Twenty-twenty two was a busy year for the Port Authority of Guam. When the Leon Guerrero-Tenorio Administration identified goals and objectives via its 2018 Transition Report, they made recommendations as to what items should be addressed and how to correct existing deficiencies. Under the direction of the Board of Directors and guidance from the incoming management team, the Port Authority of Guam’s Port Strong Family worked diligently to accomplish numerous milestones this past year

“We have done so much in the last four years and I am excited to see where the next few years will take us,” said Port General Manager Rory J. Respicio. “As General Manager for the Port, my job is to ensure that we continue to operate in a way that better serves our community and ensure that the employees have the tools and support to be able to focus on their work.”

The Port Authority of Guam has made strides in nearly all aspects of its operations, from facility improvements, upgraded financial management system, enhanced container yard operations, strengthened relationships with federal partners, employee training opportunities, and a surge of employee morale

As we take a look back at the last year, here are the Port’s top stories for 2023:

 

January

Port Climate Survey Shows High Morale

An organizational climate survey of Port employees was conducted in December of 2021 showing high employee morale, job satisfaction and support for management. Ninety-two percent of all 368 employees took part in the survey. The survey showed 98% of all employees have a positive work experience at the port. Survey results also showed 96% feel there is high morale, 92% feel management is fair and also transparent and 94% feel management is accountable. The survey provided employees an opportunity to anonymously rate different levels of our agency as it assessed what they value most in their employment and provided them an opportunity to make positive suggestions for improvement.

“These numbers overwhelmingly reflect the Port’s organizational culture and our high productivity levels match our high morale,” said Port General Manager Rory J. Respicio. “Although we are clearly pleased that 98% of the employees have such positive feelings about work and management, we will continue to focus on the two percent of the employees who are not having the same experience here at the port.”

 

February

World Record Rower Visits Guam

Turkish record-setting ocean rower Erden included Guam as part of his historical journey when he made a stopover to the island on February 12, 2022 as part of his voyage to become the first person in history to row from North America to Asia and across the Pacific Ocean. He was greeted by Port GM Rory Respicio and DGMs Dominic Muna and Luis Baza when he docked at the Marianas Yacht Club. Eruç launched by rowboat from California on June 22 of last year with the original goal of reaching Hong Kong nonstop with an estimated arrival of March 2022. He stopped at Waikiki in Hawaii to address minor repairs and with China’s borders still closed, Eruç decided to follow the trade winds toward Guam. During his ocean crossing, he will raise awareness about plastics problems in our oceans in collaboration with Ocean Recovery Alliance and is collecting ambient sound data for NOAA scientist Jay Barlow using a high frequency hydrophone. The data will identify the range of Beaked Whales along his transect and may also identify other sea creatures within his route.

 

March

Progress at the Port Continues with Demolition of Inoperable Assets

The Leon Guerrero-Tenorio Administration kicked off a project on March 23, 2022 that prioritizes Guam's business development and economic initiatives at the Jose D. Leon Guerrero Commercial Port. The $2.5 million demolition project will dismantle and properly dispose of massive inoperable assets at the Port Authority of Guam (PAG) to free up valuable dock space and generate increased revenue by acquiring new cranes as early as 2026. The Port will safely demolish two ship to shore gantry cranes, two rubber-tired gantry cranes, one mobile harbor crane, and two barges, which have been inoperable for decades.

"When we first came into office, we committedto removing this equipment to provide space for additional business activity and revenue generating opportunities at our Port," said Governor Lou Leon Guerrero. "This milestone is yet another achievement for the hardworking and dedicated Port Strong family. We will continue to support the Port Authority and provide critical assistance to help move modernization plans forward.”

This $2.5 Million project will safely demolish inoperable PAG Assets, which includes two gantry cranes, two rubber-tired gantry (RTG) cranes, one mobile Harbor (MH) crane and two barges. Guam Shipyard is the main contractor doing the work along with their subcontractor Smithbridge.

 

April

Port Achieves 3rd Consecutive Year Designation as Low-Risk Auditee

The Port Authority of Guam has once again achieved low-risk auditee status. This is the third consecutive year in a row that the Port got this designation since the time that it failed to get this designation in Fiscal Years 2017 and 2018.

Independent auditors Deloitte and Touche, LLP, rendered the unmodified (clean) opinion of the Port for FY 2021 financial statements and compliance over major federal programs. Also, no material weaknesses and significant deficiencies in internal controls were identified by the auditors.

“PAG is commended for qualifying as a lowrisk auditee for the third consecutive year,” Public Auditor Benjamin J.F. Cruz stated in the Office of Public Accountability Financial Audit released today.

