Transnet in the dock as 2013 ship disaster returns to South African courts
Stranded coal carrier MV Smart is the subject of a multi-million US dollar lawsuit filed against Transnet National Ports Authority.
Image: Brian Spurr | File
A 2013 maritime disaster is back in South African courts, with Transnet arguing that it isn’t at fault, and the ship’s owners saying it is, despite a UK tribunal finding the crew responsible for the grounding.
The MV Smart was leaving the port of Richards Bay in 2013 when it ran aground in the vicinity of the harbour entrance.
As a result, the vessel and its cargo were lost. It was carrying 148,000 tonnes of coal at the time.
The National Ports Authority, a division of Transnet, wants access to arbitration records from a London tribunal to prepare for its upcoming trial in July 2026.
Its owners and underwriters claim that the accident occurred because the National Ports Authority, a Transnet unit, was negligent and want $110 million (R1.9 billion) in compensation.
Yet, in London, a tribunal found that the main cause of the accident was the vessel’s own crew.
The fully laden coal carrier MV Smart ran aground on a sandbank outside the harbour entrance in heavy 10-metre swells as it left Richards Bay.
The hull “broke its back” on the sandbank, and the crew were forced to abandon ship, with all 23 crew members safely rescued by helicopter.
Environmental groups at the time questioned whether the Smart should even have been allowed to depart in rough seas, saying the coal carrier was too heavily laden and that the decision to leave might have been a “bad judgement call” by port and ship officials.
Now that this matter is set to be heard in South Africa, with the owners claiming the port’s authority caused the accident and not the crew, Transnet is seeking the documents relating to the UK-based arbitration matter.
The court notes that the National Ports Authority is arguing that the grounding of the ship and the loss of its cargo were largely the result of mistakes by the ship’s captain and crew, a point supported by the London tribunal’s findings.
In the ruling, the KwaZulu-Natal High Court ordered the vessel’s owners and underwriters to hand over key documents from London arbitration proceedings, rejecting claims of confidentiality and privilege.
In a detailed judgment, Justice Olsen emphasised that while English arbitration proceedings enjoy confidentiality, this does not override South African courts’ obligations to ensure fair trial and discovery.
“Maintaining secrecy around the arbitration and other proceedings arising from the same incident undermines the search for the truth,” the judgment notes.
The court also rejected the owners’ bid to delay disclosure until after Transnet’s expert evidence is submitted, calling such a move “unfair” and contrary to established procedure.
In the ruling, the court demanded the production of pleadings, witness statements, expert reports, transcripts, written submissions, awards, appeal documents, and relevant correspondence.
Costs of the application, including two counsel, are to be borne jointly by the owners and underwriters of the MV Smart.
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