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Table of Contents

1. Table of Figures .................................................................................................................... 2

2. Group Members .................................................................................................................... 3
3. Acknowledgements ............................................................................................................... 4
4. Introduction........................................................................................................................... 5
5. Incident .................................................................................................................................. 6
6. Environmental Damage. ....................................................................................................... 8
7. Recovery Measures of MT New Diamond Incident ......................................................... 10
8. The Economic Impact of the Oil Spill Caused by MT New Diamond.............................. 12
9. The Role of international cooperation in Preventing and Responding to Oil Spill......... 14
10.Recommendations for future mitigations ........................................................................... 16
11.Executive Summary .............................................................................................................. 18
12.References .............................................................................................................................. 19

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Table of Figures

1. Figure 1 – Acknowledgements ............................................................................................. 4

2. Figure 2 – MT New Diamond Burning ............................................................................... 7
3. Figure 3 – MT New Diamond Burning ............................................................................... 7
4. Figure 4 – MT New Diamond Burning ............................................................................... 7
5. Figure 5 - MT New Diamond Burning. ............................................................................... 7
6. Figure 6 – Environmental Damages .................................................................................... 9
7. Figure 7 – Environmental Damages .................................................................................... 9

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Group Members

Vishmi Gunesinghe COMSC/COM/BScC-551/21-10/0029

SasiniKumarage-COMSC/COM/BScC-551/21-10/0015

Sajini Jayaneththi-COMSC/COM/BScC- 551/21- 10/0032

Dulmini Divyanjana - COMSC/COM/BScC-551/21-10/0007

Peshala Mabopitiya - COMSC /COM /BScC-551 /IFLS-21-11 /0001

Sanjuka Malshan COMSC/COM/BScC-551/21-10/0028

Avinda Maneth COMSC/COM/BScC-551/21-10/0030

Dinidu Kavishka COMSC/COM/BScC-551/21-10/0031

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Acknowledgement

We would like to express our gratitude to everyone who helped us to make this assignment a
success.

First and foremost, I would like to thank you Mrs. Poojani Wijerama for her valuable
guidance and advice bestowed upon us in order to achieve the objective of this assignment.

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Introduction

Ship accidents are unexpected situations that cause damage, loss of property, financial loss,
and even death. These incidents are influenced by a variety of reasons, including human
mistakes, technical errors, natural conditions, shipping variables, road conditions, and factors
associated with the transfer of commodities. Contrary to inventive and creative technologies in
the shipping business and the installation of preventative safety laws and regulations, shipping
accidents are regrettably inevitable in the shipping industry.

The main objective of this report is to explore the details of one such marine casualty, the MT
New Diamond incident. It presents information about the rescue operations related to the
incident, the economic and environmental impact, and the role of an international corporation
in oil spill prevention and response.

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Incident:
The New Diamond caught fire on September 3, 2020, at around 7:45 a.m. local time (SLST),
65 kilometers (40 miles) east of Sri Lanka near Mount Sangaman Kanda Point. 18 Filipinos
and 5 Greek crew members were on board the ship, which was transporting 270,000 tons of oil
from Kuwait to the Paradip plant in India. On August 23, 2020, the cargo was loaded at Mina
Al Ahmadi, and Paradip was supposed to receive it on September 5. The Indian Oil Corporation
rented the ship for the voyage.

19 sailors were rescued by the commercial vessel Helen M, two by the Sri Lanka Navy ship
Sayura, and one by the Navy ship Ranarisi, which landed a rescue party aboard New Diamond.
The fire claimed the life of a Filipino crew member. 22 crew members were rescued, and one
person was hospitalized to the Kalmunai Hospital with burn injuries.

Four Sri Lankan ships, as well as a Sri Lanka Air Force surveillance aircraft, responded to the
incident. Four Indian Coast Guard ships and three Indian Navy navy vessels responded, as did
two Russian Navy ships that were in Sri Lanka for scheduled exercises at the time.

