Port expansion bill hurdles House

The House of Representatives unanimously passed on final reading yesterday a bill that designate certain public lands in Puerto Rico for port expansion purposes.

The proposed Port of Saipan Expansion and Development Act of 2004 essentially authorizes the Commonwealth Ports Authority to manage, administer, and exercise control over the lands that currently belong to the Marianas Public Lands Authority—an issue that had stalled plans to expand the seaport due to differences between the two agencies.

The bill’s passage faced no objection from House members, but Rep. Heinz Hofschneider, during a brief discussion period, said he hopes that the measure would not lessen the MPLA’s capacity to achieve its set goals. He noted that MPLA gets most of its revenues from land leases. Hofschneider said that the MPLA could not afford to give away its lands all the time.

The designation of public lands to CPA would now allow this agency to profit largely from the lands.

The bill’s main proponent, Rep. Joseph Deleon Guerrero, said the measure offers at least two benefits to the CNMI: reduction of international shipping costs from 15 to 20 percent and conversion of Saipan Port into a regional transshipment point for other Micronesian islands.

In previous hearings, MPLA and CPA traded arguments defending their positions on the bill.

The MPLA adamantly opposed the proposed fee simple transfer of the public lands, citing its potential adverse impact on MPLA projects that directly benefit people of NMI descent.

The CPA for its part was equally unyielding, noting that the land transfer is targeted to improve the economy and to develop the Port of Saipan as a transshipment hub in Micronesia.

Under the bill, CPA shall transfer 10 percent of any lease or rental payments collected from the properties to MPLA to be used for its homestead programs.

Within 30 days after the effectivity of the measure, CPA and MPLA shall execute an agreement listing the schedule of payments and other terms and conditions.

Earlier, MPLA pushed for a 25-percent share in CPA’s revenues collected from all its leased properties situated at all CNMI airports and seaports.

If enacted, the expanded seaport container yard would be able to handle 5,000 containers at a time. It is also projected to haul in an average of 1,620 containers on a daily basis.