Home' Ships and Shipping : September 2009 Contents NEWS -- WORLD
September 2009 SHIPS AND SHIPPING
A Hapag Lloyd shareholders' meeting on August 12
concluded without resolution to discussions on how to secure
the remainder of a US$2.47 billion rescue package.
The in depth discussions centred on how to get the company
out of its current crisis, discussing at the same time, consultant
Roland Berger's report on the company's status.
On July 28, Hapag Lloyd secured an initial US$468 million
through an emergency package. Under this deal, shareholders
paid US$447 million in cash for the company's 25.1 percent
stake in the Altenwerder Container Terminal in Hamburg while
HSH Nordbank provided a US$21.3 million loan.
Hapag Lloyd shareholders now need to secure an additional
According to the Financial Times, Hapag Lloyd may also
apply for US$1.42 billion in state guarantees for new
borrowing, upon the recommendation of the Roland Berger
report. The application for government assistance would
provide guarantees for 90 percent of the new bank loan values,
and could also be increased to US$1.7 billion to allow Hapag
Lloyd sufficient funding.
Hapag Lloyd is 43 percent owned by German tourism
group Tui and 57 percent owned by the Albert Ballin
consortium, comprising the Hamburg State Government and
No resolution as yet to Hapag Lloyd crisis
Hapag Lloyd shareholders will need to secure an additional US$596 million
WHEN WILL WE EVER LEARN?
List of known passenger vessel "accidents" for July 2009
Day Month Year Region
Nature of accident
11 7 2009 South America
near Dominican Republic border
11 7 2009 Asia
Bhandara District, India
23 7 2009 Scandinavia Port of Nynashamn, Sweden
'Götland' / 'Götlandia II'
24 7 2009 Mediterranean Greece
Virus / food poisoning
27 7 2009 North America Miami, Florida
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 12-YEAR TOTAL
Number of deaths 127 1,329 1,749 1,191 2,021 1,267 683 1,048 2,404 954 1,226 964
When will we ever learn? Ships and Shipping will continue to publish this saga of death and destruction until we see a marked downturn in the
frequency of such "accidents". For more details, check www.bairdmaritime.com
Monthly total of deaths: 46
Accumulated deaths 2009 year to date: 964
Death toll per year from 1998 to present
John Joseph Cota, the pilot who caused the 'COSCO Busan', a
274-metre-long container ship, to collide with the San
Francisco Bay Bridge and discharge over 200,000 litres of oil
into San Francisco Bay, was sentenced on July 17 to serve ten
months in prison by a US District Court.
Mr Cota, who was a licensed bar pilot at the time of the
collision, is said to have given commands that caused the
65,131-tonne Hong Kong-registered ship to collide with the
bridge on November 7, 2007.
Mr Cota was sentenced according to an agreement in which
he pleaded guilty to negligently causing discharge of a harmful
quantity of oil in violation of the Clean Water Act (CWA), as
amended by the Oil Spill Act of 1990, a law passed in the wake of
the 1989 'Exxon Valdez' disaster, and to violating the Migratory
Bird Treaty Act, by causing the death of protected species of
In papers filed in court, prosecutors told the judge that
Captain Cota should receive a sentence of incarceration because
he was guilty of far more than a mere slip-up or an otherwise
innocuous mistake that yielded unforeseeably grave damage.
"Rather, he made a series of intentional and negligent acts
and omissions, both before and leading up to the incident that
produced a disaster that, as widespread as it was, could have had
even worse consequences."
"Captain Cota abandoned ship by not following required
safety procedures which then resulted in an environmental
disaster," said John C. Cruden, Acting Assistant Attorney
for the Justice Department's Environment and Natural
The discharge of heavy fuel oil from the 'Cosco Busan'
fouled over 40 kilometres of shoreline, killed more than 2,400
birds of about 50 species, temporarily closed a fishery on the
bay, and delayed the start of the crab-fishing season, according
to the court.
Monetary damages to the bridge, ship and private parties were
in the tens of millions of dollars. Clean-up costs have been
estimated to exceed US$70 million.
Prison sentence for 'COSCO Busan' pilot
Damage to the hull of the 'COSCO Busan' -- photo taken in 2007
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