Port Board approves tender process for ‘critical’ new gantry cranes

The board of directors of the Guam Port Authority on Thursday authorized a multi-stage bidding process to replace the port’s end-of-life gantry cranes.

During Thursday’s meeting, Port Board Vice Chair Conchita Taitano reported on the meeting, which took place this week on the sidelines of the American Association of Port Authorities’ annual conference.

She said representatives from AAPA, the U.S. Department of Defense and the U.S. Department of Transportation have heard Guam’s proposal for critical new cranes to replace used cranes purchased in 2009 that are now more than 40 years old.

“As these cranes reach the end of their service life, the port’s ability to effectively manage cargo is at risk, especially amid rising geopolitical tensions,” port officials said.

“The most important thing is that there is interest and companies that can manufacture it for us,” Taitano said.

She said she has already received inquiries from companies that have said they can manufacture the cranes to the Port of Guam’s specifications.

Board members also discussed financing for the cranes and the fact that the Port of Guam received an exemption from the Buy America Act, which normally requires the purchase of equipment made in the United States.

Taitano said she told officials the port “wants to buy American, but we have to work with our budget. It is bid out and GovGuam procurement requires them to accept the lowest qualified bidder, even if the manufacturer is from China.”

Port Authority General Manager Rory Respicio said that if the bidding process determines a Chinese manufacturer is the most responsive, the port will evaluate the proposal in accordance with all laws.

“However, DoD funding will likely prevent the acquisition of Chinese-made cranes that meet U.S. safety standards,” he said.

Respicio said that current funding can only cover one new gantry crane, “but not pursuing all options to acquire at least three, and ideally four, ship-to-shore (STS) gantry cranes will significantly affect the operational sustainability and strategic importance of the port.”

Respizio cited a recent Defense Department “gap analysis” that he said underscores the urgency of improving port readiness.

“Our efforts to secure the new cranes are integral to Guam’s role as a reliable logistics hub for commerce and the military — now more than ever in an environment of geopolitical tension,” he said.

In addition to authorizing the invitation to bid, the resolution also reallocates funds from the stalled Hotel Wharf project to prioritize the purchase of cranes, officials said.

They added, “This financial commitment is aimed at meeting Guam’s immediate operational needs while meeting national security standards, including efforts to obtain Buy American waivers to avoid reliance on Chinese-made cranes.”