rmipa port master plan

7/21/2019 RMIPA Port Master Plan

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August 2014


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Port of Majuro Master Plan August 2014 ABB-1

ABBREVIATIONS

CFS Container Freight Station

IALA International Association of Lighthouse AuthoritiesJEMFAC Joint Economic Management Committee

LYON Lyon Associates, Inc.MEC Marshalls Energy CompanyMIFC Marshall Islands Fishing Company

MIFV Marshall Islands Fishing Venture

MIMRA Marshall Islands Marine Resource Authority

MISC Marshall Islands Shipping CorporationMIVA Marshall Islands Visitors Authority

MSTCO Majuro Stevedoring and Terminal Company

MV Motor VesselMWSC Majuro Water & Sewer Company

RMI Republic of the Marshall Islands

RMIPA RMI Ports AuthorityRMI EEZ RMI Exclusive Economic ZoneRMI EPA RMI Environmental Protection Authority

RMI EPPSCO RMI Economic Policy, Planning and Statistics Office

RMI MT&C RMI Ministry of Transportation & CommunicationsUSAID United States Agency for International Development

USDOI OIA United States Department of the Interior Office of Insular Affairs

USAKA United States Army Kwajalein Atoll


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Port of Majuro Master Plan August 2014 TOC-1

TABLE OF CONTENTS

EXECUTIVE SUMMARY

Overview ..................................................................................................................................... ES-1

Demographic and Economic Trends ........................................................................................... ES-1Existing Port Facilities ................................................................................................................ ES-2Marine Transport Trends Influencing Future Port Development ............................................... ES-5

Cargo Handling Systems........................................................................................................... ES-10

The Environment ...................................................................................................................... ES-11Port Facility Needs .................................................................................................................... ES-12

Port Management and Operations ............................................................................................. ES-13

Plan Implementation ................................................................................................................. ES-15

Chapter One Introduction

1.1 Regional Location ............................................................................................................... 1-11.2 Significance of the Port ....................................................................................................... 1-1

1.3 Purpose of the Master Plan ................................................................................................. 1-4

1.4 Scope of the Master Plan .................................................................................................... 1-41.5 Project Approach ................................................................................................................ 1-5

1.6 Report Organization ............................................................................................................ 1-7

1.7 Consultation ........................................................................................................................ 1-9

Chapter Two Demographic and Economic Trends

2.1 General ................................................................................................................................ 2-1

2.2 Resident Population ............................................................................................................ 2-12.3 Workforce ........................................................................................................................... 2-6

2.4 Income................................................................................................................................. 2-82.5 Cost of Living ..................................................................................................................... 2-9

2.6 Primary Industry Trends ................................................................................................... 2-10

2.7 Anticipated Population Growth ........................................................................................ 2-21

Chapter Three Existing Port Facilities

3.1 Introduction ......................................................................................................................... 3-1

3.2 Calalin Channel ................................................................................................................... 3-23.3 Port Fairway ........................................................................................................................ 3-5

3.4 Uliga Dock .......................................................................................................................... 3-9

3.5 Delap Dock ....................................................................................................................... 3-25

Chapter Four Marine Transport Trends

4.1 Introduction ......................................................................................................................... 4-1


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4.2 Interisland Passenger and Cargo Traffic ............................................................................. 4-1

4.3 International Cargo Vessel Traffic...................................................................................... 4-34.4 Oil Tankers........................................................................................................................ 4-18

4.5 Fishing Vessel Traffic ....................................................................................................... 4-20

4.6 Cargo Handling Systems................................................................................................... 4-26

Chapter Five Environmental Consideration

5.1 General ................................................................................................................................ 5-1

5.2 Wind Characteristics ........................................................................................................... 5-1

5.3 Tidal Variations .................................................................................................................. 5-25.4 Wave Patterns ..................................................................................................................... 5-3

5.5 Current Patterns .................................................................................................................. 5-3

5.6 Ecology of Majuro Lagoon ................................................................................................. 5-4

Chapter Six Port Facility Needs

6.1 Introduction ......................................................................................................................... 6-1

6.2 Calalin Channel ................................................................................................................... 6-16.3 Port Fairway ........................................................................................................................ 6-2

6.4 Uliga dock ........................................................................................................................... 6-2

6.5 Delap Dock ....................................................................................................................... 6-14

6.6 Economic Development Opportunities ............................................................................. 6-44

Chapter Seven Port Management and Operations

7.1

Statutory Authority ............................................................................................................. 7-1

7.2 Organizational Structure ..................................................................................................... 7-2

7.3 Roles and Responsibilities for Port Division Personnel ..................................................... 7-4

7.4 Port Security........................................................................................................................ 7-5

7.5 Financial Position................................................................................................................ 7-9

7.6 Port Management, Operations and Maintenance Needs ................................................... 7-12

7.7 RMIPA Facility Leases ..................................................................................................... 7-16

Chapter Eight Port Objectives and Strategies

8.1 Introduction ......................................................................................................................... 8-1

8.2

Establishment of Priorities .................................................................................................. 8-2

8.3 Port Improvement Objectives and Strategies ...................................................................... 8-5

Chapter Nine Cost-Benefit Analysis

9.1 Introduction ......................................................................................................................... 9-1

9.2 Port Improvement Considerations and Assumptions .......................................................... 9-2


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Chapter Ten Implementation Plan

10.1 Introduction ....................................................................................................................... 10-1

10.2 Adopt and Enable Convenient Access to the Master Plan ................................................ 10-1

10.3 Establish a Process for Project Project Implementation ................................................... 10-2

Table of FiguresFigure ES-1

Port Improvement Implementation Schedule.......................................................................... ES-11

Figure 1-1

Regional Location Republic of the Marshall Islands.................................................................. 1-2

Figure 1-2

Republic of the Marshall Islands................................................................................................. 1-3

Figure 1-3

Majuro Atoll................................................................................................................................. 1-3

Figure 2-1

Population Growth, 1980-2011 Republic of the Marshall Islands............................................. 2-3

Figure 2-2

Crude Birth Rates Per One Thousand Population 1988, 1999-2011 Republic of the Marshall

Islands.......................................................................................................................................... 2-4

Figure 2-3

Crude Deaths Rates Per One Thousand Population 1988, 1999-2012 Republic of the Marshall

Islands.......................................................................................................................................... 2-5

Figure 2-4

Republic of the Marshall Islands Exclusive Economic Zones................................................ 2-11

Figure 3-1

Majuro Atoll................................................................................................................................. 3-3

Figure 3-2

Calalin Channel........................................................................................................................... 3-3Figure 3-3

Fairway to Port of Majuro........................................................................................................... 3-6

Figure 3-4

Vessel Moorage Area................................................................................................................... 3-8

Figure 3-5

Uliga Dock Layout..................................................................................................................... 3-10Figure 3-6

Uliga Dock Area Electrical Distribution................................................................................... 3-19

Figure 3-7

Uliga Dock Area Fuel Distribution........................................................................................... 3-21

Figure 3-8

Uliga Dock Area Water Distribution......................................................................................... 3-23


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Figure 3-9

Delap Dock Layout.................................................................................................................... 3-27

Figure 3-10

Delap Dock Area Electrical Distribution.................................................................................. 3-51

Figure 3-11

Delap Dock Area Fuel Distribution........................................................................................... 3-55Figure 3-12

Delap Dock Area Water Distribution........................................................................................ 3-57

Figure 6-1

Potential Southeast Expansion of Uliga Dock A......................................................................... 6-6

Figure 6-2

Potential 180 Meter Extension of Uliga Dock A......................................................................... 6-7

Figure 6-3

Long Term Uliga Dock Improvement Plan................................................................................ 6-13

Figure 6-4

Proposed Delap Dock Layout (Option A).................................................................................. 6-19Figure 6-5Proposed Delap Dock Layout (Option B).................................................................................. 6-20Figure 6-6

Proposed Delap Dock Layout (Option C)................................................................................. 6-21

Figure 6-7

Proposed Delap Dock Layout (Option D) .................................................................................6-22

Figure 6-8

Proposed Delap Dock Area Electrical Power Distribution...................................................... 6-33

