Shipwreck removal costs rising
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LONDON — The cost of removing shipwrecks has spiraled in recent years, driven in part by more stringent demands from governments aimed at reducing environmental impacts, according to experts at the International Union of Marine Insurance's annual conference.
The removal Monday of the Costa Concordia cruise liner, which ran aground off the coast of Tuscany, Italy, in January 2012 is estimated to have cost the insurance industry about $1 billion so far, according to experts gathered at the conference in London on Tuesday.
Increased interest from governments and other official bodies in the removal of wrecks has been fueled by media interest in potential environmental impacts and has been the biggest factor in pushing up the cost of salvage operations, according to Mike Kelleher, a director of the West of England Protection & Indemnity Club.
Interference from state maritime authorities, however, may cause delays to removal operations and, ironically, result in increased environmental damage, he said.
Involvement of state bodies also may lead to disproportionate costs, he noted.
The geographical location of a wreck also may be a factor in the cost of wreck removal, he said. For example, most heavy salvage equipment is located in the Northern Hemisphere and is not well-placed to respond to incidents in the Southern Hemisphere.
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