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vides office and warehousing space for the company. TMT has a single berth with about 3 to 4 acres of farm area for parking trailers. In 1968, TMT estimated that it required at least 50 percent more berthing and marshalling yard space to handle cargo efficiently. Based on the significant increase in traffic expected within the next decade, 33 TMT would require a 100 percent increase in berthing area and 150 percent increase in marshalling yard space above its 1968 berthing and marshalling yard space allocations. The carrier would also need an additional 50,000 square feet of warehousing space by 1975.

Berwind Lines which hauls container traffic between San Juan and the Virgin Islands also berths at Isla Grande. This carrier's present allocation of berthing and marshalling yard area consists of 400 square feet of berthing area, 24,300 square feet of berth staging area, and 72,000 square feet of marshalling yard area. Because this carrier's traffic has increased considerably over the past three years, it now requires an addi. tional 2,000 square feet of berthing area, 120,000 square feet of marshalling yard space, and 40,000 square feet of stuffing and stripping space to handle traffic efficiently. Berwind's transit shed space is inadequate, according to the carrier. It needs an additional 100,000 square feet of storage space monthly. To handle the significant growth in traffic expected by 1975 (ch. II), Berwind estimated in 1968 that it would need an additional 2,000 square feet of berthing area, 140,000 square feet of marshalling yard space, 55,000 square feet of area for stuffing and stripping operations, and 15,000 square feet of storage space monthly. Isla Grande also contains the Pan American Dock, a 1,200-foot marginal pier, which is owned by the U.S. Navy, and partly leased to the Ports Authority to accommodate contract carriers hauling cement and foreign ships carrying lumber to Puerto Rico. Much of the dock's open area is inadequate for efficient cargo handling and requires improvement.

(b) Port Development.-The Ports Authority is in. vesting some capital on Isla Grande to provide adequate facilities for ocean steamship companies. In 1968, the wharf used by Seatrain was being extended to facilitate the movement of larger vessels, and additional areas have been leased to Seatrain for maintenance and marshalling yard activities. The dredging and improvements to the docking facilities of TMT have also been

undertaken or programed. Approximately a $200,000 investment was allocated to construct a pier for TMT's use. In addition, $150,000 has been programed for land improvements in TMT's terminal.

(c) Transshipments.—Seatrain in conjunction with Portnica Shipping Co. (Portnica) and other lines provides service between the continents with transshipment at the port facilities of Seatrain in San Juan. For in. stance, Portnica transports temperature-controlled

, cargo from ports in Europe, the Caribbean, Central America, and Australia for movement to the U.S. mainland. In addition, Seatrain with Isthmian Lines handles through its New York facility cargoes bound from Puerto Rico to Vietnam.

(3) Analysis of Old San Juan Piers.--As in the days of Bull Lines, Waterman, and Pope and Talbot, much of the breakbulk cargo is still discharged at the Old San Juan piers which serve foreign carriers, interisland operations and passenger ships. The facilities are also used for some containerized operations and for storage. However, some changes have taken place. These piers are now owned and operated by the Ports Authority and much of the foreign general breakbulk cargo, which used to be discharged mainly at pier 6, is now handled at piers 1, 6, 8, 12, and 13. Pier 2 has since been removed, and the vacated space is now being used for small harbor craft (the space will soon be used as a ferry terminal to serve Cataño). Lumber from Canada and other foreign countries is offloaded at piers 14 and 15. Since pier 4 burned, approximately 20 schooners, which ply the Virgin Islands, Dominican Republic, Haiti, and Windward Islands trades, now dock along. side the wharf space between piers 3 and 5. These schooners, each of 40 to 50 tons, transport Puerto Rican ayricultural products, building materials, foodstuffs, and manufactured goods from Puerto Rico to adjacent Caribbean Islands, and return with agricultural products and cement.

