Barge maker rejects CPA lease proposal

A company that seeks to put up a barge manufacturing facility on Saipan has rejected the Commonwealth Ports Authority’s proposed 3-percent gross profit fee for the use of seaport property.

Anthony Pellegrino, representative of STA Ocean Shipbuilding Marianas Inc., said 3 percent of the gross profit seemed too high, considering that each barge was priced at about $12 million.

Assuming that the company makes a net profit of 10 percent on a $12-million barge, CPA stands to receive $36,000 plus rental income, Pellegrino said.

“[P]erhaps 3 percent of the net profits might be more reasonable,” he suggested.

STA Ocean intends to construct large ocean-going barges at the Port of Saipan. The company has proposed to renovate the North Seaplane Ramp at a cost of over $700,000 and convert it into a barge-building facility.

Pellegrino said STA Ocean was planning on recruiting personnel and completing administrative matters immediately after a lease was signed with CPA. The actual construction of the first barge was expected to begin in the middle of January 2006.

STA Ocean is seeking a 15-year lease agreement with CPA.

“With a signed lease in hand, we can show it to our customers proving that we are ready and able to proceed with our plan of constructing large ocean-going barges. The signed lease is vital before we can convincingly assure others that we have a definite site on which to build the barges,” Pellegrino said.

The proposal had received approval from the CPA board of directors.

Pellegrino’s partner, marine superintendent and Lloyd’s agent Gary L. Naftel, earlier wrote CPA to express his plan to establish a grass roots production yard for constructing sea-going barges certified by the American Bureau of Shipping and the U.S. Coast Guard.

Naftel noted that there was currently a great demand for such barges throughout the United States. “Five major barge manufacturers, one on the West Coast, three in the gulf, and one on the Atlantic are booked up for the next three years for start dates in laying keels,” he said.

He also assured CPA that the planned barge manufacturing yard would not conflict with present plans to construct a drydock facility at the Saipan harbor.

“We are looking at a building program, not competing with any other entities that have interests in putting a docking maintenance facility in the harbor. This is a brand new business venture for Saipan, and to utilize space that continues to generate monies to the Commonwealth,” he said. (Agnes E. Donato)