Figure 6-9

Delap Dock Area Proposed Utility and Fuel Distribution........................................................ 6-43

Figure 6-10

Proposed Fisheries Dock Complex............................................................................................ 6-45

Figure 7-1

Organizational Chart RMI Ports Authority Seaport Division..................................................... 7-3

Figure 7-2

Delap Dock Area Land Lease Boundaries................................................................................. 7-18

Figure 10-1

Port Improvement Implementation Schedule ........................................................................... 10-10

TablesTable ES-1Anticipated Inbound and Outbound Caro Volumes (TEU) with Limited Transshipment Activity

2014-2033................................................................................................................................. ES-7Table ES-2

Anticipated Inbound and Outbound Caro Volumes (TEU) with Expanded Transshipment Activity

2014-2033................................................................................................................................. ES-8


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Table ES-3

Anticipated International Cargo Vessel Traffic 2014-2033..................................................... ES-9

Table 2-1

Republic of the Marshall Islands Population and Growth Rate by Atoll/Island Census Years

1980, 1988, 1999 and 2011.......................................................................................................... 2-2Table 2-2

Natural Growth and Migration Trends - Republic of the Marshall Islands................................ 2-4

Table 2-3

Full and Part-Time Employment by Industry - Republic of the Marshall Islands FY1998-FY2011

...................................................................................................................................................... 2-7

Table 2-4

1998-2011 Average Annual Wage and Salary Rates Private and Public Sector Jobs by Industry

Republic of the Marshall Islands................................................................................................. 2-9

Table 2-5

Number of Foreign Purse Seine Vessels Licensed to Fish in the Marshall Islands EEZ by Year

and Flag, 2006-2010.................................................................................................................. 2-10Table 2-6

Annual Catches by Purse Seine Fleets in the Marshall Islands Exclusive Economic Zone by Flag

and Species, 2006-2010............................................................................................................. 2-12

Table 2-7

Number of Foreign Longline Vessels Licensed to Fish in the Marshall Islands EEZ by Year and

Flag, 2006-2010......................................................................................................................... 2-13

Table 2-8

Annual Catches by Foreign Longline Fleets in the Marshall Islands Exclusive Economic Zone by

Flag and Species, 2006-2010..................................................................................................... 2-13

Table 2-9

Visitors to Majuro by Year and Purpose of Visit 1996, 2001-2010 .......................................... 2-18Table 2-10

Anticipated Population Growth 2012-2024............................................................................... 2-23

Table 3-1

Facility Condition Assessment Criteria Port of Majuro.............................................................. 3-2

Table 3-2

Calalin Channel Facility Condition Assessment......................................................................... 3-4Table 3-3

Port Fairway Facility Condition Assessment.............................................................................. 3-6

Table 3-4

Uliga Dock Facility Condition Assessment............................................................................... 3-13Table 3-5Uliga Dock Warehouse Characteristics.................................................................................... 3-14

Table 3-6

USAID Disaster Mitigation Relief Building Characteristics .................................................... 3-15

Table 3-7

Uliga Dock Guardhouse Building Characteristics.................................................................... 3-16


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Table 3-8

Uliga Dock Pump Vault Characteristics................................................................................... 3-17

Table 3-9

Delap Dock Facility Condition Assessment............................................................................... 3-29

Table 3-10

Bollard Load P and Approximate Spacing................................................................................ 3-30Table 3-11

RMIPA Office Building Characteristics.................................................................................... 3-36

Table 3-12

MSTCO Office and CFS Warehouse Building Characteristics................................................. 3-37

Table 3-13

Delap Guard House Building Characteristics........................................................................... 3-39

Table 3-14

Container Yard Entry Office Building Characteristics............................................................. 3-40

Table 3-15

Abandoned Restroom/Shower Building Characteristics........................................................... 3-40

Table 3-16

Electrical Generator Buildings Characteristics........................................................................ 3-41

Table 3-17

Stevedore Recreational Building Characteristics...................................................................... 3-42

Table 3-18

Boat House Characteristics....................................................................................................... 3-44

Table 3-19

Yard-Shop Building Characteristics.......................................................................................... 3-45

Table 3-20

Delap Dock Office Building Characteristics............................................................................. 3-46

Table 3-21

Fuel Building Characteristics.................................................................................................... 3-47

Table 3-22

Delap Dock Maintenance Building Characteristics.................................................................. 3-48

Table 4-1

Selected Vessel Dimensions and Details Interisland Passenger/Cargo Vessels......................... 4-2

Table 4-2

2012Inbound and Outbound Cargo Volumes (in TEU) Port of Majuro..................................... 4-6

Table 4-3

2013 Inbound and Outbound Cargo Volumes (in TEU) Port of Majuro .................................... 4-7

Table 4-4

Anticipated Inbound and Outbound Cargo Volumes (TEU) with Limited Transshipment Activity

2014-2033.................................................................................................................................. 4-10

Table 4-5

Anticipated Inbound and Outbound Cargo Volumes (TEU) with Expanded Transshipment

Activity 2014-2033 .................................................................................................................... 4-10

Table 4-6

Anticipated International Cargo Vessel Traffic 2014-2033...................................................... 4-12


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Table 4-7

Vessel Particulars International Cargo Vessels Calling upon Port of Majuro 2010-2012 ... 4-15

Table 4-8

Container Ship Size Categories................................................................................................. 4-17

Table 4-9

Vessel Particulars International Oil Tankers Calling upon Port of Majuro 2010-2012 ....... 4-19Table 4-10

Vessels Licensed to Fish in Marshall Islands EEZ 2006-2010 .................................................. 4-20

Table 4-11

Vessel Particulars International Fishing Vessels Calling upon Port of Majuro 2010-2012 . 4-23

Table 5-1

Monthly Surface Wind Characteristics Uliga Dock 1994-2011.................................................. 5-2

Table 6-1

Delap Dock Electrical Loading (Options A, B, or D)................................................................ 6-36

Table 6-2

Delap Dock Electrical Loading (Options C) ............................................................................. 6-37

Table 7-1

Anticipated Annual Cost Preventative Maintenance Program Port of Majuro........................ 7-15

Table 8-1

Prioritization of Future Port Improvement Objectives Port of Majuro...................................... 8-3

Table 8-2

Objectives in Order of Priority Based on Cumulative Scores Port of Majuro Port Improvements

...................................................................................................................................................... 8-4

Table 9-1

Cost-Benefit Analysis - Calalin Channel, Port Fairway, Vesssel Anchorage Area With Expansion

of Transshipment.......................................................................................................................... 9-4Table 9-2

Cost-Benefit Analysis Uliga Dock............................................................................................... 9-8

Table 9-3

Cost-Benefit Analysis Delap Dock ............................................................................................. 9-13

Table 9-4

Cost-Benefit Analysis Fishing Dock .......................................................................................... 9-18

Table 9-5

Cost-Benefit Analysis Cumulative Port Improvements with Limited Expansion of Transshipment

.................................................................................................................................................... 9-20

Table 9-6

Cost-Benefit Analysis Cumulative Port Improvements with Greater Expansion of Transshipment

.................................................................................................................................................... 9-21


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References

References............................................................................................................................... REF-1

AppendixAppendix A

Conditional Assesments.............................................................................................................. A-1

Appendix B

Initial Port Stakeholder Meeting Notes...................................................................................... B-1

Appendix C

Port Improvement Objectives and Strategies Meeting Notes..................................................... C-1


11/361Port of Majuro Master Plan August 2014 ES-1

EXECUTIVE SUMMARY

OVERVIEW

The Port of Majuro is entering an auspicious time in its history that presents genuine

opportunities for the Republic of the Marshall Islands Ports Authority (RMIPA) to:

enhance the safety of vessel traffic in the Port of Majuro;

increase the efficiency of interisland passenger and cargo operations;

increase the berthing capacity of Delap Dock to accommodate more containertransshipment activity;

re-organize the overall container yard area, further increase the safety and efficiency ofcargo handling operations, and attract greater transshipment;

sustain the operation of a secure port;

sustain and improve the financial viability of the Port of Majuro;

make new economic investments that will generate new port-related jobs, generate

secondary employment in the Marshall Islands private sector, as well as expand revenuesfor the Republic of the Marshall Islands Ports Authority (RMIPA) and the Republic ofthe Marshall Islands; and,

establish a new preventative maintenance program for all port facilities that will extendthe life of existing port facilities and improve the reliability of port operations.

