[Congressional Record (Bound Edition), Volume 163 (2017), Part 1]
[Extensions of Remarks]
[Pages 339-340]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    TRIBUTE TO SAIPAN SHIPPING, INC.

                                 ______
                                 

                  HON. GREGORIO KILILI CAMACHO SABLAN

          of the commonwealth of the northern mariana islands

                    in the house of representatives

                       Thursday, January 5, 2017

  Mr. SABLAN. Mr. Speaker, August 11, 1956 marks a watershed moment in 
the history of the Northern Mariana Islands. That was the day that 
Saipan Shipping, Incorporated, was established, setting the Marianas on 
a course for economic resiliency and self-sufficiency that endures 
today.
   Seven years before the founding of Saipan Shipping, in the aftermath 
of World War II, Jose C. ``Joeten'' Tenorio started a small grocery 
story in Chalan Kanoa, Saipan. What started out as a way to help 
deliver goods to local customers eventually developed into one of the 
largest businesses in the Marianas.
   However, as Joeten's business grew, he ran into a major obstacle: In 
1956, regular Japanese liners from the war were gone, the Trust 
Territory government ships did not run regularly, and cargo bound for 
Saipan often sat in port on Guam for days or even weeks. The lack of 
reliable and affordable shipping service to Saipan increased the costs 
of goods shipped to a small and struggling island economy.
   Not content to accept the status quo, Joeten decided to do something 
about it. He reached out to family and friends to buy 100 shares in a 
start-up shipping company, and, on August 11, 1956, they formed Saipan 
Shipping Company, Incorporated.
   The company began with its first vessel, the M/V Hope, which was 
purchased for $50,000 from Kenneth T. Jones Jr., President of Jones and 
Guerrero Company, Incorporated, on Guam. The converted minesweeper with 
twin screws and a wooden hull made weekly runs between Guam and Saipan, 
as well as occasional trips to the Northern Islands to pick up copra, 
which was sold to Japanese purchasers at the time. The boat also 
collected brass, copper, and other metals left from the war on the 
islands. Often these goods were delivered to Japan directly by the M/V 
Hope when it sailed there each year to dry-dock.
   In May 1962, Saipan Shipping purchased the M/V Four Winds, also a 
former military and CIA vessel, from Bruan Shipping in Delaware. The 
Four Winds traveled a regular route between Saipan and Japan.
   However, soon after the acquisition of the M/V Four Winds, Saipan 
Shipping would be challenged by two catastrophes. In November of 1962, 
just months after the acquisition of the Four Winds, the M/V Hope was 
struck by another vessel, the Guam Bear, which rendered the Hope 
unseaworthy. Days later, on November 11, Super Typhoon Karen hit Guam, 
sinking the Hope while it was in dry dock on Guam.
   Despite these twin calamities, Saipan Shipping bounced back by 
taking the M/V Four

[[Page 340]]

