Cover Story
New Life for an Old Naval Base?
Guam Sees Job Bonanza By Rebuilding Shipyard.
The fate of Ship Repair Facility Guam (SRF) has weathered many natural storms since it was established on Guam nearly 50 years ago, but none like the man-made one of the mid-1990s. Today, derelict cranes sit in overgrown fields adjacent to the wharves, ship anchors lay rusting near an unusable large dry-dock, and buildings containing metal working lathes and machinery are unused. It was just a few years ago the Apra Harbor facility employed over 2,500 specialized and skilled workers and added millions of dollars to the local economy. Now it is run by military super-contractor Raytheon Inc., which pays on average half the wage earned by former SRF employees.
In 1995, the U.S. Navy — through the congressionally mandated Base Realignment and Closure Commission (BRACC) — sealed the fate for what had been Guam’s second industry, the U.S. military presence. The severe cutback was contested by lawmakers, business people and the Gutierrez administration but those efforts fell on deaf ears in Congress. Many thought that Guam was paying for the actions of a few who by such events as spitting on military police or blocking the entrance to COMNAVMAR, the headquarters of the Naval presence, doomed Guam to economic disadvantage. Current events, however, suggest that Guam is reemerging in military importance.
- ADVERTISEMENT -
A newly released "think tank" study compiled by the Rand Foundation reports that: "To deal with a host of critical challenges — from rising power of China and India and the regional proliferation of missiles and nuclear weapons to the continuing threat from North Korea and the shaky status of Indonesia and Pakistan — the United States must formulate a new and integrated Asia strategy based on strengthening our existing bilateral security alliances." The report recommends that U.S. regional capabilities should be further improved by building up Guam as a power-projection hub.
 |
|
|
Governor Carl T.C. Gutierrez and in some part the Guam Legislature has moved to take advantage of the reemerging military focus on Guam. Gutierrez recently requested the U.S. Department of Commerce to waive the first $200,000 of matching funds for a project to deepen berths in Guam’s harbor that will allow super ships such as the new nuclear powered aircraft carriers, recreation cruise ships and the new C-11 Hull class transport ships to dock in Guam.
Gutierrez has asked Guam’s Congressman Robert Underwood to seek congressional funding for architectural and engineering plans for the construction of 2,900 feet of new wharfage and 3,000 feet of reclaimed lands within the harbor. The U.S. Navy itself has already begun initial studies for implementing an inner harbor maintenance dredging project in 2003.
An indication of the impact of U.S. military presence — even a transient one — was provided with the April eight day rest and relaxation visit to Guam by the U.S.S. Kitty Hawk and the Ticonderoga-Class guided missile cruiser, USS Vinennes, a visit that pumped an estimated $7 million into the local economy. Within days of the departure of the Kitty Hawk battle-group, the U.S. Navy announced that RIMPAC, one of the world’s largest naval exercises involving military units from around the world, would use with Guam as its center point for the combined joint military exercises late this year.
Even though there are ships and economic development possibilities on the horizon, Guam’s shipyard remains in a state of flux. According to Guam Economic Development Authority (GEDA) officials who oversee the development of the former SRF facility, the US Navy has retained title to the land and buildings located at the former shipyard. This change came after BRACC negotiations that would have given complete title to the Government of Guam. Today there is on-going negotiation for a long-term — 25 year — lease for the materials and property for GovGuam that could put the territory in a better position for increased ship repair contracts and long-term banking arrangements to further develop the shipyard. The challenge for Guam remains to be finding ways to turn the renewed Defense Department interest into long-term jobs and revenues for the territory.
