Volume of cargo passing through seaport drops

The impact of the ongoing closures and downsizing within the garment industry has started to manifest, with the volume of inbound and outbound cargo recorded by the Commonwealth Ports Authority posting a decline.

CPA data showed that the total cargo processed at the Port of Saipan reached only 240,562 tons during the first five months of fiscal year 2005—a 4-percent drop compared with the same period last year.

The volume of inbound cargo decreased by 2 percent or 4,699 tons, while that of outbound cargo dropped by 8 percent or 4,765 tons.

Statistics also indicated that almost 80 percent of the 9,465-ton difference in the total cargo volume was registered from January to February 2005 alone.

The total cargo volume dipped by almost 2,000 tons from October to December 2004 compared with the same period in 2003. The combined volume of inbound and outbound cargo, however, further decreased during the two months that followed, sliding by almost 7,500 tons.

Beginning Jan. 1, 2005, the World Trade Organization lifted quota restrictions that limited garment exports from foreign countries.

In an interview, CPA executive director Carlos Salas said imports and exports by the local garment industry make up about half of the total cargo being processed at the Saipan seaport.

He noted that the drop in the cargo volume is partly a result of the current garment industry situation. He added, however, that it may be premature to determine the extent that the pullout of garment companies is affecting CPA.

“Definitely, we will see a decrease in revenues, with the ongoing movement of garment manufacturers to other places like China. But right now, it’s kind of too early to tell exactly how much of the decrease in cargo is representing garment cargo,” Salas said.

CPA’s latest financial report further showed that the decreased cargo tonnage has yet to manifest on the income of the Commonwealth seaports.

Seaport revenues totaled $3 million during the first month of FY 2005, a 24-percent increase from the same period in FY 2004.

CPA comptroller George Palican said this was a result of the implementation of the wharfage fee, which the ports authority recently started assessing shippers.

Seaport operating expenses, however, rose by 19 percent, due to increases in personnel and in maintenance and operating costs.

Palican attributed the increased personnel costs to the payment of retirement benefits to former Saipan seaport manager Tony Cabrera, the permanent hiring of two trainees from the Workforce Investment Agency, and the payment of 5-percent salary increment to port employees.