Pellegrino urges public to buy shares of new cargo airline

Businessman Anthony Pellegrino urged the public yesterday to buy shares of his cargo airline that, among other things, could cut shipping rates by over 50 percent per pound from Saipan to Guam as early as September.

Cargo Air Bridge is expected to provide service between Saipan, Tinian, Rota and Guam and back.

When asked about the amount of each share in the company, Pellegrino said he’d rather not make the figures public at this time but will be providing the numbers to prospective investors.

“Your investment is welcome and important in any amount. I welcome your participation,” he said.

Pellegrino was one of two guest speakers at the Saipan Chamber of Commerce’s general membership meeting yesterday at Saipan Grand Hotel in Susupe.

He said his latest venture will reduce the high cost of shipping not only fruits and vegetables but also other types of cargo between Saipan and Guam, for example.

“Any economic growth the CNMI undertakes is being strangled by the high costs of exporting anything we create. Unless we correct this problem, our economy will continue to shrink. This is the only way our economy will grow and benefit all of us. This project is full of hope and great promise,” Pellegrino said in his presentation.

He said that based on his research, it is a lot cheaper to ship a pound of fish from Chuuk to Guam, which could only be 76 cents a pound compared to $1.27 a pound from Saipan to Guam.

With Cargo Air Bridge, the shipping cost could be dramatically slashed, making it more practical and profitable to transport farmers’ produce from Saipan to Guam, which has a population of 180,000.

In an interview with reporters after his presentation, Pellegrino said he has so far invested enough “seed money” to buy one of two cargo planes worth about $400,000, but will need a total of at least $1.2 million to fully get the project off the ground.

“Some people ask why I am doing this? No, I am not looking to make more money for myself If I were, why would I invite you to join in with me and buy shares to help make this venture a success?” he said.

He said he’d be glad to discuss details of the investment with anyone interested, by calling him at 287 8310 or sending him email at tonypell@pticom.com.

Pellegrino, founder of the Northern Marianas Trades Institute, said since he made a formal announcement about his latest venture last week, he has heard from investors wanting to help the project become a reality.

Cargo Air Bridge’s marketing and sales manager Paul Zak and chief pilot and operations manager Jim Parrish accompanied Pellegrino to the Chamber meeting.

They have formed a company called Arctic Circle Air, which they say “will be the air cargo bridge between the islands.”

Pellegrino shared his personal experience about the high cost of shipping. He was selling locally grown shrimp in the military commissary in Guam but had to stop after several months.

“The reason was that it was costing $1.25 per pound plus ground handling charges in Guam. These costs made the shrimp much too costly. However, the shrimp were readily sold because the quality was good,” he said.

He also said in May this year, he shipped a 40-ft. container to Chuuk filled with small bottled drinking water from his company. The freight cost was $6,800.

“Needless to say, the customer has decided to buy drinking water from the Philippines at a much lower shipping cost,” he added.

The businessman added that the new cargo airline will create jobs.

“The other methods such as casinos, hotels and other investments are also needed and will definitely help us one way or another. But we need a blood transfusion now! Not three or four years later!” he said.

Saipan Chamber of Commerce president Douglas Brennan asked whether the cargo airline would also carry mail between Guam and Saipan. Pellegrino said “yes,” adding that the plane would also carry other products besides fruits and vegetables.