THE PORT OF CALLAO SOUTH AMERICA S MOST MODERN PORT IN THE MAKING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00423R001000190002-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 30
• Document Creation Date: December 14, 2016
• Document Release Date: May 16, 2001
• Sequence Number: 2
• Publication Date: June 1, 1953
• Content Type: REPORT

The Port of Callao
South America's Most Modern Port in the Making
NAVY Declassification/Release Instructions on File
JUNE 1953
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Background and
Present Situation in the Port of GalIao
Callao, the seaport for Lima and Peru's princi-
pal port, has excellent marine terminal facilities
whose construction was completed by the Frede-
rick Snare Corporation, an American firm, in Oc-
tober 1934. This Company administered and
operated the port until it was reimbursed for
construction costs, which took until 1 May 1943,
at which time the Peruvian Government assumed
direct administration of the terminal, this function
being designated the responsibility of the Admi-?
n. istracion Portuaria of the Ministry of Finance
and Commerce.
For several years the Port had been confront-
ed with various problems of which port conges-
tion appears to have been the outward manifes-
tation of the various difficulties. Several studies
had been made of the conditions existing under
the Government's management and operation of
the port; everbody admitted it was bad but little
was done to alleviate the situation.
Finally, on 1 April 1951, the European Steam-
ship Conference imposed a 25% Port Congestion
Surcharge on all freight carried by member's ves-
sels bound into Callao for discharge at that port.
Confronted with a situation calling . for reme-
dial action, the government following the recom-
mendations of the Klein Economic and Financial
Mission as well as those of Admiral Stanley, an
American Expert, who came to Peru to study the
Port Problem, took action by (a) authorizing an
expenditure of $ 1,000,000 for modern materials
handling equipment for the port; (b) by deciding
to obtain a foreign loan for this purpose and (c)
by obtaining thru the firm of Klein & Saks of
Washington D. C., (who were previously contract-
ed by the Peruvian Government to furnish the
above mentioned Economic and Financial Mis-
sion to Peru) the services of Col. Howard W.
Quinn, USA Retired, an expert on organization,
administration and operation of modern ports and
an authority on modern cargo handling methods.
Colonel Quinn arrived in Lima on 22 April 1951
and after a brief survey of the port, found that
the difficulties experienced in Callao in the past
few years had largely been organizational prob-
lems that could be remedied without the expen-
diture of additional funds and that the reorganiz-
ation recommended by him along with a modest
and self-amortizing investment to modernize car-
go handling methods would result in improve-
ment of the port to the extent that it will be
capable of rendering an efficient public service
and an adequate financial return to the State.
It was then recommended that (a) the Govern.
ment place immediate orders for materials hand-
ling equipment in order to mechanize general
cargo handling operations in the port, (b) that
a complete reorganization be effected in order to
take the port activities out of politics and put the
organization on a firm businesslike basis and
(c) that the handling of bulk grain, the largest
single item of cargo in Callao, also be modern-
ized.
The Economic and Financial Mission handled
all the technical details with the World Bank and
succeeded in getting a clearance on a $ 2,500,000
loan to not only modernize general cargo hand-
ling operations but_in,addition to provide modern
bulk grain handling facilities for the port.
The Mission was then confronted with the task
of drafting up the legislation required to elimin-
ate legal barriers to progress and the appropriate
legislation to establish a centralized port admin-
istrative agency capable of carrying out the rec-
ommended reorganization and making a profit on
its operations- even while amortizing the cost of
modern equipment thru repayment of the loan.
The solution of these two high level problems
of financing and legislation involved a third and
far reaching problem of particular significance
to foreign capital. This was the settlement of
Peru's International Debt. Thru a series of nego-
tiations the Peruvian Government and the United
States interests represented by the Foreign Bond
Holders Protective Council reached an agreement
and the Peruvian Congress passed the necessary
laws to enable the agreement to be carried out.
By July 1952 all the high leval problems had
been resolved and on July 16th the Board of
Directors of the Port of Callao Authority was in-
stalled. In its first session .the Board approved and
ordered executed the Port Modernization and
Mechanization Program presented by Col. Quinn,
who in the meantime had been appointed Execu-
tive-Director of the Port Authority.
