By Gerardo R. Partido
Variety News Staff

WITH the final order given by the U.S. Department of Transportation granting air cargo exemption for Guam, the Camacho administration is now preparing to finalize its plans to transform Guam into a regional cargo hub and distribution center.
Gov. Felix P. Camacho said the U.S. DOT’s final order will enable foreign carriers to move cargo from a foreign city to one U.S. point of entry, then to another U.S. point of entry, using Guam for cargo transfer operations.
This will hopefully encourage more air transshipment to Guam.
According to the governor’s chief of staff George Bamba, the administration has already been negotiating with the U.S. Customs to facilitate more cargo transshipment for Guam.
The administration believes Guam stands a good chance of being a cargo consolidation hub for Asian goods bound for the U.S. because of the increasing costs and growing inefficiencies in mainland distribution networks.
Currently, more U.S. retailers are sourcing their goods from cheaper Asian suppliers, shipping the goods first to the U.S. West Coast where the goods are broken down and reconsolidated before being trucked or shipped again to their individual destinations within the United States.
This extra step increases the costs of U.S. shippers and increases inefficiencies. The problems are compounded when the periodic strikes happen in U.S. West Coast ports or when these ports are congested during holiday seasons.
The Camacho administration is counting on these U.S. retailers to use Guam as a cargo consolidation base.
It is hoped that the Asian goods will come into Guam in bulk where they can be consolidated and shipped to their specific destinations using air freight. This will bypass the congestion at the U.S. West Coast ports and avoid the inefficiencies of trucking the goods to their individual destinations.
Under the plan, cargo consolidated on Guam would be transported to a bonded warehouse where they will be inspected by customs. The goods would then get pre-clearance from customs on Guam so that they won’t face delay when they arrive in their U.S. destinations.
According to the administration, many companies could find Guam attractive as a cargo consolidation and distribution center because of the island’s status as a U.S. territory, with all the stability and conveniences of being a part of the American system.
Many employment opportunities are expected to be generated for island residents if U.S. companies can be persuaded to use Guam as a cargo consolidation and distribution center.
For instance, there would be more workers needed in the port to handle the cargoes and in the warehouses to consolidate and transport the shipments. This is aside from the many support enterprises that would be needed to support the project.