Australian government seeking $91.54m in damages from reef grounding

Australian government seeking $91.54m in damages from reef grounding

A two-week court case has kicked off in Brisbane that could seriously harm the bottom line of the London P&I Club. The Australian government claims that at least A$120m ($91.54m) is needed to “remediate” damage to around 40 ha of the Great Barrier Reef after the 2010 grounding of the Chinese coal carrier Shen Neng One off Gladstone. The ship was owned by Shenzhen Energy and insured by the London P&I Club. One seafarers was jailed following the incident and another fined.

The British insurer is expected to claim that the damage to the reef was not as bad as the government has suggested and will try to limit any pay out to no more than A$25m.

The London P&I Club has had its fair share of casualty headaches to handle this year, not least the grounding and subsequent sinking of the Benita bulk carrier off Mauritius a couple of months ago.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Brian R. McCaughrin
    September 6, 2016 at 2:18 pm

    Blessing this Day! Splash 247.com/ Had another Excellent and Interesting Article about the “Great Barrier Reef” Marine Park, Which is 132,974 miles in size, and It comprises of 3,000 Coral reefs, 600 Continentals Islands, and Is The World Largest Living Thing on Earth, and You can see it from Space. Sadly Ships Owner, Use this area in Cutting Corner to Its Next Asia Port of Call, and When that happens Ships Hulls are Cut open Like Beer Cans, Oil Pollutes The Region and Kills off these Reefs. It almost as if Australia Government, Need to put up Huge Fence That’s 132,974 Mile in Size, The Sign Its Self Is Wall 100 feet Tall by 100 feet Wide by 100 feet deep with Huge Flashing Lite Signs All The Way Around That Reads “REEFS, DON’T ENTER! OR BE SUNK”