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Ports Authority outlines reconstruction plans, defends halt to scanning contract amid legal dispute
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Summary
Ports Authority director Norberto Negrón told the House committee the agency has secured federal funds for multiple port rehabilitation projects and is revising tariffs and regulations, while defending the administration’s August decision to cancel a controversial scanning contract now subject to an injunction and court proceedings.
The afternoon session of the House Commission on Federal and Veterans Affairs on Dec. 10 focused on the Ports Authority’s response to infrastructure, safety and contractual questions at the Port of San Juan.
Licenciado Norberto Negrón Díaz, director ejecutivo of the Autoridad de los Puertos de Puerto Rico, presented a written ponencia and summarized ongoing and planned works including NEPA and procurement timelines. He said the governor has allocated about $46.5 million toward necessary works and that the authority has secured additional funds (including FEMA obligations) for projects at the Army Terminal and muelles 15 and 16. Negrón said design work for some projects will start in January and that an RFP for certain rehabilitation work is expected in 2026. He described an approximate FEMA obligation of $24,000,000 related to Puerto Nuevo and said an Army Terminal project is estimated at roughly $85,000,000.
On safety, Negrón said the Authority has coordinated with federal officials after the U.S. Coast Guard took exceptional measures at Puerto Nuevo Terminal in late February and March related to mishandling of hazardous material; the Coast Guard temporarily suspended certain permissions while it reviews documents submitted by the terminal operator.
On the scanning contract that has prompted sustained criticism, the director said the governor announced the end of the private scanning service on Aug. 26 and that the Authority subsequently notified the contractor it had 90 days to vacate the site. He said the company did not leave and the Authority filed legal actions (including a requested injunction) on Dec. 2 to enforce the cancellation. Committee members questioned why the contractor continued operations and why revenue collected for the scanning program remained in the Authority’s accounts while the civil dispute is litigated in court.
Representative Lourdes Ramos asked whether the scanning program had produced meaningful enforcement results; she asserted the program had collected about $100 million over its lifetime without notable detections. Negrón replied that other law-enforcement entities (Customs and Border Protection, the Puerto Rico Police and the U.S. Coast Guard) have inspection and enforcement roles and defended the Authority’s decision to cancel the service as part of a broader operational review; he reiterated the Authority’s intention to preserve public funds and transition functions in a way that avoids gaps in security.
Negrón also described administrative constraints: the Authority lost roughly 130 employees through attrition and layoffs, which he said affected capacity; he cited work with the Department of Economic Development and universities to build better cargo statistics and said the Authority is evaluating a permanent office for port statistics and a unit for compliance.
Why it matters: The Ports Authority controls key infrastructure and contracts that shape prices and security for an island dependent on maritime imports. The hearing covered both capital investments (FEMA and other funds) and an active civil dispute whose outcome will affect service provision, public revenues and oversight.
Next steps: The Authority agreed to submit tariff application documents and the requested regulatory materials to the committee within a timeline set by members; the legal case over the scanning contract will proceed in court and the committee expects updates when rulings or settlements occur.
