Independent surveyor crucial to minimise loss

With project cargo into South Africa and Africa on the increase – especially in the renewable sector – industry should be taking the time to appoint an independent surveyor to oversee the movement of this specialised cargo. That’s according to Mike Brews, chief operating officer of Associated Marine, who says that from an insurance perspective it is vital to have that independent eye on the cargo, making sure it is packed and shipped correctly. “Especially for the oversized pieces it goes a long way in minimising loss and damage.” And this is particularly relevant in Africa where conditions are often treacherous. “It’s not only important from an insurance point of view, but also from the investor’s side. Any damage or loss of cargo has a major impact on a project, sometimes bringing operations to a halt. Most investors don’t want to see this as any projects that are delayed mean a delay in income.” He says the cargo is also so valuable that it is not worth the risk. “We have seen some cargo brought in with massive values – so much so that we have to find international reinsurance to cope with it. There is no cutting of corners or risk taking when you are handling these pieces.” Brews told FTW that in line with international trends it was also becoming standard practice for the insurer to manage the risk when transporting project cargo. “This is an international requirement that is starting to take off locally. In that regard insurers need to understand that they have to minimise risk at all costs. An independent surveyor goes a long way to ensuring that.” For Brews there is no cutting of corners when it comes to project cargo. “Especially when it comes to the big out-of-gauge pieces with the high values. It goes without saying that reputable service providers should be used who are cautious and don’t cut corners – especially in the African landscape where infrastructure is not always available and much can go wrong.” He says in the project cargo arena it is also necessary to choose an insurance house that can offer a full package. “Most of these projects involve a number of sectors of insurance. Not only is there the marine side that has to be taken care of, but also when the cargo is handed over to engineering for erection and construction, liability cover and then the corporate insurance that handles the actual asset once it is up and running, to name a few.” According to Brews it is advisable to find a company that can offer a seamless insurance product from start to finish. “Project cargo is a very complex market and we are still very new at it compared to our European counterparts for example. We are however learning very fast and becoming specialists at it. We are very positive about the project sector and expect to see much more growth in the near future,” said Brews. INSERT In line with international trends it is becoming standard practice for the insurer to manage the risk when transporting project cargo. – Mike Brews CAPTION Accidents will happen … there’s no cutting corners when it comes to insurance.