THE
proposed recycling facility for U.S. ships on Tinian will benefit not only
Tinian, but the entire commonwealth according to Tinian Mayor Ramon M. Dela
Cruz.
In
his July 9 letter to Gov. Benigno R. Fitial following up on the draft
memorandum of understanding between First International Corp., the ship
recycling firm, and Commonwealth Ports Authority, Dela Cruz assures, “This
means more to the Commonwealth, than it does to Tinian.”
First
International Corp. chairman and chief executive officer Paul Slater and
consultant retired U.S. Navy Rear Admiral Christopher Weaver recently visited
the CNMI to reaffirm their commitment to establish the ship recycling facility
on Tinian.
Believing
that the CNMI will benefit more from the FIC’s operation of the ship recycling
facility on Tinian, Dela Cruz explained that initially all funds generated by
the ship recycling operation will go to the CNMI general fund or to CPA,
including all business gross receipts, excise taxes on containers full of scrap
metals headed to China and lease fees paid to CPA for the use of the dock and
adjacent lands owned by the ports authority.
“This
means more to the Commonwealth than just creating 300 new private jobs in the
recycling business,” said Dela Cruz.
He
also said that it will be the first time since the demise of the garment
industry that the commonwealth will be exporting products.
“It
means a new opportunity to create an industry that will export products from
the CNMI,” he said.
The
Tinian mayor also sees the new venture will bring in other products from China.
As
the recycling company’s ship bring containers of scrap metals to China, Dela
Cruz said it can ship back containers filled with inexpensive “pig food” for the piggeries, barbed wire and fence
posts to expand cattle herds on Tinian.
As a
local company on Saipan develops a slaughterhouse, there is a similar push on
Tinian to establish a U.S. Department of Agriculture-approved “kill station”
that will allow local wholesalers and retailers to re-cut locally grown beef
and pigs for resale, creating more private sector jobs for the people and an
import substation product for local consumption or export.
No reason why project
should be delayed
In his
July 9 letter to the governor, Dela Cruz stated their concern with the draft
MOU which he said has not yet been forwarded by assistant attorney general
James R. Stump to the CPA board for action.
He
told the governor, “I had hoped that this MOU would have already been
accomplished, as we agreed at our joint meeting in the Senate Session Hall two
weeks ago.”
He
also said that the Tinian has agreed to work with the Office of Insular Affairs
to reprogram over $3 million of its “precious” capital improvement project
funds to do the necessary repairs at the Tinian Harbor to make the dock space
functional for the ship recycling project.
A few
months ago, the CPA board declined to approve the MOU citing among other
reasons their lack of funds to repair the harbor which to their estimate would
cost $4 million.
Now
with funding coming from OIA, Dela Cruz said CPA’s only investment would be the
cost of the contract with FIC to bring the project to fruition.
Dela
Cruz also told the governor that he received an assurance from OIA Capital
Improvement Project funds coordinator Keith Aughenbaugh that federal CIP funds
could be used for this purpose.
“I
see no reason why the project should be delayed and every reason why CPA should
be pushing forward with it, aggressively,” said Dela Cruz.
He
also said that with the Tinian Harbor fully operational, “we will be able to
justify the need to receive additional federal CIP funding to repair the
breakwater, thus making Tinian more attractive to military development.”
For
the Tinian mayor, the ship recycling industry will also help defray the cost of
completing the airport terminal at the Tinian West Field International Airport.
“We
are confident that if it becomes fully functional, then international air
carriers will schedule direct flights to Tinian. This then will provide a new
stimulus for those companies that have already applied for casino license to
begin construction on their hotel casino complex,” Dela Cruz said.
He
also asked the governor that with his support, the Tinian Hotel and Casino
industry can provide all the revenues the CNMI needs to make it financially
viable, once again.
In
thanking the governor for his commitment to the project, Dela Cruz asked the
governor to call a special meeting of the CPA board and encourage their
approval of the MOU with FIC.
In a
previous release, Variety learned that FIC intends to tow the decommissioned vessels
to Tinian Harbor where these will be tied alongside the repaired finger piers.
There,
the ships will be cut into small pieces to be stuffed into containers for
shipment to buyers.
Variety
was told that FIC will employ certified personnel who will oversee the
collection of any hazardous materials that are discovered within the vessel.
FIC
assures that once packed into hazmat containers, the materials will be shipped
to U.S. hazmat storage facilities.
First
Financial Corp.
Slater,
the chairman and CEO of FIC, is an expert in international finance focusing on
global maritime transport and energy industries.
In
the 12 years at the helm of FIC, Slater spearheaded shipping projects with the
former East German government, a Chinese state shipping company, a German steel
group, Spanish oil company, Shell, among others, raising over $5 billion in
debt and equity.
Source: Marianas Variety. BY ALEXIE VILLEGAS
ZOTOMAYOR. 10 July 2012
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