THE PACIFIC INSPECTION J.

S COMPANY
Head Office: 71 & 73 Le Quoc Hung Street - District 4 - Hochiminh City - Vietnam
ISO 9001 : 2000 Tel: (84.8) 8.26.27.88 Fax: (84.8) 8.26.27.99 E-mail: pico@ hcm.fpt.vn

PRELIMINARY REPORT Date: Sep. 08, 2005

To : SPICA SERVICES
Attn : Mr. Richard Skene / Mr. Tran Viet Hung
Email : hungspica@hcm.fpt.vn
Your Ref. No. : Pls advise
Our Ref. No. : 11303M/DN
From : Mr. Pham Minh Nguyen – Ho Quoc Thanh
Number of page : 4+

Subject: M/V "SINAR PADANG" - Alleged container damages due to stevedore negligent
at Quinhon port – on Sep. 05, 2005 at 1320 LT

Dear Sir,

Upon receive your instruction, we did attend onboard the vessel while her berthing at
Quinhon port, Vietnam to carry out a visual inspection and investigation on the nature and
extent of damages to the vessel and containers, interview the Master and witnesses - and
would briefly report as followings:

1. Ship’s particulars: Pls. refer to particulars attached

2. Outline of incident:
The vessel arrived Quinhon port on Sep. 05, 2005 morning time and load / discharge her
containers there. At 1320 LT on the same day, upon lifting the container No. GESU
4737011 by ship crane and slings, the container was unbalance and touched to adjacent cell
guide, consequently broken and torn, then contacted to the container No. INKU 2256056
locating below in the same bay.
The collapsed container then tried to discharge but unsuccessful, as a result of obstructing
her discharge process in this bay until 0920 LT on Sep. 06, 2005. After lifting the collapsed
container No. GESU 4737011 ashore, her cargo work there was resumed.

3. Initial survey results:

At the time of our attendance, on Sep. 06, 2005 at 0700 LT, both the involved containers
were still onboard at their position of bay 16. At that time, container No. GESU 4737011 –
in broken and collapsed condition - was still laying on top of the container No. INKU
2256056.
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Carefully inspect on the containers and vessel condition, we recorded:

3.1. Damage to container No. GESU 4737011:

Generally, the container got seriously damage with details briefly recorded:
- All top and bottom side rails were heavily deformed and/or partly broken, the container
collapsed and open holed at location of approx. 3.2m away from the rear end. The
container rear end was twisted, while the container seal was intact
- Other bottom structures at adjacent areas got deformed at different extents

3.2. Damage to container No. INKU 2256056:

At location of approx. 3.5m away from the rear end, the roofing structures of container was
indented and deformed downward with details:
- Left and right hand top side rails: partly deformed and indented
- Roofing plate: dented and bulged downward
- Side plate at adjacent areas: the left hand side plate was bulged inward, the right hand
side plate slightly deformed at location adjacent to deformations of the top side rail.

3.3. Damage to the vessel:

No apparent damage to the vessel hull or adjacent cell guide recorded. Upon joint inspect
with the shipboard staff, we were confirmed same, no damage to the vessel noted.

Upon boarding the vessel, we had checked the cargo gear book and recorded the statutory
condition of the cranes are in good certification status, with latest annual survey done and
approved on 06/5/2005.

4. Further investigations:

According to the information supplied by the Master and witnesses, we were known that:
- Cargo working: at Quinhon port, the load / discharge works are customarily done by the
vessel cranes and steel wire slings.
- At 1320 LT on Sep. 05, 2005, upon being lifting up by sling and ship crane, the
container GESU 4737011 was sudden unbalance and touched to the cell guide,
collapsed and broken at location of approx. 3.2m from the rear end, and then touched to
 No. 11303M-RP1
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the container INKU 2256056 that laying below. Both of theses contained are nominated
to discharge at Quinhon port of Vietnam.
- As a result of incident, the cargo work at this bay 16 had been obstructed. At ending
time of Sep. 05, 2005, the stevedore tried in vain to lift up the collapsed container
ashore, but not success. And until 0920 LT, after amend with 4 additional slings
securing to the bottom structures at destroyed area, the container was lifted up ashore
and cargo work could be resumed.
- The container GESU 4737011 was load onto the truck numbered 77K-9455, and
weighed by port bridge scale on 1015 LT on Sep. 06, 2005 - with results:
. Total weight (truck & container): 44,840 kg
. Truck weight: 14,570 kg
. Container gross weight: 30,270 kg
. Upon compare with maximum gross weight of container that painting at door (of
MGW = 30,480 kg), we accepted that no cargo overload occurred in this situation. But
the cargo stowage and lashing / weight distribution within this container will be focused
in our further damage inspection

Until approx. 1430 LT on Sep. 06, 2005, after complete her cargo work at Quinhon port,
the vessel sailed bound for Singapore.

5. Latest information / further steps:

- Upon landing, both the involved containers are stored in the Quinhon port open yard,
and wait for cargo delivery.

- On Sep. 06, 2005 at 1530 LT, the container No. INKU 2256056 (manifested with 46
unit of Eucalyptus Grandis Sp Fresh Cut Log) was opened for Custom check at
Quinhon port open yard. Inspecting as far as possible during open container for Custom
check, we recorded no apparent damage occurred to the cargo. Beside, the consignee
appointed to joint survey before container transporting to Gialai province for stripping
cargo - which scheduled to be done on Sep. 08, 2005 – and we will follow up to survey
and report soon.
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- On Sep. 07, 2005 afternoon time, the collapsed container No. GESU 4737011
(manifested with 39 pcs of used stone cutting machine) was also opened for Custom
check. Generally, no serious damage occurred to the cargo containing in this container,
but the details joint inspection will be done during strip the cargo, scheduled on Sep. 10,
2005.
We will follow up the joint damage survey and inform you soonest.

For further details, please refer to our photo and documents attached.

Best regards,

Pham Minh Nguyen

Enclosure:
Available documents and photos in one attached file.