China ship owners pay up for Australia reef disaster

SYDNEY: The owners of a Chinese ship that ran aground on the Great Barrier Reef in 2010 agreed to pay Australia A$39.3 million (US$29.6 million) yesterday, in a settlement dismissed by conservationists as “woefully inadequate”.

The fully-laden coal carrier Shen Neng 1 hit a shoal in April 2010, leaking tonnes of heavy fuel oil and threatening an ecological disaster.

While a catastrophe was avoided, the huge ship gouged a three-kilometre (1.8-mile) scar in the coral and was stranded for nine days before salvage workers refloated it.

The ship’s owner, Shenzhen Energy Transport Co Ltd, and its insurer refused for six years to accept responsibility to make restitution before striking Monday’s out-of-court settlement.

“Our ongoing actions to pursue funds to clean up the pollution sends an unambiguous signal that damage to the Great Barrier Reef World Heritage Area is unacceptable,” said Environment Minister Josh Frydenberg.

He added that the settlement showed Australia would “use every available means to pursue ship owners who are negligent in causing damage to the reef”.

But Greenpeace Australia slammed the deal, calling it “woefully inadequate”.

“The government has said the full clean-up will cost more than Aus 140m so to settle for such a small figure is disappointing,” said Greenpeace’s Pacific reef campaigner Shani Tager. — AFP