Opinion by Rory J. Respicio for Kandit News & Views
On February 26, 2025, the Port Authority of Guam’s Board of Directors unanimously passed Resolution No. 2025-09, memorializing our ongoing revenue enhancement efforts and authorizing the petition to the Public Utilities Commission (PUC) for approval of necessary tariff rate adjustments.
This is not a general tariff increase. It is a structured approach to ensure that all services rendered—such as third and fourth gangs, supervisor overtime, mechanic/electrician night differentials, and third gantry crane usage—are appropriately billed. The Board’s resolution affirms our commitment to financial sustainability while minimizing disruption to stakeholders.
Throughout this process, our carriers, shipping agents, and other port users have been supportive of the Port. As we have made adjustments to align our billing practices with what is required under the tariff, they have never tied their own rate increases to these adjustments. Their cooperation has been invaluable in ensuring the continued stability of Guam’s supply chain.
Transparency and industry engagement have been central to this effort. We formally notified our carriers and shipping agents, providing them the opportunity to offer feedback. Additionally, the proposed adjustments will be phased in, with an 8.5% increase for the first four months and 17% thereafter. This measured approach helps mitigate financial impact while ensuring the Port can address rising operational costs.
Since 2019, the Port has taken significant steps to strengthen its financial position. Through operational efficiencies, cost-saving measures, and securing federal funding, we have maintained stability while keeping Guam’s supply chain running smoothly. The Board’s resolution underscores that before seeking any adjustments, we have prioritized efficiency and maximizing existing revenue mechanisms.
The Port’s financial health is directly tied to Guam’s economic stability. These adjustments will allow us to continue investing in critical infrastructure, maintaining reliable service, and ensuring that the Port remains a modern, resilient gateway for trade and commerce. By submitting this petition to the PUC, we reaffirm our commitment to a financially sound, operationally strong, and future-ready Port for the people of Guam.
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Rory J. Respicio is general manager of the Port Authority of Guam. He took the helm from Joanne Brown, who ran the agency into the red, and within two years turned seaport finances into the black, securing numerous awards for financial excellence and transparency along the way.
