NSW-based salvage company United Salvage is mounting the salvage operation on the 40,000-tonne coal carrier Pasha Bulker stranded on Nobbys Beach near Newcastle. The insurance implications are huge if it is not successful.

A salvage tug arrived in Newcastle from Sydney yesterday and a second specialised salvage tug is expected to arrive at Nobbys Beach today. A third tug is on hold in Brisbane.

The salvage is a joint operation by the ship’s owner, Fukujin Kisen, the Australian Maritime Safety Authority, Australian Transport Safety Bureau, and a range of NSW authorities.

Seawater is being pumped into one of the ship’s cargo holds while its fuel oil is transferred to tanks in the safer upper levels of the vessel. So far none of the 800 tonnes of heavy fuel and diesel on board has caused any pollution, but an oil spill contingency plan is in place.

Associated Marine National Distribution Manager Bob Beresford – one of Australia’s most experienced marine insurers – told Sunrise Exchange News this is an enormous operation that won’t be easy.

He says any insurance losses would stem from the value of the vessel. “There’s no cargo on board, but the loss of a vessel of this size would cost millions.”

In such instances the owner of the ship contacts its insurer, which would sign an agreement with the salvage group.

United Salvage – the largest salvage company in Australasia and the South Pacific – is owned and managed by Adsteam Marine.

Mr Beresford says the agreement used by United Salvage is the Lloyd’s Open Form, which is an internationally recognised commercial contract between the salvage company, the vessel’s owner and the insurer.

United Salvage spokesman Matthew Watson says it is too early to predict how long it will take to refloat the ship.

The Pasha Bulker grounded at Nobbys Beach just before 10am on Friday during gale-force winds and high seas.