Port updates senators on modernization plan

by Ken Quintanilla

Guam - The Port's modernization plan was developed in 2007 aimed to prepare the agency for the anticipated military buildup and the increased containers that were expected to come with it.  Five years later, the Port has nothing to show for the plan except millions sitting in a bank account and a deteriorating wharf.

Two weeks since taking on the role as the Port Authority's new general manager, Mary Torres, spoke before the Legislative Committee on Transportation, updating them on what she called "the complicated process" to get the agency's modernization underway. Port officials have requested to utilize $15 million in defense funding that is sitting idle in the Port Enterprise Fund to pay for improvements to the deteriorating wharf.

The U.S. Maritime Administration has contributed to the delays in the start of the modernization efforts as it wants the port to proceed with a complete overhaul of the wharf that could cost up to $200 million. It was evident that lawmakers questioned whether MARAD's role was more of a federal receivership or a partnership, which Torres said was the intended relationship.

She noted, "I believe that we need to revisit the relationship with MARAD because if there is a regulatory and oversight component, it perhaps has gone over the deep end." If MARAD shoots down the Port's request, Torres says the agency is ready to take the reins and start moving the project forward by borrowing the money through a commercial loan. "The way that I look at is no one can fault the Government of Guam for trying to be proactive and I think what this collective approach has demonstrated that there's a real need and a pressing need for people to start taking this seriously and move ahead," she explained.

Port board chair Dan Tydingco reported to the committee that he received a call from MARAD on Tuesday, notifying him that a follow up call should be made soon. "But nonetheless, we have worked with Jojo and the finance people down at the port and they have been putting together financial models for us to take into consideration what sort of revenues would have to be raised via the tariffs to cover the debt service for $15 million," he said.

Officials are hoping the response from MARAD will come sooner rather than later as they've reiterated that the agency no longer has the luxury of time. Port officials meanwhile are also hoping that MARAD will give the green light for the port to begin upland improvements that are critical to port operations.