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CPA to collect $15/TEU container surcharge
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Posted on Nov 24 2004
The Commonwealth Ports Authority approved in concept the implementation of a container surcharge at the Saipan seaport.
Under the policy, each loaded cargo container entering or departing the Port of Saipan will be assessed a charge of $15 per TEU, or “twenty foot equivalent unit.”
CPA executive director Carlos Salas said, though, that the fee could not be implemented until CPA resolves issues with involved parties. He said the ports authority must first seek the approval of the bondholders, get shipping companies to sign a memorandum of agreement that the fee will not be passed on to customers, and discuss possible cost-sharing with Saipan Stevedore Co. for the planned improvements to the container yard at the seaport.
Salas said revenues from the additional terminal tariff would be used to pave the container yard and equip it with a drainage system approved by the U.S. Environmental Protection Agency.
“We don’t have a timetable yet for the implementation of the surcharge. But obviously, the improvement of the container yard is a very important project. Right now, the container yard is all gravel. It’s very inconvenient for shippers and results in damage to cargo, especially when it rains,” he said.
Salas assured consumers that they would not be affected by this additional cost for shipping companies.
“This surcharge would be collected based on an understanding we have with shipping companies that the additional tariff will not be passed on to customers. Shippers would pay the container surcharge as if they’re paying for the pavement of the container yard,” Salas said. “I think that would give people an indication of how critical the condition of the container yard is.”
In an earlier interview, Salas estimated that the container yard project would cost between $4 million and $5 million. He said CPA would make a loan to cover the improvement costs and revenues from the surcharge would be used to repay the loan.
Salas said the project would be undertaken upon the recommendation of the shipping companies themselves. “Paving the yard is, of course, in their best interest,” Salas said.
