Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 14, 2016
Document Release Date: 
May 16, 2001
Sequence Number: 
Case Number: 
Publication Date: 
June 1, 1953
Content Type: 
PDF icon CIA-RDP83-00423R001000190002-8.pdf12.71 MB
The Port of Callao South America's Most Modern Port in the Making NAVY Declassification/Release Instructions on File JUNE 1953 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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. 2 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Q N N Z 0 O O l-- H 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 O) O) C30 O) O N c") a v7 cD N 00 0) n m 'T 'T It a) O) 0) Os D) O) O) 0) 0) 0) a) rn 0 tn u 0) a) O) 4 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 pproved`For Release 2001/09/04.: CIA-RDP83-00423Ra001,0001$000 8 New Materials Handling Equipment. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 CD C Appr 0 o a C) G -o -< cl N CD R d N N C N (D r z O o 0 ~0 0 -0 0 d O hi -- 0 " N CD (D m 0 N ti Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 elease 20d1/09/04 : CIA-RDP8 -00423R001000190002-8 70 Approved For.Relea 41/09/04: Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 ALLAO Maritime Terminal at the Port of Callao, with inset map lower left, showing the is Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Before: Accumulations of junk and aban- doned cargo in warehouses, August 1951. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 : CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 wRaara>sssa After: Warehuose space used for intransit cargo. 13 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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. 14 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Before: Port congestion, cargo stacked in vehicle parking place, May 1952. After: Parking space completely free. 15 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Before: Mishandled shipment of cement bags. After: Handling of cement bags by pallets. 16 Approved For Releas1/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 After: View of similar cargo today. 18 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Before: Congestion in front of Main Buildings. After: Congestion removed in spite of increased tonnage handled. 25X1A Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 App ov d for R le se t# x/04 A ~ 1 IK Before: Congestion on Long Wharf. After: Long Wharf cleared of carqo. Approved For Release 2001/09/04: CIA-RDP83 00423R0010001 i& 1A-8 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. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 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). Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 2293 - Editora Medica Peruana S. A. - Azbngaro 906 - Lima. Approved For Release 2001/09/04: CIA-RDP83-00423R001000190002-8 us Cr t ~...U oved For Rele ~ 12d0 1T i44 93WO423ROO1 25X1/ 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? Appr id1ef@a.a 01/09/04 CIA-RDP83-00423R001000190002 SECURITY INfw,n'~ ' ~~ c i-)eApp~?,yedr Foor Release j92001/09/04: CIA-RDP83-00423R001000190002-8 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' - - - - - - 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