Seaport operations cost jumps 11 percent in ’05

CNMI seaport operations cost 24 percent more during the first 11 months of fiscal year 2005, compared with the same period in FY 2004, due to increased insurance premium and personnel costs.

According to the Commonwealth Ports Authority, the operating expenses for the Saipan, Tinian and Rota seaports climbed from $1.54 million in the first 11 months of FY2004, to $1.91 million in the same period in FY2005.

Saipan seaport operating expenses accounted for 85 percent or $319,745 of the increase.

CPA attributed this to a premium increase assessed by the insurance company after the ports authority had made a huge claim for damage caused by the 2004 supertyphoons.

Personnel costs at the Port of Saipan also increased by 35 percent—or $165,369—due to employee retirements, among other factors.

The hiring of a full-time tariff technician caused personnel costs at the Tinian seaport to increase from $9,107 in the first 11 months of FY 2004 to $35,227 in the same period in FY 2005. In addition, maintenance and operating expenses at the Tinian seaport rose by $10,599.

Typhoon recovery efforts resulted in a 66-percent increase in the Rota seaport’s operating expenses. From $109,168 in FY 2004, the Rota seaport’s operating costs jumped to $127,145.

However, a huge portion of these typhoon-related expenses was offset by an increase in harbor revenues. Shipments of typhoon relief and construction materials boosted activity at the Rota seaport and CPA’s fee collection as well.

The Tinian seaport gathered about the same amount of revenues in the first 11 months of FY 2005 as in FY 2004.

Meanwhile, Saipan harbor revenues in FY 2005 grew by $878,456 because of CPA’s move to charge oil companies for fuel shipments.

CPA had failed to collect fees for fuel shipments between October 1997 and June 2004. But the ports authority resumed assessing the charge after the oversight was discovered last year.

Overall, CNMI seaports had gross revenues amounting to $6.59 million in the first 11 months of FY 2005—up by 26 percent from their $5.13-million collection in the same period in FY 2004.

The net income of all seaports reached $4.68 million in FY 2005, a 27-percent increase from $3.68 million in the preceding year.

CPA added, however, that $3.74 million of the net income was reserved for bond payment, Commonwealth Development Authority loan payments, and the bond supplemental reserve fund. The balance will be used to maintain bond liquidity.