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Tinian Shipping plugs $1M drydock project
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Posted on Mar 29 2006
Tinian Shipping & Transportation Inc. has solidified its plan to build a drydock facility on Tinian.
In a letter to Commonwealth Ports Authority executive director Lee Cabrera, Tinian Shipping chair Michael Kwan said it will invest approximately $1 million to build the facility at the Tinian pier, which will become the CNMI’s first drydock facility.
The company thought of the investment after one of its two vessels ran aground on Tinian sometime last October. Tinian Shipping had to reduce ferry trips between Saipan and Tinian after the incident.
Without a drydock in the CNMI, Kwan said the only viable means to have the damaged vessel repaired is to tow it to China or Hong Kong.
“The cost of such an exercise proved to be very costly. Without a drydock facility in the CNMI, it is very difficult to operate a shipping company on Tinian in a long term,” Kwan said.
Kwan said the facility can be used not only by Tinian Shipping but also for other vessels under 160 tons for repairs, maintenance and inspections.
“This drydock facility will create more employment opportunities, generate more revenues for CPA and increase government tax collections,” Kwan said.
Tinian Shipping, however, asked the CPA to waive lease rental for the site of the proposed dry dock or to impose a minimal fee for 40 years. The company said its losses for the past 10 years have reached over $33 million. The CPA board has conditionally approved the proposed project.
Tinian Shipping, an affiliate of Tinian Dynasty Hotel and Casino, began providing ferry services between Saipan and Tinian primarily to ferry guests to the hotel. It also serves as public transportation between the two islands for residents and tourists.
