Gov’t cancels ‘unfair and onerous’ ports scanning contract

“More than $168 million has been invested with no proportional results in safety or collections,” Gov. Jenniffer González Colón said. (Facebook via Jenniffer González Colón)

By The Star Staff

Gov. Jenniffer González Colón announced on Monday the cancellation of the contract for the cargo scanning system at the Port of San Juan under the company S2PR, after concluding that the agreement was onerous, inefficient and without results in security or tax collection.

“More than $168 million has been invested with no proportional results in safety or collections,” González Colón said at a press conference at La Fortaleza. “Furthermore, Puerto Rico is the only jurisdiction in the United States with this type of unfair and onerous contract. The cancellation is a savings for the people and future generations; it represents immediate relief for the economy, eliminates an unfair burden on consumers, and reaffirms our commitment to efficiency, transparency, and the proper use of public funds.”

The governor was accompanied by Ports Authority Executive Director Norberto Negrón, Police Commissioner Joseph González, Treasury Secretary Ángel Pantoja and representatives from private sector entities such as the Chamber of Commerce, the Food Marketing, Industry and Distribution Chamber, the Shipping Association, and companies such as Tote Maritime.

According to official information, between 2011 and 2024, the contract financed through the Enhanced Security Fee, which imposed an average monthly charge of $1.2 million. Despite the expenditure of over $168 million, more than 3,400 inconsistencies were detected in manifests, with no seizures reported or any increase in revenue.

The Ports chief noted that after evaluations and inspections with other sectors, it was determined that the scanning system for trucks was ineffective and had become a constant burden on the supply chain “and [...] on the economic sector, particularly our consumers.”

The cancellation will take effect in December of this year. The government gave assurances that it will continue to ensure security at the docks through the police and direct inspection protocols.

“The cost that was paid for an ineffective service is now being passed on as savings to the people,” Negrón added.

The contract, originally signed in 2009, had five amendments and was projected to extend until 2033, with an estimated annual impact on the supply chain of $65 million. The Financial Oversight and Management Board had only approved its validity until December, which paved the way for the final decision to cancel it.