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Ship owners in $120m lawsuit over Gladstone incident

THE captain of a Chinese ship that ran aground on the Great Barrier Reef off Gladstone has been quizzed about whether his company told him to lift the anchor.

The Federal Government is suing Shenzhen Energy for $120million over damage done to the reef in 2010 when its ship, Shen Neng 1, ran aground on Douglas Shoal about 100km from Gladstone and 120km from Rockhampton.

It spent 12 days stuck on the shoal before it was towed to Hervey Bay.

Shen Neng 1 captain Jichang Wang was cross-examined in the federal court in Brisbane via video link.

He was asked whether his company told him to heave the anchor or whether he suggested it to the company.

He told the court he reported to the company that it was possible to re-float the ship at the time and that the company agreed.

When asked, Captain Wang said he called the company but it was possible he had another phone conversation but could not recall exactly.

On Tuesday Captain Wang was also asked about his statement and he admitted someone else had helped him write parts of it.

In one section of the sworn statement it said he had ordered the anchor to "walk out". Under cross examination Captain Wang said he would have used the word "drop" not "walk out".

The hearing continues.