Contract to salvage ship up for signing

source:Contract to salvage ship up for signing

MANILA, Philippines - The owner of an ill-fated vessel is expected to sign a contract on Wednesday with a foreign salvage firm to clear the capsized ship’s cargo hold of highly dangerous chemicals.Transportation Undersecretary for maritime affairs Ma. Elena H. Bautista, chief of Task Force M/V Princess of the Stars, said United States-based Titan Salvage assigned by Sulpicio Lines, Inc., has "required" a "security" for assurance that the contract price would be paid.She told BusinessWorld in a text message that they will meet officials of Sulpicio Lines and Titan on Wednesday to finalize the plans on how to retrieve the chemical shipments and about 250,000 liters of special fuel oil.She said they are "hoping" a deal will be closed to prevent water contamination and to resume the search of hundreds of bodies still trapped inside the ship.Ms. Bautista said Sulpicio Lines will shoulder the final contract cost of $7.5 million (P340 million), from an initial price of $8.9 million, after the government agreed to process the working permits of the salvor and Customs requirements on the equipment that it will use.Sulpicio Lines officials did not answer request for further clarification on the arrangement.Sulpicio Lines’ flagship M/V Princess of the Stars capsized off Sibuyan coast in Romblon province on June 21 after being directly hit by typhoon Frank (international code name: Fensheng). It was traveling from Manila for Cebu with more than 850 passengers and crewmembers on board. Thirty-three survived the tragedy, 205 died, while the rest remained missing.The 23,800-ton interisland vessel carried 10,000 kilograms (kg) of endosulfan that Del Monte Philippines, Inc. imported from Israel as pesticide for its pineapple plantations. The discovery led to a delay in the search, rescue and retrieval operations as divers were recalled to prevent health risks.Other toxic chemicals owned by Bayer CropScience, Inc. namely Antracol WP70 (392 kg), Fuerza GR3 (501 kg), Trap 70WP (17.5 kg) and Tamaron 600SL (150 liters) were later on discovered inside the ship.The government continues to impose a fishing ban within a five-kilometer radius of the shipwreck.A group of foreign chemical experts from the United Nations and the European Commission released its findings on Friday that cleared the area of chemical contamination.Meanwhile, Ms. Bautista said they are still verifying an "unconfirmed information from a concerned citizen" about two containers of dangerous materials on board the ferry."We have not confirmed yet if the chemicals are indeed on board. We are still looking for the shipper and the freight forwarder," she said, but declined to elaborate.The Board of Marine Inquiry has wrapped up its investigation on the tragedy last week, and it is expected to release today its findings and recommendations.A separate investigation by the Maritime Industry Authority on the possible cancellation of the shipping firm’s certificate of public convenience franchise is still ongoing and a hearing is scheduled tomorrow.The recent tragedy was just one of a string of accidents that hit Sulpicio Lines’ fleet.The M/V Princess of the Stars’ sinking was considered the worst sea tragedy that hit the country in two decades after another Sulpicio Lines-owned vessel, M/V Doña Paz, collided with oil tanker M/T Vector on Dec. 20, 1987 between the islands of Mindoro and Tablas, and claimed more than 4,000 lives. — Bernard U. Allauigan, BusinessWorld