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The Portuguese vessel Solong is drifting after a collision with US tanker Stena Immaculate off the east coast of Yorkshire on Monday.
One crew member from the Solong is still missing and presumed dead, after a search and rescue operation was ended on Monday evening.
The Transport Secretary said on Tuesday that the Solong was now expected to stay afloat, after previous concerns that the vessel would sink.
Humberside Police said it had launched a criminal investigation into the cause of the collision, along with the Maritime and Coastguard Agency.
The Marine Accident Investigation Branch is also making an early assessment to establish the causes of the collision.
Detective chief superintendent Craig Nicholson said: “Humberside Police have taken primacy for the investigation of any potential criminal offences which arise from the collision between the two vessels.
“Following inquiries undertaken by my team, we have arrested a 59-year-old man on suspicion of gross negligence manslaughter in connection with the collision – this follows the conclusion of search operations by HM Coastguard for the missing crew member of the Solong.
“Our thoughts are with the family of the missing crew member, and I have appointed Family Liaison Officers to make contact and provide support to the family.”
The man arrested currently remains in custody whilst inquiries are under way, Mr Nicholson said.
Crowley, the maritime company managing Stena Immaculate, said the vessel was struck by the Solong while anchored off the coast of Hull, causing “multiple explosions” on board and an unknown quantity of Jet A-1 fuel to be released.
The firm said Stena Immaculate was carrying 220,000 barrels of jet fuel in 16 segregated cargo tanks, at least one of which “was ruptured” when it was struck.
The tanker was operating as part of the US government’s tanker security programme, a group of commercial vessels that can be contracted to carry fuel for the military when needed.
It had been anchored while waiting for a berth to become available at the Port of Killingholme, on the River Humber, Crowley said.
Transport Secretary Heidi Alexander said she met the Maritime and Coastguard Agency’s chief executive Virginia McVea on Tuesday to discuss the response to the incident.
She said: “I am reassured to hear indications from the ship’s owners which suggest the sodium cyanide containers were empty and that efforts to confirm this by the salvors are under way.
“I was also pleased to have been informed that early indications suggest that both vessels are now expected to stay afloat and that the Solong can be towed away from the shore, and salvage operations can get under way.
“I will continue to monitor the response and have asked for regular updates, including on any potential environmental impacts, across government and our agencies.”
Transport minister Mike Kane told MPs on Tuesday that the Solong “continues to burn” at sea.
The minister said something went “terribly wrong” for the crash to happen and there was “no evidence” of foul play.
There were fears Solong was carrying sodium cyanide but shipping company Ernst Russ, which manages the vessel, said that was not the case.
Four empty containers on board that “previously contained the hazardous chemical” will “continue to be monitored”, it added.
Aerial images from the scene show three tugboats are alongside Solong, and at least one attached to it.
Smoke is continuing to billow from the ship.
An exclusion zone with a 1km radius is in place around both vessels.
Mr Kane added the Government would “do everything to recover the body of the mariner”.
HM Coastguard said in a statement its counter pollution and salvage team is “developing a plan ready for implementation as soon as the situation allows”.
It added that the Department for Environment, Food and Rural Affairs has confirmed that air quality at ground level is “currently within normal levels for the weather conditions”, and the UK Health Security Agency has advised that any public health risk on shore is “currently deemed to be very low”.
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