Respicio details Port fee proposal, military readiness plan at Guam Chamber meeting

BY PAULY SUBA
Journal Staff                                                                                                                                                                                                                                                                                    

Rory J. Respicio, general manager of the Port Authority of Guam, shared a proposed 17% adjustment plan to labor fees at the Port during a June 25 presentation to the Guam Chamber of Commerce’s general meeting at the Hilton Resort Guam in Tumon. He also outlined a broader military readiness strategy. Respicio emphasized that the proposal is narrowly focused and not a general rate increase that would significantly raise the cost of consumer goods.

“This is not an overall tariff increase,” Respicio said. “We’re not applying these increases to the crane surcharge, facility maintenance fees, marina fees, fuel surcharge, or leases.”

Instead, the petition to the Public Utilities Commission (PUC) seeks to update labor charge-out and equipment rental rates tied to vessel operations to reflect 2025 figures. The proposed increase is based on a calculated blend of average labor adjustments and equipment inflation between fiscal years 2019 and 2024. “If you take the average labor adjustment and combine that with equipment inflation of 20.9%, the blended rate comes out to 17%,” Respicio said.

The increase would be phased in over time. “We’re asking the PUC for a phased implementation, 8.5% for the first four months, and then 17% thereafter.”

Respicio made it clear that it would not mean a 17% increase in grocery prices. “If your bill is $100, and you’re thinking 17%, now your bill’s going to be $117. it’s not going to translate that way,” he said. Respicio shared estimated cost increases of $0.00076 for a can of Spam, $0.00246 for a 20-pound bag of rice, and $0.0011 for a canned beverage.

The Port also detailed its financial transparency and operational stability. “It’s still $4.8 million a month, and so we’re living within that monthly allotment,” Respicio said. Workforce data showed relatively steady staffing levels from FY2019 through FY2025. “Our hiring has followed a disciplined, needs-based process,” he said, noting that despite expanding responsibilities during COVID-19 and Typhoon Mawar recovery efforts, the Port maintained stable personnel numbers and no major budget spikes.

According to Respicio, the Port has absorbed significant operational responsibilities, including coordinating cruise ship disembarkations, surge military cargo offloads, new cybersecurity protocols, and maintenance of aging infrastructure, all without requesting bond financing or borrowing.                                                                                                                                                  
The Port is also asking the PUC to adopt a mechanism for reviewing and adjusting tariffs every three years based on the Consumer Price Index or government pay scales. He said, “What we’re doing different in this petition… is we’re asking the PUC to figure out a mechanism… so we don’t have to go through this exercise.”

No date has yet been announced for a PUC decision.                                                                                                                                                                                                                                   
Respicio also presented the Port’s federal grant success, having secured over $106 million in modernization funding over the last decade. “We quantified $106,494,698.56,” he said, crediting funding partners such as MARAD, OLDCC (Office of Local Defense Community Cooperation), FEMA, and the DOD for supporting port security upgrades, yard expansion, equipment replacement, and wharf rehabilitation.                                                                                                                                                                                                                                                           
A significant part of the Port’s long-term plan involves replacing its three aging gantry cranes, which are over 42 years old. Respicio described them as “at the end of their lifespan,” with retirements scheduled in 2026, 2028, and 2030. He warned of national security implications if replacements are not secured. “If one crane went down, it will set back the military readiness program by about four years,” Respicio said.

The Port Readiness Plan, developed in coordination with federal agencies and defense officials, aims to reinforce Guam’s dual role in commerce and national security. It identifies key investment priorities and aligns with Department of Defense surge logistics.

Respicio thanked Congressman James C. Moylan for helping spotlight Guam’s infrastructure needs at the federal level. “Congressman Moylan called me and said, ‘Rory, I was able to put the $60 million preparation in the big, beautiful bill,’” he said.

Respicio clarified that the proposed tariff adjustment is not tied to any new borrowing or bond issuance but rather reflects an effort to update outdated labor and equipment rates to align with 2025 standards. Since 2019, he said, the Port has been steadily reviewing its tariff structure and billing practices in collaboration with industry stakeholders.

Respicio said, “This is about operational integrity and fiscal responsibility.” mbj