China Offshore Engineering Solutions (COES) has won the contract for the wreck removal of an X-Press Feeders containership off Sri Lanka.
The company recently underwent a name change and is better known in marine circles under its former name, Shanghai Salvage Co.
It will work alongside US firm Resolve Maritime, which has been acting as caretaker of the wreck, and has now been awarded a contract to handle the debris of the 2,756-teu X-Press Pearl (built 2021).
COES has been involved in a number of high-profile and technically challenging wreck removal contracts.
It removed the wreck of the 6,800-gt ferry Sewol (built 1994) from outside the South Korean port of Busan in 2017. It was also appointed to remove the wreck of the 2,194-teu containership Kea Trader (built 2017) from a reef off New Caledonia in the South Pacific.
COES uses the financial strength of the Chinese state to its advantage when it bids for wreck removal contracts. It can bid for contracts on a fixed-price basis, while many other salvage firms cannot, because of the financial risk of cost overruns.
"Being state-owned affords COES the enviable position of having exceptionally strong financial backing," the company says in its marketing material.
COES is one of a number of Chinese state-backed salvage and heavylift firms that are becoming increasingly prominent in the international wreck removal and salvage market.
There is no indication of how long the X-Press Pearl job might take, although experts think it could be a long time. The vessel has been aground since May this year in an area exposed to strong winds and tides.
Efforts to ensure no further pollution escapes will be a priority.
The cost of the wreck removal contract will be met mostly through protection and indemnity cover with the London P&I Club, which has been contacted for comment. Costs of more than $10m will be passed on to the International Group of P&I Clubs claims pool.
