New industry player enters Guam ship repair market

BY MAUREEN N. MARATITA
Journal Staff
 
While Guam has seen its fair share of construction companies heading for the island, a ship repair company is a novel organization to open an office with the intent of doing business.
 
Marunda Private Ltd. shared its aims at a reception at the Hilton Guam Resort & Spa on Aug. 29.
 

Established in 1985, with its headquarters in Singapore, the woman-owned business has opened an office in the International Trade Center in Tamuning.
 
Michael Little, director for business development and external affairs at Marunda; told the Journal that his group has a particular way of doing ship repairs. “We do afloat expeditionary maintenance and repair work. We’re a mobilization force.”
 
For the past two decades, he said, “We’ve done direct contracting with the U.S. government — the U.S. Navy and Military Sealift Command.”
 
In fiscal 2023 the Military Sealift Command generated $22.3 million in afloat repair in Guam, he said. “That’s just one customer,” Little said. “To put that in context, Singapore did $90 million.” The MSC has docked its ships in Singapore since July 2006.
 
The MSC’s area of responsibility mirrors that of the U.S. Navy’s 7th Fleet and includes the People’s Republic of China, Russia, India, North Korea and the Republic of Korea. Five of the seven U.S. Mutual Defense Treaties are with countries in the area — the Philippines, Australia and New Zealand, the Republic of Korea, Japan, and Thailand.
 
“The afloat work is only going to increase — whether it’s full maintenance packages, full voyage repairs, or even just one-off repairs,” Little said. “The U.S. Navy is just one small part of what we do. We repair for allied and partner Navies under direct business-to-business relationships — and they want us in Guam.”
 
Marunda has been repairing patrol combat ships for the U.S. Navy in Singapore for more than a decade, under contract with Austin USA, Epsilon and BAE. As an example of its ability to meet expeditionary needs, for example, it is also under contract with U.K Docks to repair Royal Navy ships.
 
The focus on the Pacific region for both training and a presence of vessels from a variety of nations, and the resultant increase in maritime traffic brings with it opportunities.  
 
“We’re also complimenting that by bringing British and Australian products into our portfolio, to get those Navies comfortable that we’ll bring in their products and services along with us,” Little said. “As these patrols increase, a natural byproduct is the maintenance and repair also increase,” he said.
 
Guam meets a variety of needs for vessels. “They will stop here for maintenance, crew rest, refueling, logistics — Guam is ideal because it’s a safe protected harbor. It’s a government port, so [vessels] are not paying any wharfage or berth hire fees,” Little said. Ships would also have access to ship repair.
 
The Guam Detachment of the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility located at Polaris Point may also offer mutual opportunities, Little said.  See mbjguam.com - Guam gets submarine maintenance facility Marunda will discuss a potential relationship with them, Little said.
 
A partnership was established between the University of Guam, the University of Hawaii at Mānoa and Pearl Harbor Naval Shipyard that “provides a pathway for engineering students at the University of Guam to transfer to UH Mānoa after their sophomore year and earn a bachelor’s of mechanical engineering, then gain possible employment with the [Hawaii] shipyard and potentially transfer to the Guam [Detachment],” according to the University of Hawaii, according to Journal files.
 
A dry dock for Guam has also been discussed, he said.
 
The future is bright to develop the industry, particularly at a time when geopolitical tensions have focused the need for maritime and other security, but progression of the industry is not without challenges.
 
“I think we all know that it’s the labor force — the work development piece that’s the most important thing of all. I think the workforce is there; it’s just going to take time,” Little said.
 
Marunda works in tandem with companies such as Fairbanks Morse original equipment manufacturers.  “We send our Singaporean staff to America for training. We’ll replicate that model here,” he said. “We’ll send our Guamanian staff to America for training.  That’s just one of our clients; we do that for other products and services,” Little said.
 
But for workforce development in Guam, Little said, “What needs to happen is a Guam Aerospace and Defense Alliance — made up of public and private companies, made up of government and made up of educators — all together to develop this capability. If BAE, Huntington Ingalls or Austal wants to have capability here they’d better start developing and they’d better take it seriously. There’s no better way to do this than in a consortium.”
 
While Little said Marunda will train local staff, he recognized the need to bring expertise to Guam. “We will request some senior level competence,” he said.
 
Little said Marunda aims to be up and running soon. “I think within three to four months we’d be able to get our products into the marketplace here in Guam. … We can start hiring and then we can start working on Littoral Combat Ships; that’s our goal.”
 
The company is open to working with other industry players. “I think the benefit of Marunda coming in here is everybody’s going to get more work.”
 
As to the current lack of a dry dock in Guam, Little said, “There are some discussions on dry docks.”
 
“I have a high level of confidence that our approach is going to be beneficial to the industrial base of Guam, but it has to be underpinned by serious people doing it together with purpose,” he said. “Guam is different; Guam has a way of doing things, but I think we have a good model.” mbj