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MSC Napoli Situation updated

Maritime Activity Reports, Inc.

December 18, 2007

(The Devon County Council issued a Situation Update regarding the ongoing salvage operations on the wreck of the MSC NAPOLI - HK Law)

The cutting machine, which has been secured to the deck since it listed to approximately 40 degrees in storms last month, has been successfully removed and is now on board the SMITBARGE 2. The machine will be tested to make sure it is working properly and is hoped will continue to cut through the remaining structure above the water line.

The Sheerlegs, used to lift the cutting machine, will be demobilised and towed to Rotterdam.

Weather permitting, the scap material currently stored in Hold 7, will be removed onto the BOA BARGE for onward transfer and recycling.

Onshore, contractors DRS continue to maintain the shoreline. This week about 5 to 6 tonnes of scrap metal has been collected between Sidmouth and Axmouth, and about 3 to 4 tonnes of general waste including bottles, cans, plastics and wood from the Napoli. The team, which grew in size to cope with material washing ashore after the storms last month, has this week reduced back to a 5 strong team.

Devon County Council has confirmed that an inquiry in public is still planned once the operation to remove the stern is completed next year.

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