Proposal By Senators to Change Guam Development Raises Concerns

A proposal last week by three high-ranking US Senators that could threaten the scope of a $10 billion modernization of Guam's commercial port and local infrastructure is raising concerns by officials in Guam and Japan.

Senators Carl Levin (D-MI), John McCain (R-AZ) and Jim Webb (D-VA), from the Senate Armed Services Committee, issued a joint press release on May 11 proposing changes to the current Department of Defense plan to shift the structure of US forces in Asia. A key component of these realignment plans, first proposed in 2006 after years of negotiations between Japan and the US, is the shifting of at least 8,600 US Marines – including the entire III Marine Expeditionary Force – and their dependents and support staff, from Okinawa to Guam. To support this build-up on Guam, a nearly $2 billion revamp of the island nation's aging port facilities and local infrastructure has been slowly moving forward.

The senators called the current re-alignment plans, including the Guam build-up, "unrealistic, unworkable, and unaffordable."

Sen. Levin, chairman of the Senate committee, said that much has changed since the plans were first approved in 2006. He added that growth costs of the plans and the "projected times are totally unrealistic."
The three senators' proposal calls for scaling back the deployments on Guam, seriously reducing the number of troops shifted to Guam and thereby reducing the need for major development of the island nation's infrastructure.

Under the senators' proposal, Guam would only see a "permanently-assigned headquarters element bolstered by deployed, rotating combat units that are home-based elsewhere, and consideration of off-island training sites."

Guam Governor Eddie Calvo was informed May 13 that US Secretary of Defense Robert Gates is currently updating the Guam military build-up master plan to make it more cost-effective as the DoD faces up to $400 billion in cuts in the near future.

However, US Navy Under Secretary Robert Work assured Gov. Calvo that the Guam build-up is still on.

"Recently, there has been a lot of discussion about press released on proposed plans that have caused some concern in the community," Gov. Calvo said after talking with Work.

"I want to be clear: despite all the talk, there will be a buildup on Guam. The DoD is committed to it. No one knows for certain how the buildup plans will change – not Congress, not the Obama administration, not the military. To speculate at this point is misleading and misguided.”

Japanese Defense Minister Toshimi Kitazawa also expressed concern about the three US senators' proposal calling it "unrealistic," and that it would be rejected by the people of Okinawa who have long called for the departure of the US military presence on their island.

Kitazawa, noting the 2009 Guam Treaty between the US and Japan covering the relocation of the Okinawa forces, said that the US senators' proposal is "a domestic matter of the United States that should be settled between the US government and Congress. At the government-to-government level, the Japan-US agreement exists and there is no change."

The Guam commercial port, operated by the island government's Port Authority of Guam, is undergoing a rapid expansion as it prepares for the build-up, which is expected to increase traffic through the Guam port by more than 100 percent, an increase that many fear the aging infrastructure at the port will not be able to handle without the modernization efforts.

US military officials said on May 17 that the US 2011 fiscal year federal budget contains enough Guam build-up funds to cover work on Guam roads and the second phase of an upgrade to Guam's commercial port at Apra Harbor. However, the total FY2011 allocations of $131 million represents a $300 million cut over what had been proposed. The DoD is hoping to make up the cuts in the FY2012 budget.

In all the US federal government has pledged $4 billion to help prepare Guam for the build-up. Japan has also pledged just under $6.1 billion to support the transfer.

Since funding began in 2008 through 2011, the US government had allocated about $484 million and Japan has allocated about $834 million to the transfer. Japan has also approved an additional $420 million that is slated for pay out this year.

Guam Port Celebrates 35th Anniversary

The commercial port of Guam celebrated its 35th anniversary this week, with five days of celebrations and ceremonies marking the formation of the Port Authority of Guam.

The celebrations began Monday with a flag-raising ceremony and will conclude Friday with an awards banquet.

The United States government turned over the port to the island nation in 1966 but it was not until 1975 that the autonomous PAG, which oversees the port's operations, was formed.

During the past 35 years, little of the port's technology or infrastructure has been upgraded – a problem being addressed by a more than $260 million PAG port development plan.

The modernization plan received a sizable boost on Sept. 25, 2010 when the United States Defense Department appropriated $50 million to PAG – the first major source of funding obtained for the project.

