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Company gets exclusive stevedoring rights on Tinian
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Posted on May 07 2012
By Clarissa V. David
Reporter
Reporter
The Commonwealth Ports Authority board approved Friday the request of Tinian Marine Stevedore Inc. for a 10-year exclusive right for stevedoring services on Tinian, with the condition that the company would pay 4 percent of its gross revenue to the agency beginning on its third year.
At the meeting, Saipan seaport manager Mary Ann Q. Lizama pointed to a seaport map the area covered by the exclusive rights, which is on the “southern portion, east quay.”
The board said that granting TMS’ request will allow the company to mobilize and move their equipment to begin stevedoring operation once more on Tinian.
Tinian Stevedore was the island’s main provider of stevedoring services but the company officially shut down last Oct. 31, resulting in residents and businesses struggling to find a way to get their goods.
CPA board member Benigno M. Sablan emphasized that the board’s decision will help lower the cost of commodities on the island. “It’s so expensive to live on Tinian,” he added.
Board member Barry C. Toves expressed concern that granting 10-year exclusive rights to just one company would have potential impacts. Lizama explained, though, that the exclusivity is only for a specific location, thus the rest of the marina remains available for other companies that are willing to start their business there.
CPA executive director Edward M. Deleon Guerrero noted in an interview after the meeting that Tinian “always” had one operating stevedoring company despite issuing licenses for two, given the island’s small trade activity on the island.
“Tinian now doesn’t have any stevedoring service that’s why these guys [TMS] are coming in now. They are leasing property from us from way back. They just want to come back and start doing business as stevedoring,” he told Saipan Tribune.
TMS, Deleon Guerrero said, will have to spend “a lot of money” to bring in their equipment, which also need to be certified, hence the board’s decision to grant them exclusive rights.
He added that CPA will be “tagging” 4 percent of TMS’ gross receipts on their third year. “The first two years, we’re going to try and help one another for them to recoup what they spent to do their business,” said Deleon Guerrero.