These opportunities will require the pursuit of technical and financial resources to achieve anaggressive port improvement plan that is outlined in the Port of Majuro Master Plan. During thecoming decade, this master plan outlines the accomplishment of roughly $65,000,000 in portimprovement projects (Figure ES-1). These projects, which are described in greater detail inChapters 6, 8 and 10, encompass a wide range of physical improvements to Uliga Dock and

Delap Dock. The development of a new fisheries dock is recommended for a yet, undeterminedlocation with the Majuro Lagoon. In Chapter Seven, various institutional changes are alsorecommended to sustain and improve effective port management, port security, as well as facilityoperations and maintenance activities.

Anticipated benefits and costs that would be generated from all planned port improvementsduring the next two decades (FY 2014 through FY 2033) are examined in Chapter Nine. Thesubtraction of cumulative, discounted costs between FY 2014 and FY 2033 from cumulativediscounted benefits yields a positive net present value of $272,532,908 for all port improvementsoutlined in the Port of Majuro Master Plan. The benefit-cost ratio for all port improvements isestimated to be 2.9. These statistical outputs indicate that significant benefits can be gained

through very substantive investments in port infrastructure. But, long-term potential benefitssignificantly outweigh investment costs.

DEMOGRAPHIC AND ECONOMIC TRENDS

Chapter Two of the Port of Majuro Master Plan examines various demographic and economictrends that will influence future volumes of inbound and outbound cargo that will be transported



to and from the Port of Majuro. This analysis culminates with a forecast of the future residentpopulation during the coming decade. Three population growth scenarios are identified. Amoderate growth scenario appears to be the more likely growth trend.

Under the moderate growth scenario, modest gains in population growth, ranging between 0.5

and 1.0 percent per year, are anticipated during the coming decade. The crude birth rate andcrude death rate are expected to decline at rates comparable to the 1999-2011 period. The levelout migration will slow somewhat in the face of short-term (one to two years) economicslowdowns in Hawaii and the US mainland that result in fewer employment opportunitiesabroad.

At the same time, sustained commercial interest in the fishery of the RMI Exclusive EconomicZone will provide some new job opportunities associated with fish processing in Majuro. It isalso anticipated that the US Government will renew its commitment toward the continuedoperation of USAKA before 2016 through the successful renegotiation of leases with locallandowners. These factors are expected to encourage more Marshallese to remain home rather

than relocate.

EXISTING PORT FACILITIES

Chapter Three provides a detailed inventory and evaluation of the condition of existing portfacilities associated with the Calalin Channel, port fairway, and vessel anchorage area, UligaDock and Delap Dock. This analysis also examines what improvements are necessary to sustainthe future operation of existing facilities.

Calalin Channel

No repairs or improvements to the Calalin Channel are envisioned to support ongoing portoperations. However, it is essential that channel markers and related lighting systems areperiodically inspected to confirm the adequacy of their condition to support the navigation ofvessels through the Calalin Channel.

Port Fairway

A review of available bathymetry within Majuro Atoll, as well as discussions with the RMIPASeaport Manager and local agents for various fish and shipping companies, suggest that there isample open water of navigable depth within the port fairway to accommodate existing levels ofvessel traffic. Available design criteria for navigable outer channels recommend that:

channel bottom widths for one-way vessel traffic in a straight channel should be 3.6 to sixtimes the beam of port's design ship depending on relevant sea and wind conditions.However, the minimum bottom width for oil and gas tankers should be five times thebeam of the port's design ship (Thoresen, 2010).

two-way vessel traffic in a straight channel should contain a channel bottom width ofroughly 6.2 to 9.0 times the beam of the design ship (Thoresen, 2010).



Between 2010 and 2012, the largest vessels calling on the Port of Majuro included several cargovessels that have a beam of 25 meters (RMI Ports Authority, 2013). Assuming this dimensionfor the Port of Majuro's design ship, the port fairway would need to be roughly 155 to 225 meterswide to accommodate two-way vessel traffic. As stated earlier, shoals near the middle of theMajuro Lagoon and along the Lagoon's northern margin reduce the effective width of the port

fairway to between 2,400 and 7,500 meters. Despite those limitations, the width of the portfairway is more than adequate to support two-way vessel traffic.

Vessel Anchorage Area

Available bathymetry data and navigation information for the anchorage area suggests that waterdepths generally range between 27 and 47 meters. The bottom is characterized by sand, coral orsoft rock (IHS, 2013). A review of the ship dimensions for purse seiners and refrigerated carriervessels calling on the Port of Majuro between 2010 and 2012 indicates that refrigerated carriervessels have a draught of up to 12 meters (RMI Ports Authority, 2013). Consequently, theexisting anchorage area is very capable of providing moorage to incoming fishing vessels.

Other than the communication of recently established coordinates for the vessel anchorage areato incoming vessels, no new facilities or facility improvements are believed to be needed to theanchorage area. However, the installation of an Automatic Identification System (AIS) wouldenable the RMI Ports Authority to more efficiently monitor the location of vessels moored in theanchorage area.

Uliga Dock

A repair of the quay face and related cathodic protection is needed in the short term to sustain thefacility life of Dock A. However, the most significant recommendation for Uliga Dock relates tothe recommended extension of Dock A in order to provide greater moorage area that is necessary

to support operations associated with a growing interisland passenger/cargo fleet. With thatrecommendation, there are various other improvements outlined in Chapter Three associatedwith the recommended development of a small passenger terminal building and substantiveimprovements to water, wastewater, fire suppression, electrical power, and fuel distributionsystems.

Delap Dock

Berth and Quay

The short-term repair of the quay face and the installation of related cathodic protection is also

needed to sustain the structural integrity of the main Delap Dock quay face.

Dock Apron

The dock apron, which is constructed of concrete, is in fair to good condition and varies over thecourse of the entire dock length. Areas exhibiting greater wear and deterioration appear to havebeen influenced by cargo handling operations, e.g., movement of containerized cargo by forkliftsand toplift equipment. The patching of damaged concrete areas (or replacement of certain slabs),



as well as the paving of the entire cargo handling and storage area, would significantly helpreduce future damages to the decking of the Delap Dock apron. A paved concrete surface wouldconcurrently help increase the efficiency of cargo handling operations. New fenders, bollards,cleats, and concrete curbing are also needed along the main dock, Delap East Dock, and DelapWest Dock.

Container Yard

The efficiency of the cargo handling area is hampered significantly by:

the storage of various solid waste materials in selected areas of the overall cargohandling area. These materials are not related to stevedoring operations or the storage ofcargo.

encroachment of the western portion of the Delap container yard by the RMI Ministry ofPublic Works.

All discarded solid waste material and other equipment and supplies unrelated to port and

stevedoring operations need to be removed from the cargo handling area as soon as possible.The presence of these materials significantly reduces the effective amount of area available forcargo handling. They also represent obstacles that hinder the efficient movement of cargohandling equipment in the container yard.

There are several buildings in the container yard which are recommended for demolition. Someof the building functions are recommended to be incorporated into other proposed facilities in thecontainer yard. Other facilities have reached their useful facility life or purpose.

Supporting Utility Systems

There are a number of significant issues associated with the utility systems supporting theoperation of Delap Dock facilities.

In the short term, the existing backup power supply system needs to be modified toenable an automatic start-up and transfer of power from the backup generator when apower outage occurs that interrupts power distribution to the RMIPA office (Table 3-9).Electrical service to buildings in the cargo handling and container storage yard, which arerecommended for demolition or replacement, should be disconnected prior to demolition.

Future international cargo shipments to Delap Dock will include the delivery of a greaternumber of refrigerated containers. More refrigerated containers will require theinstallation of additional refrigerated container electrical outlets which, in turn, willincrease the connected electrical load generated by port related activities at Delap Dock.

