THE Commonwealth Ports Authority said Rota Terminal and Transfer Co. Inc. or RTT should purchase a crane, repair parts or similar equipment for stevedoring services by Feb. 12, 2023.
CPA Executive Director Christopher Tenorio, in his demand letter to RTT General Manager Viola Hocog-Atalig, said if the equipment is not obtained and the stevedoring services have not resumed by Feb. 12, “CPA may provide RTT a written notice of default.”
Tenorio said CPA was made aware that the crane of RTT, the only company providing stevedoring services on Rota, is inoperable.
This is unacceptable, Tenorio told Atalig, especially in light of the fact that it was not the first time RTT encountered this problem. He said the company experienced the same issue in 2019.
Tenorio reminded Atalig that the lease agreement between RTT and CPA requires the company to buy any and all equipment necessary for the smooth and efficient operation of the Rota West Harbor.
Tenorio also informed Sen. Paul A. Manglona, chair of the Senate Committee on Public Utilities, Transportation and Communications, about CPA’s demand letter to Atalig.
Tenorio told the senator that by sending RTT a demand letter, CPA is enforcing its contractual obligations.
Tenorio also assured Manglona that CPA “is not only committed to the efficient operation and management of the ports, but it is also committed to treating businesses fairly by honoring its contractual obligations.”
Tenorio noted that RTT’s lease agreement with CPA is expiring in three years, adding that the company’s past stevedoring performance will be taken into consideration should the company request an extension.
Last week, Manglona wrote Tenorio a letter expressing concern about the non-functioning crane at the Rota seaport.
The senator said this has “caused significant distress to the people of Rota as it hindered the ability of the cargo ship to offload essential commodities on island.”
He added, “The construction materials and food supply that are already expensive, for example, are being affected by the lack of crane at the Rota seaport and the people of Rota are now shouldering the additional burden of the materials not being provided to the island.”
Commonwealth Ports Authority Executive Director Christopher Tenorio delivers his remarks during a groundbreaking ceremony at the Francisco C. Ada/Saipan International Airport in Nov. 2022.
