The Port Authority of Guam (PAG) Board of Directors unanimously approved the procurement of up to three new cranes during its monthly board meeting.
The acquisition of new STS gantry cranes would be the first new cranes the port would procure in its 48 years of autonomy as past and current cranes have been second-hand equipment owned by other American ports.
The port previously submitted a grant application to the U.S. Department of Transportation/MARAD through its Port Infrastructure Development Program (PIDP) for two STS gantry cranes however it was not awarded due to its nonconformance to the Buy American Act Requirements.
Subsequently, in August of 2023 the PAG once again submitted a grant application to the USDOT/MARAD’s PIDP and was likewise unsuccessful due to the non-approval of the PAG’s Build America, Buy America (BABA) waiver request.
Due to the ageing cranes and the critical need to procure them, the Board authorised the pause of construction activities at H-Wharf and the redirecting of those resources and additional funds toward the purchase of up to three new STS gantry cranes.
The Board also authorised port General Manager, Rory J. Respicio, to reallocate budgetary resources, negotiate with suppliers, and adjust project timelines accordingly, all in accordance with 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.
READ: Port of Long Beach granted major federal transportation fund
“This will be the first new cranes in the Port Authority of Guam’s history,” said Port General Manager Rory J. Respicio.
“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 Lieutenant Governor Josh Tenorio in national forums and in face-to-face meetings with federal partners in past years.”