Fuel transmission lines, between the fuel manifold building and the neighboring MarshallEnergy Company tank farm, are situated under the rear wall of the Delap DockMaintenance Building which is used by MSTCO for the maintenance, repair and storageof cargo handling equipment. Tobolar warehouses are also located immediately east offuel supply and distribution lines. In the event of a fuel leak or structural fire, access to



the fuel lines would be extremely difficult.

The Majuro Water and Sewer Company (MWSC) provide potable water and fire flow to

the Delap Dock area via two separate water distribution systems. There are three supplyvalves located along the dock apron. However, Lyon Associates observed that no water

could be released from the distribution lines serving the dock apron in May 2013. Thepotable water valves were filled with cobwebs and appeared as if they had not beenopened in many years. Currently, any vessels requiring potable water are serviced bywater trucks from MWSC.

An 8-inch saltwater distribution line is located along the main shoreline roadway toprovide water that is to be used for fire suppression. This distribution system extends tothe Delap Dock apron, where there are three in-ground hydrant connections, via an 8-inchlateral.

In May 2013, the saltwater distribution lines did not release water when their relatedvalves were turned on. The saltwater distribution system and in-ground fire suppressionhydrants appear to have not been used or maintained for many years. The in-groundhydrant covers were concaved in due to heavy loading likely from vehicles andstevedoring equipment. The hydrants were also completely filled with silt and sand. Theavailability of salt water is necessary for the protection of structures located at DelapDock.

The demand for potable water distribution system on Delap Dock is not significant. Amajority of the cargo vessels and purse seine fishing vessels contain their own reverseosmosis seawater desalination systems that enable them to be self-sufficient. At the sametime, there are some fishing companies, e.g., Koo's Fishing Company, that occasionallyuse fresh water for the periodic cleaning of salt water brine systems on their fleet of purseseine vessels. Consequently, the availability of potable water at Delap Dock for dockmaintenance and occasional vessel maintenance is also desirable.

MARINE TRANSPORT TRENDS INFLUENCING FUTURE PORT DEVELOPMENT

Interisland Passenger and Cargo Transportation

Marshall Islands Shipping Corporation (MISC) vessels made 15 voyages to the Outer Islands inFY 2011. The average passenger and cargo volumes transported on each voyage included 81passengers, 48 freight tons of general cargo, and 56 freight tons of copra (Milne, 2011).Comparable passenger and cargo volumes were not available from MISC for FY 2012.However, the volume of inbound shipments of copra to Tobolar Copra Processing Authority hasincreased significantly in FY 2012 and 2013. Tobolar Copra Processing Authority reported thedelivery of 6,335 tons of copra in FY 2012. During the first 10 months of FY 2013, 6,115 tonswere delivered to TCPA; by the end of the fiscal year, TCPA representatives anticipate thatinbound cargo shipments may reach as much as 8,000 tons (Marshall Islands Journal, 2013).



A recently expanded fleet of interisland passenger/cargo vessels are increasing their delivery offood, materials, and supplies to the Outer Islands. The same vessels return from the OuterIslands with a growing supply of copra that is delivered to the Tobolar Coconut ProcessingAuthority complex at Delap Dock.

International Cargo Traffic

International cargo vessels, which primarily transport containerized cargo to and from theMarshall Islands, made fifty-six vessel calls to the Port of Majuro in 2012. Majuro Shipping andTerminal Company handled some 6,603 TEU of total inbound and outbound cargo.

In 2013, the number of vessel calls doubled to 112. Total inbound and outbound cargo volumerose to 10,610 TEU due to a substantive increase in container transshipment by MarianasExpress Lines, Ltd. (MELL). This was a significant turning point for the Port of Majuro as theport is now clearly recognized by, at least, one prominent Asian shipper as a feasible point oftransshipment within Micronesia.

During the next 20 years, it is anticipated that future inbound and outbound cargo volumes willprimarily be impacted by:

the size of the resident population and its consumption of imported goods and materials;

potential improvements at Delap Dock that would enable the concurrent berthing of twointernational cargo vessels, significantly increase the efficiency of cargo handlingoperations, and expand the capacity of container stacking/storage area; and,

the extent of future container transshipment at Delap Dock.

This assumption led to the preparation of two forecasts of inbound and outbound cargo for the2014-2033 period which, together, identify a forecast range for future cargo volumes during the

next 20 years.

The forecast presented for a limited transshipment activity scenario (Table ES-1) assumesfuture inbound and outbound cargo volumes will generally increase at the same rate ofanticipated resident population growth along with some modest growth in transshipmenteven if no substantive improvements were made to Delap Dock.

In contrast, the forecast for an expanded transshipment activity scenario (Table ES-2)assumes that future inbound and outbound cargo volumes will be impacted by both theanticipated resident population growth, as well as new potential improvements at DelapDock, that will generate expanded transshipment activity.

In combination, the two alternate forecasts suggest that future total annual cargo volumes willrange somewhere between 13,386 and 17,776 TEU by 2023. By 2033, total annual cargovolumes are expected to range between 16,112 and 28,248 TEU.



INBOUND CARGO VOLUME (TEU) OUTBOUND CARGO VOLUME (TEU)

Cargo

Volume

Trans-

shipment

Total

Inbound

Cargo

Volume

Trans-

shipment

Total

Outbound

2012 3,520 41 3,561 2,985 57 3,042 6,603

2013 4,105 1,002 5,107 4,580 923 5,503 10,610

2014 4,134 1,109 5,243 4,613 1,030 5,642 10,886

2015 4,155 1,215 5,370 4,636 1,135 5,771 11,141

2016 4,181 1,322 5,503 4,664 1,242 5,906 11,409

2017 4,222 1,435 5,657 4,710 1,354 6,064 11,721

2018 4,241 1,542 5,783 4,732 1,460 6,192 11,975

2019 4,269 1,652 5,921 4,763 1,570 6,333 12,254

2020 4,294 1,762 6,056 4,791 1,679 6,470 12,526

2021 4,329 1,876 6,205 4,830 1,793 6,623 12,828

2022 4,358 1,989 6,347 4,863 1,905 6,767 13,115

2023 4,382 2,099 6,482 4,889 2,015 6,904 13,386

2024 4,404 2,210 6,614 4,914 2,125 7,039 13,653

2025 4,426 2,321 6,747 4,938 2,236 7,174 13,920

2026 4,448 2,432 6,880 4,963 2,347 7,309 14,190

2027 4,470 2,545 7,015 4,987 2,459 7,446 14,460

2028 4,492 2,657 7,149 5,012 2,571 7,583 14,732

2029 4,515 2,770 7,285 5,037 2,684 7,721 15,006

2030 4,537 2,884 7,421 5,062 2,797 7,859 15,280

2031 4,560 2,999 7,558 5,087 2,911 7,998 15,556

2032 4,582 3,114 7,696 5,113 3,025 8,138 15,834

2033 4,605 3,229 7,834 5,138 3,140 8,278 16,112

Year

TOTAL

CARGO VOLUME

(TEU)

TABL E 4-4

ANTICIPATED INBOUND AND OUTBOUND CARGO VOLUMES (TEU)

WITH LIMITEDTRANSSHIPMENT ACTIVITY

2014-2033

Source: Pedersen Planning Consultants, 2014.

With these assumptions, inbound cargo volumes in 2033 are anticipated to includeapproximately 13,897 TEU of inbound cargo and 14,351 TEU of outbound cargo, or a totalcargo volume of 28,248.

