Daina Shipping to pay $38m compensation for Rena

The container ship grounding has cost the Crown about $47 million.

(BusinessDesk)  Daina Shipping Co, owner of the Rena, has agreed to pay the Crown up to $38 million for the costs incurred in clean-up after the ship grounded off Tauranga last October.

Daina Shipping will pay $27.6 million to settle the claims of the Crown and public bodies, including Maritime NZ, Bay of Plenty District Health Board, Environmental Protection Agency, the Minister of Local Government and the New Zealand Transport Agency.

It will pay a further $10.4 million if it applies for resource consent to leave part of the wreck in place.

"These agreements allow both New Zealand as a whole, and the Bay of Plenty region, to move on from what was, from an environmental standpoint, the worst maritime disaster in our history," Transport Minister Gerry Brownlee says.

"I am confident Daina Shipping will continue to take a positive approach to all elements of the wreck removal process and their legal obligations."

The Marine Legislation Bill, now going through the parliamentary process, will substantially increase the amount of compensation payable by ship owners for incidents like the Rena grounding. Legislation is expected to be in place in early 2013.

The Rena has cost the Crown about $47 million.

The ship was carrying 1368 containers and 1733 tonnes of oil when it struck Astrolabe Reef on October 5 and more than 360 tonnes of oil leaked.

Some 8000 volunteers were involved in helping clean up the fallout from the grounding.