CPA defends paid parking at commuter terminal

Implementation of the paid parking system at the Saipan Commuter Airport Terminal was aimed at increasing the Commonwealth Ports Authority’s non-aviation revenues so as not to strain operational expenses incurred by airline companies.

Executive Director Carlos H. Salas said only through fortification of CPA’s ability to generate more non-aviation revenues can the agency prevent the imposition of additional airport charges to carriers on the islands.

“While the CPA Board’s decision to use parking meters at the commuter terminal may appear to conflict with our previously stated goals or reducing direct costs to airlines and their passengers, it is exactly this type of non-aviation revenue that allows CPA to cut direct costs to the airlines,” he said.

In his response to a previous inquiry by Senate President Paul A. Manglona, Mr. Salas said CPA has tried to maximize collection from other sources of non-aviation revenues over the past two years in order to meet its operating and debt service requirements.

Non-aviation revenues include funds generated from contracts on car rental and food concessions, property rental, ground handling, fuel flowage fees, as well as parking fees

“Though it is true that our first quarter revenues are up in some areas, the substantial cost sharing required in operating and improving facilities on Rota and Tinian greatly diminishes the likelihood of any significant surplus,” Mr. Salas pointed out.

CPA is planning to install a meter system at the parking area adjacent to the Saipan commuter terminal, as part of efforts to increase non-aviation revenues in line with plans to extend the implementation of the Airline Incentive Program.

In order to address concerns that may be raised by those who frequently travel between the CNMI islands, CPA is planning to institute a measure that would grant unlimited parking access at the area on a fixed annual fee.

Under the proposed program, residents who commute to and from Saipan on a frequent basis may obtain a Frequent Traveler Public Parking Permit from the CPA for an annual fee of about $400.

The permit, which shall allow for unlimited parking, will have to be prominently displayed inside the vehicle dashboard while parked and should be presented to the parking attendant when exiting.

CPA recently completed the installation of an automated parking meter at the Saipan International Airport in efforts to improve efficiency.

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.