Australian port operator to appeal ruling on claim for damages following tug sinkings

Australian port operator TasPorts is appealing a preliminary court decision that could reduce its claim for damages in the wake of a vessel collision incident that resulted in the sinking of two of the company's tugs on January 28, 2022.

On the said date, the locally-registered cement carrier Goliath collided with the TasPorts tugs Campbell Cove and York Cove at the Port of Devonport in Tasmania. TasPorts said both tugs were berthed and stationary at the time of the incident, and the impact of the collision caused significant damage to the vessels, ultimately causing both to sink.

The tugs were later successfully salvaged in the middle of August 2022 following a nearly three-week effort. However, the vessels' sinking caused an estimated 64,000 litres of diesel fuel to spill into the Mersey River.

A subsequent investigation by the Australian Transport Safety Bureau (ATSB) revealed Goliath had an incorrect steering setting, which then increased the ship's speed as it attempted to execute a tight turn in the river. The ATSB investigation also found that some of the ship's crew had not completed the required training in bridge resource management.

TasPorts filed charges for negligence and public nuisance against CSL Australia, owner of Goliath, in late 2022. The total amount of damages claimed is AU$22 million (US$16 million) plus interest and also covers the oil spill recovery and salvage efforts.

CSL then lodged a proceeding to limit the extent of its liability, a move with which Federal Court Judge Angus Stewart agreed via a decision as he said it was within the company's rights.

TasPorts chief executive Anthony Donald said the preliminary decision could mean the most that the company can recover will only be approximately AU$15.1 million (US$10 million).