Port of Guam to buy first-ever new STS cranes

The Port of Guam has greenlit the acquisition of three new cranes, marking the first procurement of brand-new crane equipment in its 48-year history.

The decision to invest in new cranes comes as part of the port’s strategic plan to replace aging units nearing the end of their service life.

Currently, the port relies on second-hand equipment. Namely, in 2007, the port authority entered into an agreement with Matson and Horizon to utilize three refurbished cranes from the Port of Los Angeles. These retrofitted cranes are tailored for handling 45-foot containers and have been in operation since April 2009.

All three gantry cranes passed OSHA recertification on March 22, 2024, the port authority said.

“This will be the first new cranes in the Port 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.”

Respicio added that in line with the U.S. security concerns the plan is to secure funding for non-Chinese-manufactured equipment.

“We have all been proactively communicating with the Department of Defense, Department of Transportation (MARAD), FEMA, INDOPACOM, key House and Senate members, and the Joint Region Marianas to assist in purchasing these cranes as a matter of commerce, economic growth and now, more than ever, national security with growing geopolitical tensions and avoid Chinese options. This is a critical step for our island and region’s nexus to the global supply chain, throughput capacity and military readiness programs.”

The port has already asked for grant funding from MARAD through its Port Infrastructure Development Program (PIDP) for two STS gantry cranes, however, the port hasn’t received funding as it wasn’t compliant with the Buy American Act Requirements. As a result, the port’s Board of Directors has decided to pause the construction activities at H-Wharf and redirect those resources and additional funds toward the purchase of up to three STS gantry cranes.

The Board also tasked the General Manager with leading a comprehensive procurement strategy that emphasizes engagement with global suppliers, leverages technological innovation for cost-effective operations, and aligns with the highest standards of operational readiness and national security priorities. Additionally, Respicio was authorized to reallocate budgets, negotiate with suppliers, and adjust project timelines as necessary.

“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,”  Board of Directors Resolution No. 2024-01 said.

Meanwhile, the port recently completed the demolition and removal of Gantry 2 and the agency is currently in the process of removing demolished Gantry 3.

The investment is part of an long overdue port modernization program which will also include upgrading the Terminal Operating System for streamlined operations, expanding wharf space to accommodate larger vessels, and expanding existing facilities to support the fishing and cruise line industries.

The port authority has also adopted a resolution aiming to petition the Public Utilities Commission (PUC) for the approval of the award to American Material Handling for the purchase of nine terminal yard tractors.

In the 2023 fiscal year, the port handled 85,627 containers, overseeing the arrival and departure of a total of 130 vessels, with an additional 93 vessels dedicated to breakbulk, RORO, and bulk cargo handling.