The PAG has cited the federal funding as critical to kick starting the modernization plan to upgrade the island's commercial port infrastructure. The most critical need for the upgrades is to deal with the anticipated increases in cargo from an impending relocation of U.S. military operations on the Japanese island of Okinawa to Guam. The military buildup will see more than 8,000 Marines, their operations and more than 9,000 military dependents shift from Okinawa to Guam by 2014. The buildup is set to begin later this year.

The first phase of the modernization plan is expected to cost just over $100 million and focus on critical waterfront infrastructure and equipment upgrades at the port. The PAG also plans to use the $50 million in Defense Department funds to secure an additional $50 million loan for port upgrades from the US Department of Agriculture.

President Approves $50M for Guam Port Upgrades

President Barack Obama has signed into law federal appropriations providing $50 million to kick off a major upgrade program at Guam's commercial port.

President Obama, on Thursday, signed into law the Supplemental Appropriations Act of 2010. In addition to providing additional funding for U.S. troops in Afghanistan and Iraq, the measure also contains language authorizing the Department of Defense to transfer the $50 million for operations and maintenance to the Port Authority of Guam's Improvement Enterprise Fund. The funds will be administered by the U.S. Transportation Department's Maritime Administration, or MARAD.

"The $50 million in port infrastructure funding will immediately benefit the Port of Guam by allowing them to proceed with modernization and infrastructure improvement projects," said Guam Congressional Delegate Madeleine Bordallo in a statement.

The Port Authority of Guam has cited the federal funding as critical to kick-starting a $200 million plan to upgrade the island's commercial port infrastructure needed to meet anticipated increases in cargo from an impending relocation of U.S. military operations on the Japanese island of Okinawa to Guam. The military buildup will see more than 8,000 Marines, their operations and more than 9,000 military dependents shift from Okinawa to Guam by 2014. The buildup is set to begin later this year.

The island's port authority and government had failed in several previous attempts to secure initial funding for the port upgrades.

The Port Authority also plans to use the $50 million in federal funding to secure an additional $50 million loan for port upgrades from the U.S. Department of Agriculture.

Guam Turns Back Spider Infested Vessel

Guam officials are concerned about damage to the island's environment after thousands of non-native spiders poured out of a cargo ship being unloaded at the island's commercial port last week.

The Guam Department of Agriculture turned away the vessel M/V Altavia after thousands of spiders were spotted by longshore workers who were unloading housing components.

Upon the discovery, dockers notified the port police, who in turn notified the Guam Customs and Quarantine Agency. Officials at the GCQA ordered the cargo returned to the vessel and the vessel sent to a quarantine anchorage in the port's outer harbor. GDA officials later decided to not let the vessel, which most recently called in South Korea, return to dock.

Customs officials who boarded the vessel prior to docking cleared the ship to dock.

Guam government officials are now trying to determine how many of the unidentified but non-native spiders made it ashore. GDA Director Joseph Torres described the condition aboard the vessel as an infestation and raised concerns that if the non-native spiders proved to be invasive they could cause damage to the island's environment.

GDA and GCQA officials have been working with the University of Guam to try to identify the spiders, but said experts may have to be flown in or specimens flown out to complete the identification. Officials did confirm that the spiders are not native to Guam.

US House Passes $50M for Guam Port Upgrades

The United States House of Representatives has approved $50 million in federal funding to kick off a major upgrade program for the commercial port on the island of Guam.

The funding was contained within an amended H.R. 4899, the $45 billion 2010 Supplemental Appropriations Act, and now moves to the U.S. Senate for a final vote. If approved by the Senate, the bill would head to the White House for the President's signature.

An original version of the bill passed the House in late March and the Senate later passed the same version before sending it back to the House for amendments.

"The $50 million in infrastructure funding for the Port of Guam reaffirms this Congress' commitment to ensuring that Guam is prepared for the realignment of forces in our region," said Guam House Delegate Madeleine Bordallo in a statement. "This funding is critical to beginning necessary improvement and modernization projects at the Port of Guam."

The Port Authority of Guam has cited the federal funding as critical to kick-starting a $200 million plan to upgrade the island's commercial port infrastructure deemed necessary to meet anticipated increases in cargo from a planned relocation of U.S. military operations from the Japanese island of Okinawa to Guam. The military buildup, set to begin later this year, will see more than 8,000 Marines, and more than 9,000 military dependents, shifted from Okinawa to Guam by 2014.

The island's port authority and government had failed in several previous attempts to secure initial funding for the port upgrades.

The PAG also plans to use the $50 million in federal funding to secure an additional $50 million loan for port upgrades from the U.S. Department of Agriculture.

