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ASG shipyard developing new “business model” awaiting repairs

Samoa News photo taken from the main road shows part of the Ronald Reagan Marine Railway, the ASG owned shipyard in Satala
reporters@samoanews.com

Pago Pago, AMERICAN SAMOA — During her remarks, at last Thursday’s Malaloa Wharf Extension Project ground breaking ceremony, Port Administration director Taimalelagi Dr. Claire Poumele — a board member of the American Samoa Shipyard Services Authority — revealed upgrades and restoration of the shipyard should be starting soon.

The shipyard service, which is needed at this point, will be more critical once the Malaloa extension project is completed with longline fishing vessels needing repairs while in port, she said.

At a government meeting last month, Gov. Lolo Matalasi Moliga says the  COVID-19 declaration will not slow down pending ASG construction projects. Among them is the shipyard, which has been out of commission since late last year due to a derailment incident. Lolo said the US Department of Interior has already approved funding for this important project.

The Shipyard says that its current business “mission and model” relies almost entirely on an industry (fishing) that has many elements beyond local control — such as application of US Coast Guard regulations; the price of fish on the world market; and, the cost of living (plus the strong US dollar) in the Territory keeps rising.

Moreover, an industry relying on a resource — fish — that is politically volatile, highly regulated and shrinking in size.

“To not succumb to such challenges”, the Shipyard, has “begun the process of developing a new “business model” that reflects the extreme changes of our local business climate and its attendant challenges,” according to a statement posted on the shipyard’s website.

“Based on the new plan and calculations, the Shipyard would need at a minimum of $12.5 million to fully complete its restoration and improvement efforts,” it says.

[photo: Leua Aiono Frost]