CPA cuts passenger fee on Saipan docks

In fresh efforts to assist the serious attempts revive the island’s tourism sector, the Commonwealth Ports Authority has started implementing a reduced passenger fee on three Saipan docks for an indefinite period beginning August.

This was learned from Board Chair Roman S. Palacios who explained that the move was in response to clamor from tenants of the Seaplane Ramp, Echo and Sugar docks for a discounted passenger fee.

Mr. Palacios disclosed a Board Resolution has been adopted to pave the way for the implementation of the discounted passenger fee from $6 to a dollar per revenue passenger who boards or disembarks a vessel operating out of any of the three docks’ premises on Saipan.

Tenants of Seaplane Ramp. Echo and Sugar docks have continued operations on a $6-per passenger fee despite the facilities’ poor conditions.

This, as well as the present state of the CNMI tourism industry, has prompted them to ask the ports authority for a reduction in the existing level of passenger fees collected from revenue passengers.

Revenue passengers are those who is charged in order to take a vessel from any of the three docks for inter-island or tour cruises administered by any privately owned company at the Seaplane Ramp, Sugar and Echo docks.

Mr. Palacios said the tenants have requested that the passenger fee be reduced until such time CPA has managed to make the necessary improvements at the docks and until the CNMI economy has recovered from the crisis.

“[T]he CPA Board of Directors has considered the request to waive or lower the passenger fee at the Seaplane Ramp, Echo and Sugar Dock premises as a matter of fairness, and is of the opinion that the passenger fee should be lowered in light of the poor condition of the facilities,” stated Board Resolution 2000-05.

The CPA Board Resolution guarantees that the discounted rate will be in effect beginning August 1, 2000 until the ports authority determines that the reduced passenger fee should be appropriately stopped or amended.

Last month, the CPA Board of Directors approved a proposal to begin collecting a flat passenger fee rate of $20,000 per month from the cash-strapped Tinian Shipping & Transportation Inc.

CPA has been working closely with the CNMI government, particularly the Marianas Visitors Authority and the Governor’s Aviation Task Force, in strengthening transportation infrastructure in the Northern Marianas.

It has recently helped facilitate the entry of Taipei-based Mandarin Airlines into Saipan, which paved the road for the introduction of the CNMI as a prime tour destination for millions of Taiwanese travelers.

At present, the ports authority is working with Australia-based Micronesian Air which recently signified intentions to ferry passengers between the continent Down Under and Saipan on a regular basis.

Micronesian Air Australia is planning to utilize 727 aircraft to carry cargo and passengers between the country and the CNMI in its proposed flight services to Saipan from Sydney.

Mr. Palacios said the carrier’s plan to fly between Australia and Saipan will not only mean additional revenue for the ports authority but will also spur visitor arrivals into the CNMI due to the anticipated entry of Australian tourists.