PORT. MODERNIZATION -- AND
MECANIZATION PROGRAM
The highlights of this program are as follows:
Projects:
Three projects comprise the program':
1. General Cargo Handling Project
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2. Bulk Grain Project (which includes dredg-
ing the harbor)
3. Organization Project.
Finances:
A resume of the financial statuts of the Program
is given in Appendix "A".
1. General Cargo Handling Project
This project includes the following:
1) Purchase of the necessary materials hand-
ling equipment to mechanize general cargo hand-
ling operations in the port.
2) Purchase of pallets, pallet racks and- the
purchase and/or fabrication of the necessary
stevedoring gear and equipment to enable the
port to obtain the most effective use of the new
equipment.
3) Purchase of the necessary shop tools and
equipment to efficiently maintain the new mater-
ials handling equipment.
4) Repair of existing piers, warehouses, build-
ings, roadways, etc. to correct the deficiencies
resulting from long neglect of maintenence of port
Facilities, buildings and structures.
5) Installation of tiie pallet rack system in
pierside warehouses plus other modifications
which will provide the Port of Callao with four of
the world's most modern general cargo berths.
6) Creation of additional open storage space
by ti aving three available areas and the creation
of additional hard-stands by filling, leveling and
rolling various areas where the costs involved
were comparatively small.
II. Bulk Grain Project
This involves the installation of a modern port
terminal grain elevator with a storage capacity
of 20,000 tons of wheat. The facility will be pro-
vided with two ship discharge towers with a
total capacity of 300 tons per hour. The neces-
sary provisions will be made for discharge to rail-
cars and trucks simultaneously and will provide
for the automatic weighing of the grain.
In order to accommodate a full ship at the site
selected as the bulk grain berth, dredging will
be necessary and since the port has been ne-
glected for a number of years, the entire harbor
will be dredged.
III. Organization Project
This project was foreseen to be a most formi-
dable and difficult task and in attempting '-to
carry it out the responsible personnel were to find
that this forecast was certainly a modest estimate
of the situation.
Had it been possible to start from the beginning
with an entirely new organization and a new
labor force the problem would have been greatly
simplified. However, that was not possible.
In order to fully appreciate the magnitude of
this problem the following excerpt from the Eco-
nomic and Financial Mission's Organizational Re-
port on the Port of Callao is given:
"A number of distinct agencies are concerned
with operations in the Port of Callao. The Admi-
nistracion Portuaria, upon which entity devolves
the responsibility for the administration of the
Terminal Maritime exercises remote control in
varying degrees over the Terminal administra-
tion; the Customs Service is in reality the terminal
operator as it is the agency that handles all
cargo movement in the warehouses, the Navy,
controls port labor, the steamship companies con-
trol the stowage and discharge of cargo aboard
their own vessels and the various shippers and
consignees load and discharge their own vehicles
in various parts of the terminal; along with this
a conglomeration of various categories of cargo
handlers known as fleteros, cargadores, bajado-
res, supemumerarios, etc., operate to varying de-
grees and under no real control or supervision. .
In addition, the regular police, customs guards,
terminal guards, private guards and detectives,
all operate in the terminal under no apparent
control nor co-ordination of their various activities.
"In summary the cold facts are that (1) Although
the port administration has an unusually large
regular payroll (all personnel receive overtime
pay and some individuals receive far more over-
time pay than regular salary per month), it has
relatively few operational functions to perform.
(2) Although a high port congestion surcharge
has been placed on some cargoes discharged at
Callao, there is cargo, now occupying warehouse
space in the Terminal, that was landed there from
five to ten years ago. (3) Although there are
numerous uniformed police and guards in the
installation, unauthorized personnel and vehicles
are allowed to go anywhere at will; there is no
control of traffic and (4) Although dangerous car-
goes are discharged in the terminal there is no
fire department and no evidence of fire prevention
measures being carried out."
Confronted with this situation the Port Authority
had to assume jurisdiction over the old personnel
and take over the property involved with a very
reduced staff and, step by step, as opportunity af-
forded, had to carry out its reorganization pro-
gram. This had to be carefully regulated so that it
would not in any way interfere with normal port
operations.
