21 Jun 2005

Ports in CNMI could face closures due to lack of freight

3:24 pm on 21 June 2005

The Commonwealth Ports Authority in the Northern Marianas says the end of the US global trading quota has led to a dramatic downturn in outgoing freight.

The US lifted the quota in January which used to limit garment imports from foreign countries to fit in with World Trade Organisation regulations.

The CPA's executive director, Carlos Salas, says the end of the quota led to three Saipan garment manufacturers closing down and other factories to downsize operations.

Mr Salas says as a result, in the last nine months outgoing freight has dropped by 15 percent.

He says the local economy has suffered and unless the quota is restored or things change the ports and would be affected too.

"As a result that would impact our financials to generate money to maintain and operate the ports, so we may have to, we are putting together some plans to sort of address that kind of situation, should that happen any time in the near future."

Carlos Salas, the Executive Director of the CPA.