Washington, D.C. – Governor Lou Leon Guerrero, officials from the U.S. Maritime Administration (MARAD), and the General Manager of the Port Authority of Guam recently met on Thursday to discuss the newly amended Buy America waiver for the Pacific island territories and its impact on securing federal funding for critical infrastructure projects, including the replacement of Guam’s aging ship-to-shore (STS) gantry cranes.
“This waiver acknowledges the unique challenges faced by Guam and other Pacific island territories and ensures that we can modernize our infrastructure without unnecessary delays or cost increases. The Port has applied for MARAD grant funding for new STS gantry cranes for the past two consecutive cycles, but those applications were denied due to Buy America requirements. With this waiver in place, we now have a real opportunity to secure the equipment needed to strengthen our supply chain and port operations,” said Governor Leon Guerrero. “Lt. Governor Josh Tenorio, Port General Manager Rory Respicio, and I have been requesting this waiver from MARAD because of the inability to meet domestic manufacturing requirements for STS gantry cranes, and we are pleased with this favorable result. However, we continue to urge action to recognize that port readiness equals military readiness. If just one of the Port’s aging gantry cranes fails, the resulting delays could set back military readiness by four years due to the prolonged disruption caused by not having three fully operational cranes. Additionally, the service life of these three gantry cranes is set to expire in 2028, 2030, and 2032, respectively, making timely replacement critical.”
This amended waiver, recently issued by the U.S. Department of Transportation (DOT), eliminates domestic sourcing requirements for iron, steel, manufactured products, and construction materials in federally funded projects in Guam, the Commonwealth of the Northern Mariana Islands (CNMI), and American Samoa. This is particularly critical for STS gantry cranes, which are not manufactured in the United States. Guam would find it nearly impossible to meet the previous Buy America requirements without them.
While STS cranes can now be procured if not sourced from China, officials noted potential flexibility under these exclusions. They encouraged continued coordination on future procurement needs. Additionally, the de minimis waiver remains in effect, allowing up to 5% of total material costs (including shipping) or $1,000,000 to be exempt from Buy America restrictions.
“This waiver removes a major hurdle that has blocked federal funding for our ongoing efforts to secure three new STS gantry cranes,” said Respicio. “With this waiver now in place, we have a clearer path to competing for federal funding, including opportunities through MARAD, to acquire the STS gantry cranes needed to improve efficiency, reduce costs, and ensure the long-term reliability of Guam’s only commercial seaport. This waiver and potential funding sources will allow us to avoid the purchase of China-made gantry cranes, ensuring Guam’s port remains a cornerstone of economic and defense operations in the Indo-Pacific region.”
The amended waiver, effective from January 10, 2025, to January 9, 2030, replaces a temporary exemption issued in April 2024. It revokes the previous waiver’s extra reporting requirements, eliminating the need for additional justification that previously delayed projects. This streamlined process will help Guam move forward with key infrastructure investments that secure national security objectives, support economic resilience, and enhance regional trade.
“Guam’s strategic importance to U.S. military operations in the Indo-Pacific cannot be overstated. Failing to replace these aging gantry cranes risks disrupting civilian supply chains and impacting military readiness for years. We thank MARAD for recognizing the unique challenges of the Pacific territories through this waiver. We will continue to push for strong federal support—including from the Departments of Defense, State, FEMA, and Interior—to address this urgent need for the sake of commerce, the defense of our nation, and resilience against natural or man-made disasters,” said Governor Leon Guerrero.
MARAD officials reaffirmed their commitment to assisting Guam and other Pacific island territories in fully utilizing this waiver and providing technical assistance for this competitive grant process to secure funding for critical maritime infrastructure projects.
To view the waiver, visit https://www.transportation.gov/sites/dot.gov/files/2025-01/DOT-Final-Pacific-Island-Territories-Federal-Register-Notice.pdf.
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