ES-1



INBOUND CARGO VOLUME (TEU) OUTBOUND CARGO VOLUME (TEU)

Cargo

Volume

Trans-

shipment

Total

Inbound

Cargo

Volume

Trans-

shipment

Total

Outbound

2012 3,520 41 3,561 2,985 57 3,042 6,603

2013 4,105 1,002 5,107 4,580 923 5,503 10,610

2014 4,134 1,262 5,396 4,613 1,183 5,796 11,192

2015 4,155 1,522 5,677 4,636 1,443 6,079 11,757

2016 4,181 1,782 5,963 4,664 1,703 6,367 12,330

2017 4,222 2,042 6,264 4,710 1,963 6,673 12,937

2018 4,241 2,417 6,658 4,732 2,338 7,070 13,728

2019 4,269 2,792 7,061 4,763 2,713 7,476 14,537

2020 4,294 3,167 7,461 4,791 3,088 7,879 15,340

2021 4,329 3,542 7,871 4,830 3,463 8,293 16,165

2022 4,358 3,917 8,275 4,863 3,838 8,701 16,976

2023 4,382 4,292 8,674 4,889 4,213 9,102 17,776

2024 4,404 4,792 9,196 4,914 4,713 9,627 18,822

2025 4,426 5,292 9,718 4,938 5,213 10,151 19,869

2026 4,448 5,792 10,240 4,963 5,713 10,676 20,915

2027 4,470 6,292 10,762 4,987 6,213 11,200 21,962

2028 4,492 6,792 11,284 5,012 6,713 11,725 23,009

2029 4,515 7,292 11,807 5,037 7,213 12,250 24,057

2030 4,537 7,792 12,329 5,062 7,713 12,775 25,104

2031 4,560 8,292 12,852 5,087 8,213 13,300 26,152

2032 4,582 8,792 13,374 5,113 8,713 13,826 27,200

2033 4,605 9,292 13,897 5,138 9,213 14,351 28,248

TOTAL

CARGO VOLUME

(TEU)

TABL E 4-5

ANTICIPATED INBOUND AND OUTBOUND CARGO VOLUMES (TEU)

WITH EXPANDEDTRANSSHIPMENT ACTIVITY

2014-2023


Year

If anticipated total annual cargo volumes fall within the anticipated forecast range for inboundand outbound cargo and international cargo vessels continued to transport roughly 95 TEU percall, the annual number of international cargo vessel calls in 2023 would range somewherebetween 141 and 187 vessel calls. By 2033, the annual number of vessel calls would beexpected to range between 170 and 297 vessel calls (Table ES-3).

ES-2



Year

Number of Vessel Calls with

Limited Transshipment

Number of Vessel Calls with

Expanded Transshipment

2013 112 112

2014 115 118

2015 117 124

2016 120 130

2017 123 136

2018 126 145

2019 129 153

2020 132 161

2021 135 170

2022 138 1792023 141 187

2024 144 198

2025 147 209

2026 149 220

2027 152 231

2028 155 242

2029 158 253

2030 161 264

2031 164 2752032 167 286

2033 170 297


TABL E 4-6

ANTICIPATED INTERNATIONAL CARGO VESSEL TRAFFIC

2014-2033

Oil Tankers

Local coastal tankers make scheduled deliveries of diesel, jet, and gasoline fuels to the Port ofMajuro. Diesel fuels are periodically transported to Delap Dock where supply lines carry fuelsto the Marshalls Energy Company tank farm. Diesel, jet and gasoline fuels are delivered toUliga Dock where supply lines transport fuels to the Mobil Micronesia tank farm that is situated

about 0.5 mile southwest of Uliga Dock.

In 2012, 12 monthly fuel deliveries transported a total of 900,000 gallons (3,407 kiloliters) ofdiesel fuel, 4.3 million gallons (16,277 kiloliters) of jet fuel, and 1.3 million gallons (4,921kiloliters) of gasoline (Hawley, 2013). Fuel deliveries to Marshalls Energy Company included13,000,000 gallons (49,200 kiloliters) of diesel fuel (Wakefield, 2013).

ES-3



It is anticipated that the volume of fuel imports to the Marshall Islands will rise in response to amodest increase in resident population. Rising fuel imports will likely reflect growing demandsfor diesel fuel at the Marshall Energy power plant in Delap and gasoline consumed by privateand commercial vehicles. If fuel consumption generally parallels the increase in residentpopulation, fuel imports during the 2010-2023 period can be expected to increase almost nine

percent during the coming decade. If an attractive location is eventually established for theservicing of fishing vessels, additional fuel sales can be made to some international fishingvessels, as well as to the national fishing fleet that is based in the Port of Majuro.

International Fishing Fleet

The expansive and calmer waters in the Majuro Lagoon continue to represent an attractivetransshipment location for the international fishing fleet. In 2012, a log of vessel movementswithin the Port of Majuro, which are recorded by the RMI Ports Authority, reveal thatapproximately 482 fishing vessels called upon the Port of Majuro in 2012 and remained in thePort of Majuro for an average of 9.8 days. During the same year, 371 transshipments of fish

were made in the Port of Majuro by 290 purse seiners and 81 refrigerated fish carrier vessels(Marshall Islands Marine Resources Authority, 2013).

During the coming decade, it is reasonable to assume that fishing activity and harvests in theRMI Exclusive Economic Zone will, on an annual basis, continue to rise and fall, but trendtoward somewhat greater fishing activity. The consequence of this assumption is a related rise ininternational fishing vessel calls upon the Port of Majuro. It is anticipated that the annualnumber of international fishing vessel calls in 2023 will peak to not more than 10 to 15 percentover the number of fishing vessel calls made in 2012, or between 530 and 555 vessels per year.

CARGO HANDLING SYSTEMS

The Need for Transition

Existing volumes of inbound and outbound international cargo at the Port of Majuro do notjustify a significant capital expenditure for the short-term installation of a mobile harbor cranealong Delap Dock apron. At the same time, the Port of Majuro is the hub of the Marshall Islandseconomy. The future import of food, household goods, fuel, building materials, etc. are essentialto sustaining the lifestyle of Marshallese residents. And in view of significant changes tointernational cargo vessels, it is important that RMIPA transition toward the installation and useof more efficient cargo handling systems.

During the coming decade, it is anticipated that the Port of Majuro along with its neighboringports in the Federated States of Micronesia, Kiribati and Nauru will remain on several routesmade by feeder container vessels that have onboard cargo cranes. However, because of the Portof Majuro's strategic location, there is growing interest among international shippers to make anexpanded use of the Port of Majuro for the transshipment of containers to other Pacific Islands.



Short Term Modifications

In this context, the focus of short-term improvements to cargo handling should be to increase theefficiency of inbound container storage and delivery to local consignees. This will require a re-organization of the container stacking/storage area and the overall Delap Dock complex, as well

as various facility improvements outlined in Chapter Six.

Some greater efficiency in cargo handling could be achieved through the demolition of selectedstructures in the container yard, the reorganization of the container stacking/storage area, as wellas the combined use of reach stackers and terminal tractor-trailer units. Onboard ship cranescould unload containers on to terminal tractor-trailer units which would transport inboundcontainers to the container stacking/storage area. Reach stackers would unload containers fromthe terminal tractor-trailer units and stack them into container blocks. Containers would continueto be stacked an average of three containers high.

Medium Term Modifications

During the next several years, RMIPA will also need to be prepared to address the potentialopportunity for increased transshipment operations at Delap Dock. Re-organization of thecontainer stacking/area will need to be adaptable to the incorporation of additional cargohandling equipment that will be necessary to achieve more efficient cargo handling.

Expanded transshipment operations will require widening of the dock apron for the installationof a mobile harbor crane that would increase the efficiency of container loading and unloading atDelap Dock. The mobile harbor crane would lower containers on to terminal tractor-trailer unitsthat would transport inbound containers to the container stacking/storage area. Reach stackerswould unload the terminal tractor-trailer units and stack containers an average of three high incontainer blocks.

Forklifts and top picks would continue to be used to transport empty containers from the CFSwarehouse to empty container stacks, as well as load inbound containers from the containerstacks on to chassis, or semi-truck trailers, that are used to deliver containers to local consignees.

Existing forklifts and top picks could continue to be used. This equipment could transportempty containers from the CFS warehouse to empty container stacks, as well as the load inboundcontainers from the container stacks on to chassis, or semi-truck trailers, that are used to delivercontainers to local consignees.

THE ENVIRONMENT

Various environmental forces and climatic conditions influence the operation and berthing ofinternational vessels in the Port of Majuro. These considerations primarily include windcharacteristics, wave patterns, and currents.