On September 6, Sri Lanka Navy Commander Nishantha Ulugetenne announced that the fire
had been put out after 36 hours of rescue efforts. However, it re-ignited and burned for several
days before being declared controlled on September 9th. The fire was put out by 11 September,
when salvage teams boarded New Diamond to work on halting a fuel oil leak and preparing
the ship for a tow to a port where the crude oil cargo could be unloaded.

New Diamond was towed in late September to the port of Kandla in the western Indian state
of Gujarat for the offloading of her crude oil cargo, though the destination was later changed
to the port of Khor Fakkan in the United Arab Emirates, where the oil would be transferred to
another tanker for transport to Paradip.

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Figure 1 – MT New Diamond Burning Figure 2 – MT New Diamond Burning

Figure 3 – MT New Diamond Burning Figure 4 – MT New Diamond Burning

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Environmental Damages
The MT New Diamond fire caused significant environmental damage. The fire, which started
in the ship's engine room, spread to the oil tanks and eventually resulted in the release of an
estimated 270,000 metric tons of crude oil into the ocean.

Sri Lanka’s coastal belt consists of several important and sensitive ecosystems like coral reefs,
seagrass beds, estuaries, lagoons, and beaches where turtles frequently nest. The ocean around
Sri Lanka is also a rich habitat for marine mammals such as whales and dolphins, so the
potential impact of an oil spill would be disastrous.

“The marine mammals have to surface for breathing, so if they come up through an oil slick,
they end up inhaling the toxic substance, considered the biggest risk of an oil spill to marine
life,” Asha de Vos, a marine biologist at conservation group Oceans well, told Mongabay.

Marine mammals can also be exposed to crude oil through direct contact with skin, eyes,
mouth, and blowhole, or indirectly by ingesting it through their food.

The oil spill had a devastating impact on the marine environment in the area. The oil slick
covered an estimated 800 square kilometers of ocean, and it is estimated that millions of marine
animals were killed. The oil also damaged coral reefs and other marine habitats.

The MT New Diamond fire is a reminder of the potential environmental costs of oil spills. It is
important to take steps to prevent oil spills from happening and to be prepared to respond to
them if they do occur.

Here are some of the environmental impacts of the MT New Diamond fire:

❖ The oil spill killed millions of marine animals, including fish, dolphins, and turtles.
❖ The oil slick damaged coral reefs and other marine habitats.
❖ The oil spill contaminated beaches and coastal areas, making them unsafe for
swimming and fishing.
The MT New Diamond fire is a tragedy that could have been prevented. By taking steps to
prevent oil spills, we can protect the environment and our economy from the devastating
consequences of these accidents.

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Figure 6 – Environmental Damages Figure 7 – Environmental Damages

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Recovery Measures of MT New Diamond Incident

MT New Diamond caught fire following an explosion in the engine room, resulting in a
major maritime incident.

The following are some of the mitigation actions taken during and after the incident.

Regarding legal actions, after the incident, there may have been several legal proceedings
initiated by different parties involved. Here are some possible legal actions that could have
taken place:

Firefighting

The immediate response to the fire on the MT New Diamond involved deploying firefighting
teams and equipment to suppress and extinguish the flames. Specialized firefighting vessels
were also deployed to assist in the efforts.

Salvage operations

After the fire was extinguished, salvage operations were initiated to stabilize the vessel and
prevent any further damage or pollution. Tugboats were used to tow the ship away from the
Sri Lankan coastline to minimize the risk of grounding.

Oil transfer

To mitigate the risk of an oil spill, a ship-to-ship transfer of crude oil from the MT New
Diamond to another tanker was conducted. This operation aimed to reduce the weight and
instability of the damaged vessel, making it safer for subsequent salvage operations.

Pollution and Environmental Damage

The incident led to an oil spill, causing environmental damage to the surrounding marine
ecosystem and coastal areas. The government of Sri Lanka and local environmental
organizations may have taken legal action to hold the ship's owners accountable for the
pollution and seek compensation for the cleanup and restoration efforts.

