CPA eyes privatization of parking management

The Commonwealth Ports Authority is eyeing the possibility of transferring the administration and management of its paid public parking facilities at the Saipan International Airport and the Puerto Rico seaport.
CPA Executive Director Carlos H. Salas laid down the idea of privatization to the agency’s Board of Directors which suggested that ports authority administration should look at the proposal’s profitability first.
Mr. Salas said privatization of the airport and seaport paid public parking facilities’ management remains in the planning stage, pending the completion of financial feasibility studies.
CPA board members are, however, concerned that privatizing the public parking at the international air and sea transport facilities would reduce the agency’s revenues, which started stabilizing when the ports authority implemented new airport and seaport fees, including the imposition of parking fees.
According to Mr. Salas, CPA management will initially look at whether transferring the management of the facilities to a private company would be more profitable for the agency.
“Once CPA determines that it is beneficial to contract it out, CPA can hen pursue the matter further,” he added. By that time, both facilities would be up and ready with all the automatic dispensers in place.
CPA Board of Directors last month approved the installation of an automated parking meter at the Saipan International Airport and the Puerto Rico harbor in efforts to improve efficiency.
The contract for the $177,000 automated parking meter project has been awarded to Sablan Enterprises. CPA is expecting that the automated parking meters are already installed, and should be ready for full implementation in May.
Imposition of charges at the airport’s public parking area was decided to increase current level of CPA revenues while repressing adverse effects on the airline industry by delaying the implementation of new aviation rate schedule.
With CPA’s decision to delay the implementation of new airport rates, which had been pushed by the agency’s financial consultants, the ports authority was able to arrest possible increase in airline tickets since carriers are likely to pass additional charges to passengers.
CPA started charging car owners who would use the public parking area at the Saipan International Airport a dollar per hour as part of the agency’s efforts to increase revenues last July 1, 1999.
Some $8,000 to $9,000 in additional revenue is generated by the Ports each month from the charges it impose for the use of its public parking facilities at the airport and at the harbor.
The ports authority is expecting to generate at least $80,000 in additional annual revenues from the collection of parking fee, according to Salas.
Mr. Salas said the cost of running the facility is high since CPA operates two booths in three shifts on a 24-hour basis. This does not include additional expense for supplies.
The ports authority would be charging $10 for a 24-hour use of the parking area per car, while holders of lost tickets will be charged $10. CPA has designated only one entry and exit points for the airport parking area to facilitate registration.
Imposition of parking charges was among CPA’s alternative to increasing revenues in order to meet debt obligation. Aside from it, the ports authority also reduced manpower hours, raised non-aviation rates such as ground handling and fuel flowage fees.