An expanded Saipan Harbor

The expanded Saipan Harbor was inaugurated last weekend, a project that took a bigger portion of the $30-plus million bond flotation by the Commonwealth Ports Authority for channel dredging, a bigger area to facilitate the loading and unloading of containers, more berthing places for larger ships, and other vital facilities.

Beneath the hearty congratulations for the completion of a much needed expansion is the responsibility to ensure that the Saipan Harbor is supported with sufficient shipping activities to be able to pay-off its debt service. These shipping activities involve cargo going in and out of the Saipan Harbor. We must ensure that business in this sector thrives. Any decrease in the shipping industry would make it difficult for CPA to meet the timely payment of its debt service of some $30-plus million.

The one industry that plays a key role in revenue generation for the local commercial port is the apparel sector. It imports large quantities of materials and exports its finished products to global markets via the Saipan Harbor. In fact, finished apparel products are the only major export items of the Northern Marianas. Its presence here has encouraged the establishment of residual (support) businesses who in turn contribute appreciable revenue into the local treasury annually. It has created wealth in the millions of dollars and thousands of non-garment related jobs for the NMI. We must ensure that current level of commerce thrives in the shipping industry. Otherwise, a decrease would definitely translate into less revenue for the newly expanded commercial port.

Indeed, there are other prospects for revenue generation through the operations of the expanded harbor facility. It includes, among others, plans by cruise ships owners to make regular calls on the island bringing 300 plus people per trip. Then there’s the much touted “free trade zone” plan though we’re not sure how the envisioned industries would pan-out over the short and long-term. It may appear to be an alternative but highly unlikely to succeed given the lack of thorough study and analysis defining its intended goals and objectives. We’re not knocking it but like experts have stated recenlty, we must only venture into economic activities we know best. Otherwise, we would fail royally in undertakings where we lack real forte.

Our congratulations to the Board of Directors and management of CPA for a job well done. Let us put our heads together to explore other ways to generate revenue. It’s good for CPA and the entire NMI. Congratulations!