Winds out of the Japan run to handle the local service run between Guam 
and Saipan, as well as quarterly trips to the Northern Islands.
   Saipan Shipping continued to evolve in the years that followed. In 
1965, the company began chartering the M/V Ran Annim from the Trust 
Territory government. In 1966, after the M/V Four Winds was sold, the 
Ran Annim serviced the local route exclusively, until three years 
later, when it was replaced by the M/V Mas Mauleg, a larger vessel with 
passenger capacity.
   In 1971, Saipan Shipping purchased the M/V Normar for local service 
and chartered the M/V Mas Mauleg to Micronesian Interocean Lines, 
Incorporated, a shipping company serving all the Micronesian islands. 
When Interocean Lines went bankrupt in 1974, Saipan Shipping saw an 
opportunity. The company started a joint shipping venture with Kyowa 
Shipping Company Limited, which marked the beginning of over 15 years 
of Saipan Shipping service to Micronesia and a partnership that endures 
to this day. The charters, however, were terminated in the late 1970s 
due to high costs caused by the global fuel crisis. Despite that 
termination, Saipan Shipping maintained service to Micronesia and the 
South Pacific by facilitating voyage space charters on the Kyowa 
vessels sailing these routes.
   As the 1980s economic boom on Saipan dawned, Saipan Shipping 
flourished as it adapted to the changing needs of the island economy. 
In 1979, the company sold the M/V Normar, ending 23 years of almost 
continuous vessel ownership. The company then signed a charter contract 
with Transpac Marine in 1980 for weekly tug and barge service to Guam, 
Saipan, and Tinian. After Transpac Marine's barge #S-2009 ran aground 
on Guam in 1986, Marianas Tug & Barge became the charter company for 
Saipan Shipping.
   In 1982, Saipan Shipping also negotiated a connecting carrier and 
agency agreement with American President Lines--a major U.S. shipping 
company, which supplemented the company's existing relationship with 
SeaLand Services.
   These relationships resulted in Saipan Shipping becoming the primary 
carrier for American President Lines cargo loading and offloading on 
Saipan. Combined with the company's existing relationship with Kyowa, 
Saipan Shipping was poised to profit from the 1980s economic boom 
brought on by the growth of tourism and the garment industry.
   In 1983, the first shipment of garments--all sweaters--was delivered 
from Saipan to New York. Saipan Shipping took the first containers to 
Guam. At the time, only three garment manufacturers were on Saipan. 
But, over time, the industry grew to eleven in 1987, then 23 in 1990. 
By 1997, there were more than 30 clothing factories on Saipan. By 1999, 
the value of clothing produced on Saipan had hit $1 billion, which 
translated into large profits for Saipan Shipping.
   However, the expansion of the garment industry on Saipan also led to 
more competition in the shipping industry as shipping companies emerged 
to rival Saipan Shipping's foothold. Over time, though, Saipan Shipping 
pulled ahead. In 1996, American President Lines was purchased by Matson 
Navigation Company, a change that Saipan Shipping leveraged to 
transform its business once more. From being simply a carrier's 
principal agent, the company transitioned into more of a local 
partnership, with Saipan Shipping employees regularly participating in 
Matson's training programs at the turn of the century and working hand-
in-hand to meet the shipping demands of the garment industry.
   In that same year, Saipan Shipping pushed ahead with transforming 
its business, partnering with Kyowa and private investors to establish 
Marianas Steamship Agencies, Incorporated. This new company served as 
the husbanding agent for Saipan Shipping on Guam, providing goods and 
services needed by Saipan Shipping boats or crew.
   In the early 21st century, major policy shifts at the national and 
international levels altered the economic landscape in the Marianas and 
profoundly impacted the shipping industry. The end of international 
quota restrictions in the global garment trade made it cost prohibitive 
for the garment industry to remain on Saipan, which led to all 31 
garment factories closing shop in the early 2000s.
   As a testament to its resiliency, however, Saipan Shipping endured 
while other shipping companies closed. Moreover, the company expanded. 
In 2001, Saipan Shipping ended 21 years of chartering boats with the 
purchase of Marianas Tug & Barge. The purchase included all of MarTug's 
equipment, most importantly the tugs Sea Husky and Don Juan Tenorio, 
and barges Francisca III and Francisca IV. All operations of MarTug 
were thus assumed, including the subsidiary Mid-Pacific Salvage, 
effectively adding marine salvaging to Saipan Shipping's portfolio of 
services.
   Then the terrorist attacks of September 11 rocked our nation, and 
the world. The global economy reeled in the aftermath of the attacks, 
and new challenges arose for the shipping industry as more stringent 
regulations were adopted to increase national security. Undeterred, 
Saipan Shipping demonstrated its adaptability once again by upgrading 
its information technology to increase efficiency and profitability. 
The company automated many aspects of its business, which helped 
streamline customs and quarantine processing, customer clearance 
processing, and physical clearance of cargo.
   Still standing as the lone local shipping company in the Marianas, 
Saipan Shipping moved confidently into the new millennium. In 2005, the 
company entered into an agency agreement with Marianas-based vessel 
operator, Seabridge, Incorporated, serving inter-island trade between 
Saipan and Guam.
   Tragedy struck again in 2015 with Super Typhoon Soudelor, which 
wreaked more havoc on Saipan's port than many previous storms. But 
Saipan Shipping stood strong, rebounding and reaching out into the 
community to deliver much needed relief supplies.
   Today, with construction booming and a budding gaming industry on 
Saipan, Saipan Shipping is adjusting as it always has to meet the 
demands of the local economy. And while competition has emerged, yet 
again, Saipan Shipping has adapted, yet again, to work with competitors 
to help the island economy prosper, yet again.
   Jose C. ``Joeten'' Tenorio probably could not have imagined the 
remarkable evolution and many iterations of Saipan Shipping Company, 
Incorporated after its inception in 1956. But he would not have been 
surprised by Saipan Shipping's ability to adapt and thrive. Nor would 
Joeten have been surprised by the vital role that Saipan Shipping has 
played and continues to play in the local and regional economy.
   After all, that is exactly why he helped start the company, to 
achieve the one purpose spelled out in its Articles of Incorporation in 
1956 and to this day:
   ``The purpose of this Corporation is to engage in trade and commerce 
in and between [Saipan]'', the Marianas, the Pacific, and, indeed, the 
world.

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