Panel considers airport land for trade zone

Some 20 hectares of idle land owned by the Commonwealth Ports Authority at Saipan International Airport may be used for the development of a free trade zone in the Northern Marianas.

In a memorandum issued to the CPA board of directors, Carlos H. Salas, executive director, said the Free Trade Zone Subcommittee of the Economic Revitalization Task Force is seriously considering 20 hectares for the initial phase of the program. The remaining areas can be set aside for the second and third phases of the free trade zone, depending on the rate of development.

CPA board chairman Roman S. Palacios said he is infavor of the plan to use the agency’s idle lands because it will provide additional revenue for the ports authority. He added that the ports authority will appraise the value of land

The subcommittee has identified 61 hectares of idle land specifically for industrial development under the layout plan. A total of 128 hectares of land in the airport is available for lease.

Due to the plunge in revenue as a result of the downtrend in tourist arrivals, the CNMI government has been studying the creation of the free zone to stir economic activities in the Northern Marianas.

Since Asia’s financial crisis began in July 1997, the Northern Marianas has suffered greatly in terms of attracting investments on the island as many companies have shut down operations.

Salas said the airport land appear to offer more advantages to prospective investors due to availability of power, water and developed roads compared to other areas. Free trade zones are usually located near the airports and seaports to facilitate the movement of cargoes.

With the planned completion of the $42 million Saipan Harbor Improvement Project in 1999, the ports authority is depending on the creation of the free trade zone to attract foreign investors who would make use of the expanded facility.

A package of incentives may be offered to prospective investors who would relocate in the free trade zone such as availability of labor at reasonable rates from neighbouring countries, access to U.S. market via Headnote 3(a) or duty free entry of various products, tax incentives, reliable shipping schedules and proximity to Asian market.