CPA urges shipping companies make Saipan transshipment area

With an expanded and modern Saipan Harbor, the Commonwealth Ports Authority will ask the shipping companies to make Saipan as a transshipment area in Micronesia.

CPA officials will make the pitch during the ATOSCOM conference on Sept. 5-10 in Palau where terminal operators and stevedore companies will discuss terminal tariff.

According to Carlos H. Salas, executive director, the ports authority will present the board resolution inviting the shipping companies to come to Saipan during the one-week conference.

So far, manufactured garments moved in containers are the only significant exports of the CNMI. In 1997, the garment industry’s total revenue amounted to $800 million.

With the exception of garment exports, at least 83 percent of the cargo handled at the port of Saipan is imported. This include finished petroleum products such as diesel fuel, jet fuel and unleaded fuel represent the largest single commodity handled at the port.

However, a study conducted by Booz Allen & Hamilton revealed that Saipan Seaport cannot be a mainline transshipment hub similar to Kingston or Freeport. The study gave Saipan Seaport a very low rating based on the six factors that would ensure the success of trans-shipment hubs, namely, high loading/unloading productivity, proximity to origins or destinations, low cost labor, deep water, ability to match trade lanes.

Although the primary fishing waters are far south of the CNMI’s 200 mile economic zone, the study said there may be some opportunity to transship fresh or frozen tuna in the CNMI, taking advantage of the short distance that would allow the immedite airlifting to the Japanese market.

After several years of waiting, the $43 million Saipan Harbor Improvement Project has been completed.

Now, the Port of Saipan is a world class facility with 2,600 linear feet of berthing space, a 22-acre container yards, a deeper channel, a wider turning basin and an efficient fuel, water and sewer systems.

The timely completion of the project is expected to help the CNMI government in its preparation for the establishment of a Free Trade Zone which is expected to lure more investors to the island.

At the same time, the seaport has become environmentally-friendly, safe and efficient with the setting up of an underground pipeline system for unloading of fuel and cement.

Likewise, the ports authority has tightened security of cargoes by installing fences, additional dock lights for night time operation and seawater fire fighting system.