CPA expects to see surge of activity at CNMI seaports

With U.S. President Donald J. Trump’s signing of a bill that extends the CNMI-Only Transitional Worker Program beyond 2019 and increases the CW cap limitation for the fiscal year, the Commonwealth Ports Authority expects to see a surge of activities at CNMI seaports.

CPA seaport operations committee chair Pete P. Reyes stated during CPA board meeting last Thursday that the seaport has always been a money-making activity for CPA but it appears to have slowed down, compared to 2017 and for this year on inbound cargo.

Reyes said from 48,028 in tonnage by inbound cargo for May in fiscal year 2017 at the port of Saipan, there were 35,143 for May fiscal year 2018—a 29-percent decrease.

In an interview, the former Saipan senator attributed the decrease to the CW issue that came up.

“There’s a great deal of concern on whether or not new investors are willing to relocate their business in the CNMI,” he said.

Hopefully, Reyes said, with the new CW extension law that was passed by the U.S. Congress and signed by Trump, they may see another surge of CNMI seaport activity coming in.

Labor Secretary Vicky Benavente earlier stated that with Trump’s signing of the CW extension law, several companies have indicated plans to proceed expanding business hours, or increasing their product lines and store inventory.

Reyes also cited the issue on charges for containers, which “kind of slowed down the inbound cargo.”

“We just adopted a regulation to address that and hopefully within a month or two, once it becomes effective, I am very positive we will see additional inbound cargos flood the CNMI,” Reyes said.

He is optimistic that the CNMI will see an increase in the tonnage of cargo that are coming in.

“Seaport will be back on its feet again,” the former senator said.

He disclosed that last month, they saw an increase of tonnage by inbound cargo, but those were as a result of a commitment that they made prior to all these problems that they’re having.

Reyes said to address the problems, they made tariff changes that were never part of the regulations before.

“This will bring in a lot money,” he added.

On tonnage by outbound cargo at the port of Saipan, Reyes said, there were 901 in May fiscal year 2017 and 1,010 in May fiscal year 2018—a 12-percent increase.

For the port of Tinian, he said, from 992 tonnage by inbound cargo in May fiscal year 2017, there were 1,088 in the same month in fiscal year 2018—a 10-percent increase.

With respect to tonnage by outbound cargo at the port of Tinian, Reyes said, there were 30 in May fiscal year 2016 and 55 in the same month in fiscal year 2017—a 47-percent increase.

For the port of Rota, Reyes said, there were 112 in May fiscal year 2017 and zero in the same month in fiscal year 2018—a 58-percent decrease.

Pertaining to tonnage by outbound cargo at the port of Rota, he said, there were zero in May for both fiscal years 2017 and 2018.