Port expects half a billion insurance payout from earthquake damages

Port expects half a billion insurance payout from earthquake damages | Insurance Business

Port expects half a billion insurance payout from earthquake damages

CentrePort Wellington is expecting a final insurance payout of half a billion dollars from damages caused by the 2016 KaikĊura earthquake.

CentrePort has already secured $170 million from property damage and has $350 million in the pipeline for material damage. As the port finalises its payouts, the total could balloon to over $500 million due to business interruption claims.

Derek Nind, chief executive at CentrePort, said that the whole amount will be used for “repair and replace” works in the port.

“We’ll need all of those resources,” he told Stuff.co.nz.

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Nind confirmed they were working on a multimillion-dollar dredging project that they find “essential” for long-term redevelopment. Another key project will be building floating drawbridges that will connect boats to the terminal and safeguard against water level changes.

Other plans include new and improved container handling equipment and stormwater drainage, increased freight capacity, and a demolition programme for damaged assets.

However, the company said that it would rather depend on the final amount received from insurance settlements as well as the condition of its assets than gather more funds.