Environmental protection measures

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In order to protect the marine environment, booms and other containment measures were
deployed around the ship to contain any potential oil spills. This was done to prevent the
spread of pollutants and minimize the impact on coastal ecosystems.

Assistance from international organizations

Sri Lanka sought assistance from international organizations, including the Indian Coast
Guard and the International Tanker Owners Pollution Federation (ITOPF), to provide
technical expertise, equipment, and resources for the mitigation and cleanup efforts.

Environmental monitoring

Environmental monitoring activities were carried out to assess the impact of the accident on
the marine ecosystem. This involved conducting water and sediment sampling, as well as
aerial surveys, to identify and mitigate any environmental damage caused by the incident.

Legal actions and compensation

The Sri Lankan government initiated legal proceedings against the owners and operators of
the MT New Diamond to hold them accountable for the incident and seek compensation for
the damages incurred.

Crew and Personal Injury Claims

If crew members or any other individuals were injured or killed in the accident, there could
have been legal actions initiated by the affected parties or their family’s seeking
compensation for medical expenses, loss of income, or wrongful death.

Insurance Claims

The ship's owners and operators may have filed insurance claims to cover the damages to the
vessel, cargo, and any liabilities arising from the incident. The insurance companies involved
would have assessed the situation and negotiated settlements with the parties concerned.

Regulatory Investigations

Maritime authorities and relevant regulatory bodies would have conducted investigations to
determine the cause of the accident and any potential violations of safety regulations.
Depending on the findings, legal actions such as fines or penalties could be imposed on the
responsible parties.

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The Economic Impact of the Oil Spill Caused by MT New Diamond

Sri Lanka sits on a busy stretch of the Indian Ocean, with 200 to 300 ships passing it daily.
Much of the traffic consists of oil tankers carrying crude from the Persian Gulf to East Asia.

An oil spill would also hurt the economic activities of coastal communities, where about 2
million Sri Lankans depend directly on fisheries for their livelihood. More than 80% of hotels
in Sri Lanka are also built along the coast, which would further amplify the economic impact
of an oil spill.

The economic impact of the oil spill caused by MT New Diamond is still being assessed, but
it is estimated to be significant.

The spill has caused widespread damage to the country's tourism industry, as well as to its
fishing and aquaculture industries. The spill has also had a negative impact on the country's
agriculture sector, as oil has contaminated soil and water supplies.

Tourism:

The tourism industry is a major source of income for Sri Lanka, and the oil spill has had a
significant impact on this sector. The spill has caused many tourists to cancel their trips to Sri
Lanka, and it is estimated that the tourism industry has lost billions of dollars in revenue.

Fishing:

The fishing industry is another major source of income for Sri Lanka, and the oil spill has had
a devastating impact on this sector. The spill has killed fish and other marine life, and it has
made it difficult for fishermen to operate. The fishing industry is estimated to have lost
hundreds of millions of dollars in revenue.

Agriculture:

The agriculture sector is also a major source of income for Sri Lanka, and the oil spill has had
a negative impact on this sector. The spill has contaminated soil and water supplies, and it has
made it difficult for farmers to grow crops. The agriculture sector is estimated to have lost tens
of millions of dollars in revenue.

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Clean-up costs:

The government of Sri Lanka is responsible for the clean-up of the oil spill, and this is expected
to cost billions of dollars. The clean-up costs will be a significant financial burden for the
government.

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The Role of international cooperation in Preventing and Responding to Oil
Spill

International cooperation plays a crucial role in preventing and responding to oil spills. Here
are some key aspects of international cooperation in this context:

Sharing best practices and standards:

Countries can share their best practices and establish common standards for preventing oil
spills. This includes developing guidelines for safe oil exploration, production, transportation,
and storage. International organizations like the International Maritime Organization (IMO)
and regional bodies facilitate the exchange of information and promote the adoption of best
practices.

