Oil spill at Port's Cargo Storage Facility lot

SHIPPING: A ship docks at the Port Authority of Guam in July 2020. A mechanical issue caused an oil spill at the cargo storage facility lot. Post file photo

The U.S. Economic Development Administration is awarding a $2.4 million grant to the Port Authority of Guam to make disaster-resilient infrastructure improvements needed to ensure continuity of operations, according to a release from the Port Authority.

The U.S. Department of Commerce EDA grant will be matched with $603,272 in Port investment and is expected to create or retain nearly 50 jobs.

The project is funded through the Additional Supplemental Appropriations for Disaster Relief Act of 2019 which provided EDA with $600 million in additional Economic Adjustment Assistance Program funds.  

The total investment of $3.02 million will fund the “installation of a fuel pipeline system for F1 pier and Gold pier connectivity project.” The Port utilized in-house personnel and resources in providing the minimum EDA required technical information to support the design and construction of this project.

The Port grant application to the 2019 EDA Disaster Supplemental Grant Program is a critical economic recovery and disaster mitigation initiative that will not only enhance the Port’s resiliency but will also address preparedness, sustainability and continuity of business operations for the volatile fuel industry on Guam.

The project involves the installation of a robust fuel pipeline system that will allow connectivity between the Port’s only two fuel wharves, F1 and Golf piers, respectively. Considered a mitigation and resiliency initiative, the project will ensure that bulk fuel, jet fuel and diesel fuel distribution and delivery remains uninterrupted for the island of Guam in the event that either pier is impacted by natural or man-made incidents.

Port Authority of Guam General Manager Rory J. Respicio said this initiative was a priority for Gov. Lou Leon Guerrero and Lt. Gov. Josh Tenorio as they want to safeguard these assets to ensure uninterrupted distribution of fuel products for all the people of Guam.

“From an economic standpoint, this project is a feasible concept as it ensures that there is continuity of commerce on Guam and the surrounding region should either pier become inoperable,” Respicio said. “We are collaborating with Tristar Terminals Guam Inc. and Mobil Oil Guam facility managers for the execution and completion of this critical and important project.”

All petroleum products are periodically shipped to Guam via fuel tankers and unloaded at both F1 and Golf piers. This mitigation project will ensure redundancy and continuity in fuel distribution and achieve port resiliency in times of emergencies impacting either wharf. F1 Pier and Golf Pier are assets that are valuable to the Port and Guam as a whole.

All efforts are constantly implemented to ensure that these wharves are operational. The risk of either pier impacted by a natural or man-made incident will have a rippled economic effect on the entire island community. This project will ensure continuity of business and operations and thus will be a benefit not only to the terminal operators but also to everyone that calls Guam their home, the release stated.

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