Conversely, the operation of vessels within the Port of Majuro also impacts the environment ofMajuro Lagoon. It is important that future port operations and the planning of future



improvements within the Lagoon consider these impacts and identify effective mitigativemeasures that can be used by the Republic of the Marshall Islands Ports Authority and othernational agencies to enhance the water quality and ecology of Majuro Lagoon. The long-termchallenge is to balance the social and economic needs of the Marshall Islands residents with theconcurrent responsibility to conserve the natural resources of Majuro Lagoon.

PORT FACILITY NEEDS

Chapter Six examines future port facility improvements that are needed to address theanticipated vessel traffic and cargo demands of the coming decade. Recommended facilityimprovements are presented to meet longer term demands, as well as sustain existing portoperations.

Uliga Dock

Strategies are provided for Uliga Dock that outline specific recommended actions to:

repair damages to the Dock A quay face and install new cathodic protection;

expand available moorage space for interisland passenger/cargo vessels;

provide greater moor space for non-interisland passenger/cargo vessels;

construct an interisland passenger terminal building;

establish a back-up power supply; and,

establish reliable water distribution systems for potable water and fire suppression.

Delap Dock

Specific facility improvement recommendations for Delap Dock are presented in Chapter Six

that focus upon the development of facilities that can accommodate expanded transshipmentoperations and, at the same time, establish a more safe and efficient cargo handling environment.These improvements primarily include:

the replacement of fenders along the quay face, as well as bollards, front curbs, andcleats along the dock apron;

the gradual widening of the dock apron;

paving of the entire container yard;

re-organization of container yard that would designate ground slots for containers andaisles for cargo handling equipment;

a gradual transition to more efficient cargo handling equipment;

construction of a new container freight station;

an improved secondary container yard area that would provide more efficient containerloading for offsite deliveries, vehicular access, onsite vehicular parking, and egress fromDelap Dock;

a renovated or new facility for cargo handling equipment maintenance and repair;

a new electrical supply and distribution system to accommodate more refrigerated

containers and improved onsite lighting;



the relocation and establishment of a more safe fuel transmission and distributionsystem;

the development of new water supply and distribution system for both potable water andfire suppression; and,

connections of existing facilities to the Majuro Water and Sewer Company wastewater

system.

Four alternate site layouts are provided to achieve the development of these improvementsduring the coming decade.

Fisheries Dock Complex

The development of a new fisheries dock complex in the Port of Majuro is recommended toprovide dock area for the servicing of international fishing vessels calling upon the Port ofMajuro prior to or following the transshipment of their harvests to fish carrier vessels, as well asthe delivery of fish to local fish processing operations. Land area inland of the dock apron

should include potential lease area for fish processing facilities, as well as an additional leasearea for one or more companies to provide dry docking, engine repair, net repair, fuel bunkering,and other vessel services.

PORT MANAGEMENT AND OPERATIONS

Capability to Meet Future Operation and Maintenance Expenditures

An unaudited profit loss statement for FY 2012, which reports a net income of about $323,994,strongly suggests that RMIPA will continue to be able to meet normal operation andmaintenance expenditures with incoming revenues. An increasing volume of vessel calls will

continue to expand the amount of revenues gained from various port related fees. However, theestablishment of a preventative maintenance program will also increase the volume ofexpenditures for port facility operations and maintenance. Despite these expenditures, it isanticipated that RMIPA revenues will exceed operation and maintenance expenditures during thecoming decade.

Reserve Fund for Unanticipated Repairs and Maintenance

In view of the prospects for a lower net income, it is recommended that a reserve fund forunanticipated repairs is established within the RMIPA Budget. An annual budgetary allocationshould be made to this fund in order to ensure the financial capability of RMIPA to respondeffectively to unforeseen emergency repairs.

The 2012 profit-loss statement indicates that RMIPA is receiving some interest income fromprofits gained on an annual basis. These funds could be used to establish such a fund withinfuture budgets of RMIPA.



Lack of Capital to Support Future Port Improvements

While the balance between Seaport Division revenues and expenses appears favorable, it isabundantly clear that RMIPA will continue to need capital for the design and construction of anysignificant facility repairs, facility renovations, or new construction. The continued commitmentof the Nitijela will be necessary to provide some financial support for the replacement and

renovation of some existing facilities, as well as the construction of new facilities, for the Port ofMajuro. Concurrently, RMIPA will need to borrow capital, as well as seek and obtain grantsfrom multi-national organizations and other government agencies to complete the portimprovements recommended in the Port of Majuro Master Plan.

Automated Identification System

RMIPA needs to establish an automated identification system (AIS) in the Port of Majuro thatcan provide vessel location data to RMIPAs Seaport Manager and Seaport Operations Manager,as well as international shipping companies, vessel owners, shipping agents, and other relatedorganizations around the world. Through the use of an existing vertical high frequency (VHF)

antenna on the RMIPA office building, RMIPA can link local vessel locations to an internationalvessel database for cargo, fishing, and oil tanker vessels. Through its cooperation withcompanies, e.g., Fleetmon or AISLive, RMIPA could receive complimentary software thatwould enable its access to the same vessel databases accessed by international shippingcompanies.

The use of this technology will enable RMIPAs Seaport Manager and Operations Manager toreadily locate and monitor the position of most incoming international vessels once they enter thePort of Majuro. The use of software that is used to display vessel locations and other vessel datawill enable operation managers to confirm authorized and unauthorized vessel movements.

Preventative Maintenance Program

The establishment of a preventative maintenance program for all port facilities is needed toextend the service life of all facilities, reduce expenditures for unanticipated repairs, organize theactivities of facility operations personnel, minimize disruptions to port activities, and establishrealistic annual budgets for facility maintenance and repairs. Onsite observations of Uliga Dockand Delap Dock in January 2013 reveal that some facility maintenance is taking place, but onlyto a limited extent. RMIPA can rely upon its lessees to provide only limited generalmaintenance in specific work areas, but not the maintenance of supporting facilities and utilities,e.g., lighting and bollards, that are located within specific work areas.

The basic approach to preventative maintenance generally involves identifying the tasks and timeneeded to maintain each port facility, determining how often the tasks should be completed,identifying which personnel are needed to get the job done, as well as estimating anddocumenting the cost of labor, equipment, materials and supplies for each maintenance task.Various computerized maintenance management software applications are available to helporganize and support the development of a preventative maintenance program.



For the Port of Majuro, the development of a preventative maintenance program would ideallybe broken down into facility maintenance tasks for each facility within each functional area ofthe port. For example, navigation aids are facilities located within the Calalin Channel and portfairway. Bollards and fenders are facilities that support vessel berths at both Uliga Dock andDelap Dock. The CFS warehouse is located in the secondary container yard area.

On a cumulative basis, it is estimated that the annual costs of the preventative maintenanceprogram will require an expenditure of roughly $156,042.

Port Regulations

A formal set of port regulations needs to be adopted by the Board of the RMI Ports Authority. Anew set of regulations should be better organized to incorporate a wide range of issues.Regulations and procedures should also be formatted to facilitate a convenient review by a widerange of port users. Illustrations and digital photos should be incorporated into the regulations toenable a better understanding of port regulations and procedures. Consideration should also begiven to how the port regulations will be made available to port users given the range of

available technologies, e.g., the Internet, smartphones, tablets, and other mobile devices.

RMIPA Facility Leases

RMIPA needs to re-survey and map the land and water use areas that it currently uses as well asthe land area RMIPA anticipates using during the coming decade. Using this approach, its futurelease payments will become consistent with actual and planned land and water use areas. Thiseffort needs to be coordinated with appropriate representatives of local landowners, TobolarCoconut Processing Authority, the Ministry of Public Works, and the Marshalls EnergyCompany.

PLAN IMPLEMENTATION

Chapter Eight of the Port of Majuro Master Plan outlines a series of port improvement objectivesand specific strategies for achieving each objective. Each of the strategies include a scope ofwork for each task, the responsibility for implementation, an estimated order-of-magnitude cost,and tentative schedule for completion of each task. Figure ES-1presents an overallimplementation schedule for all of the port improvement strategies included in Chapter Eight.Consequently, the Master Plan provides RMIPA with substantive direction in terms of definingwhat improvements need to be accomplished, how they will be made, who will take on theresponsibility, and when they need to be completed.

