USCG Revokes San Juan Terminal's Permit for Ammonium Nitrate
The U.S. Coast Guard has ordered a container terminal in San Juan, Puerto Rico to stop handling ammonium nitrate - a dangerous cargo that can explode under the wrong conditions - until it installs proper firefighting equipment.
The Coast Guard has long had concerns about the Puerto Nuevo Terminal (PNT) facility's alleged lack of firefighting capability for handling dangerous goods, specifically including a requirement to have fire hydrants every 300 feet and a sufficient water supply to run them. Sector San Juan worked with the terminal's management to encourage them to bring their operations into compliance with Coast Guard regulations, and eventually handed PNT a hard deadline of October 8, 2024 to comply or lose its permit to handle dangerous cargoes. PNT did not, according to Sector San Juan, and its permit was revoked.
After the revocation, PNT brought in temporary firefighting equipment as an interim solution, and Sector San Juan renewed the permit to allow cargo operations to resume - with restrictions. However, during a routine visit, Coast Guard inspectors found that PNT was violating the terms of those restrictions, resulting in a full suspension of the permit "to ensure the safety and security of the port and surrounding waterways."
If PNT still doesn't comply, according to Sector San Juan, it now faces a fine of nearly $120,000 per day for violations - and the possibility of prosecution for a Class D felony, with fines of up to $500,000 for a company (and possible prison time for individuals).
Puerto Nuevo Terminals (PNT) is a 50/50 joint venture between Luis Ayala Colon and Saltchuk-owned Puerto Rico Terminals. It is now one of only two container terminals in San Juan. The JV was approved by the Federal Maritime Commission in 2019; at the time, the FMC had serious concerns that the combination of the two terminals would reduce competition in Puerto Rico and increase prices for consumers, and though a majority voted for approval, the commission said that it would continue to monitor PNT closely.