Navy said to seek new operator for Guam shipyard

DECEMBER 18, 2012 — The U.S. Navy looks like it will once again be looking for an operator for the former Guam Ship Repair Facility. Local media reports say that NAVFAC (Naval Facilities Engineering Command) failed to reach an agreement with the current leaseholder, Guam Industrial Services, which operates the facility as the Guam Shipyard.

The Navy announced the closure of the Ship Repair Facility in 1995, as part of the base closure and realignment process. The Navy then leased it to the Guam Economic Development Authority, which in October 1997 subleased it to Guam Industrial Services.

The lease with the Navy expired in September, and the shipyard has been leasing the site on a month-to-month basis.

The announcement is not expected to effect the facility’s operations or its employees, according to a written statement from Guam Industrial Services, .

The Navy in 1995 announced the closure of its Ship Repair Facility, as part of the base closure and realignment process. The Navy leased it to the Guam Economic Development Authority, which in October 1997 subleased it to Guam Industrial Services.

Guam Industrial Services has been negotiating with the Navy since May on a possible 40 year lease, but the two parties were unable to reach an agreement.

The Navy now apparently plans to announce a “market survey” during the next few weeks, which could allow Guam Shipyard, the Guam Economic Development Authority and others to compete for future ship repair work here.

Guam Shipyard president and chief executive officer Mathews Pothen told local broacaster KOAM that he is looking forward to future arrangements and discussions that will be led by the Military Sealift Command. He added that Guam Shipyard foresees no immediate change to the day-to-day business at the shipyard, nor impact on shipyard employees, vendors and suppliers. He said he “looks forward to continuing a strong relationship with the Navy to keep its ships at is best operational readiness condition in the Western Pacific area of responsibility.”