By Pacific Island Times News Staff
The Port Authority of Guam’s board of directors today greenlighted the port administration’s plan to outsource the management and operations of is typhoon-damaged fuel facilities.
“This move addresses the critical infrastructure needs of these facilities after damage from Typhoon Mawar and aims to improve Guam’s fuel supply chain resilience,” the port authority said in a press release announcing the board’s adoption of a resolution that approved the solicitation of private partners.
The resolution authorizes the port’s general manager to pursue a public-private partnership for the management, operation and maintenance of the Golf Fuel Pier, Foxtrot Fuel Pier 1 and Area A Fuel Tank Farm.
“This partnership is a pivotal step in securing Guam’s fuel infrastructure for both civilian and military needs,” said Rory J. Respicio, general manager.
“With the extensive damage to our piers and the growing demand for fuel, a public-private collaboration is not just a practical solution, it is an essential investment in our island’s future resilience and security,” he added.
While the would-be elected private partner will be contracted to manage, operate and maintain the port’s fuel facilities, officials said control over these critical assets will always remain with the port.
“It just makes sense because the port is currently not in the fuel business, and we have two fuel piers and a fuel storage tank farm in dire need of replacement,”
Respicio said.
The resolution ensures that the port retains full ownership of its fuel facilities before, during and after the partnership.
“The revenue from these fuel piers versus the capital investment required is a practical consideration that needs to be top of mind for anyone involved in the development and approval of this public-private partnership,” Respicio said.
He further highlighted the project's alignment with national defense priorities, particularly as Guam plays a vital role in regional military readiness.
"We are taking a proactive approach to ensuring that Guam’s infrastructure remains strong, and this partnership will bring much-needed expertise and capital for long-term success,” the port chief said.
The resolution outlines a procurement solicitation for the partnership, focusing on day-to-day operations, safety, environmental compliance, and capital improvements.
"With the port serving as a critical hub for fuel transshipment across Guam and the wider Micronesian region, upgrading and maintaining these assets is vital to both local needs and military readiness within the Indo-Pacific region," the [prt said.
The resolution further provides that the board and management will continue collaborating with federal agencies, including the Federal Emergency Management Administration, to resolve cost estimate discrepancies, secure the necessary funding, and ensure the continuity of fuel operations during the repair and restoration of critical infrastructure.
“This Public-Private Partnership ensures the long-term sustainability of our critical fuel infrastructure while maintaining public ownership of these assets,” Respicio said.
“By leveraging private sector resources and expertise, we can more efficiently manage repairs, make necessary upgrades, and increase our resilience in the face of future disruptions.”
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