A deal to purchase three gantry cranes for the Port Authority of Guam has received approval from the Guam Public Utilities Commission despite controversy over the cranes’ condition.

Currently owned by Matson Navigation Company and Horizon Lines, the three cranes have been in use at the Port of Los Angeles (POLA) prior to the deal, raising concerns over apparent deficiencies in the cranes.

In response to these concerns, Guam Public Utilities Commission (PUC) has insisted that the Port Authority of Guam (PAG) complete repairs to the cranes along with a structured maintenance programme before they can begin operation.

To offset concerns that the purchase is a poor decision as the cost of repairs and maintenance could far exceed the cost of purchasing three new cranes the PAG will develop a tariff that covers the cost of the purchase, financing and maintenance programmes. This will be developed from PAG forecasts for cargo throughput.

The port will file a report with the PUC to update them on the condition and future plans for its existing gantry crane by 15th February 2013, while the progress of repairs to the three POLA cranes must be reported by 15th June 2013.

PAG general manager Mary Torres said: “The board of directors and I are very pleased with the commission’s review and approval of the sales and interim maintenance agreement, which enables us to meet the deadline mandated under Public Law 30-57.

“It is essential for the port to own its own cranes and the acquisition of the POLA cranes by the port presents a unique opportunity and value to Guam given its presence on the rails, record of operational reliability and elimination of disruption to ongoing operations. The port is a critical lifeline to the local community and the region and we strive to ensure a continued smooth flow of goods into the homes of every single resident of Guam.”

Guam moves forward with cranes purchase