The owners of a bulk carrier that ran aground off Richards Bay in 2013 are claiming R1.8bn for negligence. From Moneyweb.
Thirteen years after running aground off Richards Bay in heavy swells, the owners of the cargo vessel MV Smart continue to pursue the National Ports Authority (NPA), a division of Transnet, for $110 million (R1.8 billion) for alleged negligence.
Last week, the Durban High Court ordered the ship owners to produce documents the NPA believes will help it buttress its defence that the ship owners and crew contributed to the negligence.
Read: Transnet reveals preferred bidders for R17bn Richards Bay fuel terminal precinct
The case is due to go to trial in July 2026 and is expected to last more than four weeks. The respondents in the case are the owners and underwriters of MV Smart, and Minmetals Logistics Zhejiang, which chartered the vessel.
The ship, flying under the Panamanian flag, was registered to Alpha Marine Corp, and was delivering coal from Richards Bay to China.
The case went to arbitration in London, where the ship owners argued that Minmetals breached the ‘safe port warranty’, a contractual obligation intended to protect the owner from dangerous locations.
Minmetals denied that the vessel was exposed to hazardous sailing conditions, shifting the blame to the NPA navigators. The arbitration found in favour of Minmetals, but some of the findings are under appeal.
The arbitration tribunal found that while Richards Bay port had some shortcomings, the grounding was caused by the master’s negligence, breaking “the chain of causation from any port deficiencies”.
Following this, Minmetals withdrew a claim of its own against the National Ports Authority.
The NPA asked the Durban High Court for an order compelling the respondents to provide documents and correspondence previously disclosed in the London arbitration, which the ship owners argued were privileged.
The Durban court found in favour of the NPA and ordered the owners and charterers of MV Smart to hand over a range of documents, including expert witness statements, transcripts and awards made in the London arbitration.
Background
The 151 000 deadweight tonnage ship split in two after hitting a sandbar in 10-metre swells soon after leaving the Richards Bay Coal Terminal.
The ship had finished loading 147 650 tons of coal and travelled a short distance before its engines failed.
Heavy swells washed the freighter onto the sandbar, resulting in a massive crack to the hull, which broke in two the following day.
All 23 crew members were rescued by the National Sea Rescue Institute.
The incident came just a week after another bulk carrier, Kiani Satu, was pulled free from a South African beach, as reported by gCaptain.
The ship owners claimed the port authority was negligent in allowing the ship to sail under such treacherous conditions, and that the port pilot had disembarked early from the MV Smart before it was clear of restricted waters.
This is alleged to be a key factor behind the ship grounding, as pilots are required to ensure safe passage out to sea.
The $110 million damages claim against the NPA comprises the loss of the hull, bunkers, wreck removal and clean-up costs and the loss of cargo, valued at $14 million at the time.
In previous court filings the NPA has invoked Section 85 of the National Ports Act, which absolves it or any employee or representative of liability “for any loss or damage caused by anything done or omitted by the Authority, the employee or the representative in good faith whilst performing any function in terms of this Act”.
Transnet made reference to the $110 million claim in its 2025 financial statements, adding that the matter is being defended and that no provision has been made for any liability that may result.
The group reported contingent liabilities of R21.47 billion in 2025, more than double the R10.8 billion reported in 2024.
Read: Transnet touts profit in new financial year
Transnet says it has insurance in place “which will assist in covering a portion of any losses that materialise.”
