South Africa’s Transnet National Ports Authority (TNPA) is facing the single largest lawsuit in its history. It comes more than a decade after the bulk carrier MV Smart ran aground and sank at the entrance to South Africa’s Richards Bay harbour. The claim, valued at around US$110m (approximately R1.83 billion), has become one of the most significant negligence actions ever brought against a South African state-owned transport entity.
More than ten years after the accident, the case remains unresolved. Now, it is edging closer to a full civil trial, scheduled for mid-2026. With multiple claimants, parallel London arbitration proceedings and high-level court orders compelling disclosure of evidence, the MV Smart dispute has evolved from a marine accident into a test case with major financial and governance implications for Transnet and the wider ports sector.
A grounding that became a total loss
Monday, 19 August 2013, was a rough day for sailing from Richards Bay. However, into heavy swells, the MV Smart cast off from Richards Bay loaded with coal. The 230-metre Panamanian-flagged bulk carrier ran aground on a sandbank shortly after departing. Port tugs were dispatched to assist after the vessel failed to clear the harbour entrance. Efforts to refloat the ship were unsuccessful, and structural damage soon became apparent.
As the hull began to fail, all 23 crew members, including the harbour pilot, were airlifted to safety by helicopter. The substantial rescue operation was coordinated by the National Sea Rescue Institute of South Africa (pictured). The ship, a single-hulled vessel of approximately 151,000 dwt, owned by Alpha Marine Corp, had been bound for China. Within days of the grounding, the Smart broke in two. TNPA stated that the wreck did not block the port’s navigation channel and that Richards Bay operations continued. Nonetheless, the incident immediately raised questions around port conditions, pilotage, weather assessment and the management of deep-draught vessel departures from one of Africa’s busiest bulk terminals.
Environmental considerations
Environmental risk quickly became a parallel concern. Local South African media reported that approximately 1,830 tonnes of fuel oil and diesel were aboard the vessel. A coordinated response saw fuel pumped ashore for processing, while containment booms and aerial surveillance were deployed to protect the coastline and nearby estuaries. Authorities sought to reassure the public that pollution risks were being actively managed.
Salvage operations stretched on long after the headlines faded. Over more than two years, the wreck was cut into sections, refloated where possible and scuttled offshore under controlled conditions. The seabed was rehabilitated, with the operation involving the South African Maritime Safety Authority (SAMSA) and international salvage contractors. By the time physical traces of the casualty disappeared, the legal aftershocks were only beginning.
The legal case is still unresolved
Formal legal action began in February 2016, when the owners and underwriters of the MV Smart issued summons against the National Ports Authority, a division of Transnet. The claim totalled approximately US$110.3m, covering the loss of the vessel, its cargo and the substantial costs associated with wreck removal.
Related actions followed, including claims linked to cargo losses and indemnities. Among them were proceedings involving the vessel’s charterer, Minmetals Logistics Zhejiang, and cargo interests, adding further layers of complexity to the litigation landscape.
The South African port operator has seen better commercial performance this year, despite the litigation hanging over it. State-owned Transnet and its ports subsidiary TNPA have both consistently denied liability. Their defence centres on alleged negligence by the vessel’s master and crew, reliance on statutory protections under South Africa’s Ports Act, and arguments around contributory negligence. Third-party proceedings have been launched seeking to have the ship’s owners declared joint wrongdoers.
Ship scuttled, legals remain afloat
Recent reporting in South Africa’s Independent Online and Cape Times has underlined how alive the dispute remains. In December 2025, the KwaZulu-Natal High Court ordered the owners and underwriters to disclose extensive documentation from related London arbitration proceedings. This includes pleadings, expert reports, witness statements, transcripts and arbitration awards that had previously been treated as confidential.
An arbitration tribunal in London found that, while port shortcomings existed, the vessel’s master was negligent in navigation. That is a conclusion upon which TNPA now relies heavily. However, South Africa’s Supreme Court of Appeal ruled in 2024 that the owners’ action against Transnet could continue, even in the face of the arbitration findings. Minmetals subsequently withdrew its indemnity claim, but the core lawsuit remains intact. The civil trial is currently scheduled to begin in July 2026 and is expected to run for more than four weeks.