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From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Sep 28 2010 - 18:28:09 EDT
Insurance firms plan private navy to take on Somali pirates
Patrol boats crewed by armed guards to protect valuable ships in Gulf of
Aden
By Cahal Milmo, Chief Reporter
Tuesday, 28 September 2010
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Insurers have drawn up plans for the world’s first private navy to try to
turn the tide against Somali pirates who continue to plague the global
shipping industry by hijacking vessels for ransoms of more than £100m a
year, The Independent has learnt.
The new navy, which has the agreement in principle of several shipping
groups and is being considered by the British Government, is the latest
attempt to counter the increasingly sophisticated and aggressive piracy
gangs who operate up to 1,200 miles from their bases in the Horn of Africa
and are about to launch a new wave of seaborne attacks following the monsoon
season.
A multi-national naval force, including an EU fleet currently commanded by a
British officer, has dramatically reduced the number of assaults in the Gulf
of Aden in recent months. But seizures continue with 16 ships and 354
sailors currently being held hostage. The Independent has seen Nato
documents which show both ransom payments and the period that pirates are
holding vessels have doubled in the last 12 months to an average $4m and 117
days respectively.
In response, a leading London insurer is pushing ahead with radical
proposals to create a private fleet of about 20 patrol boats crewed by armed
guards to bolster the international military presence off the Somali coast.
They would act as escorts and fast-response vessels for shipping passing
through the Suez Canal and the Indian Ocean.
Jardine Lloyd Thompson Group (JLT), which insures 14 per cent of the world’s
commercial shipping fleet, said the unprecedented “private navy” would work
under the direct control of the military with clear rules of engagement
valid under international law. Early discussions have also been held with
the Ministry of Defence, the Department of Transport and the Foreign Office.
The revelation comes as a coalition of shipping organisations and seafarers’
unions today call for governments to dedicate greater resources towards
tackling piracy off Somalia.
Sean Woollerson, a senior partner with JLT, told The Independent: “We are
looking at setting up a private navy to escort vessels through the danger
zones. We would have armed personnel with fast boats escorting ships and
make it very clear to any Somali vessels in the vicinity that they are
entering a protected area.
“At the moment there is a disconnect between the private security sector and
the international naval force. We think we can help remedy that and place
this force under the control of the multi-national force. We look after
about 5,000 ships and have had 10 vessels taken in total, including a
seizure where one crew member was shot and killed. Piracy is a serious
problem, these are criminals basically extorting funds, so why not do
something more proactive?”
The force, which would have set-up costs of around £10m, would be funded by
insurers and shipping companies in return for a reduction on the anti-piracy
insurance premiums, which average around £50,000 per voyage and can reach
£300,000 for a super-tanker. The maritime insurance industry, much of it
based in London, has borne the brunt of the financial cost of the piracy
problem, paying out $300m (£191m) in ransoms and associated costs in the
last two years alone.
Major obstacles remain before the private navy can set sail, such as the
legal status of a private force and it relationship with the Nato-controlled
naval fleet. But major shipping companies and key insurers are keen to
proceed with the plan. Although private contractors already offer armed
teams on board vessels, the idea of a sizeable industry-funded naval force
is a major departure and evidence of the strength of feeling there that more
needs to be done to counter piracy.
A source at one major shipping organisation said the proposal was “viable”,
although it was vital it did not lead to a down-scaling of the international
military force.
A FCO spokesman said it had not yet received a “formal” proposal but added:
“We believe that such a concept could be considered. It would need to be
endorsed and supported by the UK in close discussion with coalition partners
in current counter piracy operations.”
The prospect of the private sector directly intervening to protect the 6.8
billion tons of goods moved by sea each year is symptomatic of renewed alarm
at the success of about 1,000 pirates controlled by Somali clans in
disrupting the 22,000 ships which pass through the Gulf of Aden annually.
Using light fishing skiffs and armed with AK-47s, rocket-propelled grenades
and ladders, the raiders attack hundreds of vessels a year, forcing seized
crews to sail to the Somali coastline where they are held hostage until the
ship owner agrees to pay a ransom. The problem peaked last year with 217
attacks and 47 ship seizures but despite the success of naval patrols in
deterring raiders in the Gulf of Aden, the hijackings continue there and in
the Indian Ocean, an area so vast that naval commanders admit it cannot be
effectively policed. So far in 2010, there have been 123 attacks and 33
seizures.
As a result, shipping companies are contemplating the increased use of armed
contractors on board their vessels, something previously considered more
likely to escalate encounters with pirates.
MSC, the world's second largest container shipping company, announced this
week that it will decide “within days” whether to arm its vessels. Pasquale
Ferrero, assistant operations manager, said: “We do not have armed guards at
the moment but we are considering their use to protect our crew, the ship
and the cargo.”
A coalition of shipping companies, trade unions and welfare organisations
yesterday sought to increase the pressure on governments and international
bodies to provide more military cover and secure an agreement which allows
pirates to be captured and prosecuted. Currently nearly all suspected
pirates captured off the Somali coast are simply stripped of their weapons
and allowed to return to port.
Spyros Polemis, president of the International Shipping Federation, said:
“We need a new strategy and additional military resources. Governments must
really wake up to the enormity of the problem, as the number of pirates
continues to increase in the knowledge they can act with virtual impunity.
The international community can no longer afford to sit on its hands and
cede control of its vital seaways to criminals.”
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