Guam Port Unveils Modernization Plan Draft

The Port Authority of Guam is offering up the first views of what the port may look like after a more than $200 million modernization plan that the island and United States military label as essential to handle an impending transfer of U.S military from Okinawa, Japan to Guam.

The PAG design and engineering consultant for the modernization plan, Parsons Brinckerhoff, has released a preliminary draft of the what port upgrades will be performed under the plan.

Once Parsons and the PAG have finalized the first phase of upgrades, the design plan will be handed over to Maryland-based contractor EA Engineering, Science and Technology, who last week was awarded the build contract for the modernization program by the U.S. federal government.

In presenting the preliminary draft to the PAG on Tuesday, Jeff Schechtman, director of Parsons Brinckerhoff's Ports and Marine Division said that the modernization will "include a phase expansion of the terminal, terminal yard, implementation of modern systems, new facilities, more streamlined operations at the Port, and also allow for enhanced storage capacity for the port to move more cargo through the Port as the population of the island grows over the next five to 10 years."

Parsons has been working on the design plan since late last year.

The PAG plans to release the finalized Phase 1-A portion of the modernization plan in July, with construction expected to begin in summer of fall of next year.

Parsons, back in 2007, was the original consultant that identified the more than $200 million in upgrades needed at the port to handle the U.S. military's transfer of 8,000 Marines and 9,000 dependents from Okinawa to Guam, The move was originally slated to start later this year and run through 2014.

$400 Million Guam Port Upgrade Contract Awarded

The US Department of Transportation's Maritime Administration, or MARAD, has awarded Maryland-based engineering firm EA Engineering, Science and Technology Inc., a seven-year, $400 million contract to modernize the commercial port of Guam.

Under the terms of the contract, EA will oversee and with its partners, conduct all work required under the Port Authority of Guam-adopted 2008 modernization plan.

"The timely completion of this major infrastructure improvement program is necessary to provide modern and efficient transportation access to the island of Guam, and to meet the Department of Defense requirements for the Guam buildup," said EA officials in a statement.

The PAG modernization plan is part of an effort by the island to prepare for the transfer of about 8,000 Marines and 9,000 from Okinawa, Japan to Guam by 2014. Nearly 75 percent of the modernization plan's called-for $207 million in port improvement projects are directly related to meeting the requirements of the military buildup on the island.

The PAG is still trying to find funds to begin the modernization program. Earlier this year, the port was denied $50 million in recovery funds by the United States Department of Transportation – funds that would have been used by PAG to obtain an additional $49 million low-interest loan from the U.S. Department of Agriculture.

The PAG is now hoping to receive $50 million from the US Department of Defense to begin work on the modernization program – a move encouraged by a recent letter from President Barack Obama to members of Congress requesting support of the funding.
PAG officials said they believe that the awarding of the EA contract by MARAD signals a commitment from the federal government to move forward on the modernization program.

Exact terms of the EA contract were not immediately released and MARAD and PAG officials plan to meet Wednesday on Guam to discuss preliminary details.

Talk of Delay in US Military Transfer to Guam Grows

Just days after Japanese media reported that US and Japanese government officials were considering delaying the move of US troops from Okinawa to Guam, the head of Guam's power and water utilities said Tuesday that plan is just "too big, too fast," and a delay in the plan's timetable is "inevitable."

Simon Sanchez, chairman of the Guam Consolidated Commission on Utilities – which oversees the island's water and power utilities – told Guampdn.com that a lack of money and time has made a delay in the military transfer a "recognition of reality."

The four-year plan originally called for the relocation of about 8,000 Marines, their dependents and facilities to start this year and run through 2014.

"Anyone that understands anything about this process understands there is no way to do this all in four years, even if you had all the money tomorrow. Delaying, in my opinion, is welcome and not surprising," Sanchez said.

Sanchez' comments come in response to anonymously sourced Japanese media report that claimed sources "close to Japanese-US ties" said that the two countries were considering a three to five year delay in the Okinawa-to-Guam transfer.

While US officials did not confirm the Japanese media report, which was also picked up by the Associated Press, Guam's Acting Governor Mike Cruz agreed that a delay would give the island more time to prepare for the military buildup.

Officials from the Port Authority of Guam said they would continue to operate under the original transfer plan timeline.

"The Port Authority of Guam continues to move forward with our plans to modernize our island's only commercial seaport in order to meet the needs of our island's organic growth and the planned military buildup," Vivian C. Leon, acting general manager of the port authority told Guampdn.com.

