Australia flags shipping review after grounding

April 6, 2010, 3:19pm

CANBERRA, April 6 (Reuters) – Australia flagged a review of shipping laws on Tuesday after a coal ship ran aground on the Great Barrier Reef and environmentalists warned the Asia resource boom was turning the fragile reef into a ''coal highway''.

The Chinese bulk carrier Shen Neng 1 was fully loaded and travelling at full speed when it struck the Douglas Shoal, off Rockhampton in Queensland state, on Saturday, inside the World Heritage-listed reef park.

Authorities are trying to stop 975 tonnes of fuel oil leaking on to corals.

Prime Minister Kevin Rudd flew over the ship with maritime safety officials and said he was concerned the bulk carrier had been far off course from official shipping lanes.

''From where I see it, it is outrageous that any vessel could find itself 12 kilometers off course, it seems, in the Great Barrier Reef,'' Rudd told reporters in tropical Queensland, where the reef park is a major tourist draw.

''From my point of view as prime minister of Australia, there is no greater natural asset for Australia than the Great Barrier Reef.''

Rudd said after dealing with the immediate priority of salvaging the ship and containing any fuel oil spill, marine safety authorities would investigate why the accident happened and whether laws needed changing as resource exports intensified.

More regulation could add to shipping bottlenecks at Australian coal export terminals that have pushed the number of vessels in offshore queues to more than 220, with more than 100 ships waiting off the Queensland state coast alone.

Australian Greens party leader Bob Brown called for an review of shipping routes as the adjacent Gladstone coal port works to lift capacity by up to 25 million tonnes-a-year, driven by surging demand from Japan, South Korea, India and China.

There was growing speculation that a large number of oil tankers and other carriers were moving through an illegal ''rat run'' shortcut between reefs on their way to open sea and ports in Asia, Brown said.

''This is the A$60 billion-a-year, largely foreign-owned coal industry, that is making a coal highway out of the Great Barrier Reef,'' he said.

The stranded ship belongs to the Shenzhen Energy Group, a subsidiary of China's state-owned China Ocean Shipping (Group)Company, better known by its acronym COSCO.