The insurers of the 42-tonne ship M/T Great News, which damaged the off-loading dock at the Petroleum Corporation of Jamaica's (Petrojam) Marcus Garvey Drive facility in Kingston on June 1, have given an undertaking to pay US$22 million (J$1.9 billion) to Petrojam.

The undertaking has been approved by the Supreme Court.

Petrojam, which was represented by attorney-at-law Bryan Moodie of the law firm Samuda & Johnson, went to the Supreme Court on June 4 and obtained a warrant for the arrest of the ship, which is registered in the Republic of Malta.

Bailiff Augustus Sherriah took possession of the ship, which was moored at Port Royal in the Kingston Harbour on June 4, and released it last week Thursday after the undertaking was given.

Structural viability

In applying for the warrant to arrest the ship, General Manager of Petrojam, Winston Watson, said in an affidavit that the damage to the pier was so extensive that the total structural viability of the pier was now impaired.

Watson said the pier was valued at US$15 million (J$1.3 billion) and he feared that if the ship was allowed to leave Jamaica, Petrojam would have no recourse but to recover damages or compensation.

Petrojam also sued Sea Ventures Shipping Limited, which owns the ship, and Worldwide Green Tankers in Greece, which operates the ship, to recover damages for negligence and loss of earnings.

Petrojam is contending, in the suit filed on June 4, that agents of the defendants negligently managed, controlled or steered the ship, causing damage to the Petrojam pier.

barbara.gayle@gleanerjm.com