During its monthly meeting on 25 April, the Port Authority of Guam board of directors unanimously agreed to acquire three new cranes.
“This will be the first new cranes in the Port Authority of Guam’s history. Our current cranes are more than 40 years old and based on consultant reports, they will reach the end of their expected service life and will need to be replaced by 2029. Our efforts to replace the cranes have included an aggressive approach by Governor Lou Leon Guerrero and Lt. Governor Josh Tenorio in national forums and in face-to-face meetings with federal partners in past years,” stated Rory J. Respicio, general manager at the Port of Guam.
Respcio emphasized the importance of obtaining these cranes for national security. Given the Biden administration’s escalated concerns, he stressed the importance of securing funding by US security policies to avoid reliance on equipment manufactured in China.
The acquisition of new STS gantry cranes would mark the Port’s inaugural procurement of such equipment in its 48 years of autonomy, as previous and existing cranes have been second-hand equipment owned by other American ports.
Respicio further added, “We have all been proactively communicating with the Department of Defense, Department of Transportation (MARAD), FEMA, INDOPACOM, key House and Senate members, and the Joint Region Marianas to assist in purchasing these cranes as a matter of commerce, economic growth and now, more than ever, national security with growing geopolitical tensions and avoid Chinese options. This is a critical step forward for our island and region’s nexus to the global supply chain, throughput capacity and military readiness programs.”
In addition, the port had previously applied for a grant from the US Department of Transportation/MARAD under the Port Infrastructure Development Program (PIDP) to acquire two STS gantry cranes. Despite the application, it was not successful due to nonconformance with the Buy American Act Requirements. Subsequently, in August 2023, the Port Authority of Guam (PAG) submitted another grant application to the USDOT/MARAD’s PIDP, but it was also unsuccessful due to the non-approval of the PAG’s Build America, Buy America (BABA) waiver request.
With the existing cranes ageing and the urgent need for procurement, the Board decided to halt construction activities at H-Wharf and allocate those resources and additional funds towards purchasing up to three new STS gantry cranes.
According to a statement, the Board also tasked the General Manager with leading a comprehensive procurement strategy that emphasizes engagement with global suppliers, leverages technological innovation for cost-effective operations, and aligns with the highest standards of operational readiness and national security priorities. The Board also authorized Respicio to reallocate budgetary resources, negotiate with suppliers, and adjust project timelines accordingly, all by the Guam Procurement Law.
“The General Manager shall pursue all available funding avenues, including but not limited to federal grants, loans, and partnerships, to ensure the timely acquisition of these gantry cranes in alignment with U.S. national security policies and the strategic interests of the PAG and its stakeholders, however, if Port funds or any funds whereby no geographical restrictions exists, i.e., Buy American or Do Not Engage with the Enemy Clause, then the General Manager is statutorily bound to proceed accordingly,” stated Board of Directors Resolution No. 2024-01.
