USCG Suspends Puerto Nuevo Terminals’ Permit Over Hazardous Cargo Violations

Container ship — Image for representation purposes only

The U.S. Coast Guard has suspended Puerto Nuevo Terminals’ (PNT) permit to handle hazardous cargo, including ammonium nitrate, due to repeated safety violations.

The terminal was found to be non-compliant with Coast Guard regulations, specifically in terms of firefighting capabilities, which are essential for handling dangerous cargo.

On February 26, 2025, Captain Robert Stiles, the acting commander of U.S. Coast Guard Sector San Juan, issued a Captain of the Port (COPT) Order against PNT.

This action was taken after Coast Guard inspectors discovered the unlawful handling of ammonium nitrate, a substance that can be highly explosive under certain conditions.

The violations were particularly concerning as PNT is located next to a liquefied natural gas (LNG) facility, increasing the risk to port infrastructure and public safety.

Captain Stiles states that this is a serious violation which creates a dangerous situation at Puerto Nuebo Terminals. He added that the unlawful handling of ammonium nitrate can pose a serious risk to the critical port infrastructure in San Juan Harbour.

The Coast Guard has long been concerned about PNT’s lack of adequate firefighting capability for handling hazardous cargo. The facility is required to have fire hydrants at least every 300 feet and a sufficient water supply in accordance with National Fire Protection Association (NFPA) 307 standards and 33 CFR 126.15 (a)(1).

After several warnings, the Coast Guard issued a final notice to PNT, giving it a hard deadline of October 8, 2024, to comply with regulations. However, PNT failed to meet the deadline, leading to the suspension of its general permit on October 9, 2025.

Following the suspension, PNT introduced temporary firefighting measures to address concerns. As a result, the Coast Guard allowed the terminal to resume operations under restricted conditions.

However, during a recent inspection, inspectors found that PNT had violated those restrictions, leading to the full suspension of its permit for handling hazardous cargo.

The captain of the Port Order will remain in effect until PNT fully complies with all safety regulations. The penalties for non-compliance are severe:

Fines of up to $117,608 per violation per day under 46 U.S.C. § 70036
Criminal penalties for willful violations, classified as a Class D felony, which can result in up to six years in prison under 18 U.S.C. § 3581
Fines of up to $250,000 for individuals and up to $500,000 for organisations under 18 U.S.C. § 3571

Puerto Nuevo Terminals (PNT) is a joint venture between Luis Ayala Colon and Puerto Rico Terminals, a subsidiary of Saltchuk. It is one of only two container terminals in San Juan.

The joint venture was approved by the Federal Maritime Commission (FMC) in 2019, despite concerns that it could reduce competition and increase prices for consumers in Puerto Rico.

The FMC will be monitoring PNT’s operations closely.

While this permit suspension does not affect the handling of non-hazardous general cargo, PNT cannot resume hazardous cargo operations until it meets all safety requirements.

Reference: USCG

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