By Pacific Island Times News Staff
The Port Authority of Guam is seeking to raise tariffs by up to 17 percent this year as part of the agency’s revenue enhancement strategy.
The port’s board of directors on Wednesday approved a resolution authorizing the general manager to petition the Public Utilities Commission for approval of the proposed increase in tariff rates, which would be implemented on a staggered basis.
Under the revenue enhancement proposal, the tariffs would increase by 8.5 percent for the first four months, followed by a 17 percent increase from months five through 12.
Port officials said the phased-in approach is designed to mitigate the financial impact on industry partners, allowing for a structured transition while addressing operational costs and inflationary pressures.
“This resolution is the culmination of years of diligent financial management, industry collaboration, and strategic oversight,” said Rory Respicio, general manager.
He said the proposed tariff rate adjustments would sustain the port’s long-term operations.
“The port has made every effort to ensure a balanced approach, one that protects our financial future while remaining responsive to the needs of our stakeholders,” Respicio said.
Officials said the proposed adjustments will not constitute a general tariff increase but will ensure that previously unbilled or under-billed services, such as third and fourth gangs, supervisor overtime, and night differentials, are properly accounted for.
The goal, officials added, is to strengthen the port’s financial standing while maintaining fairness and transparency for stakeholders.
“This is not a general tariff increase,” he said. “Instead, we are ensuring that the port collects the revenue it is entitled to under the existing tariff, aligning revenue collection with the actual cost of services provided. By doing so, we maintain financial sustainability while minimizing impacts on our stakeholders.”
Respicio said the proposal was designed to fully utilize the existing tariff structure.
Officials said the port authority will engage industry stakeholders throughout the PUC review process to ensure that all concerns are addressed and that the tariff adjustments are implemented fairly.
“The resolution formalizes PAG’s ongoing financial sustainability efforts since 2019, which include cost-saving measures, operational efficiency improvements, and a structured methodology to ensure that revenue collection aligns with the cost of services provided by the port,” states a press release from the port.
