Shen Neng grounding costs almost $40m

London P&I Club has reached an out of court settlement with the Australian government over the grounding of a Chinese-owned bulk carrier in 2010.

A total of $39.3m will be paid to the Commonwealth government after the 70,000-dwt Shen Neng 1 (built 1993) hit the Douglas Shoal six years ago, damaging a 115,000 square-meter area.

The Australian Maritime Safety Authority (AMSA) will receive $35m while the Great Barrier Reef Marine Park Authority will get the rest of the sum.

London