The port authority is still trying to get $50 million in federal government financing to begin upgrades on the port – a plan that will cost more than $200 million.

Utility boss Sanchez said that upgrades to the island's utility infrastructure to handle the transfer could cost upward of $1.75 billion, with no viable sources of financing currently identified.

"It has become increasingly apparent to everyone that the original plan for Guam, to have the entire move done in 2014, is very tall order and probably unrealistic," Sanchez told Guampdn.com. "But you can't have conversations about delaying the move until you confirm you are going to make the move."

On Friday, representatives of the Japanese and US governments jointly confirmed that the plan to move the US military off of Okinawa – originally proposed in 2006 – would definitely move forward, though no timeframe was offered.

Guam Port Clears Hurdle For $50 Million in Upgrade Plans

The US Department of Transportation's Maritime Administration has awarded Hunt Valley, Maryland-based EA Engineering, Science and Technology a contract to manage the Port Authority of Guam's $200 million port modernization project, spurring hope on the island that long-sought after funds for the project will now begin to flow.

The management contract was required to be in place before the US Congress can authorize $50 million in Defense Department funds for the port project.

Previous attempts to raise funds to kick-start the modernization program have not met with much success. In mid-February, the federal government refused to authorize $50 million in national recovery grant funds to the Guam port authority. The loss also cost the port authority $49.1 million in matching funds from the US Department of Agriculture.

However, port officials are upbeat about the $50 million from the Defense Department and are hoping to work with the Obama Administration to secure more funds in the near future.

The modernization plan comes as the Defense Department readies a $15 billion plan to begin moving about 8,000 US Marines and 9,000 of their dependents from Okinawa, Japan to a new base on Guam. Island officials believe that without the upgrades to the commercial port, the military buildup, set to begin later this year and run through 2014, will cause significant disruptions to commercial shipping to the island.

Under the terms of the management contract, EA Engineering, which has a presence on Guam, will be responsible for awarding nearly $157 million worth of contracts related to the $200 million modernization program.

Financial details of the contract with EA Engineering were not released.

Obama Seeks $50 Million for Guam Port Infrastructure

President Barack Obama, in a letter to Speaker of the House Nancy Pelosi, requested a shift of $50 million in the next federal fiscal year budget to fund infrastructure improvements at the Port Authority of Guam facilities.

In the April 5 letter, President Obama said, "Modernization of the [Guam] port is a critical prerequisite for the military construction program supporting the realignment of US Marine Corps forces from Japan to Guam, a part of the overall United States strategy for military forces in the Pacific region."

If approved, the $50 million in US Department of Defense funds would be transferred to the US Department of Transportation to directly finance the $200 million modernization program at the Guam commercial port.

The Port Modernization Master Plan includes expansion and improvement projects considered critical to allow the port to handle a projected influx of goods when the US military begins a four-year program to transfer more than 8,000 military personnel from Okinawa to Guam by 2014. The transfer, set to begin sometime this summer, could nearly double the amount of cargo moving through the small port.

Obama's letter comes following the federal government denial of $50 million in stimulus funding to support the Guam port modernization plan and following questions from Guam officials to the President regarding the federal government's level of commitment to assist the Guam government in dealing with the military build-up impacts on the island nation.

Supporters of the modernization plan believe that without the proposed improvements, the Guam commercial port could become a serious bottleneck in the military transfer and possibly create serious delays in the both the overall military build-up plan and the delivery of commercial goods to the island nation's citizens.

Guam Port Gets DOD Funds to Begin Modernization Work

The United States Department of Defense has agreed to pay $50 million to complete upgrades at the Port Authority of Guam (PAG), according to Guam Congressional Delegate Madeleine Bordallo.

Speaking to a Rotary Club group on Monday, Bordallo said that the PAG has identified just under $160 million in infrastructure projects needed to meet the requirements of an impending U.S. military buildup on the island.

The port is undergoing a rapid expansion as it prepares for the U.S. government’s transfer of all military operations and personnel from Okinawa, Japan to Guam later this year. In May, 2008, Guam’s Governor Felix Camacho signed-off on an estimated $195 million 2007 Master Plan aimed at modernizing the PAG to accommodate the expanded military presence. An estimated 8,000 U.S. Marines and 9,000 dependents from Okinawa is expected to increase traffic through the Guam port by more than 100 percent, an increase that many fear the current infrastructure at the port will not be able to handle without serious modernization efforts.

