In the face of a number of collisions by vessels with the Demerara Harbour Bridge (DHB) which have left taxpayers footing hundreds of millions of dollars in repairs, the government has signalled a revamping of the country’s maritime laws to ensure adequate compensation.
Once completed, all marine vessels using the waterways here and entering into ports will have to ensure they not only have ample insurance but must lodge a substantial security guarantee that can cover costs for any injury to persons or damage to property.
“We promised to create the type of legislative infrastructure, which the new and increased economic activity will require. With the oil and gas sector fully operational, we are witnessing the establishment of shorebase facilities, the creation of additional ports, and we are witnessing an increase in commercial maritime activity. Necessarily, this will require a greater, more robust and a modern regulatory framework, to bring public safety to users of the waterways as well as to protect public property and the interest of the state,” Attorney General Anil Nandlall SC told Stabroek News yesterday.
Nandlall reasoned that with oil and gas exploration and the substantial increase in river traffic, the risk for allisions and vessel accidents would increase, with the Demerara Harbour Bridge not being spared.
“It is therefore no coincidence, that in recent times, there has been collisions, allisions between vessels, and the Demerara Harbour Bridge, causing untold public inconvenience, suffering and tremendous financial losses to both the bridge company, the private sector and the state, in terms of damage to property and downtime hours”, he said.
Making reference to the most recent, and most expensive, case to date, the Attorney General pointed to the MV Tradewind Passion which crashed into the Demerara Harbour Bridge (DHB) last month, resulting in what the government says will cost in excess of one billion dollars in repairs.
After securing a court ruling for its release, the vessel departed these shores without official notification and its owners, Canama Trading, has since said that it is not responsible for any destruction.
Three persons have since been sent home to facilitate an investigation on how the vessel left without receiving all of the regulatory approvals. The three persons sent home are the Traffic Manager who coordinates with the company and with all vessels passing in and out of the river; the Radio Operator who communicates with incoming and outgoing vessels to allow for smooth passage and the Shift Supervisor.
“People who are directly responsible for the operations were sent home to allow for the investigations,” Minister of Public Works Juan Edghill had told this newspaper.
He noted that it is mandatory that all vessels coming into the country that have to pass through the opened bridge follow lawful processes that include notifying Guyana’s Maritime Administration Department (MARAD) and the Demerara Harbour Bridge General Manager. Edghill said that MARAD officials will also be questioned during the investigation.
The defence for the MV Tradewind Passion is arguing that the incident resulted from unforeseen circumstances.
In fact, the ship’s owner says that the bridge failed to inform it that it was on a collision course; while also stating that the lights displayed on the structure were misleading and/or not in compliance with regulations or up to international standards.
The collision occurred just about 2 am on October 8th when the Panamanian-registered vessel crashed into the bridge damaging four spans. At the time it was navigating the channel to offload fuel at GuyOil’s Providence Terminal.
The vessel shifted the bridge about 45 degrees out of alignment while damaging spans 8,9,10 and 11. The damage has been labelled as extraordinary and requires a lot of technical work to restore the bridge to its previous state.
DHB Company Ship Supervisor, Andy Duke was also seriously injured after he was forced to jump from a tower to get to safety.
Early last month, High Court Judge Fidela Corbin-Lincoln allowed the owner of the Panama-registered ship to lodge the sum of $247.4m as limited liability, compared to the more than $1b being sought by the bridge company. Canama Trading’s position is that if its ship is at all liable for any damage, it would be only for $244,944,006.21.
The Judge in granting the Order also ordered that the vessel be released, once a letter of undertaking constituting the limitation fund has been lodged with the Registrar of the Supreme Court.
That letter has been lodged as ordered by the Court.
Hurdles
Nandlall said that in many instances, when an accident happens and a part of the bridge linking Regions 3 and 4 is damaged, the DHB has to foot additional expenses to take the vessels’ owners to court.
The case involving the MV Tradewind Passion was used to point out the onerous process in recouping financial losses.
“The Demerara Harbour Bridge Corporation was forced to go to court on each occasion to secure its interest, as well as the public’s interest and to seek compensation.
In the litigation, a number of hurdles are being experienced. The bridge’s lawyer has expressed dissatisfaction with the type of security that is being lodged, and under the law there is also a liability limit,” he explained.
“The ships were arrested and subsequently released with the lodgment of what we consider to be inadequate security. With the increase of maritime activity, unfortunately, there is every likelihood that there would be an increase in mishaps and a responsible government must ensure that a proper regulatory framework is put in place, which not only will be designed to regulate the industry, so as to make it safer, but to ensure that when accidents occur, there is a fit, adequate and competent legal infrastructure in place. This is to guarantee settlements of disputes and the payment of fair compensation in accordance with modern standards. That is on our legislative agenda,” he stressed.
He said that the PPP/C campaigned on a manifesto that promised “the creation of a modern legal architecture” and added that “it is a work in progress”.
To vessel owners looking to ply this route in the near future, Guyana’s Attorney General has sounded the warning that they must come prepared to compensate for any damage caused. “They will have to have not only ample insurance but be able to lodge a form of security that will allow for the recovery of adequate compensation for any injury to person or property …,” he said.