Some of these strategies can be pursued and completed through the use of existing operationalfunds of RMIPA. However, many of the improvement projects that are outlined in the MasterPlan will need to rely upon capital investments by various multi-national organizations, nationalgovernments having security and economic interests in the Republic of the Marshall Islands, aswell as potential public-private partnerships. In this context, the tentative schedule for thecompletion of each port improvement strategy will likely require frequent adjustments. Otherfactors associated with the availability of off-island technical resources, the delivery of



equipment, materials and consumable supplies, and other factors will also influence the ability tocomplete various tasks within established project schedules.

These realities require RMIPA to establish a practical process for the following:

monitor and encourage the completion of port improvement strategies; build technical capacity of RMIPA personnel;

update and refine port improvement strategies;

search and apply for outside financial resources;

administer and monitor project expenditures associated with grants and loans for capitalinvestments; and,

communicate the status of all improvement projects.


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f Majuro Master Plan August 2014 Figure ES-1 Port Improvement Implementation Schedule

Maintain safe vessel navigation thru Calalin Channel and

port fairway and extend the service life o f navigation aids

Navigatio n aid in specti ons N/ARepair damaged navigation aids $500 (for fuel)

Improve berthing and docking facilities supporting the

interisland transport of passengers and cargo

Repairs phase $720,000Des ig n ph as e $400,000Construct ion phase $9,650,000Provide moorage space for non-interisland

passenger/cargo vessels at Uliga Dock

Design phas e $150,000Const ruc t ion phase $3,625,000

Provide a secure waiting and arrival area for interislandpassengers at Uliga Dock

Planning Phase $40,000Des ig n Ph as e $75,000Construct ion Phase TBDEstablish a back-up power supply within the Uliga Dock

area to sustain the delivery of electrical energy to

facilities and supporting utiliites

Desing $118,000Instal lat ion/Construction $67,000Establish an independent water supply and distribut ion

system for Uliga Dock

Design Phase $75,000Construct ion Phase $610,000Establish a fire suppression s ystem at Uliga Dock

Design Phase $40,000Construct ion Phase $320,000

p DockProtect main Delap Dock and reduce pot ential vessel

damages

Repairs phase $870,000Des ig n Ph as e $30,000Instal lat ion Phase $560,000Protect east Delap Dock and reduce potential vessel

damages

Design Phase $30,000Instal lat ion Phase $110,000Increase the efficiency of cargo handling at Delap Dock

and service life of cargo handling equipmentDemolish and remove structures, equipment, and

materials in the Delap Dock complex $38,000Design of Reorganized Dock Complex $392,000Construction of Utilities and Paving $6,300,000

Construction of CFS, Reefer Towers, Fuel Building, FireS $1,550,000Terminal tractors and bomb cart trailers $332,000

Modify cargo handling procedures/acquire reach stacker $705,500

2022

LONG - TERM

Dock

2016

SHORT - TERM

2017 2018 2019 2020 2021

MEDIUM - TERM

RMIPA Port Capital Impr ovement Plan

in Channel and Port Fairway

2014 2015Year Commencing 2014-2023 Budget


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f Majuro Master Plan August 2014 Figure ES-1 Port Improvement Implementation Schedule

p Dock (Cont'd)Encourage expansion of transshipment operations at

Delap Dock

Discus sions with shipp ing co mpanies $0Des ign (Op t ion C) $805,000Construct ion (Opt ion C) $16,000,000Acquire mobile harbor crane $5,165,000Revise cargo handling procedures $30,000

Establish a preventative maintenance program for all portfacilities

Maintenance Sof tware $25,300Maintenance supervisor, organize resources needed to

operate a facility maintenance organization $26,000

Enhance monitoring of incoming international cargo and

fishing vessels

Establi sh AIS base $2,314

Review vessel movements and correlate with daily logs$0

Sustain and update processes for evaluating port security

threats and establishing appropriate security measures

Annual up dates to c urrent Port Secur ity Pl an $2,314

Perform regular security inspections of the port faciltiy$0

Organize and perform periodic security drills $0

Update boundary surveys for Delap and Uliga Docks

Revise boun dary sur vey for Delap Dock $25,000Revise boundary survey for Uliga Dock $22,000

omic Development Opportunities

Increase the economic value of fisheries by establishing a

new fisheries dock complex in the Port of Majuro

Planning phase $200,000

Des ig n ph as e $400,000Construct ion phase $15,000,000

Year Commencing 2014-2023 Budget

SHORT - TERM MEDIUM - TERM LONG - TERM

2014 2015 2016 2017 2018 2019 2020 2021 2022

RMIPA Port Capital Impr ovement Plan


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Port of Majuro Master Plan August 2014 1-1

CHAPTER ONE

INTRODUCTION

1.1 REGIONAL LOCATION

The Republic of the Marshall Islands (RMI) is situated in the central Pacific Ocean and withinthe eastern portion of the Pacific Ocean region known as Micronesia (Figure 1-1). The Republiccomprises approximately 1,225 islands and islets that represent 29 atolls and five solitary, low

coral islands. The atolls and islands are arranged in two, almost parallel island chains (RMI

Economic Policy, Planning and Statistics Office, 2008):

The Eastern Ratak (Sunrise) Chain includes 15 atolls and two islands; and,

The Ralik (Sunset) Chain comprises 14 atolls and three islands (Figure 1-2).

The Port of Majuro is located in Majuro Atoll in the Ratak Chain. The capitol and economic

center of the RMI is situated in Majuro Atoll (Figure 1-3).

Islands and atolls of the Republic that are situated outside of Majuro Atoll are generally referred

to as the "Outer Islands", or Outer Atolls.

1.2 SIGNIFICANCE OF THE PORT

The Port of Majuro is the hub of the Marshall Islands cash economy. The Port of Majuro is the

primary gateway for incoming imports that support the lifestyle of RMI residents and families,the operation of private businesses and local and national government agencies, as well as related

jobs in both the private and public sectors of the economy. The following is a list of the primary

functions of the Port of Majuro;

International cargo vessels deliver a wide variety of imported foods, household supplies,construction equipment and materials, and other goods that are delivered to local

residents, small businesses, as well as local and national governmental agencies.

Local passengers and cargo are transported to and from the Port of Majuro to the OuterIslands.

Copra harvested by Outer Island residents is transported to the Port of Majuro where thecopra is processed by the Tobolar Coconut Processing Authority to make various coconut

products.

The Port of Majuro is the transshipment point for tuna harvested by the international

fishing fleet both inside and outside of the RMI Exclusive Economic Zone (RMIEEZ).

International cargo vessels are loaded at the Port of Majuro to transport various fish

product exports to markets in Asia, the Far East and the United States.

The safe and efficient operation of the Port of Majuro is an essential link to the continuous flow

of goods and products to and from the Republic. The port is a major community asset that is

critical to the future operation and expansion of existing businesses, the formation of new

economic development opportunities, and the key to sustaining a vital transportation link fromMajuro to the Outer Islands.


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Figure 1-1

Regional Location

Republic of the Marshall Islands


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Figure 1-2

Republic of the Marshall Islands

Figure 1-3

Majuro Atoll


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1.3 PURPOSE OF THE MASTER PLAN

In recognition of its importance to the lifestyle and economy of the Marshall Islands, the RMI

Ports Authority (RMIPA) desires to establish and outline a vision for:

future uses of the Port of Majuro;

future improvements to existing port facilities;

new facilities aimed at promoting safe and more efficient port operations;

new facilities that attract future private and public investments; and,

enhanced port management that increases the sustainability and service life of portfacilities.

1.4 SCOPE OF THE MASTER PLAN

The Port of Majuro Master Plan examines the condition and adequacy of existing port facilities

to support existing and future commercial traffic in the Port of Majuro during the coming decade.Commercial port traffic in the Port of Majuro includes international cargo and fishing vessels, as

well as RMI interisland cargo and passenger vessels.

Port needs are identified and facility improvements are recommended for each functional

component of the port. These components include:

Calalin Channel, the port fairway and related vessel anchorage area;

Uliga Dock facilities that support interisland passenger and cargo vessels;

Delap Dock facilities that primarily support international cargo vessels, cargo handling

and storage, the delivery of copra to the Tobolar Coconut Processing Plant, and the

occasional servicing of some international fishing vessels;

stevedoring services provided by RMIPA's contractor;

port operation, maintenance, and management activities of the RMIPA.

