Impact of Upcoming Regulations on Wreck Removal

The Nairobi International Convention on wreck removal was ratified by India recently and will be enforceable from April next year. This will place financial responsibility for the removal of certain hazardous wrecks on shipowners.

Acknowledging this change, the IRClass Academy of the Indian Register of Shipping (IRClass) held a one-day seminar on Managing the Risk of Wreck Removal Liability on September 13, 2014 at the Head Office of IRClass in Powai, Mumbai.

The convention will provide the first set of uniform international rules aimed at ensuring prompt and effective removal of wrecks located beyond a country’s territorial sea and it also empowers governments with a right of direct action against insurers.

The invited speaker, Anthony Fernandez, a highly experienced Average Adjuster and Maritime Risk Management Consultant, addressed the senior members of the maritime community and began by highlighting the need for adopting risk management approach in dealing with maritime risks, threats and perils.

He cited cases and examples from the industry to illustrate the impact of the new legislation on various segments. Given the wide representation present at the seminar, there was a comprehensive exchange of views from different perspectives and a lively debate ensued.

According to the speaker, the Nairobi Convention goes much beyond the current liability for removal of a wreck that takes effect only when it is a danger to navigation. It recognises, for the first time, threat to environment also as a major consideration. The Convention empowers the Administration to effectively deal with wrecks that might occur beyond fairways and inland waters – up to the territorial waters.

Ash Mohammad, Deputy Director General (Shipping), spoke about the initiatives taken by the Indian Administration and some of the amendments to the legislation that are being considered.

Milind Tambe, an experienced maritime salvage consultant, followed on by explaining the practical aspects of surveys and assessments carried out on wrecks, using photographs from actual operations.

URP Sudhakar, head of IRClass Academy rounded up the session and said: “We are very pleased with the outcome of this seminar. We look forward to organising more of such events which essentially enhance the awareness of participants from industry. We hope that through such awareness, the industry will progress towards greener practices, efficient utilisation of resources and internationally uniform framework for resolution of issues. This will help us to hand over a better world to future generations”.