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‘House’s proposal will help seaport’
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Posted on Jun 17 2004
The Commonwealth Ports Authority assured that non-harbor revenue generation would increase and other services would be forthcoming once the Saipan Seaport is approved to use public lands adjacent to the harbor.
CPA executive director Carlos H. Salas is hopeful that House Bill 14-16 or the Port of Saipan Expansion and Development Act of 2004, which recently passed the 14th House of Representative, would also get the nod of the Senate.
“We are looking forward to getting the land. This is part of the CPA’s plan to increase non-harbor revenue sources,” said the executive director.
The port expansion would also lessen the impact of the lifting of quota restrictions in 2005, when CNMI garment factories are forced to compete in the global market.
On 2003, CPA was forced to suspend some of its ports projects that include the expansion of the container yard due to lack of lands. As a result, multi-corporation CXS Lines also suspended its proposed operations to the CNMI due to delayed allocation of lands for hundreds of containers to be deposited at the proposed container yard on Saipan.
If approved, the Port of Saipan Expansion and Development Act of 2004 would authorize the CPA 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 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.
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.
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.