“This audit affirms that we have been on-targetwith the directives put in place by Governor Lou Leon Guerrero, Lt. Governor Josh Tenorio, Board Chairman Frank Santos, and our board,” Port General Manager Rory J. Respicio said. “We are working very hard to successfully complete the Port Modernization program and improve employee morale, productivity and efficiency.

 

May

General Manager visits Washington, D.C.

Port General Manager Rory J. Respicio is continuing his efforts on behalf of Governor Lou Leon Guerrero, Lt. Governor Josh Tenorio, and the Board of Directors, to obtain federal assistance to help further the agency’s movement toward sustainable modernization. Accompanied by former Congresswoman Madeleine Z. Bordallo, Chief Planner Joe Javellana III and Capital Improvement Projects Coordinator Clarence Lagutang, the team met with officials from Army Corps of Engineers’ (USACE), Senate Armed Services Committee (SASC), the Naval Facilities Engineering Command (NAVFAC) and the Defense Logistic Agency (DLA) to discuss current projects and future partnerships toward maintaining safe ports navigation and requesting funds for the Port’s Readiness Plan and sustainability initiatives.

 

June

Nearly $50M in Construction Work to Begin

More progress is happening at the Port Authority of Guam as the work will now begin on the rehabilitation of Hotel Wharf, construction at the Agat Marina, and the renovation and repair of the Harbor of Refuge. The total cost for all three projects is $48,696,645.00.

The Port Authority of Guam’s Board of Directors along with the Public Utilities Commission approved the bid awards for Phase I and II of the rehabilitation of Hotel Wharf, construction for the B Dock at the Agat Marina, and renovation and repair of the Harbor of Refuge Phases II thru IV. The awardees are Sumitomo Mitsui Construction Co., AIC International, Inc., and Art Constructors, LLC.

“As the island’s only commercial port, the rehabilitation of Hotel Wharf is a project that Governor Lou Leon Guerrero and Lt. Governor Josh Tenorio made a priority as they value the additional berthing capacity this will provide,” said Port General Manager Rory J. Respicio.

“Operationally, the space will alleviate construction materials, cruise lines, and roll on/roll off operations from the main cargo handling area and better align with the Port’s investment in the public cargo terminal.”

Hotel Wharf: Rehabilitation Project

On September 6, 2019, the Port entered into a grant agreement with the United States Department of Transportation Maritime Administration for the rehabilitation of Hotel Wharf. Phase I will procure all steel piling work materials for the Wharf and installation of the piles for the south wall. Phase II will include the installation of the west and east wall piles and other marine structures such as bulkhead concrete works (east, west and south wall), on-shore bollards, bulkhead mooring-cleat and bollard, and cell fenders. The respective costs for Phase I and II are $39,485,672.00 and $6,846,223.00 for a total of $46,331,895.00. The project is being funded through $10 Million in federal grants and the remaining by the Port.

Agat Marina’s Dock B Construction

On September 1, 2021, the Port entered into a Memorandum of Understanding (MOU) with the Guam Department of Agriculture (DOAG) to fund the reconstruction of Dock B at the Agat Marina under a U.S. Fish and Wildlife Service grant in the amount of $500,000.00. The project bid amount for the reconstruction is $1,494,750.00. The Port will fund the difference of $994,750.00. This upgrade will use no-rot recycled plastic composite material, marine grade aluminum frames and stringers, stainless steel components, connections and accessories. Power utility will have NEMA 4X junction boxes and watertight fittings. This upgrade to the Agat Marina will provide an additional 48 recreational boating slips.

 

July

Hotel Wharf Groundbreaking Ceremony

On July 6, 2022, the Port Authority of Guam held a groundbreaking ceremony marking the start of the Construction and Rehabilitation of Hotel Wharf. The contractor awarded the $46,331,895.00 project is Sumitomo Matsui Construction Co. The development of H-Wharf is a game-changer for the Port, Guam and the region in that it increases vessel berth capacity for cargo and cruise ships, it allows for future homeporting of cruise liners, and provides military readiness – where military assets can be received and deployed at a moment’s notice. “Josh and I knew we needed to support the Port’s expansion of wharf space to accommodate larger vessels and increase vessel handling capacity. With the impending military buildup and the need to ensure the Port remains capable of providing full service to ocean vessels in support of loading and unloading cargo, our administration provided whatever financial resources we could use to push this project forward,” stated Governor Lou Leon Guerrero. “When presented with the shortfall in this project, we allocated $15 Million from the American Rescue Plan. In providing these funds, we directed that the Port will freeze its tariff rates for the next two fiscal years which will help to stabilize the prices of goods for our people.” Upon project completion, more than 500 feet of usable wharf water frontage will be added to the Port’s footprint. This will alleviate vessels arriving with construction materials, roll on or roll off operations and cruise liners away from the main cargo terminal which only has three berthing spaces.

