Crane mishap costs queried

Press, 7 September 1989, Page 2

Crane mishap costs queried

By

PAM MORTON

A report on a 1985 container crane accident which is believed to have cost the Lyttelton Harbour Board several million dollars in lost income has been called for by board members.

The container crane accident was to have been discussed an an in-com-mittee item at yesterday’s board meeting. A board member, Mr lan Howell, brought up the issue in open meeting and said it was time the total cost was known.

The multi-million dollar container crane was toppled in a freak accident at the port on February 15, 1985, when the bow of the container ship Moreton Bay clipped one of the crane legs. The accident put the container terminal out of action for several weeks until a temporary replacement crane was found to work .cargo..... . It took about a year for the crane to be restored to working order. The Lyttelton Fort Company, in taking over

the commercial activities of the Harbour Board in October, 1988, had inherited assets of $34 million and debts of $24 million. “Obviously the uninsured losses are a factor there,” he said. Mr Buster Cowles said the accident had been a problem for the Harbour Board for the last years. "As far as the board is concerned this should be made known to the public,” he said. “The board is not that bad but it’s been earmarked for being inefficient through an accident.” Mr Howell said he did not believe the uninsured losses were necessary.

He had expressed concern to the board in 1983 that it did not have any loss-of-revenue insurance

on the crane. In mid 1984 the board took out loss-of-revenue insurance for six months in spite of recommendations from some board members that the insurance be extended to 18 months. When the crane was toppled in 1985 it was only covered for six months loss of revenue. It is believed the uninsured losses are in excess of $5 million. The board was told a court case was pending for negligence. Mr Howell said he was concerned that the first time some board members had heard of the negligence claim was at yesterday’s board meeting. The board has asked for a full report for its next meeting on September 26.