Damaging an Egyptian Coral Reef Expensive

UK P&I Club
Thursday, March 07, 2013

Due to an increase in tourism, Egyptian coral reefs are important to its economy: official records show 170 damage incidents.

The UK P&I Club has issued the following advisory circular to its members:

Vessel groundings are a large threat which coral reefs face, with the possible subsequent threats of pollution causing further damage to the ecosystem and biodiversity. Damage to coral reefs can range from minor injuries to the severe degradation of its structural complexity. The natural recovery of coral reefs from severe groundings can take years.

The Egyptian Environmental Affairs Authority (EEAA) is the authority which deals with such incidents and may issue compensation claims against a vessel. Egyptian Law 102 of the year 1983 for natural protectorates regulates and adopts penalties against the party responsible for damaging coral reefs.

Where a damage incident does occur, compensation claims can be extremely large. The following formula is used to calculate what compensation may be due based on a number of factors:

(A)  X (LC) x (D) x (RP) x (V)

Where (A) is a measure of damaged area in square meters, (LC) is the percentage of living coral, (D) is the percent damage in the area, (RP) is the number of years required for recovery and (V) is the value of one square meter (set at USD$120, and USD$300 for national parks).

Due to this formula, even small incidents causing damage can very easily result in a large claim against the vessel.

Should an incident occur, it is recommended that the owners of the liable vessel are to secure an independent underwater inspection report or the damaged area, carried out by a suitable diving company, which shows the exact damaged area and the extent of damage to the affected coral reefs so as to have a base for arguments regarding the claim which may exaggerate the extent of damage caused by the vessel.  

 




 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Obama Defends Arctic Oil Drilling

United States' President Barack Obama defends his decision to allow Royal Dutch Shell to drill for oil in the Arctic Ocean.   He insisted that there was no contradiction

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Finance

Optimistic on VLCC Market

Shipbroker Charles R. Weber is quite optimistic on the future prospects of the VLCC market for 2016 onwards.   The demand is expected to remain elevated with

Goldenport Bleeds in Red

Goldenport Holdings Inc reported a net loss of USD14.7 million in the first six months of 2015, significantly wider than the USD1.4 million net loss a year earlier

Strong Returns for Sovcomflot

Russia’s biggest shipping company PAO Sovcomflot (SCF Group) surpassed its own expectations and went forward on both revenue and net profit in the first six months.

Marine Science

World’s Quickest Trip Through Northern Sea Route

Chinese sailor Guo Chuan intends to make it world’s quickest Northern Sea Route trip from Murmansk to the Bering Strait in 14 days without engine power. His

Tropical Storm Erika Heads for Florida

Tropical Storm Erika lashed Puerto Rico and the Virgin Islands with heavy rain and fierce winds on Friday, moving across the Caribbean and apparently heading for the Dominican Republic,

MHI, SBG Invest in Wind Energy Startup Altaeros Energies

Mitsubishi Heavy Industries, Ltd. ("MHI") and the Suhail Bahwan Group ("SBG") have invested in Altaeros Energies, a Massachusetts-based technology company, to

P&I Clubs

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Coast Guard Responds to Delaware River Grounding

The Coast Guard is overseeing salvage efforts Tuesday for a motor vessel aground on the Delaware River. The 328-foot Netherlands-flagged motor vessel, Bermuda Islander,

Maritime Tribunal Rejects Plea to Free Italy's Marines

An international maritime tribunal on Monday rejected Italy's request that India provisionally release two marines accused of killing two Indian fishermen, a setback

 
 
Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2870 sec (3 req/sec)