 

August

Board Unanimously Approves FY2023 Budget

The Port Authority of Guam Board of Directors unanimously approved the agency’s budget for Fiscal Year 2023. The board members approved the new budget projecting total revenues of $53,757,167 which is $5,463,358 more than the previous year’s projected revenues of $48,293,809 and FY 2023’s total expenses of $49,067,576.

To arrive at a feasible revenue forecast, the Port Authority surveyed main customers for their 2023 income estimations and added a 2.2% increase on cargo related proceeds to arrive at a realistic revenue projection for the agency. Using fiscal prudence, the Port’s total expenses were based on the needs of each division and annual obligations to include: annual debt service of 5.7 million, maintaining a Debt-Service Coverage Ratio (DSCR) of 1.25, days cash on hand – 500, and funding for capital improvement projects from bond, federal and local funding sources.

“We continue to use a ‘bottom up zero-based budgeting’ approach which focuses on financial accountability and sensible spending strategies while identifying cost saving alternatives which has proven to be successful for FY 2021 and FY 2022. Along with this, we are aggressively pursuing new federal funding opportunities for the Port’s equipment acquisition and yard expansion program,” said General Manager Rory J. Respicio. “These numbers provide realistic valuations for the Port’s financial position for FY 2023. We have been spot-on with achieving our revenue projections, while spending significantly less than what we have been authorized to spend, and our decisions are prudent and transparent.”

 

September

Port CFS Building to get Facelift

The Port Authority of Guam Board of Directors approved an award to RN Builders to begin work on the PAG CFS Building. The Board voted unanimously to approve the Invitation for Bid award to RN Builders for the painting of the exterior, interior, and roof coating of the PAG CFS Building (IFB-PAG-CIP-022-007) during their regular Board of Directors meeting held on September 29, 2022.

On July 12, 2022, an Invitation for Bid (IFB) was issued and advertised in the Pacific Daily News soliciting services for the painting of the PAG CFS Building (IFB-PAG-CIP-022-007). Twelve (12) individual firms registered and picked up the IFB packet online through the Port’s website. Four (4) firms submitted before the established deadline of August 22, 2022, at 2:00 PM.

The Port’s engineering cost estimate for this project was projected at $405,000.00. The lowest bid amount was submitted by RN Builders in the amount of Three Hundred Ninety Thousand Dollars ($390,000.00).

 

October

Port Awarded $5.7M in Federal Infrastructure Funds

The U.S. Department of Transportation’s Maritime Administration (MARAD) awarded Guam $5.7 million in grants under the America’s Marine Highway Program (AMHP).

The funding in this program helps expand marine highway services on our nation’s navigable waterways to reduce congestion, alleviate supply chain bottlenecks, and move goods more quickly from ships to shelves.

“Our progress at the Port continues with this latest award of federal funds that will be used to continue our efforts to modernize and transform our world-class gateway,” said Port Authority of Guam General Manager Rory J. Respicio. “This work being done is in line with Governor Lou Leon Guerrero and Lt. Governor Josh Tenorio’s commitment to modernize our Port as the harbor of all things coming to Guam.”

U.S. Transportation Secretary Pete Buttigieg announced on October 7, 2022 that the Port Authority of Guam was awarded $5,703,560 for the Guam Marine Transportation Enhancement Initiative. The America’s Marine Highway Grant funds will go toward expanding the Port’s fleet of specialized container yard equipment. The equipment includes two 40-ton loaded container handlers; three 10-ton empty container handlers; five 5.5-ton forklifts; one 180-foot boom lift; nine container yard tractors; and two 40-plug mobile reefer generators

 

November

Regional Resiliency Assessment Program Begins

On November 14, 2022, Port General Manager Rory J. Respicio delivered opening remarks for the kickoff of the Guam/CNMI Regional Resiliency Assessment Program (RRAP). The Port has been nominated by the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) for Guam and CNMI to receive a comprehensive cyber and physical security assessment of the Port Authority of Guam and the Commonwealth Ports Authority.

CISA leads the national effort to understand, manage, and reduce risk to our cyber and physical infrastructure. The goal of the Guam/ CNMI Regional Resiliency Assessment Program (RRAP) is to generate greater understanding and action among public and private sector partners to improve the resilience of our region’s critical infrastructure. The program will resolve infrastructure security and resilience knowledge gaps, inform risk management decisions, identify resilience-building opportunities and strategies and improve critical partnerships among stakeholders.