Inbound commodities fall 22 percent in 6 months

The Commonwealth Ports Authority posted a significant drop in the volume of inbound commodities that went through the Saipan seaport during the first six months of the current fiscal year.

Saipan Tribune learned that from October last year to March 2009, the revenue tonnage of cargo that entered the island’s port totaled only 153,492 compared to 196,550 revenue tons during the same period last fiscal year.

Port of Saipan manager MaryAnn Q. Lizama said the difference translates to a 22-percent decline in volume of inbound cargoes.

The last fiscal year’s total revenue tons in six months were computed based on the “old rate” of $6 per revenue ton charged by the ports authority. This year, a new tariff rate of $11.40 per revenue ton was implemented by the agency to help address the bond indenture provisions.

Lizama said the 22-percent loss in the first six months is a result of the current economic downturn on the island. In March 2009 alone, Saipan seaport received a total of 27,446 revenue tonnage, which indicated a 17-percent loss from figures in March 2008 of 33,222 revenue tons.

“A major factor is the current state of the economy. It impacts the way people spend nowadays because it’s more of a need and not a want for consumers,” Lizama told Saipan Tribune, although she expressed hope the economy would turn around soon.

The CPA board implemented a 90-percent increase in tariff rates in January this year.

Despite the hike, Lizama said seaports stakeholders remain committed to working with CPA. “Our stakeholders have been very receptive and have been very supportive of CPA’s situation,” she said.

These stakeholders include Saipan Shipping, Saipan Stevedore, CTSI , Ambyth, Seabridge, Mobil, Shell, Hanson Cement, Inchcape, to name a few.

Lizama said they are slated to review and assess the impact of the new tariff rates soon.

Tariff rates were increased by 5 only percent in 2007.

“The increase was long overdue… and it will help stabilize our responsibilities,” Lizama said, adding that even though there was an increase in the rates, the revenue tonnage accommodated at the ports is either the same or less.

Citing the need to enforce more cost-saving measures, Lizama said the Port of Saipan is functioning with a nominal work force and has, in fact, reduced its employees from 20 at one time to only 11 at present.