Coast Guard Suspends Puerto Rico Cargo Terminal Over Ammonium Nitrate Violations

llustration image / Photo by: Dominik Lückmann

The U.S. Coast Guard has suspended the permit of Puerto Nuevo Terminals (PNT) in San Juan, Puerto Rico. This action prevents the facility from handling hazardous cargo after discovering unauthorized ammonium nitrate operations. The industrial chemical is infamous for its role in the deadly 2020 Beirut explosion.

Captain Robert Stiles, Acting Commander of U.S. Coast Guard Sector San Juan, issued a Captain of the Port (COTP) Order on Wednesday. The decision came after a routine inspection revealed PNT violating prior safety and regulatory orders. The suspension comes after long-lasting concerns regarding the terminal's lack of adequate 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”.

For months, the Coast Guard worked with PNT to address safety deficiencies, issuing a compliance deadline of October 8, 2024. After PNT failed to meet the deadline, their general permit for handling dangerous cargo was suspended on October 9, 2024.

Despite some progress toward compliance — such as implementing temporary firefighting measures — PNT ultimately failed to meet safety standards, leading to the suspension.

The recent suspension was implemented under the federal law of 33 CFR § 126.31. It specifically prohibits the handling of hazardous materials but allows non-hazardous general cargo operations to continue.

Non-compliance with a COTP Order carries significant penalties. Civil violations can result in fines of up to $117,608 per day, while willful violations can lead to felony charges, up to six years in prison, and fines of $250,000 for individuals or $500,000 for organizations.

Maritime safety experts emphasize the importance of strict safety protocols when handling ammonium nitrate due to its explosive potential. The chemical has been linked to multiple catastrophic industrial accidents worldwide, including the 2020 Beirut port explosion that claimed over 200 lives.

The Coast Guard's primary concern is PNT’s failure to maintain proper firefighting equipment as required by law. Regulations mandate that waterfront facilities handling hazardous cargo must have fire extinguishing systems that meet National Fire Protection Association (NFPA) 307 standards, including hydrants spaced at least every 300feet with an adequate water supply.

The suspension order comes with serious potential consequences. Non-compliance with a COTP Order can lead to civil penalties of up to $117,608 per violation per day. More severe offenses, involving willful and knowing violations, are classified as a class D felony, carrying penalties of up to six years in prison and fines reaching $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 when talking about the Coast Guard’s commitment to port safety.

"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", he continued.

The order will stay in effect until PNT fully complies with the requirements outlined in the COTP order. The Coast Guard has not provided a specific timeline for the permit’s reinstatement.

Industry experts highlight this case as an example of growing regulatory scrutiny on hazardous material handling at port facilities, particularly in light of recent high-profile maritime accidents involving dangerous cargo.