In 1950, all of the dry cargo for San Juan (1,230,000 tons) that was handled by Bull, Waterman, Lykes, and Pope and Talbot moved over the docks at Old San Juan. Approximately 20 percent of this cargo was sugar, and the remainder was low density or measurement cargo. On the other hand, table VI-7 shows that in 1968 only 817,821 tons of general cargo, including military, foreign and domestic shipments, moved across these piers. This reflects the substantial decline in breakbulk movements which has occurred in this trade over the past

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33 See chapter III.

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does have a 449 foot shed which according to the Ports Authority, should be used only as a warehouse, and then only for light commodities. Foreign carriers, including International Shipping Co., Nippon Yusen Kaisha Line (Japanese), Saguenay Shipping Line (Canadian), Johnson Line (Scandinavian), and Westfall Larsen Line (Argentine), call monthly to discharge general breakbulk cargo at this facility. Pier 3, a finger pier of 635 foot length, was converted in 1964 to serve tourist ships. The second floor level is used to offload passenger ships of 700 feet in length on both sides of the pier. The lower level is used to park tourist automobiles. As indicated earlier, Pier 4 burned and the space is now being used to handle the interisland schooner traffic. Pier 5, a finger pier, also damaged by fire, is no longer used to handle cargo. Pier 6, a 940-foot marginal wharf constructed of concrete piling with a 43,600 square foot transit shed, is very old and weak. The platform working space is only 14 feet wide. The street side of the pier, which is exceedingly congested during offloading operations, has no parking space for trucks. This pier accommodates foreign carriers including Compania Trans-Atlantica Espanola (Spanish), and Saguenay Shipping (Canadian) calling either weekly or monthly to offload general breakbulk cargo. In 1967,

Source: Letter of Jose Echevarria, Puerto Rico Ports Au. thority, op. cit., p. 2.


Today, the terminal area of Old San Juan is old, structurally weak, densely occupied, congested, and inefficient. These facilities impede traffic movements and distribution patterns, and adversely affect the costs of transportation. Chart VI-5 illustrates the location of piers in Old San Juan. Pier 1, a finger pier of 475 foot length, constructed in about 1900, is one of San Juan's oldest facilities. This pier has no working apron, but

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these cariers handled some 24,500 tons at pier 6 in. cluding shoes, cooking oils, marmalade, tile, machinery, tomato paste, and olives. Pier 7, a marginal wharf, is a private pier of 555 feet length which is used to handle corn from Santo Domingo and small motor boats of foreign registry. This pier, like pier 6, is in very poor condition.

Pier 8, a finger pier consisting of three sections, handled about 128,000 tons of foreign and domestic dry cargo in 1967. The 592 foot east berth of pier 8, which is used by SACAL for handling containerized cargo, is structurally weak. Moreover, the adjacent 25,000 feet of open area will accommodate only 35 vans, and, for this reason, container operations are usually congested and inefficient. The 555 foot west side of pier 8, which includes a 175,596 square foot transit shed, is used as a fertilizer plant by Armour Fertilizer Co. on an exclusive use basis. The 409 foot south area of the pier is used by all ships on a first call basis, generally for off. loading breakbulk cargo. Foreign ships using this facility include Nordana Line (Spanish), Blue Ribbon Line (Caribbean), Shaw Steamship Co. (Canadian), and Royal Netherlands (Dutch). These carriers offload general breakbulk cargo. In addition, contract carriers including Armour Fertilizer (Guanica) and Bulk Food Carriers call at pier 8 to offload fertilizer and bulk cargo. SACAL-V. I.'s SS Saint Inez which operated to and from the Virgin Islands also used this pier. In 1967, pier 9, a finger pier with sections of 450 to 600 foot lengths, handled only 55,151 tons. This pier, which has a 28 foot concrete