Bordallo said that the PAG applied for $100 million in grants and loan programs through the U.S. Department of Transportation including a request for $50 million in national recovery grant funds, but the DOT denied request. Without the start-up funds, the PAG can not qualify for a $49 million low-interest loan from the U.S. Department of Agriculture.

Following the rejection of funding, Bordallo and Guam Gov. Felix Camacho took up the case directly with the Department of Defense. Bordallo said once she gave an impassioned explanation of what caused the failed grant applications, DOD officials said they would pay the $50 million in start-up funds. The money is expected to be available in the next several weeks. In addition, the DOD agreed with Bordallo's request that she be named "buildup czar," taking on a role as head of the buildup program on Guam.

Guam Port Web Portal Launches After 16 Month Delay

After more than a 16-month delay, the Port Authority of Guam last week launched a web portal to allow identified users to share information critical to the work being done as part of the island's commercial seaport modernization program.

The portal, access to which is available only to certain groups such as employees, consultants, federal officials and some representatives in local agencies, has been mired in controversy since a Guam Attorney Generals' Office report that found that the contract covering the web portal development was an illegal procurement by the Guam governor's Chief of Staff George Bamba and Guam government Chief Procurement Officer Claudia Acfalle. The web portal contract was part of a larger port outreach project. The report found that the outreach contract, funded through a $350,000 sole-source purchase order, was not put out to bid and instead illegally awarded to port contractor Parsons Brinkerhoff.

The web portal component of the contract was to be delivered by October 2008, but delays continued month after month for which the contractor was paid $35,000 per month.

The Attorney General's Office, in issuing the report last month, said it planned to take legal action against the contractor, seeking either $100,000 in repayment or the completed project.

After the contract was turned over to another division of Parsons Brinkerhoff, the port subsequently announced the completion of the web portal project.

Vivian Leon Named to Number Two Slot at Guam Port

The governing board of the Port Authority of Guam has named Vivian Castro Leon as the authority's interim deputy general manager.

Leon, a 33-year veteran of the PAG, will be the first woman to serve as the port authority's deputy general manager.

Her years of experience serving in various PAG positions, including her most recent stint as the PAG's corporate services manager, earned praise from the PAG Board of Directors and Guam Governor Michael Cruz.

Leon will fill the deputy general manager position vacated by Rick Agustin who recently took the helm of the PAG as general manager following the resignation of Glenn Leon Guerrero.

Guam Port Top Exec to Step Down

After just over 18 months as head of the Port Authority of Guam, General Manager Glenn Leon Guerrero confirmed Monday that he is looking for employment outside the port.

His decision comes as the second and final term of Guam Gov. Felix Camacho's administration enters the last 10 months in office before the November election.

Guerrero notified the Governor Monday that he is looking at other job options, but has yet to submit a letter of resignation or name a date for his departure.

"Like many of my colleagues in the Camacho-Cruz Administration, I am weighing my options for what the future holds for me when the current term comes to an end," Guerrero said in statement. "However, I have not stepped down from my position and I continue to serve Gov. Felix Camacho, who has been the true driving force behind all of our accomplishments here at the commercial port."

The PAG board appointed Guerrero as the port authority General Manager in July 2008.

Guam Port Misuse Saga Continues

Like The Godfather’s Michael Corleone lamenting that he keeps being pulled back into his criminal past, the Port Authority of Guam can not seem to get away from the Guam Shipyard misuse incident.

Despite PAG offering last week what it considered the last word on the subject, namely that all cargo will move through the island under the auspices of PAG as Guam law states or face legal action, the firm at the root of the shipyard incident is now challenging nearly $1 million in fees levied against it by PAG over the misuse.

Watts Constructors, which has used the Guam Shipyard to load several shipments of cargo and thus circumvented the PAG-controlled commercial port, now claims that the PAG-imposed penalties are unfair and that the firm was forced to use the shipyard because the normal port facilities could not handle the shipment.

"We understand that the Port wants to be the exclusive commercial port on Guam," said a Watts Constructors' news release. "However, as it stands now and as our situation shows, the Port is simply not yet equipped to handle the full range of cargo moving on and off the island today."

Guam law states that all cargo moving on and off the island must be handled by the PAG-controlled commercial port. However, the port has struggled in recent years to upgrade the facilities, including several failed attempts to replace decades-old cranes.

After learning of the shipyard misuse, PAG required Watts to pay fees to the port for the illegal shipment. The state government also fined the shipping agent involved.

Watts is now arguing that Guam law does not support the PAG's position in imposing those charges.