Regulatory frameworks and conventions:

International conventions and agreements establish regulatory frameworks that govern the
prevention and response to oil spills. For example, the International Convention for the
Prevention of Pollution from Ships (MARPOL) sets standards for the prevention of marine
pollution from ships, including regulations on oil pollution prevention and control. These
conventions provide a common framework for countries to develop and implement their own
national regulations.

Cooperative monitoring and surveillance:

International cooperation enables the sharing of monitoring and surveillance data to detect
and prevent oil spills. This includes satellite monitoring, aerial surveillance, and other
technologies that help identify potential sources of pollution and facilitate early response.

Mutual assistance and resource sharing:

In the event of a major oil spill, countries often provide mutual assistance and share resources
to support the affected nation. This can involve equipment, expertise, personnel, and financial
resources. Cooperative agreements and mutual aid frameworks enhance the ability to
mobilize and coordinate resources efficiently.

Joint exercises and training:

Countries engage in joint exercises and training programs to enhance their preparedness and
response capabilities. These exercises simulate oil spill scenarios and allow countries to

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practice coordination, communication, and response strategies. International cooperation
facilitates the exchange of expertise and the development of standardized training programs.

Research and development collaboration:

International cooperation promotes collaborative research and development efforts to
improve oil spill prevention and response technologies. Countries and organizations work
together to develop innovative approaches, equipment, and techniques that enhance the
effectiveness and efficiency of oil spill response

Public awareness and education:

International cooperation also supports public awareness and education campaigns to
promote responsible practices and increase public understanding of the environmental
consequences of oil spills. By sharing information and raising awareness, countries can
encourage greater adherence to safety protocols and prevention measures.

Overall, international cooperation fosters a collective approach to preventing and responding

to oil spills. By pooling resources, knowledge, and expertise, countries can better protect
marine ecosystems, coastal communities, and the global environment from the devastating
impacts of oil pollution.

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Recommendations for future mitigations

Governments and the oil sector must have strategies in place and be aware of what to do in
the event of an oil spill. Regular spill response training exercises are also essential. The less
impact on the environment, the quicker and better the response. The MT New Diamond case
in Sri Lanka also highlights the rising hazards associated with expanding global container
transportation and the requirement to be ready for complicated catastrophes including oil
spills, hazardous chemical leaks, and other items.

Prevention Measures:

a. Implement and enforce strict regulations for oil tanker operations, including maintenance,
inspection, and crew training standards.

b. Better Vessel Design: Promote the creation and application of double-hulled tankers,
which offer an additional line of defense against hull breaches and oil spills.

c. Navigation Safety: To avoid collisions and groundings that can cause oil spills, upgrade
navigation systems with better radar and real-time monitoring technologies.

d. Emergency Shutdown Systems: To prevent or reduce spills, install automated shutdown

systems that trigger in the case of an emergency, such as a loss of control or a discovered
leak.

Preparedness and Response:

a. Contingency planning: Prepare thorough plans for the event of an oil spill, including
protocols for stakeholder cooperation, equipment accessibility, and response methods.

b. Rapid Response Capability: Maintain a well-trained and well-equipped spill response crew
that can quickly mobilize to mitigate spills successfully.

c. Stockpile Response Equipment: Make sure that the necessary response tools, like
containment booms, skimmers, dispersants, and sorbents, are readily available in key
locations for quick deployment.

d. Training and Exercises: Conduct exercises to verify the effectiveness of contingency plans
and pinpoint areas for improvement. Regularly train staff in oil spill response tactics.

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Environmental Monitoring and Impact Assessment:

a. Early Detection Systems: Establish and maintain surveillance systems, such as satellite
monitoring and remote sensing technology, to quickly identify and locate possible spills.

b. Rapid environmental assessment: To direct response efforts, and establish guidelines for
quick evaluation of spill impacts on marine ecosystems, including species, coastal habitats,
and water quality.

c. Baseline Data Collection: To enable more precise impact assessments and restoration
techniques, conduct thorough baseline studies of ecosystems and sensitive locations that are
susceptible to oil spills.

d. Collaboration with Research Institutions: Encourage collaboration with academic

institutions to promote continuing analysis of the effects of oil spills and create cutting-edge
solutions for their mitigation.