ron, was used by Transamerican Steamship Corp. to handle mainly breakbulk traffic including some automobiles from the North Atlantic. In addition, Alcoa calls at this pier from the U.S. Gulf area approximately once each month to offload general breakbulk cargo including piping, Motorships also calls at pier 9 to offload automobiles and some breakbulk cargo. Although the pier's transit shed is large, containing about 112,000 square feet of useable space, it has a relatively small area for effectively handling cargo due to the many columns and structures which limit the inside spaces. Pier 10 is an operational base for tugs. Pier 11, a 580-foot-long marginal wharf of concrete pile with a 123,750 foot transit shed, is in good condition. This pier, which includes a 26 foot working apron, is owned and used by GPRL for handling breakbulk traffic moving from and to U.S. Gulf ports. Piers 12 and 13, marginal wharves of 700 foot length, include 33,000 square feet of transit shed

space and 15,000 square feet of open storage area.

In 1967, pier 12 handled 99,265 tons and pier 13, 85,960 tons of cargo. GPRL uses part of pier 12 for handling cargo. In addition, various foreign carriers from Europe call at this pier to unload iron and general cargo. Pier 14, a 446 foot marginal wharf with a 40,000 square foot transit shed, handled approximately 162,000 tons in 1967. Foreign ships unload lumber, iron, and general cargo at this pier which is in good condition.

When considering berth utilization, a rule of thumb for efficient utilization in Puerto Rico is 130,000 tons per pier of 550-foot length,34 or 236 tons per foot. On this basis, except for pier 14, all piers are utilized inefficiently. For example, in 1967, pier 1 handled only 94 tons per foot, and, pier 6, 26 tons per foot, both of which were far below the 236 tons per foot considered as an indicator of efficiency. The most apparent cause of low terminal efficiency in the Old San Juan area is the obsolescence of the facilities. In recent years, however, there has been some effort to modernize and upgrade some of the pier facilities, such as the passenger terminal, pier 3. What is needed to facilitate cargo handling operations are wider marginal piers, wider working aprons, mechanical equipment, more adequate transit shed facilities, and better road accessibility. The large increase in traffic due to economic development and growth in population demands addi. tional port development in these areas.

(4) Mandatory Delivery.35 A possible method of alleviating the congestion in the terminal areas would be the use of forced deliveries for LTL shipments. At present, Sea-Land unloads its LTL vans and spots them at the LTL terminal (shed D) where they are unloaded. The LTL cargo remains in shed D until the consignee calls for it with his own truck, usually not until the last day of free time.36 The cargo awaiting pickup creates congestion in the shed due to the limited storage space available, and the trucks which call for the cargo clog the terminal and inhibit circulation within the marshalling yard. Under a system of mandatory deliveries for LTL cargo, the ocean carrier would unload the LTL vans and place the cargo in the delivery trucks at shed D, normally within 48 hours after the arrival of the van. Because LTL cargo would remain in the

34 Adams, Howard, and Oppermann Planning Consultants. Erik Srenson, Associate Planner, Ernst Fraukel, Associate Consultant in Marine Engi. neering and Operations, Comprehensive Development Plan for the Port of San Juan, P.R. (Massachusetts : October 1964),


various pages. 35 Mandatory delivery would require store.door delivery for shipments rather than allowing delivery at the terminal.

30 Free time is a period, usually consisting of 5 days at Puerto Rico, during which the shipper may pickup his cargo at the carrier's terminal without charge. After the expiration of the free time, a demurrage charge is assessed on a daily basis.

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tion of the widening of the Army Terminal and entrance channels.39 The cost estimate is some $15.77 million. The justifications stated by the Ports Authority 40 for improvements to these facilities are: (1) Reduction of serious maritime accidents within the harbor; (2) accommodation of large ships; and (3) expansion of trade with the principal ports of the U.S. mainland using larger container vessels which will provide lower unit costs of transportation. These improvements will require the assistance of the U.S. Army Corps of Engineers, according to the Ports Authority.