"The Port had neither the capacity nor capability to handle the load-out operations for the second voyage bound for Pearl Harbor," said the Watts release. "Thus, Watts Constructors used the Guam Shipyard Facility to load the remaining Navy cargo onto its vessel."

Guam Port Warns Shipyard About Future Misuse

The Port Authority of Guam appears to have had what may be the last word in the case of the island shipyard illegally used as a cargo facility. Port General Manager Glenn A. Leon Guerrero has issued a "cease and desist" letter to Guam Shipyard president Mathews Pothen, making it clear that commercial cargo operations are the sole jurisdiction of the port authority under Guam law.

In July, a Thomas/Brusco tug/barge was loaded at the shipyard with commercial cargo from Watts Constructors. While PAG is looking into whether or not this was the first such use of the shipyard, Guerrero's letter makes it clear that PAG intends it to be the last.

"You are hereby notified that any and all commercial cargo operations and like activities shall cease and desist immediately," wrote Guerrero, "unless expressly permitted and authorized by the Port Authority. Non-compliance will prompt the Port Authority to pursue restitution at the highest degree permissible by law, its rules and regulations and port terminal tariff, furthered by legal ramifications."

PAG has already collected the lost revenue from the shipyard over the illegal loading and the Harbor Master slapped the agent that handled the shipment, Norton Lilly International, with a Notice of Violation and a $2,500 fine.

"Should there be additional violations discovered," Guerrero wrote in the letter to the shipyard, "this letter again serves as your notification that the Port will pursue allowances to enforce compliance to our mandate."

While Guam law only allows commercial cargo to be handled at the PAG-operated port, PAG officials have said that under "extenuating circumstances" commercial cargo could be moved at facilities outside the port, albeit with the caveat that such shipments be overseen by PAG and that the port authority collects all revenues for the shipment.

Guam Shipyard Misuse Appears Settled

In what appears to be a conclusion to the misuse of a shipyard as a commercial port facility in Guam, the Port Authority of Guam will take over handling of cargo still at the shipyard on a one-time basis.

The port determined that it would be unsafe to transfer the 270 pieces of odd-sized construction material, including steel beams up to 140 feet long, from the shipyard– where another shipment was illegally loaded on a vessel in August– to the commercial port by truck.

Port workers will handle the loading of the material at the shipyard and charge the cargo owner the same as if the material moved through the regular commercial port. The cargo owner, Watts Constructors, already paid the PAG $88,000, or the equivalent of what it would have cost to use the commercial port, for the first shipment. About two-thirds of the original cargo still remains at the shipyard, bound for Hawaii.

Under Guam law, commercial cargo can only be handled through the PAG-run commercial port.

Shipyard Misuse Sparks Ire of Guam Legislator

Guam territorial Sen. Jim Espaldon had demanded an immediate answer to why Port Authority of Guam officials allowed a barge to load commercial cargo– against state law– at the non-PAG-controlled Guam Shipyard.

In a letter to PAG general manager Leon Guerrero, Empaldon– one of 15 locally elected senators that make up the territorial legislature– made no secret of his displeasure at the situation.

"Now that a precedent has been set, what steps [is] the Port taking to stop the Guam Shipyard from again loading commercial cargo and functioning as an alternative port?" wrote Espaldon.

Guam law prohibits the use of any island facility other than those operated by the PAG for commercial purposes.

Empaldon also asked for confirmation on the amount of revenue the PAG lost, citing "sources" that told him it was more than $250,000.

The senator raised the specter of cuts to the $200 million remodernization program that the PAG is in the midst of, saying such investment should not be needed if the shipyard is actually competing with the port.

"We can downscale and not have to take out loans," wrote Espaldon. "Why are we being asked to raise tariffs, when we are turning away income?"

Port officials reiterated earlier promises to investigate and answer all questions about the situation.

Guam Port Considering Options Over Shipyard Misuse

Port Authority of Guam officials are investigating how to proceed after revelations Saturday that a construction company used the Guam Shipyard to unload construction goods.

Guam law prohibits the use of any island facility other than those operated by the Port Authority of Guam for commercial purposes.

Port authority officials were discussing a course of action with their legal counsel, but declined further comment.

"We have information regarding this incident, and we are currently looking into this matter," port authority general manager Leon Gurrero told the Pacific Daily News.

Officials at the Guam Shipyard referred questions about the issue to construction firm Watts Construction. The construction firm could not be reached for comment.