Portal partners
Recordings and record-breaking risks?
Author:Mariusz Dasiewicz
The increasing traffic in Polish ports not only generates record handling results, but also increases the risk of intensive use of port cranes. Port Gdańsk, where growth rates reached 167% in the last decade, puts infrastructure managers before the challenge – how to effectively protect themselves against equipment failure, environmental pollution and costly downtimes? Moreover, managing the risks associated with the insurance of these machines becomes a key element in ensuring port operational stability.
In the article
Increasing traffic in ports – increasing operational risk
In 2023, record-breaking transshipment results were recorded in key ports for the Polish economy. National ports recorded an almost 10% increase in transhipments of 145.7 million tonnes. At the same time, Port Gdańsk has become the fastest developing European port in the last decade, with growth dynamics of 167%. There are several dozen modern STS and RTG cranes in ports and shipyards in Poland, mainly in container terminals of Gdańsk and Gdynia. In ports such as Szczecin, Świnoujście and smaller regional ports, there are many mobile port cranes and specialized cranes for bulk loads, which are intensively used especially during periods of increased freight traffic.
The increasing traffic in ports and the increasing number of transhipments are directly linked to the increase in risks that port managers obviously want to mimic. Events encourage the analysis of risks and financial resources that can help offset their effects.
Port cranes and main operational, environmental and financial risks
Operational risk include mechanical failures such as engine failure, operator errors or negligence, e.g. lack of adequate crane anchoring. Port insurance of machinery may include such damage, but it is crucial that prior to the conclusion of the contract, the policy does not contain exemptions for gross negligence.
Environmental risk These are, above all, water pollution caused by fuel spills or hydraulic oil from damaged cranes. The cost of eliminating damage may be significant, especially when pollution has long-term effects or requires immediate response.
Financial risk they involve downtimes and the need to repair equipment that can generate losses to ports and shipyards. Delays in order execution, contractual penalties and compensation claims may further increase operating costs.
What should you pay attention to when selecting insurance for port cranes?
One of the key issues is to select the appropriate insurance value. We are usually dealing with either a gross book value or a replacement value. The first is understood as an initial value, which represents the purchase or manufacture price taking into account revaluations. This is the value that the crane has in the company's accounting records, e.g. in the OT of a fixed asset. This solution usually involves lower insurance premiums compared to the replacement value, which refers to the cost of buying a new crane with similar parameters and functionality, taking into account current market prices.
In the case of the replacement value we are talking about full protection. Such insurance shall provide full coverage of the costs of purchasing a new lift in the event of total loss or destruction. The replacement value takes into account current market prices, which protects the company from the effects of inflation and increase in equipment costs.
How to ensure effective insurance protection?
First of all, it is important to read carefully the policy conditions before the insurance is bought out, especially in terms of events which are covered by such protection and the exclusion of liability of the insurer. It is also advisable to analyse the policies already in place to avoid future unpleasant surprises. It is worth consulting an insurance adviser, who, thanks to the knowledge of the market in insurance products and having extensive experience, will be able to support in analysing risks and preparing an appropriate insurance strategy. It is also important to take appropriate precautions: in order to avoid refusal to pay compensation, it is important to comply with all the recommendations and requirements concerning the safety of the lift, including regular training of operators and the application of safety procedures.
Author: Piotr Zaleski, Director of the Maritime Insurance and Shipyard Office Exito Broker / Part of PIB Group