C. Trends in Containerization

terminal for no more than 2 days instead of up to 5 days or longer, congestion on the platform would be significantly reduced and less transit shed platform space would be required for this cargo. In addition, Sea-Land's present requirement for an additional 100,000 square feet of platform space and future requirements for 300,000 square feet) in Puerto Nuevo would be largely eliminated.

In a docketed proceeding, 37 the FMC found SeaLand's practice of providing mandatory deliveries of minimum shipments to be lawful and stated that the mandatory delivery rule which it then considered “goes a long way toward eliminating a problem of congestion.” Truckers on the U.S. mainland provide mandatory delivery of LTL cargo. Mandatory delivery in the United States has eliminated congestion in terminals by facilitating the movement of freight and has permitted carriers to operate with less terminal space. Because the containership operations at the Puerto Nuevo terminal are virtually identical to those on the U.S. mainland, mandatory delivery from Puerto Nuevo on LTL traffic should result in similar efficiencies and reductions in cost. GPRL now provides a store-door delivery rule on all LTL shipments under 6,000 pounds. Effective August 14, 1969, Sea-Land commenced mandatory store-door delivery on most LTL shipments under 3,000 and under 700 cubic feet 38 to avoid congestion at the terminal and to effect faster turnaround. Carriers may go beyond the present weight and cubic capacity limits on mandatory delivery. Although mandatory delivery on LTL cargo may generate greater efficiencies in traffic distribution on the Island, the FMC should maintain continuing surveillance over these arrangements to assure that the public interest is protected.

(5) Facilities and Proposed Improvements.—The Ports Authority finds there are sufficient factors to justify large scale improvements not only to Puerto Nuevo but also to harbor facilities at San Juan. These are: (1) Deepening of the Puerto Nuevo and grading dock channels to at least 35 feet; (2) widening of the turning basin at the intersection of the Army Terminal and Puerto Nuevo channels; (3) widening of the turning basin at the junction of the Puerto Nuevo and grading dock channels; and (4) provision of the new and larger deep channel anchorage basin at the junc

The Port of San Juan will have the opportunity of fostering the potentialities inherent in the tremendous developments which are taking place in sea and road transport. Current literature 41 and recent experience in ship design, including new methods of handling cargo," make it possible to estimate innovations which may take place in this trade during the period 1969–75. In the very near future, the sea and road transportation picture of Puerto Rico will be radically altered and San Juan will be able to demonstrate its prominence in the world of transportation. Port development plans, internal trucking and distribution patterns, as well as related regulatory procedures will have to keep pace with these trends in order to accommodate the new technological changes taking place.

(1) Marine Transport.-The most significant change in Puerto Rico's transportation system will be the introduction of mammoth containerships with larger container loads, faster turnaround, and speeds in excess of 26 knots, which should counter the rising costs of stevedoring, ship construction, and terminal development.43 Transamerican Trailer Transport's new Ponce de Leon and Sea-Land's six 1,300 container vessels now programed for construction are examples of the trend toward larger and faster ocean vessels of the roll-on/ roll-off or lift-on/lift-off variety. The advantages of these larger container vessels are illustrated in table VI-8 below which shows that during a given period of time a large containership (Sea-Land C-4JX) is mor efficient than a smaller ship (C-2X vessels).

39 Puerto Rico Ports Authority, Statement by the Puerto Rico Ports Authority on the Master of Improvements to Navigation Facilities in the San Juan Harbor (San Juan : March 1968), pp. 4–12.

40 Ibid.

37 Charges, Delivery, Atlantic-Gulf/Puerto Rico Trodes, 11 FMC 222, 236 (1967).

39 This delivery rule does not apply on household goods, personal effects, controlled temperature cargo, nor on pieces exceeding 15 feet in length.

41 Shipping World, Ports of the World (London : 1960), pp. various.

12 McKinsey and Co., Inc., Management Consultants, Containerization, les Trends, Significance and implication (London, British Transport Docks, June 1967), pp. various.

43 Ibid.

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