U.S. TERRITORY SAYS ICTSI’S APPEALS HAVE BEEN REJECTED TWICE
No Guam port until row with RP firm ends
By VG Cabuag
Reporter

A PACIFIC island controlled by the United States will be unable to proceed with the privatization of its lone port until it resolves issues with a Manila-based company, which has emerged as the lead entity to manage the said facility.
       In an e-mail message, the Port of Guam told BusinessMirror that it cannot resume with the privatization of the Jose D. Leon Guerrero Commercial Port until it settles its dispute with International Container Terminal Services Inc. (ICTSI), the Philippines’ largest private port operator.
       Besides having operations in five countries, the locally-listed company, which is controlled by the Razon family, recently acquired virtual ownership of an Indonesian port operator.
       In April, Guam port general manager Joseph Mesa ended talks with ICTSI, which became the first of the three bidders for the terminal’s privatization late last year.
       While ICTSI has already submitted two formal protests against the decision to end talks about its bid to operate the facility, a Guam port official said that the agency has denied the petition on both occasions.
       “They [ICTSI] have further administrative remedies to appeal, but I don’t know and can’t comment on what avenue they will take,” said Michael Henderson, the port’s marketing communications administrator, in the same e-mail message.
       Earlier, ICTSI said that the Guam port’s April decision was “illegal” since the serving of termination letter was unauthorized.
       According to reports, the termination of the negotiations was done the same day that Guam Gov. Felix Camacho fired ranking officials of the port authorities, including Richard H. Northey, board chairman of the Port Authority of Guam (PAG).
       Reports also indicated that port officials decided to terminate the negotiations after ICTSI refused to replace the 38-year-old gantry crane, which the PAG retired in March. For its part, ICTSI said it was not stated in its original bid.
       Guam, which also hosts a military base strategic to US interests, also rejected ICTSI’s plan create a new subsidiary, with a local company E.C. Development LLP as its minority holder. The local company is controlled by the Calvo family, which reportedly has political ties with the incumbent Guam governor.
       In December, ICTSI was chosen as one of the top three bidders that won the Guam port’s terminal operations and equipment maintenance. The other two were Portek International Ltd. and SSA Marine.
       Last week, Portek sold its 51-percent stake in Indonesian port operator PT Makassar Terminal Services to ICTSI.
       According to bid documents, if the port authority is unable to reach a contract agreement with ICTSI, it has the option of negotiating with the next highest rank or canceling the proposal outright.