Board approves Port Authority of Guam's $56.6M budget for fiscal 2026

By Pacific Island Times News Staff

The Port Authority of Guam is projecting $57.1 million in revenue for fiscal 2026, an increase of $2.9 million from last year’s $54.2 million.

The port’s board of directors unanimously approved the agency’s fiscal 2026 budget on Thursday, which pegs the spending level at $56.6 million, including $5.7 million in annual debt service.

Based on these figures, the port projects a debt service coverage ratio of 1.99. The budget also projects a net income of $4.6 million, excluding revenues from the crane surcharge and the facility maintenance fees.

To develop the revenue forecast, the Port applied economic growth factors and projected an average six percent increase in cargo-related proceeds. Divisions built their requests through zero-based budgeting, ensuring operational needs are covered while maintaining fiscal responsibility.

“Our bottom-up approach to budgeting has kept the port on a path of accountability, transparency, and fiscal prudence,” said Rory J. Respicio, port general manager.

He said the applied method seeks to ensure financial stability while creating realistic projections to guide operations and capital planning for FY2026.

The budget also supports ongoing capital improvement initiatives that strengthen the Port’s resiliency and capacity. Key projects include the $4.3 million EQMR building maintenance, the $5.3 million warehouse 1 building maintenance, the $5.9 million waterline replacement and relocation

construction, and the $4.1 million enterprise one financial management system upgrade, all of which are currently in progress.

The capital expenditures outlook includes the acquisition of new gantry cranes, wharf service life extension and rail upgrades, and the ongoing procurement of the terminal operating system.

Respicio noted that the port has consistently met its revenue projections while spending below authorized levels. “That kind of discipline gives us the confidence that this budget will serve our employees, partners, and the people of Guam well in the year ahead,” he added.

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