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CPA contemplates dropping container surcharge plan
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Posted on Jan 21 2005
Shipping companies may be spared from paying a container surcharge, as the Commonwealth Ports Authority pursues other funding sources for the paving of the Saipan seaport container yard.
CPA executive director Carlos Salas told the board of directors yesterday that management is looking at floating up to $3 million in bonds to cover part of the costs of the paving project.
If the bond flotation materializes, CPA will cancel its plan to assess cargo containers entering or departing the Port of Saipan a charge of $15 per TEU, or 20-foot equivalent unit.
The CPA board approved the proposed container surcharge in November 2004 to generate revenues for the container yard paving. The project is expected to cost between $4 million and $6 million.
“It’s seems likely that we will be able to float some bonds for the project. Right now, we’re considering the container surcharge as a last resort. But we will not cancel it until we’re sure that we don’t need it,” Salas said.
Saipan Stevedore Co. Inc. has committed to paying half of the required bond coverage for the project. Under its arrangement with CPA, Saipan Stevedore will contribute about $150,000 every year, Salas said.
CPA is currently assessing whether to pave the container yard with asphalt or with cement concrete.
Salas pointed out that an asphalt pavement will cost CPA around $4 million while the more durable concrete pavement will cost $2 million more.
Aside from paving the yard, the ports authority plans to equip the facility with a drainage system approved by the U.S. Environmental Protection Agency. (Agnes Donato)