To obtain any semblance of order from a group
who had done very much as they pleased for a
number of years was a difficult undertaking, but,
.n addition. to this, every step of the reorganization
has' continuously been confronted with almost
unsurmountable obstacles such as political inter-
ference and the opposition of many types of vest-
ed interests. But in spite of these dificulties ex-
cellent progress has been made to date.
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The Port Authority is now organized along func-
tional lines quite similar to the general type of
organization used by the more successful central-
ised port administrative agencies in the United
States. (See Organizational. Chart, Appendix
?C,.)
PRESENT SITUATION -
ACCOMPLISHMENTS OF THE PORT
OF CALLAO AUTHORITY
1. The present situation may best be summed
up by stating that had the Peruvian Government
not taken the steps it did and'had the Port Author-
ity not have already accomplished its first objec-
tive, the Port of Callao would presently be so
APPENDIX "A"
hopelessly congested that all the Steamship Con-
ferences, whose members vessels service the Port
of Callao, would have been completely justified in
establishing an additional Port Congestion Sur-
charge on the Port.
As it is, the Port Authority is now petitioning the
European, South Pacific and Magellan Conferen-
ce for the removal of the 25% Port Congestion
Surcharge that has been in effect since April 1951
and is completely justified in so doing. (Note.-
Chairman of the Conference advised the Port Au-
thority by cable on June 8, 1953, of the removal of
the Surcharge, effective June 15, 1953).
2. The Port Authority's accomplishments can
well be appreciated by a comparison of the con-
ditions formerly existing in the Port as compared
with present conditions, some of which are illus-
trated in the accompanying photographs.
PORT OF CALLAO AUTHORITY
Port Modernization and- Mechanization Program
FINANCIAL STATUS
1. General Cargo
Handling Project
II. Bulk Grain Pro-
ject
III. Organization Pro-
ject
Estimated Expenditures
(Expressed in Dollars) (a)
$1,000,000
$1,500,000
None
150,000
$1,300,000
$ 150,000
$2,500,000 (b) i $1,600,000 (c)
Funds Obligated to Date
(Expressed in Dollars)
$ 979,956.30
$ 65,000.00
None
$1,044,956.30
$ 30,000
$370,180.15
$ 25,000
$425,180.15
Funds Allocated
in 1953 Budget
(Expressed in
Dollars) (d)
$133,333
$533,333
e,120,000
a) Exchange Rate of S/. 15 to US$1 used in all calculations in this Report.
b) Loan PE-57 with International Bank for Reconstruction and Development signed 23 Jan. 1952 for
$2,500,000.
c) Working Capital Fund Port of Callao Authority deposited in Banks in Peru total S/. 20'651,085.80
(US$1'376,739.05).
d) 1953 Expenditures to be defrayed from Revenues collected without touching Working Capital Fund
referred to in (c) above.
3
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Q N
N Z
0 O
O l--
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1600
1500
1400
1300
I200
1100
1000
900
700
600
500
400'
300
200
APPENDIX II- B"
PORT OF CALLAO
TONNAGE HANDLED
1934-1,952
EXPRESSED IN METRIC WEIGHT TONS
(O N
M M
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4
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 pproved`For Release 2001/09/04.: CIA-RDP83-00423Ra001,0001$000 8
New Materials Handling Equipment.
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 CD
C
Appr
0 o a
C) G -o -< cl
N CD R d
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N ti
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 70
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 Before: Scene in front of the main piers, showing general confusion, congestion
and lack of traffic control, Sept. 1, 1951.
After: One of the world's most modern cargo berths.
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 Before: Fire Hazards: Storage of drummed petroleum products and general
cargo in an oily lake.
After: Drummed petroleum products segregated by lot and stored in an
isolated area.
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ALLAO
Maritime Terminal at the Port of Callao, with inset map lower left, showing the is
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 Before: Accumulations of junk and aban-
doned cargo in warehouses, August 1951.
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: CIA-RDP83-00423R001000190002-8
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1-40 ALMACENES
7 COBERTIZO ALMAC#N
8 OF. RESGUARDO
9 OF. TUR/SMO
trill An?f,n - r..
