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Project Cargo Insurance

Specialist cover for oversized, heavy-lift and out-of-gauge cargo — mining equipment, plant and infrastructure.

About Project Cargo Insurance

Project cargo refers to oversized, heavy-lift or out-of-gauge (OOG) shipments that cannot be containerised — mining equipment, power plant components, transformers, wind turbine components, modular plant and large machinery. South Africa's mining sector generates significant project cargo movements, and renewable energy project development has added wind and solar equipment to the project cargo stream. This type of cargo requires specialist insurance because standard container vessel terms do not apply — cargo is typically shipped on heavy-lift vessels or break-bulk carriers, often requiring specialist lashing and securing. Insurance must cover complex multi-modal transits, often including road transport on low-loaders, port lifts and sea transit.

Commodity Examples

Mining processing equipment

Power generation turbines

Wind turbine components

Transformers (power grid)

Modular plant sections

Construction cranes

Oil & gas equipment

Main Risks

•Heavy lift operation failure
•Storm damage to deck cargo
•Lashing failure at sea
•Road transport damage on low-loaders
•Crane failure at port
•Delay cost overruns

Recommended Cover

All-risks policy tailored to specific project
Transit including pre-shipment storage
Delay in start-up (DSU) cover for large projects
Third-party liability during loading/discharge
Marine and land transit combined

Incoterms Note

Project cargo commonly uses DAP or DDP terms with the seller responsible for all transport and insurance. Always align insurance policy scope with the Incoterms agreed in the contract.

Frequently Asked Questions

Does standard marine cargo insurance cover out-of-gauge mining equipment?

No — standard open cover or voyage policies typically exclude project cargo or apply specific conditions. Specialist project cargo policies must be arranged on a case-by-case basis, tailored to the specific route, vessel and cargo characteristics.

How far in advance should I arrange project cargo insurance?

Ideally 4–8 weeks before the first movement. Project cargo insurance requires detailed cargo specifications, route information, vessel details and loading method. Leaving it too late can result in inadequate cover or gaps in the transit chain.

Do I need delay in start-up (DSU) cover?

For large infrastructure or mining projects where a delay in equipment delivery results in significant financial loss (lost production, contract penalties), DSU cover is strongly recommended. Standard marine insurance covers cargo damage but not the consequential financial loss from delay.

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