THE seaport and airport divisions of the Commonwealth Ports Authority incurred combined revenue losses of $1.77 million during the first half of this fiscal year.
According to CPA Executive Director Carlos H. Salas, airport revenue from Oct. 2001 to March 2002 dropped by 19 percent for aviation income alone which represents $694,602 in losses.
CPA’s non-aviation source of income also dropped by 26 percent during the same period.
“This means we are short of $651,631,” Salas said in an interview.
“All in all, our revenue combined for the past six months has dropped by 22 percent. This is because of the low passenger traffic as a result of the Sept. 11 terrorist attacks,” he added.
But CPA expenses for the airport division increased during the six-month period because of the additional security measures put in place at Saipan International Airport in compliance with the Federal Aviation Administration’s highest security alert level requirement.
Salas said the seaport expenses are controllable but it also incurred losses for the period by as much as 17 percent.
“That represents a shortfall of $433,000. The reason for that is a combination of two things. One is that we experienced the (Sept. 11) effects. But mostly, the impact was felt in December when our cargo activity went down by as much as 40 percent,” Salas said.
The other major reason for the shortfall, according to Salas, is the reduction of seaport fees for six months.
The measure was adopted to help port users survive amid the crisis following the terror attacks.
“But now, by regulation, it has been implemented since April 1. So we’re looking at a more favorable financial condition for the next six months,” Salas said.
