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Cargo figures continue to spiral down
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Posted on Jun 19 2005
CNMI seaports continue to process less and less cargo due to the recent closures and downsizing in the local garment industry.
The Commonwealth Ports Authority reported that the total cargo shipped in and out of the Northern Marianas reached only 373,045 tons in the first eight months of fiscal year 2005. This indicates a 5-percent decline, as compared to the same period in FY 2004.
Specifically, the volume of inbound cargo dropped by 6,594 tons, or 2 percent. Outbound cargo registered a decrease of 12,749 tons, or 13 percent.
In May 2005 alone, the total cargo volume went down by 9 percent, or 4,279 tons.
The decline cargo volume is attributed to the current garment situation, which resulted from the Jan. 1, 2005 lifting of quota restrictions that used to limit garment exports from foreign countries to the United States.
The increased competition in the U.S. market, compounded by other economic factors, caused three Saipan garment manufacturers to close down and other factories to downsize operations.
According to CPA executive director Carlos Salas, imports and exports by the local garment industry make up about half of the total cargo being processed at the Port of Saipan.
The decrease in garment shipment resulted in a slight drop in CPA’s wharfage collections.
But this, along with a decline in passenger charges and dockage fees, were made up for by the implementation of wharfage for fuel shipments, which generated $764,185 in revenues for CPA during the first eight months of FY 2005.
Overall, CPA collected $3.79 million in harbor revenues and $782,327 in non-harbor revenues such as rental, franchise, and parking fees.
At a total of $4.57 million, the seaport revenues earned so far this year represented a 22-percent growth from the same period last year.
From October 2004 to May 2005, the seaport division spent $540,487 on personnel costs and $796,313 on maintenance and operating expenses.
This left the division enough funds to make bond payments totaling $1.70 million and payments to the Commonwealth Development Authority amounting $554,667, as well as a net income of $982,280 to maintain bond liquidity.
