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SPP Corp.’s terminal sharing proposal backed
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Posted on Dec 01 2004
Gov. Juan N. Babauta is supporting a private group’s proposal to provide the CNMI with an alternative source of petroleum products.
In a Nov. 26 letter to Commonwealth Ports Authority executive director Carlos H. Salas, Babauta said he fully supports the terminal sharing proposal that was recently submitted by South Pacific Petroleum Corp. to CPA.
“I fully support the proposal submitted by SPPC and strongly encourage CPA to prioritize further discussions relating to this proposal,” the governor said.
He said it would realize his administration’s goal “to fully utilize the strategic and economic potentials of the CNMI’s seaports.”
“The proposal, intended to provide the CNMI with an alternative source of petroleum products by allowing SPPC to use the existing terminal facilities operated by Saipan Shell, presents the type of business opportunity that was envisioned when I requested the CPA board of directors to work with the administration to conduct an economic analysis and development plan to ensure that the CNMI fully utilizes the strategic and economic potentials of its seaports,” said Babauta.
He said the project could minimize the duration and impact of economic disruptions caused by high fuel prices, especially in view of the lack of a truly competitive petroleum market in the CNMI.
SPPC, he said, would also gain from it by having access to a previously restricted market.
