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Port service rates could soon change
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Posted on Aug 07 2008
The cost of services at the CNMI’s ports could change in the near future after the Commonwealth Ports Authority completes a newly begun rate study, acting CPA director Lee Cabrera said in an interview Thursday.
CPA has recently contracted with BST Associates to conduct the study, which is required under the terms of the agency’s bond indenture. The study could influence prices for port entry fees, moving cargo on local wharfs and docking ships, Cabrera said, yet whether those costs will rise or fall remains to be seen.
“CPA has been rather proactive in getting this kicked off so we can hopefully get it done before the end of the fiscal year,” Cabrera said, adding the study could be finished as early as the end of September.
In addition to beginning the study, CPA is nearing an agreement with Freedom Air on the leasing of a hangar at the airport that the company plans to use for maintenance and cargo storage.
Freedom Air, in a July 30 letter to CPA, says it plans for the hangar to serve as the site for the “mid-life inspection” of a 30-seat aircraft. The inspection—a requirement for older airplanes—involves disassembling the aircraft completely to evaluate its parts, according to the letter. The job will require six to eight months and up to 20 staff members.
Freedom Air also notes in the letter that the hangar is in need of extensive repairs and consequently the company is asking for a reduced $750 per month rental agreement for the first five years “to defray our repair cost.” The company plans to lease the hangar for 15 years.
Meanwhile, Cabrera said CPA is poised to meet with officials from the Commonwealth Development Authority soon to negotiate the terms of repaying a $6.8 million debt it owes, the remaining balance on a $10 million loan CDA granted for developments at local ports in 1998.
