The massive operation to refloat and remove the stricken cruise liner Costa Concordia, which sank off the coast of Italy in January 2012, will end up costing more than $US2 billion ($2.13 billion), according to the CEO of the cruise liner’s operator Costa Crociere, Michael Thamm.

He describes the refloat and removal of the 290-metre, 114,500 tonne vessel as an “unprecedented engineering challenge”.

The ship was hoisted upright in September last year, and it is expected to be refloated today.

Mr Thamm has told German newspaper Bild am Sonntag that the disaster is likely to cost $US2 billion by the time the Costa Concordia is towed from Tuscany to the port of Genoa and broken up for scrap.

The massive bill – which will be picked up by London marine insurers – has concerned the insurance industry because the cost of the rescue operation was exacerbated by the Italian Government’s insistence that the ship be removed intact to avoid environmental damage.

Wrecks are usually cut into pieces before being transported from disaster sites. Insurers fear this may set an expensive precedent.

There is also concern that the heavy cost will add to the cost of the protection and indemnity (P&I) collective reinsurance program for shipowners.

Reinsurers in the Lloyd’s market estimate the decision to relocate the wreck intact has added $US257 million ($274 million) to the overall salvage cost.

According to shipping journal TradeWinds, the passenger ship reinsurance tariff has risen 2.7 times since 2012. Others sections of the shipping industry have also been hit, with the owners of cargo ships paying up to 46% more and crude tanker-owners an extra 22%.