Commonwealth Ports Authority board member Ramon A. Tebuteb speaks during a CPA board meeting.
THE Commonwealth Ports Authority said it continues to “lose” seaport revenue due to the waiver of wharfage fees on shipments to Saipan, Rota and Tinian.
In his report to the board of directors last week, CPA board member Ramon A. Tebuteb, who chairs the seaport facilities committee, said CPA lost a total of $22,220 in inter-island wharfage fees in September, and $2,040 in October.
Tinian seaport incurred the biggest loss in wharfage fee income in September, amounting to $18,316, followed by Rota, $3,442. Saipan seaport lost $462 only in wharfage revenue.
In October Tinian seaport lost $1,454 in wharfage income while Saipan lost $585.78. The Rota seaport did not incur wharfage income loss.
The wharfage waiver is mandated by Public Law 19-62, which was signed in August 2016 by then-Lt. Gov. Victor B. Hocog of Rota in his capacity as acting governor, and authored by Sen. Frank Q. Cruz of Tinian.
P.L. 19-62 waives wharfage fees on cargo including liquified petroleum products shipped to and from Saipan, Rota and Tinian.
According to the law’s proponents, the cost of commodities on Rota and Tinian “is a great burden to the consumers,” and a portion of the added cost “is a result of the wharfage fees” imposed by CPA.
P.L. 19-62 allows CPA to charge a one-time wharfage fee for items offloaded to any port in the CNMI. But the same shipment is no longer assessed wharfage a second time regardless whether it is shipped from Saipan to Rota or Tinian on a different vessel.
