‘Company must procure crane for Rota seaport or default on lease’

The company that has the exclusive right to conduct terminal and stevedoring services at the Rota West Harbor must procure a port crane or face default of its lease agreement with the Commonwealth Ports Authority, according to CPA executive director Christopher S. Tenorio.

He told Sen. Paul A. Manglona (Ind-Rota) last Tuesday that CPA agrees that a functional crane at Rota West Harbor is necessary and that they have already informed RTT about this requirement.

RTT has held exclusive right to provide stevedoring services at the Rota West Harbor since 1996.

Tenorio

Tenorio said that under the lease, RTT is responsible for purchasing any and all equipment that CPA deems necessary for the smooth and efficient operation at the port.

Tenorio discussed the RTT-CPA lease in his response to Manglona’s letter to him Monday in which the senator disclosed that cargo ship M/V Mariana carrying essential commodities arrived last Feb. 24 at the Rota seaport but failed to offload the items from the containers and had to return to Saipan due to lack of a crane at the port.

Manglona said it’s not the first time that such an incident affected the island’s port operations.

The senator said with the millions of dollars being invested in the CNMI by the federal government, now is the time to seek financial assistance in procuring a port crane to ensure the smooth operation of the Rota seaport.

Tenorio said CPA has already taken steps to improve the movement of containers—both interisland and between itself and the Port of Guam—through its pursuit of the U.S. Department of Transportation’s Marine Highway Program.

He said that in late 2021, the U.S. DOT’s Maritime Administration approved a new route destination between Guam and the CNMI. He said this route destination allows for the expansion of existing containerized freight by making projects along this route eligible for grant funding.

He said one of those projects that CPA has already sought and has had approved is the “CNMI Freight and Improvement Project.”

“This project will expand CPA’s maritime capacities for the shipping of interisland cargo and commodities and will increase the frequency of such freight and reduce shipping costs,” Tenorio said.

Saying he admires Manglona’s passion in resolving critical issues at Rota seaport, Tenorio asked the senator to use his “influence and pass legislation” that will aid CPA in its undertakings. The executive director urged the senator to follow-up not only on CPA’s already-taken proactive steps to address this issue, but also on other government entities within his sphere of influence, such as the Rota Mayor’s Office and its 2019 U.S. of Insular Affairs Maintenance Assistance Program grant award.