Watts Challenges $1 Million In Port Fees; Port Stands Firm
Guam - Watts Constructors has notified the Port of Guam that it is challenging the more than $1 million dollars in fees imposed by the Port of Guam for two loads of cargo shipped from the privately owned Guam Shipyard.
A release calls the fees "tariffs" and states that they are "unlawful."
Watt's CEO Denny Watts is quoted in the release as saying that "The Port is simply not equipped to handle the full range of cargo moving on and off the island." He also states that "neither Guam law nor prior practice support the Port's position in imposing these charges."
The Port has repeatedly maintained that it did have the capability to handle the shipment. Port officials have called the first Watts shipment "unauthorized" and stated that they were not notified in advance that Watts intended to use the Guam Shipyard.
Watts states that the two shipments of concrete blocks and poles are "highly engineered pre-fabruicated construction materials manufactured by Watts and purchased by the U.S. Navy for use in a Navy project in Pearl Harbor."
Watts also states that the Port of Guam has allowed cargo to be transferred at the Guam Shipyard "for years." He also states that the first shipment was approved in July and left in August "without the Port assessing any fees or charges."
However with the second shipment, Watts accuses the Port of preventing their second shipment from docking until they paid a fee of nearly 90-thousand dollars.
He is quoted as saying that : "We knew these fees were illegal...but what could we do?"
Watts also states that his company attempted to hire the Port to load these shipments, and only when it became clear that the Port could not facilitate this load-out, did we, with the full knowledge of the Port, engage the Shipyard."
Watt's says his company will "vigorously pursue recovery of all amounts paid by and economic damage done to, Watts Constructors."
However, the Port has repeatedly maintained that it did have the capability to handle the shipment. Port officials have called the first Watts shipment "unauthorized" and stated that they were not notified in advance that Watts intended to use the Guam Shipyard.
In a written statement released late this afternoon to the media, Port General Manager Glenn Leon Guerrero states:
"We understand Watts has taken a different position" but "this matter is of utmost importance" because it relates directly to GovGuam's "lawful control over commercial import/export handling services."
Leon Guerrero points out that the Port is currently engaged in a costly upgrade in preparation for the military buildup and: "The Port Authority of Guam must consequently protect its revenues and will not tolerate one dollar of tariff revenue to go uncollected."
Leon Guerrero also states that the Port is investigating the possibility that other commercial cargo shipments
"may have been shipped via other non port authority docks, including Guam Shipyard."
Both GM Leon Guerrero and Port Board Chairman Monte Mesa declined on camera comment about the growing controversy.
