The world’s leading salvage companies have been asked to bid for the wreck removal of a grounded bulker in what is expected be a hotly contested tender.
The 17,700-dwt bulker Raysut II (built 1984) has been hard aground at Fazayah Beach near the port of Salalah, Oman, since the end of May, when it was hit by Cyclone Mekunu while laden with a cargo of cement powder.
Owner Raybulk Navigation, a part of the Raysut Cement Co of Oman, has declared the 34-year-old vessel a constructive total loss. Given the advanced age of the ship, it was always unlikely to be salvaged to trade.
The company is reported to be receiving around $10.7m from hull insurers in payment for the loss.
It is understood the vessel is entered with UK insurer British Marine.
However, the claim for the loss of the hull could easily be exceeded by the wreck-removal and pollution-prevention costs.
Emergency response
Dutch salvor Smit Salvage was appointed under the emergency response and the initial salvage under a Lloyd’s Open Form (LOF).
However, substantial costs will have been run up already given the length of time that has already passed.
Because it appears there has been no successful attempt at refloating the Raysut II in more than two months since it ran aground, it seems likely that breaking up the ship where it lies could be the only option open to salvage companies.
Smit, which is on site and is familiar with the technical details of the casualty, is likely to start as favourite to win the job.
However, competing bids are likely to come from salvage industry leaders Ardent, Resolve Marine and others. The deadline for salvors to submit bids is Friday this week.
In a separate wreck-removal effort, salvors are still waiting for insurers to call a tender for the 1,118-teu SSL Kolkata (built 2006), which is grounded and partly submerged off the Indian Sundarbans.
The vessel, which has more than 400 containers onboard, is understood to have broken its back and cannot be saved.
Environmental damage
Operations to lighter fuel from the vessel by LOF-appointed salvor Smit are still ongoing and a significant amount of oil pollution prevention equipment has been brought in to guard against any environmental damage.
The salvage barge Smit Borneo is on site to remove containers from the SSL Kolkata.
Salvors are unlikely to know whether they can refloat the vessel until cargo and fuel have been removed.
The more costly alternative will be to break up the vessel where it lies. The wreck-removal operation is likely to be closely monitored and managed by the local authorities, which will add to the cost.
The Sundarbans is in the Bay of Bengal and is an environmentally protected region.
The International Tanker Owners Pollution Federation is already monitoring the casualty for any oil pollution.
While the salvage operation remains under LOF, it is likely to be running up significant costs for the protection and indemnity insurer the North P&I Club.
It is understood poor weather and sea conditions during the local monsoon has already caused substantial delays to the salvage operation.
A spokesperson for North P&I said that a priority is being given to the oil removal operation.
They added the plan is to discuss cargo and wreck removal with the Indian authorities at an “appropriate time”.
