Lack of lands hampering transshipment plans

The continued inaction on the Commonwealth Ports Authority’s plea for additional public lands is holding back efforts to promote Saipan as a transshipment hub of Micronesia, CPA executive director Carlos Salas said.

In an interview, Salas reported that during last month’s business conference in Los Angeles, at least two companies have expressed interest in utilizing the Port of Saipan for transshipment purposes.

“One of the businesses we’re looking at is a company that ships a lot of consumable goods and supplies for the military. They are interested in utilizing the Port of Saipan for moving some of their cargo,” Salas said.

Also operating out of Guam, the company “is the biggest interest we’ve generated,” he added.

However, Salas expressed regret that CPA’s request for the designation of additional lands in Puerto Rico remains unresolved. The lands, measuring over 100,000 square meters, is essential to making the Saipan seaport a regional transshipment point.

Currently pending in the Legislature is a proposed legislation that would designate to CPA 108,398 sq.m. of public lands located between the Kaiser Cement Factory and the U.S. Army Reserve Office in Puerto Rico.

House Bill 11-016, or the “Port of Saipan Expansion and Development Act of 2004,” is seen as a move that could end the longstanding feud between CPA and the Marianas Public Lands Authority over the property.

CPA has long been asking for control over the lands. But while MPLA has expressed willingness to let the ports authority use the lands, the agency refuses to transfer property rights to CPA.

The House of Representatives passed the bill unanimously in June 2004. The proposed legislation has been waiting for Senate action since that time.

“Those lands are very crucial to making Saipan a transshipment hub. The existing container yards are congested already. We need extra space to move the containers around as we transship cargo in and out of Saipan. [CPA’s lack of control over those lands] is holding us back from [pursuing deals] with interested companies,” Salas said.

According to H.B. 14-16, the congestion at the current facility would be further exacerbated when CPA complies with the 300-feet security setback rule. The rule requires that parking be at least 300 feet away from the facility.