In order to address the needs associated with these port facilities, the Master Plan considers

various factors influencing the type, volume and frequency of future vessel traffic, as well as the

type and volume of incoming and outgoing cargo. Regional demographic and economic trendsare reviewed to analyze and forecast potential population growth between 2014 and 2024.

Marine transport trends associated with fishing, cargo, and interisland passenger/cargo vessels

are examined to estimate the type and number of vessel calls, forecast anticipated cargo volumes,and identify potential dimensions of future incoming vessels. Several environmental

characteristics of Majuro Lagoon are also presented in view of their influence upon vesselmovements and berths in the Port of Majuro. The analysis of various environmental factors is

also used to help determine potential environmental issues that may need to be addressed in thecontext of future port operations, maintenance, and management activities.

The Port of Majuro Master Plan subsequently presents a series of recommended portimprovement objectives and strategies. The strategies are organized in a manner that enables the

RMIPA to effectively plan, schedule, budget and allocate funds for specific projects, and carry

out specific port improvements. The Master Plan ultimately presents a related implementation


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plan that recommends a plan adoption process, as well as how recommended improvement

objectives and strategies are integrated into day-to-day port management activities.

Recognizing that the Master Plan will be used, in part, by RMIPA to secure funds from the RMI

National Government, multi-national organizations, and other national governmental agencies,

the Master Plan also includes a cost-benefit analysis of the overall port improvement program.Anticipated social and economic benefits are used to determine the net present value and benefit-

cost ratios of recommended port improvements.

1.5 PROJECT APPROACH

1.5.1 Use of Inter-Disciplinary Project Team

In November 2012, RMIPA retained the services of Lyon Associates, Inc. (LYON), based in

Honolulu, Hawaii, to complete a master plan for the Port of Majuro. Selection of the firm was

based, in part, upon LYON's organization of an inter-disciplinary project team for the project

that had considerable planning, design, and construction management experience in the PacificIslands. In order to properly assess the variety of components associated with the Port of Majuro

Master Plan, the team included the following disciplines:

Civil Engineering

Mechanical/Electrical Engineering

Architecture

Demographic and Economic Analyses

Port Planning

Surveying

Tank Design

1.5.2 Facility Inventory

The LYON project team completed an inventory of existing facilities during a field trip to

Majuro from January 8 through 18, 2013. Project team members observed and photographed

existing facilities. Selected building characteristics were documented and preliminaryassessments were made of facility conditions. As-built plans relating to the port and utility

infrastructure were acquired, and a topographic survey of the Delap and Uliga Docks was

performed. Supplemental information was obtained by LYON representatives during a

subsequent trip to Majuro in May 2013.

1.5.3 Public Information Meeting

RMIPA and LYON organized a public information meeting that was intended to provide port

stakeholders with information concerning the purpose and scope of the master plan, as well asthe intentions of the LYON project team to interview all available stakeholders. RMIPA

transmitted invitations to a wide variety of port stakeholders that included representatives of

local fishing vessel agents, international shipping companies, as well as a few national

governmental agencies.


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Some 30 persons attended the public information meeting which was held on January 9, 2013 at

the Marshall Islands Resort. The meeting opened with a presentation by Jack Chong-Gum,

Executive Director of the Republic of the Marshall Islands Ports Authority, who outlined thepurpose of the Port of Majuro Master Plan, highlighted recent port improvement efforts by

RMIPA, and encouraged the participation of stakeholders in the planning process. The need for

the master plan and the identification of some relevant port planning issues were also putforward by Captain Joe Tiobech, Deputy Director, of the RMI Ports Authority. LYON prepared

a sign-up sheet that enabled stakeholders to indicate their potential availability for an interview

with LYON project team members.

1.5.4 Interviewed Port Stakeholders and Selected RMI Agency Representatives

LYON contacted stakeholders to schedule interviews with various port stakeholders and RMIagency representatives. Information gained from these informal discussions was documented by

project team members for future reference during the course of the master plan process.

1.5.5 Port Facility Needs Assessments

The determination of port facility needs and improvements was initially considered in the

context of facility conditions observed by the project team during the January 2013 facilityinventory. The observation of these conditions enabled project team members to identify the

type and scope of improvements needed to sustain and improve the operation of existing

facilities, as well as other facilities needed to support future vessel traffic, cargo volumes andpotential economic development opportunities.

Project team members also reviewed relevant design and operations criteria for selected portfacilities, e.g. bollards. Available criteria were also considered in the context of anticipated

vessel calls, anticipated cargo and passenger volumes, the dimensions of cargo, passenger, and

fishery vessels, and other relevant considerations.

1.5.6 Refinement of Port Facility Needs

LYON prepared and provided a preliminary list of recommended objectives and specific portimprovement strategies that was based upon its port facility needs assessment. These

recommendations were initially transmitted to the RMIPA Executive Director and Deputy

Director for their review. Their insights led to a subsequent refinement of the recommended portimprovement objectives and strategies.

LYON subsequently presented the refined set of objectives and strategies to various portstakeholders in Majuro on December 11, 2013. The stakeholders invited to this presentation

included the Secretary of Transportation and Communications; local shipping agents; fishing,

shipping and petrochemical company representatives; and other port interests. Some of the

invitees to this meeting included stakeholders who were invited and/or previously attended theinitial public information meeting on January 9, 2013. Following the initial presentation of

recommended objectives and strategies, port stakeholders were requested to provide their

concerns and any suggested deletions, revisions or additions to the draft recommendations.Various comments were received during the facilitated discussion of the port improvement


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objectives and strategies. A summary of the comments received during this discussion is

presented in Appendix C.

The comments and recommendations expressed by port stakeholders during the December 11,

2013 meeting were used to further revise draft port improvement recommendations prior to its

presentation of the draft objectives and strategies to the RMIPA Board of Directors on December13, 2013. RMIPA Board members provided additional insights to these recommendations that

enabled further refinement of the proposed port improvement objectives and strategies.

1.5.7 Determination of Port Improvement Priorities

In order to establish priorities for the recommended objectives, LYON designed a matrix

evaluation form that was presented to RMIPA executive management and the RMIPA Board ofDirectors on December 11, 2013. During this presentation, representatives of the LYON project

team outlined how the form would be used by RMIPA to rate the importance and priority of each

port improvement objective. RMIPA Board Members, the Executive Director, Deputy Director,

and Comptroller each provided their personal scores without further discussion with other boardmembers or executive management personnel. The scores for each port management objective

were tallied on a cumulative basis and divided by the number of persons, who scored the port

improvement objectives, to determine average scores for the importance and priority of eachobjective. Average scores were calculated and used to ultimately determine the priority of each

port improvement objective.

LYON applied the priority rankings to the specific strategies outlined for each port improvement

objective. Each recommended strategy included a statement of work to be completed, an order-

of-magnitude cost, responsibility for implementation, and project schedule. The priorityrankings of RMIPA Board, Executive Director, Deputy Director and Comptroller guided the

timelines that LYON identified for each strategy.

1.5.8 Distribution and Review of the Pre-Final Master Plan Report

Lyon Associates completed and published a pre-final master plan report in March 2014. This

report was placed on the website (www.rmipa.com)of the Republic of the Marshall Islands PortsAuthority to facilitate public review.

1.6 REPORT ORGANIZATION

The master plan report is organized into the following chapters.

Chapter One provides an overview of the purpose of the Port of Majuro Master Plan, the

approach used to prepare the plan, how the plan report is organized, and the parties consulted

during preparation of the Master Plan.

Chapter Two includes an evaluation of selected demographic and economic trends in the

Republic of the Marshall Islands. This analysis focuses upon trends that are expected to

influence the type and extent of future port traffic. A brief analysis is also devoted to theidentification of potential economic opportunities that could strengthen the national RMI
http://www.rmipa.com/http://www.rmipa.com/


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economy. This chapter concludes with th

rmipa port master plan

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