China's Lianyungang Dali Underwater Engineering has signed a contract to remove the remaining stern section of a bulker stranded on the Mauritius coastline.

The 203,100-dwt Wakashio (built 2007) grounded in July and broke in two. The forward section floated free and was later scuttled at sea.

The wreck removal contract was signed on October 20 and Lianyungang Dali is already transporting equipment and materials to the site.

The Wakashio's protection and indemnity cover is provided by Japan P&I Club.

Work is scheduled to start in late December and will be completed in the spring. Salvors appear to have given up hopes of removing the wreck by Christmas in consideration of the difficult seasonal sea and weather conditions.

Wakashio owner Nagashiki Shipping said: “We will continue discussions and work closely with the Mauritius authorities regarding the disposal of the stern section.”

Around 1,000 tonnes of fuel oil leaked from the Wakashio after it grounded. Nagashiki said the recovery of all the oil floating on the sea has been completed.

Nagashiki said it continues to work on removing the remaining oil, which is polluting around 30 km of the coast. It hopes to complete the clean-up early next year.

“Thanks to the efforts of the relevant authorities, local residents and oil clean-up teams, the collection is proceeding smoothly. It is expected that the collection will be almost completed in January 2021,” Nagashiki said.

The master of the vessel is still under arrest in Mauritius and is helping police with the investigation into the grounding. Nagashiki said it is fully cooperating with the investigation.