After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative

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After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
After Costa Concordia -
Dealing with emergencies in the UK
   Hugh Shaw, The Secretary of State’s Representative

                           R + V Re
            Frankfurt / Mainz – 4 September, 2014
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
MSC Rena – Grounding –
  New Zealand - 2011
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
Costa Concordia – Grounding –
         Italy - 2012
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
MSC Flaminia – Fire/Explosion –
    North Atlantic - 2012
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
Maritime Maisie – Collision off
     South Korea – 2013
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
So what did they all have in common?
 1.All relatively new ships. Av age – 11 yrs.
 2.All attracted immense international
   media coverage.
 3.All have resulted in massive financial
   claims and have attracted widespread
   concern + criticism from the insurance
   market and from the wider maritime
   community – much of which is aimed at
   coastal States or local authorities.
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
So is such concern justified?

Costa Concordia hull loss - $500m – liability loss $1.5bn and rising.

MSC Rena – originally capped at $1.4 bn but may increase as Government
decision to leave part wreck on seabed is challenged.
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
So who is to blame?
► Onone hand as ships are getting larger with
 time – salvage operations are becoming
 more complex and expensive.

► On the other hand it is alleged that recent
 interventions by governments and other
 authorities have become the main cost
 drivers in the accident and wreck removal
 process.
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
What are the facts?
► ISU  report cost of salvaging and removing wrecks
  increased fivefold between 2005 and 2012
  although number of incidents declined;
► Size of ship plays a major role in this development
  size and complexity = €€€€€€€€€!
► MSC NAPOLI (2007) built 1991 – 4734 TEU –
  largest in world – today 4x larger; 20000+ TEU;
► Estimated nearly 2000 TEU IMDG;
► Cruise lines building bigger to attract passengers
  – now approaching 10,000 POB mark;
► Economically sound but in the event of an
  accident…..
After Costa Concordia - Dealing with emergencies in the UK - Hugh Shaw, The Secretary of State's Representative
What are the facts?
► Mixed   message from salvage industry regarding
  their capability to deal with this size incident;
► Fewer ports with ability to handle these vessels
  and their consequence management concern not
  only to financial sector;
► Governments / Local Authorities will quite correctly
  insist that accidents and/or wrecks are managed
  with minimal risk to safety and the environment;
► Costs should not influence preferred methodology.
Maersk McKinney - Moller
Maersk McKinney - Moller
► Overall Length : 400 metres
► Beam: 59.0 metres
► Draft: 14.5 metres; Height 73 metres;
► Longer than 4 football pitches or
  5.5 Airbus A380 aircraft
► 18,000 TEU capacity or 109km of containers
  end to end
► Cargo value US$ 540,000,000 (409m €)
► Cost to build US$ 190,000,000 (143m €)
Allure of the Seas
Allure of the Seas
► Overall Length: 362 m
► Beam: 47 m
► Draft: 9.3 / Height: 72 m
► Passengers: 6296
► Crew: 2394
► No of decks: 16
► Cost to build: US$ 1.2bn.
Role of Governments or Local
Authorities in Dealing with Major
       Maritime Incidents
TORREY CANYON   BRAER
SEA EMPRESS 1996
72,000 tonnes oil spilled
Lord Donaldson’s Review
1.The ‘Trigger’ point is when there is “a
  threat of significant pollution” to the
  UK’s pollution control zone, territorial
  waters or coastline;
2.Response to the threat of pollution from
  or involving an offshore installation to
  be compatible with same from shipping
  casualty
Lord Donaldson’s Review

3.   MCA as a whole should play a much
     larger part in operations in response to a
     threat of significant pollution than has
     been the case in the past ;

4. Involvement of Ministers in Operational
     decisions is not a practicable option……
Lord Donaldson’s Review

 There should be ‘ultimate’
  control of salvage by a
    Secretary of State’s
Representative acting in the
 overriding public interest

         SOSREP
Role of the SOSREP

To represent the Secretaries of State for Transport
and Department for Energy and Climate Change
by removing or reducing the risk to persons,
property and the UK environment arising from
accidents involving ships, fixed or floating
platforms or sub-sea infrastructure within UK
waters, within the remainder of the UK Pollution
Control Zone (UK PCZ) and on the UK Continental
Shelf.
The SOSREP Function
► One  person to act as representative of
  Secretary of State (s)
► Free to act without recourse to higher
  authority
► Ultimate & Decisive voice
► Can exercise Ultimate control
► Cannot choose to ignore a situation
► Tacitly approves all actions
► Whilst operations are in progress “Must
  be “Backed or sacked”
Trigger Situation & Directions
► Accident  has to have occurred
► In opinion of SOSREP there is or may be significant
  pollution / risk to life
► Use of powers urgently needed

► The  nature of the directions could not be wider
  ranging. They are of "any kind whatsoever" provided
  always that they are for the purposes of preventing
  or reducing pollution and /or risk to safety and are
  "as respects the ship and its cargo".
► May be given verbally
Existing UK Legislation
► Marine  Safety Act 2003 :
 Unreasonable Loss & Damage
► The Secretary of State shall pay
  compensation where:
Direction was not reasonably necessary –
Account shall be taken of:
Extent risk to safety or threat of pollution, etc.
Wreck Removal Convention

 Entry into force: 14 April 2015
► Registered owner may contract with any
  salvor or other person;
► Affected State may lay down conditions for
  such removal only to the extent necessary
  to ensure that the removal proceeds
  effectively in a manner that is consistent
  with considerations of safety and protection
  of the environment.
Post 1999
UK Notable Incidents
MSC NAPOLI – Jan 2007
Hydrocarbon Transfer
Cargo Transfer
Completed July 2009…After 924 days!...Cost $200m.
MV RIVERDANCE – Jan 2008
Wreck removal completed November 2008
MSC FLAMINIA – Jul 2012
Initial Challenges

• SAR
• Cargo – position IMDG units and status
• Bunkers
• Establish damage and structural integrity
• Salvors, Owners, Insurers and Charterers
future intentions
Comparisons with MSC NAPOLI
MSC FLAMINIA                  MSC NAPOLI
        Risk Human Health      Risk significant pollution
► 75,590 GT                 ► 53,409 GT
► 4808 TEU / 2876 units     ► 2300 units
► 151 IMDG                  ► 150 IMDG
► 1000T HFO + 650 LS        ► 3500T HFO
What has mixed with what and what resulting compounds have been
created.
What has been combusted fully and partly – incomplete combustion
of e.g. pcb’s can generate dioxins.
Composition of the fumes generated though combustion.
Possibility of re-ignition. State of remaining containers.
Inspection Team
► UK led team – salvage master + fire fighting
  expert
► French fire fighting expert representative
► German salvage master, fire fighting expert + HNS
  specialist

  Objectives
► The analysis should include a comparison between
  the risks involved if the ship remains at sea and
  the risks that it would pose to the place of refuge
  and its environment
► Ascertain any additional works if casualty to make
  transit to German territorial waters
Jade Weser Port, Germany – Sep 2012
Future Challenges
► Need    for increased communication and co-
  operation between different stakeholders including
  shipowners, insurers, classification societies, ports
  and other relevant authorities and contractors;
► Salvors to request PORs in methodical manner;
► Media and public perception & expectations;
► Threat that insurance underwriters may limit
  liabilities further – greater friction with Member
  States?;
► Need for openness, trust and transparency
  between all parties during incidents.
Thank You for your time………….

   For further info contact: hugh.shaw@mcga.gov.uk
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