History and Purpose:
On October 17, 1991 the Pohnpei State Legislature passed a bill that became Pohnpei State Law No. 2L-224-91, which established the Pohnpei Port Authority. The law reorganized the Pohnpei State Government’s functions with respect to the air and sea ports of Pohnpei State. For some years thereafter, the functions of managing airport and seaport of Pohnpei State were conducted by the State Department of Public Works. These functions were later transferred to a newly organized public corporation known as the Pohnpei Port Authority (PPA). The enabling law mandates the PPA to be responsible for development, management, operation and maintenance of Pohnpei ports and facilities. Furthermore, the law provides that “because of the distance between the islands of this State and their remoteness from large commercial centers of the world, transportation constitutes a vital link in the State’s efforts toward social development and economic self- sufficiency”.
In addition to the primary purpose of creating a public corporation to manage the port facilities of Pohnpei State, Pohnpei State Law No. 2L-224-91, grants corporate powers to the Pohnpei Port Authority which include:
- to carry on the business of acquiring, establishing, developing, extending, maintaining, operating and managing ports, with all powers incident thereto;
- shall have exclusive jurisdiction to plan, establish, develop, construct, enlarge, improve, maintain equip, operate and regulate the ports within the State;
- to protect, police, and establish minimum building codes and regulations for its ports;
- authorized to purchase, lease and sell real or personal property, supplies, goods, materials, and commodities and to furnish and supply services and utilities as incident to the operation of its properties;
- to enter into contracts, leases and make all other arrangements with any person for port connected purposes for terms not exceeding 25 years; and
- to adopt and enforce rules and regulations for the orderly, safe, and sanitary operations of its ports.