Guam – Governor Calvo made an appearance in front of Standard and Poor’s, to defend the Port Authority of Guam and to report on the islands economy, addressing concerns by the rating agencies about the Port’s ability to ensure the follow through and completion of projects.
The Port has seen a 10% increase in cargo through-put revenues for the first six months of 2018.
Since acquiring new equipment in the yard, existing equipment was evaluated to determine lifespan and address any refurbishment needs.
Port Authority of Guam General Manager Joanne Brown called the maintenance of nearly a dozen tractors as “unprecedented” and a significant step forward, to not just have equipment but to maintain it so as to have a reserve capacity, something rating agencies will look favorably upon.
Brown also noted visits by members of the military to assess the Port’s operations and capabilities to move military cargo, as the Port looks to solidify a military contract in anticipation of the military expansion.
The bonds are critical in ensuring the Port is able to complete the necessary upgrades.
“We did note that our ability currently, with the Ports finances, at the current rate we are at, that we have the ability four times over, to pay back the debt service on the bonds and so certainly that puts us in a very good position, but right now, since we met last week, up until probably next week, we will still be in our offices, as well as our consultants, will still be responding to any additional questions because certainly at the end of the day they are going to be looking at the numbers to determine our financial viability in terms of this desired investment,” said Brown.
Over the next couple of weeks, the Port will be awaiting the rating of their bond, as it looks towards mid-June to address the marketing of the bonds.