Public Awareness and Stakeholder Engagement:

a. Public Education: Spread knowledge about the dangers of oil spills, their effects on the
environment, and the value of preventive measures among coastal communities, industry
stakeholders, and the general public.

b. Community involvement: Encourage community participation in oil spill response

planning and execution, helping to instill a feeling of ownership and accountability for
coastal protection.

c. Industry accountability: Accountability within the oil sector is encouraged through frequent
audits, evaluations of environmental performance, and adherence to best practices.

The MT New Diamond fire is a tragedy that could have been prevented. By taking steps to
prevent oil spills, we can protect the environment and our economy from the devastating
consequences of these accidents.

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Executive Summary

The report provides a brief overview of the MT New Diamond fire disaster that occurred on
September 3, 2020. The incident involved the MT New Diamond oil tanker, which caught
fire off the coast of Sri Lanka while transporting 270,000 tons of oil from Kuwait to the
Paradip plant in India.

The report begins with an overview of the incident and digs deeper into several main causes
and contributing factors that led to the ship disaster such as human errors, equipment failures,
or environmental factors.

The MT New Diamond fire disaster had significant consequences including loss of life,
property damage, and environmental impacts like the oil spill killing millions of marine
animals including fish, dolphins, turtles, slippery, damaged coral reefs, and other marine
habitats.

And examine this report what special measures must be taken to prevent this accident and
what measures should be taken immediately at the time of the fire.

Then describe the economic damage caused by this incident because the oil spill
contaminated beaches and coastal areas and made them unsafe for swimming, tourism,
agriculture sector, and fishing.

The next part describes the role of international cooperation in preventing and responding to
oil

In addition, the report makes recommendations to mitigate future environmental disasters of a

similar nature, emphasizing the need to improve safety measures, environmental protection
measures, cooperation and communication, and the proper use of modern technologies and
innovations. stricter marine legislation, improved emergency response capabilities, and
increased public awareness of marine conservation.

Therefore, the report emphasizes the significant environmental impact of the MT New
Diamond disaster, as well as the multiple ways to minimize the damage, the specific
measures that need to be taken to prevent this accident, as well as recommendations to
mitigate future environmental disasters.

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References

Anon., 2022. The Climate Reality Project. [Online]

Available at: https://www.climaterealityproject.org/blog/spilling-beans-ecological-and-economic-
impacts-oil-
spills#:~:text=In%20the%2010%20years%20after,%242.3%20billion%20in%20industry%20output

Anon., n.d. Conventions. [Online]

Available at: https://www.imo.org/en/About/Conventions/Pages/International-Convention-on-Civil-
Liability-for-Oil-Pollution-Damage-(CLC).aspx

Anon., n.d. Pollution Preparedness and Response. [Online]

Available at: https://www.imo.org/en/OurWork/Environment/Pages/Pollution-
Response.aspx#:~:text=There%20are%20a%20number%20of%20key%20benefits%20for,for%20estab
lishing%20co-operative%20arrangements%20with%20other%20State%20Parties%3B

Arachchi, C. C. G., 2023. New Diamond Fire – How it all unfolded. [Online]
Available at: https://island.lk/new-diamond-fire-how-it-all-unfolded/

Brandt, J., 2021. OPRC Convention IMO.pdf. [Online]

Available at:
https://www.sprep.org/sites/default/files/documents/projects/oil_spill/4.%202021%20Day%201%20
OPRC%20Convention%20IMO.pdf
[Accessed 2021].

JAYASINGHE, C., n.d. MT New Diamond fire: Sri Lanka forwards Rs 3.4 bn claim to Greek shipping
company. [Online]
Available at: https://economynext.com/mt-new-diamond-fire-sri-lanka-forwards-rs-3-4-bn-claim-to-
greek-shipping-company-80654/
[Accessed 2021].

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