FERROCARR/L ES
BALANZA
P'AV/MENTOS f'A RA CARGA
MANZANAS DE LA CIUDAD
Iltion of Callao with relation to Lima and itssurrounding residential suburbs.
I I Or. PERSONAL T. All.
ZI TALLER ADUANA
12 OF TRASA/OS ,VITOS.
22 SAN/DAD
VEGETAL
13 CORA P. DE VAPORES
23 FACTOR/A
T. M.
14 FERROCA?R/L CENTRAL
24 ALNIACFN
T. M.
15 ANEXO T.M. Y POL/C/A
25 CARP/NT--PIA
16 GARAJE TRACTORES
26 BALANZA
CAM/ONES
17 ARCH/VO ADUANA
27 PABELLON
TARJADORES
18 CUARTO DE GAV/EROS
28 PASELLON
EST/BADORES
19 OF. TAR/ADORES
29 #ST/3A DORES M. de C.
20 DE POS/TO /NFLAM-
30 RESG UAROO M de C.
ABLES
20. /NUN ERA DOR ARAN
D0N4 U L)
20b /NGINERADOR PRO V/S/ORAL
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 wRaara>sssa
After: Warehuose space used for intransit cargo. 13
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Before: Cargo landed in 1936, still occupy-
ing valuable warehouse space, August
1951.
 Before: Storage of official documents outside of main offices, May 1952.
After: Central Archive, Port of Callao
Authority.
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 Before: Port congestion, cargo stacked in vehicle parking place, May 1952.
After: Parking space completely free.
15
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 Before: Mishandled shipment of cement bags.
After: Handling of cement bags by pallets.
16
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 After: View of similar cargo today.
18
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 Before: Congestion in front of Main Buildings.
After: Congestion removed in spite of increased tonnage handled. 25X1A
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 App ov d for R le se t# x/04 A ~ 1
IK
Before: Congestion on Long Wharf.
After: Long Wharf cleared of carqo.
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 Before: Warehouse Op'erations. Cargo manhandled with considerable cargo damage and poor , iliza-
tion of available storage space. In this type of ope:ation it was difficult, if not impossible, to to ate a
given, shipment.
After: Warehouse Operations. Use of the Pallet Ra :k System and Mechanical Handling. This type of
operation is' speedy and reduces cargo damage as well as facilitating location of cargo.
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 Before: Warehouse Operations. Poor space utnlz. tion - Manhandling - Cargo Damage - impos-
sible to locate given shipment.
After: The modem Pallet Rack, System, giving excellent space utilization for small lots and general
cargo (Retail Phase of the Operation). Palletized large lots are stored in the open area at the far end
of the warehouse. (Wholesale Phase of the Operation).
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2293 - Editora Medica Peruana S. A. - Azbngaro 906 - Lima.
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SECURITY INFCc{:lAel31
7711
- Name of Port `alleopi'eru. at. L_Q,~ L Long.
Name, of Vessel U.S.J Goss 444 Nationality U.S.ilavy
Length of Vessel .ins, FtA Greatest draft while in port its
Name of Master ,~, A. ia'en~?i,rDate of observation `g JLnw In ;s_
Sailing directions used in entering port-,
Volume, name and no. '10 17- Publisher =:0 Date 1tj30
Date of most recent correction w 22 J3publisher iiyrLjo _)ffice
Chart used: Name port of Callao No. 10 5et
'lice Date latest correction dtv; 22 53.
INSTRUCTIONS: Indicate answers by check marks or brief phrases. Present
only information based on your own experience.
1. Pilotage
a, Are pilots available ? Yeses No-
b. Will pilots take vessels in at night? Yes X No
c. Was pilotage compulsory for your vessel? ldj
At all. times- In bad weather _ At night
d. Is pilotage desirable though not compulsory? Yes No
Under what conditions?
e. Where do pilots board vessel?
Location _At Antranc, bnovg. Bearings ------ _____ ------
f. Description of pilot boat :;soil leunah.
g. Signals shown by pilot boat___________
2. Formalities
a. Is this a "first port of entry" for overseas vessels? Yes No X
b. Where do customs, health and other officers board incoming vessels?
