Dry dock project open to private investors—CPA

The Commonwealth Ports Authority disclosed yesterday that the proposed dry dock project on Saipan would be open to all prospective investors—provided they meet the requirements that would be set by the agency.

CPA executive director Carlos H. Salas said the agency’s legal and engineering divisions are still working on the project’s technical aspects and the corresponding business plan that would make the proposal a viable investment for the ports authority.

“It is currently undergoing its third review and the CPA is finalizing the Request for Proposal for the dry docking project. Hopefully, the RFP would be out next month,” said Salas.

He explained that particulars of the project are still being reviewed to make the program attractive to interested private firms. The winning company would run the facility.

“The winning company would build and operate the dry dock facility but we have yet to arrange the time frame. We are setting a minimum of 10 years depending on the cost of recovery period,” said Salas.

He explained that once all technical aspects are threshed out and legal issues are reviewed, CPA would immediately issue an invitation to all prospective investors willing to commit for the completion of the dry dock facility at the Saipan Seaport.

Salas said the cost of the project has yet to be determined.

The CPA’s dry-docking facility on Saipan is part of the agency’s effort to expand its non-tariff revenue sources.

“This would definitely enhance the Port of Saipan’s services and vendors at the port would greatly benefit from this. This would be cost-effective and surely, with our own dry-docking facility, there will be no need to go somewhere else in the region for this services,” said Salas in an interview.

The dry-dock project hopes to expand the CPA’s non-tariff revenue sources by providing additional services to small to medium-sized sea vessels like tug boats, smaller cruise liners, and other small water-borne vessels.

Salas said having a dry-dock facility on Saipan would enable boat owners to save time, convenience and money for maintenance, and would be better than going to Guam or the Philippines for dry-docking procedures.

“This is one of our sound business plans and we hope to issue the RFP in the next few days to solicit proposals from prospective contractors,” the executive director added.