US-based box carrier Matson has terminated its molasses operations in Honolulu as part of a settlement stemming from a 2013 spill in Honolulu Harbour.
The settlement with the state of Hawaii, announced 29 July, includes an agreement to pay USD5.9 million to compensate for damaged coral, lost fish, and spill response costs, Matson stated.
“Environmental stewardship is a core value in our company, so this event was a blow to all of us at Matson,” said Matson CEO Matt Cox. “We can’t take back what happened, but we’ve done our best to make it right.”
The accident occurred after a pipeline at the carrier’s pier ruptured while 1,400 tonnes of molasses was being loaded onto a ship. It was estimated that the rupture caused a spill of up to 882,000 litres (233,000 gallons) into the harbour, killing marine life.
Related news: Matson agrees to $1M fine
As part of the shut-down, Matson said it will remove the molasses risers and tanks at Sand Island terminal at an estimated cost of between USD5.5-9.5 million, bringing the total cost to Matson of between USD11.4-15.4 million. The company will record a USD11.4 million charge in its 2Q15 results to be released on 4 August.
Matson agreed in October 2014 to pay USD1 million to resolve all federal criminal charges arising from the spill.
This post was sourced from IHS Maritime 360: View the original article here.
