CPA: Negotiation would proceed when lots are allotted to seaport

The Commonwealth Ports Authority would begin a new round of negotiations with Horizon Lines if there would be concrete evidence that the Saipan Seaport would be allocated the needed lands for its expansion program.

CPA executive director Carlos H. Salas disclosed that, if the needed lands are allocated as planned for the Saipan Seaport expansion program, CPA might return to the negotiating table to discuss transshipment operation with Horizon Lines, which pulled out from the discussion due to the CNMI’s inability to commit.

“There is still high uncertainty for the CPA and the CNMI because of its inability to facilitate needs for them to call port. We need the extra lands and it is important for the regional transshipment hub operation,” said the executive director.

He said once all concerns are addressed, CPA would continue its negotiation so the project could proceed as planned.

The CPA has been looking at ways on how to improve its non-tariff revenue sources by expanding its container yard in hopes of transforming Saipan into a regional transshipment hub for the Micronesia.

“The lands are only for the container yard. If there would be a positive move from the Legislature, we would be comfortable to reopen the dialogue,” Salas said.

However, at this point, CPA is treading the water and is cautious about committing itself in marketing Saipan as a transshipment hub due to the setbacks it experienced for more than one year due to land problems.

Salas is optimistic, though, that the problem would be resolved if House Bill 14-16 sails through the Legislature and is passed into law by Gov. Juan N. Babauta.

The measure, House Bill 14-16 or the Port of Saipan Expansion and Development Act of 2004, recently passed the 14th House of Representative and is now at the Senate.

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.

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.

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 affectivity 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.