Coast Guard Shuts Down Puerto Rico Cargo Terminal After Ammonium Nitrate Violations

The U.S. Coast Guard has taken action against Puerto Nuevo Terminals (PNT) in San Juan, Puerto Rico, suspending the facility’s permit to handle dangerous cargo after discovering unauthorized handling of ammonium nitrate—the industrial chemical behind the devastating 2020 explosion in Beirut.

Acting Commander of U.S. Coast Guard Sector San Juan, Capt. Robert Stiles, issued a Captain of the Port (COTP) Order on Wednesday following a routine examination where inspectors found PNT operating in violation of previous regulatory and safety orders. The suspension comes after longstanding concerns regarding the terminal’s inadequate firefighting capabilities.

“This is a serious violation creating a dangerous situation at Puerto Nuevo Terminals, which is located next to a liquified natural gas facility,” said Capt. Stiles. “The unlawful handling of ammonium nitrate can pose a serious risk to the safety of critical port infrastructure in San Juan Harbor.”

The Coast Guard’s action follows months of attempts to bring the facility into compliance. After providing multiple opportunities for PNT to address safety deficiencies, officials issued a final notice letter with a compliance deadline of October 8, 2024. When PNT failed to meet this deadline, their general permit for handling dangerous cargo was suspended on October 9, 2024.

Despite some progress toward compliance, including implementing temporary firefighting measures which allowed a conditional permit reinstatement with restrictions on certain cargoes, PNT violated these restrictions, prompting this latest enforcement action.

The current suspension affects all hazardous cargo operations at the facility and was implemented under the provisions of 33 CFR § 126.31. However, the terminal may continue handling non-hazardous general cargoes.

Maritime safety experts note that ammonium nitrate handling requires strict adherence to safety protocols due to its potential explosive properties. The chemical has been implicated in several catastrophic industrial accidents globally, most recently in the 2020 Beirut port explosion that killed over 200 people.

The Coast Guard’s concerns specifically center on PNT’s failure to maintain adequate firefighting equipment as required by law. According to regulations, waterfront facilities handling dangerous cargo must provide fire extinguishing equipment meeting National Fire Protection Association (NFPA) 307 standards. These standards mandate hydrants positioned at least every 300 feet with sufficient water supply capabilities.

The suspension order carries significant potential penalties. Failure to comply with a COTP Order can result in civil penalties up to $117,608 for each occurrence and day of violation. More seriously, willful and knowing violations constitute a class D felony, punishable by up to six years in prison and fines up to $250,000 for individuals or $500,000 for organizations.

“We are investigating this matter thoroughly and have taken necessary measures to ensure that the Puerto Nuevo Terminals facility is operating in a safe manner,” Capt. Stiles emphasized. “The Coast Guard is committed to the safety and security of the nation’s ports and navigable waterways, and it is our duty to protect them.”

The order will remain in effect until PNT fully meets the requirements outlined in the COTP order. The Coast Guard has not specified a timeline for potential reinstatement of the permit.

Industry observers note that this case demonstrates the incre…