Port of Auckland CEO Fined in Landmark Maritime Safety Case

Former Port of Auckland CEO Tony Gibson has been fined $190,000 NZ for his role in a fatal 2020 incident at a container terminal—a landmark case that sets a precedent for maritime safety accountability in New Zealand. 

The sentencing, which took place on Friday, marks the first time an officer of a large company in New Zealand has been convicted of breaching due diligence duty.

The case stems from the tragic death of stevedore Pala’amo Kalati in August 2020 at the Fergusson Container Terminal. The incident occurred when a container accidentally detached and fell while workers were discharging cargo from the MV Constantinos P.

Gibson, who led the port for more than a decade, was found guilty by Judge Bonnar KC in the Auckland District Court of violating Health and Safety at Work regulations. The total penalties include a $130,000 fine and an additional $60,000 payment to Maritime NZ.

Maritime NZ Director Kirstie Hewlett emphasized the human impact of the case, noting that Mr. Kalati’s family “will forever feel the impact of what occurred at the Port of Auckland nearly four and a half years ago.”

The court determined that Gibson failed to exercise proper due diligence in ensuring the Port’s compliance with health and safety responsibilities. “Mr Gibson had the knowledge, influence, resources and opportunity to address safety gaps and ensure that appropriate systems were in place at the port, but failed to do so,” stated Hewlett.

The conviction carries particular weight given the port’s history of safety violations. During Gibson’s tenure, the port company faced multiple convictions under health and safety legislation, with incidents resulting in both fatalities and serious injuries. Despite being aware of critical safety risks, Gibson reportedly failed to take timely action to address these concerns.

The Port of Auckland itself has also faced consequences, pleading guilty to two charges under the Health and Safety at Work Act 2015 and receiving a NZ $500,000 fine. Contributing factors to the incident included reduced oversight of work activities due to COVID-19 pandemic-related process changes.

This landmark case is expected to have far-reaching implications for maritime safety governance. It serves as a crucial reminder to chief executives about their responsibility to understand and address critical risks in their operations. The maritime sector has responded with increased safety measures, including the implementation of a new Approved Code of Practice for loading and unloading cargo at ports.

The case has also prompted broader discussions about safety practices in New Zealand ports, particularly in light of two additional fatal incidents reported in April 2022. These events collectively underscore the urgent need for enhanced safety protocols and stricter oversight in maritime operations.

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