Shipping company to pay $102M in Key Bridge collapse

Oct. 24 (UPI) -- The company that operated the vessel that destroyed the Francis Scott Key Bridge in Baltimore will pay nearly $102 million in damages, the Justice Department announced Thursday.

"Nearly seven months after one of the worst transportation disasters in recent memory, which claimed six lives and caused untold damage, we have reached an important milestone with today's settlement," Principal Deputy Associate Attorney General Benjamin Mizer said in a statement.

"Thanks to the hard work of the Justice Department attorneys since day one of this disaster, we were able to secure this early settlement of our claim, just over one month into litigation," Mizer explained.

"This resolution ensures that the costs of the federal government's cleanup efforts in the Fort McHenry Channel are borne by Grace Ocean and Synergy and not the American taxpayer."

The container ship DALI left the Port of Baltimore bound for Sri Lanka just before dawn on March 26. As it traversed the Ft. McHenry channel, the vessel lost power, which it regained before losing it again, rendering it unable to steer.

Moments after losing power the second time, the DALI struck the Key bridge, which collapsed and fell into the water, killing six people and blocking one of the country's busiest shipping waterway for months

"In addition to this heartbreaking loss of life, the wreck of the DALI and the remains of the bridge were left to obstruct the navigable channel, bringing all shipping into and out of the Port of Baltimore to a standstill," the Justice Department said. "The loss of the bridge also severed a critical highway in the transportation infrastructure and blocked a key artery for local commuters."

Dozens of local, state and federal agencies were involved in the response effort, which removed about 50,000 tons of steel, concrete and asphalt from the channel and from the DALI itself.

During the cleanup effort, officials were forced to establish alternate shipping routes in an attempt to reduce the economic impact of the port closure. The channel was cleared by June 10.

The lawsuit alleged that the DALI had not been properly maintained, and that the ship was full of "jury-rigged" fixes.

"None of the four means available to help control the Dali -- her propeller, rudder, anchor or bow thruster -- worked when they were needed to avert or even mitigate this disaster," documents said.

The Justice Department sued Singapore-based Grace Ocean and Synergy in September after the shipping company sought exoneration in the accident and to have its liability limited to $43.7 million.

"Today's settlement is in addition to $97,294 recently paid by Grace Ocean to the Coast Guard National Pollution Fund Center for costs incurred to abate the threat of oil pollution arising from the incident," the Justice Department said.