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$16M ship disposal project cancelled
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Posted on Dec 05 2011
An investor who had been approved to use a portion of the Saipan seaport for a multimillion-dollar ship disposal facility has cancelled the project, according to Commonwealth Ports Authority acting board chair Manny Villagomez.
Villagomez disclosed to Saipan Tribune that the board now considers the project “inactive” after waiting for more than a year for it to push through. He said that Worldwide Salvage Saipan LLC had sent them a letter months ago indicating its decision to cancel the project. The company also surrendered its lease agreement with CPA.
“They gave up the plan and since we haven’t heard anything from them for past several months, the board considers the lease agreement it issued as inactive,” Villagomez said.
Worldwide Salvage Saipan LLC had proposed in late 2009 to build a $16 million ship disposal program on Saipan, at no cost to the government. Worldwide Salvage wanted to tow old ships from California, Texas, and Virginia to the island where they will be dismantled and parts will be shipped out. It asked to lease a portion of the Saipan port for the project. The CPA board approved a temporary lease agreement so that the company could move forward with the other federal requirements for the project.
Villagomez expressed himself disappointed with the company’s failed plan and said the board will revisit the inactive lease agreement so it could be given to other potential investors that may want to use the dock.
Based on the original proposal, the ship disposal program was supposed to be focused mostly on merchant marine ships such as cargoes and tankers. The company had planned to employ 250 people and use Agingan Point for incineration and toxic wastes disposal.
Saipan Tribune tried to email and contact the company’s representative on island, to no avail.
CPA executive director Edward Deleon Guerrero was in a meeting when contacted by Saipan Tribune.
