Get a move on seaport expansion

With the bill designating certain parcels of public lands in Puerto Rico for port expansion passing the House of Representatives Tuesday last week, it now behooves the Senate and Gov. Juan N. Babauta to similarly expedite the passage of the measure so that the long delayed plan to make the Port of Saipan a transshipment point for the Micronesian region could take off.

This plan, which has been on the drawing board for more than two years now, promises to be a major revenue source for the Commonwealth and a value added feature for the islands that would surely be considered a factor by any potential investor. It is also projected to reduce international shipping costs to the CNMI from 15 to 20 percent. The wonder, actually, is why it has taken so long for this project to take off.

Of course, everybody knows why. The Marianas Public Lands Authority and the Commonwealth Ports Authority have been playing tug of war over these pieces of lands for so long, with each one citing their respective mandates why they should have control over these properties. The MPLA has expressed willingness to lease out the properties to CPA so it could expand its container yard and enable it to handle more container vans. The CPA, however, insists on a fee simple transfer of the properties, i.e., it should be given the titles to the properties and be made its owner, on the argument that, as property owner, it can implement the project without impediment from the MPLA. The MPLA, however, cites its constitutional mandate to hold in trust all publicly owned lands for the people of CNMI descent for future use. Both make compelling arguments, particularly when viewed from the perspective that there IS limited public lands in the CNMI.

However, I believe that the MPLA should concede this matter to the CPA. With declining government revenues and the possible slowdown in the garment industry in 2005, the CNMI is hard pressed to come up with a new source of revenue that would shore up the government’s operation at the level expected of it. Sure, the tourism industry is on the upswing but the past year has taught us and the rest of the world how fickle the tourism sector is, easily buffeted by global events such as SARS and terrorism. The CNMI economy needs a third leg to stand on and this is where this concept of transforming Saipan into a transshipment hub for Micronesia could play a large part.

At the same time, due to heightened concerns over terrorism, new federal regulations require that the Saipan seaport allocate empty space between the fence marking the border of the seaport and the container vans. This will surely eat up a large portion of the current port area and result in overcrowding inside the port itself. By allocating the needed lands to CPA, this will give it the needed legroom to stretch out and grow.

Yes, there are some concerns that giving these lands could hamper MPLA’s capacity to achieve its goals. After all, most of the revenue it earns comes from land leases. However, the proposed Port of Saipan Expansion and Development Act of 2004 solves this dilemma nicely. If passed, it would require CPA to transfer 10 percent of any lease or rental payments collected from the properties to MPLA to be used for its homestead program. This, I believe, resolves the issue and is a win-win solution for both agencies.

So, get it on and let’s get this project moving. Any further delay could scotch this project altogether. Remember, one multinational shipping company, CSX Lines, has already put on hold its plan of using Saipan as its transshipment point because of the delay in getting the project off the ground. The sooner this project takes off, the better will it be for everyone concerned.

Finally, consider that both Hong Kong and Singapore are major transshipment points in Asia. These two Asian dragons are built on top of tiny islands yet who in the world hasn’t heard of the phenomenal growth of these places? By making Saipan a place where all goods being traded in Micronesia pass, this is one more plus for the local economy, resulting in added revenue and lesser freight costs. Who says the CNMI can’t aspire to be the next dragon in the Asia Pacific region?

(The writer is the editor of the Saipan Tribune.)