Location ;none boarded. Bearings
Nature of critical features (least depth encountered in reaching berth,
crooked channel (in terms of maximum length of ship or radius of
turn) etc.) :varrnw hraa ater a rknce.
b. Locations of critical features
Bearings
c. Navigational aids associated with these features
Breakwater entrance is lighted :4 marked plainly.
4. Bridges
a. Did your vessel pass under a bridge or bridges in reaching berth?
Yes No X How many?
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SECURITY INfw,n'~ ' ~~
c
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Name Location
I'v
+
g
pe o
ir)rl over 11a fine; 1)ra
WWidth of i !'.unrrel urrrleer brid
e
C.le arai!c e under - roan
Bearings
Fixed `suspension, e:,. -t
At the level of
Na vrg,,r ior.r I a :cls ,'or .l>r rdgc -- -
Note, If tiour' vessel passed under- more than one bridge, record
tnfor'rnrt:orr as above for' other bridges at end of this form,
~. Overhead cables
a, Did y'out' vessel Crass under an overhead cahle `' Yes No
'
f, (
lea r'a ni c under cable At Ow level of
6. Tugs
:i.^ Were tugs used to assist your vessel in entering port' ' Yes No
or
t
c r
iirg or Sri 111 rng your vessel ? Yes No
c . Power of tugs. Known Estimated -
d, Did you see tugs assisting other vessels-
In entering port ? Yes No
In berthing or, shifting position? Yes , \o
Kind of vessel assisted by tug's) - -
(cargo carne-' tanke'r', etc.) h. Length of vessel
r. Anchorage
a, Where did your' vessel anchor?.,v Ii(?,ir:ngs
1), Depths__ -- c . Holding ground: Good hair Poor.
-
d lfoidrrrg ground malertal --
13csi anchorage: localion___ - - - Hearings -- --
1:on s
8. Moorings
a, Did your ship use rxioorings'? Yes No
b, Manner' of moor?inc~
Location of he r't.lr - - - - - -
d_ Bearings of be r?tlr - - --__~---.---,____
#'. Length of berth Depth
f? Maximum calla(-:itv Of buoys or dolphins in ternis of size of vessel
b. Did y
r ''Fr~r Rdleas '20~'1/00 _ CIA-RRD>R83-00423R0Oi00019000M : .
c Tvn' and r-iv->>;4- 1.-?.L.a-.-
a. Are lighters ave i?~~,h e in poort? Yes No ~
9. Lighterage
Reir:11)rirrtiv of arrc borage bearings in Sailing dtrecrio:is; -
Good --Z'7- l?`a tr- Yoor
Features of shelter not-shown-on chart or' mentioned in sailing direr
 Uui xuc f r o' v e1 'J4. 3ca
Ap r ~' ~orWei- r~e 9 F PB =ea' fl61~tf0I 007=8
nncii` ions o icgi", '-F .M,5(1s ! r= >.,
f. Quality of sc r'~.
g. Undesirable- ic',rtures oC service
10. Wharf
a . Wharf na inc-
b. 1_,ocar iori
c. Side
d. Type
e ('onst.iurttror?
f. Length
g Depth along;;id'.'
ire. chart datum)
tt. Height of deck
(re, chart dittuni)
i. A pr'an width
~. Cranes
Type
No. of this type
Kind of Power
Max. lift
Max. radius
Max. hoist
Type
No. of this tyc,e
Kind of power
Lift.
Radius
Hoist
t t.trer c raneb
k. Other cargo handling
equipnrerrr 'Spr 6 '1
1, Stevedores
Availability:
(day, day & n)ght)
Size gangs
Efficiency
m. Transfer sheds
Floor area
Stacking height
Floor area
Stacking neigh".
Berth Used Berth Ahead
(or other)
.. .. C3 ..u~... Pi.',.i
'/Js ft
uZ ft
}~.L~ 11'Y 1t1
:a; 4 .l- . L c a
sc LJJ-t .J'J.o a,1... .
Au(jut ?. { 1tol
,uo'.t tiJ t'G.
Bc r+ f. A
or other)
a. Does the port have