By Gerardo R. Partido
Variety News Staff

THE Philippine-based International Container Terminal Services Inc. has withdrawn its suit against the Port Authority of Guam, possibly paving the way for a new round of bids for the privatization of the port’s terminal operations.
Josette Javelosa, acting public information officer of PAG, confirmed that ICTSI informed the port and the Superior Court of Guam last month that it would no longer pursue its case against PAG.
ICTSI was the company that topped the bidding for the privatization of the port’s terminal operations in December 2005.
But PAG decided on April 11, 2006 to end all negotiations with ICTSI, saying that the company did not stick by the provisions of its original proposal and reduced its offer to the financial detriment of the port.
As a result, ICTSI filed an official protest through its lawyers on Guam saying that PAG’s decision to end the negotiations was unilateral.
ICTSI charged that although it has met all the requirements of the port’s RFP, port management never intended to complete negotiations as evidenced by PAG’s public stand opposing privatization.
Furthermore, the company charged PAG with “bad faith” and a clear conflict of interest.
Because of the termination of negotiations with ICTSI, the privatization of the port’s terminal operations was delayed.
The PAG board could not decide whether to negotiate with the second-ranked bidder, Singapore-based Portek International, or issue a new request for proposal until ICTSI’s official protest was resolved.
Subsequently, all bids received by the port for the privatization of its terminal operations were thrown out.
With ICTSI’s decision to drop its suit, it would be possible now for PAG to pursue its privatization plan and set up a new bid.
Port officials are awaiting official word from the court regarding ICTSI’s withdrawal before considering the issuance of a new request for proposal.
The privatization of the port is seen by the private sector as necessary to make the port more efficient in light of the ongoing military expansion.
When he was in Washington, D.C. last week, Gov. Felix P. Camacho focused on Guam’s commercial seaport capacity during his meetings with the secretaries of the Interior and the Navy.
During a one-hour discussion at the Pentagon, Camacho shared with both Interior Secretary Dirk Kempthorne and Navy Secretary Donald Winter the Civilian/Military Task Force’s recent assessment that the commercial seaport’s capacity needs will increase by two-thirds its current capacity once construction begins on facilities for the III Marine Expeditionary Force.
The governor also stressed the need to expand the seaport as part of the federal government and the government of Guam’s master plan.