Saturday, July 3, 2010

Jack orders sale of 14-year-old ferry that was never used

Works and Transport Minister Jack Warner told Parliament Friday he has stopped repair works on a 14-year-old ferry bought by the Manning government and ordered the sale of the vessel.

He said the National Infrastructure Development Company (Nidco) has so far spent $64.2 million to repair the HSV Su, which was bought for use in the water taxi service but has never been put into service.

Warner said has ministry has instructed Nidco to stop further repairs on the ferry and to contract an international shipping broker to sell it on the second-hand market.


He has also raised several questions with Nidco and asked for an explanation of why Nidco did not exercise "due diligence" in the matter.

The previous Minister of State in the Works Ministry, Roger Joseph, and Nidco’s past president Kaisah Ince recommended the puchase of the vessel. Warner questioned their competence in making such a judgment and has asked whether they had any experience or knowledge in ship purchasing, inspection or survey.

He also pointed out that ferry
was inspected in Turkey and registered with a local Turkish classification society which was not a member of the International Association of Classification Societies.

“Therefore the maintenance, repair and operation was not subject to strict enforcement of safety standards, characteristic of international classification societies,” Warner said.

And he questioned why there was no written report from local surveyor Captain George Alexis, who inspected the vessel in Turkey.
In addition he has questioned why the inspection was conducted in the water and suggested that there is clearly a conflict of interest between the role of the consultant and contractor.

Nidco bought the catamaran in 2008 for TT$20 million from Unal Caginer, a hotelier based in Cyprus, the minister told the House. However, the used vessel has never gone into service and has so far cost the government of Trinidad and Tobago TT$84 million without any return on the investment, he said.

He revealed that in July 2008, Nidco contracted the UK firm Seaspeed Consulting Ltd to survey and evaluate the vessel which he said was done in the water without a full hull inspection and without guarantee or assurances from the surveyor.

The minister told MPs that in July 2009, the UK survey firm McAusland and Turner surveyed the repair work done in Curacao and concluded that it was “mismanaged to the extent of gross incompetence."

Nidco advised the new government that approximately $50.1 million was spent to get the vessel in shape and said it needed about $14.1 million was required to complete all repairs in order to bring the vessel into full operation for a total cost of $64.2 million.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai