropriated by the American Recovery and Reinvestment Act to the U.S. Army Corps of Engineers for its civil works program.
"This project will restore the channel to its fully authorized depth of 30 feet at zero tide and will enable the Port's shippers to save transportation costs and increase tonnage and jobs at the Port," Port Chairman Dick Dodge said in a prepared statement.
The dredging project is expected to be completed by early 2010, according to port officials.
The Port of Redwood City is the only deepwater port in the South Bay, according to port officials.
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