Phase 1: Point Papers & Financial Resources Summary

Port Point Paper
 
 
I. Executive Summary
 
The Port is the engine of the Island’s economy and a key enabler for the military expansion program.  The Port Authority of Guam (PAG) is an autonomous, public corporation of GovGuam.  To achieve the strategic goals of the Port Authority and meet the future demand requirements, skilled labor and construction management will be needed and a review of the possibilities for process improvement through usage of information technology and enhanced mechanization. The military expansion poses significant short term challenges to the Port’s
operations on Guam.  It is estimated that the overall Port capacity would need to double in order to meet the expected increased demand. Military cargo in itself is expected to increase six fold during construction. A required Port capacity expansion, including additional storage areas and a wharf extension, is expected to cost in the region of $100 million for upgrade of the cargo handling equipment and infrastructure expansion and development.    

There could be a projected over-capacity once military growth has been achieved which presents challenges and potential opportunities.  Construction management, skilled labor and environmental clearances will be required.  PB Ports and Marine, a division of Parsons Brinkerhoff, Quade and Douglas, Inc (PB) has been contracted to prepare the PAG Master Plan updates and is currently developing demand estimates.

The expansion required is unfunded.  Once the cost of expansion has been established, and potentially in concert with a review of port tariffs and charges, PAG will wish to review resources required for port capacity expansion. The provision of timely and adequate financial resources, unless resolved quickly may be a constraint on military expansion.  The Public Private Partnership (PPP) contract structure may be relevant to obtaining financing for the Port’s redevelopment.
 
II. Background
 
Introduction
 
Guam Port Authority was organized in 1950 as a division of the Department of Commerce and later in 1975 became an autonomous, public corporation of the Government of Guam (“GovGuam”).  The Commercial Port of Guam (“the Port”) is located on approximately 74 acres on Cabras Island and has approximately 2,700 linear feet of dock space and 26.5 acres of container yard facilities, with an additional 25 acres set aside to expand the existing yard. A total of 42 acres of land has been designated for the development of an industrial park.  The planned military build-up program on Guam will require a comprehensive approach to planning to ensure a successful transition of the military forces from Japan to Guam.  This will include the analysis of land use, transportation, water, and energy infrastructure, labor, and of key importance for the construction phase, port expansion and efficient operations.

 

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