VIDEO: Port Wants MARAD to Adopt Repair Compromise Because Loan Will Mean Tarriff Increase

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Guam – GovGuam has written to the U.S. Maritime Administration [MARAD] to let them know that the Port intends to proceed with a loan,  on its own, for repairing the Port’s wharf,  if  MARAD does not agree to the compromise they have offered.

Port Board Chairman Dan Tydingco detailed the Port’s proposal at the Rotary Club of Northern Guam luncheon Tuesday.

READ Port Board Chairman Tydingco’s presentation to the Rotary Club HERE

MARAD wants to spend more than $50-million in DoD funds committed to the Port to replace the wharf after a DoD Inspector General report last year concluded that the wharf is in danger of collapse.

Tydingco says the Port has asked MARAD to use only $15-million to repair the wharf,  rather than replace it. That would extend the life of the wharf for another 15-years and preserve most of the remaining funds for the Port Modernization improvements, which have yet to begin.

However, Tydingco said that if  MARAD rejects the Port’s compromise, the Port will seek funding on its own to repair the wharf  by going out and getting a loan to do the repair work.

According to the Port, MARAD has concluded that the total cost of replacing the wharf could be as high as $200 million dollars. However,  no agency has allocated that amount of money.

MARAD has made no final decision on what to do and they have told GovGuam are seeking more studies.