Maritime Security International

Summer 2012

www.maritimesecurityinternational.net

Counter piracy and ship security

Kidnap and Ransom

Port security

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Introduction

1

Piracy is by no means a new concept but as a Newport News symposium on the topic pointed out in 1997 it was more a question of new methods for an old trade.

Since that symposium, with its memorable poster of a pirate brandishing an AK 47, took place, things have moved on and the recent upsurge of pirate activity off the coast of Africa, which is showing no signs of abating, ensuring the safety of crews, vessels and cargo has never been so important.

However, piracy is just one of the issues that needs to be tackled as far as maritime security is concerned.

While new security firms are springing up almost daily, leaving one to wonder if there are any personnel left in UK Special Forces or if they have all moved into the private sector, these are only part of the equation.

Owners, managers, insurers, flag states and maritime charities are all part of the mix.

Maritime security is vital for the safe running of ports, offshore installations, and to ensure that

Publisher W H Robinson Editor Sandra Speares Tel: +44 (0) 1483 527998 E-mail: sandra.speares@mar-media.com SALES manager David Scott E-mail: david.scott@mar-media.com DESIGNER Justin Ives justindesign.co.uk

.co.uk

seafarers and ships are protected against the dangers and difficulties that such issues as drug smuggling and carriage of stowaways represent. As offshore installations move into ever more isolated

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environments, security of those installations and the personnel that man them is a prime consideration, while port security is becoming ever more rigorous.

This publication is printed on PEFC certified paper.

PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

In this new publication Maritime Security International we will be looking to explore some of these issues and talk to people that are at the sharp end of ensuring the safety of all industry players, whether from a physical, legal or technical perspective.

Summer 2012

Maritime Security International

Maritime Media Ltd The Diary House Rickett Street London SW6 1RU UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com www.maritimesecurityinternational. net

Contents POLICY & FORUMS 2

News Piracy in the spotlight The latest initiatives from around the world to tackle the problems of piracy

5

Comment Flag follows trade At a recent maritime security seminar in the UK, it was noted that there appeared a lack of strategy to the maritime security of key international sea trading lanes writes Paul Gibbins

8

Piracy Talking tactics Successful hijacks may be down but violence is spreading

11

Security organisations Fighting fit with four Graham Cundy of Protection Vessels International looks at the advantages of four-man protection teams Non- lethal weapon Taking a proactive, intelligence-led approach to combatting piracy Assessing risk Trying to avoid pirates in the first place is one approach Vetting vision SAMI is trying to boost quality standards

14 17 20 22

Legal Making piracy a priority What are the legal issues when tackling piracy?

24

Insurance War risks Cover for war risks terrorism has been on the P&I agenda

27

Kidnap and Ransom Kidnap: counting the cost Why should shipowners have kidnap and ransom insurance in place?

30

Interview Hostage crisis What are the implications if Whitehall decides to ban ransom payments? Sandra Speares talks to Allan Graveson, senior national secretary of seafarers union Nautilus International, about the issue

32

ISPS Scanning the horizon Is 100% scanning of containers entering the US a feasible option?

35

Deterrent Caught in a P-Trap Henri L’HonorÊ Naber looks at a non-lethal application against pirates Razor vision Kevlar, razor wire and carpet tiles are some ways to harden a vessel

37 39

Port Security Port challenges Container theft and challenges; weighing containers; Port of London Authority

43

Smuggling Staying safe and secure How can shipowners avoid drugs, people smuggling and stowaways?

46

Offshore Reducing the offshore risks Safety and security around offshore oil and gas installations are increasingly important as exploration moves into ever-more hostile environments

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Events

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Maritime Security International

Summer 2012

Leading the way in ‘one stop’ maritime security services

Securewest International is a worldwide organisation and leading specialist in maritime security since 1987.

Their expertise has enabled them to provide a ‘one stop’ security service to clients from all sectors of the maritime industry including commercial, military, cruise, port and offshore facilities.

UK Office: +44 (0)1548 856001 USA Office: +1 757 461 4343 Singapore Office: +65 9154 0707 info@securewest.com

www.securewest.com

■ Maritime security officers for vessel security and anti-piracy services ■ Crisis management design and training (K&R) ■ Intelligence support from the 24/7/365 Maritime Assistance Center ■ Approved SSAS monitoring and satellite tracking ■ Accredited ISPS training and compliance programs SM

■ Security planning and consultancy

SECUREWEST INTERNATIONAL Specialists in maritime security since 1987

Corporate viewpoint POLICY & FORUMS 4

Setting the highest standards of security I Picture

As Germany’s leading Standfirst maritime security services provider, ISN International Security Network meets clients’ needs with the highest standards

n a divided market, making the difference is of the utmost importance – something ISN fully understands. As a security services provider based in Germany, ISN has been providing armed security services to shipping companies by accompanying container and cargo ships travelling in the high-risk piracy areas off the East and West African coasts and in the Indian Ocean.

As the UK’s industry partner for the regulation and accreditation of private security providers, ADS is to introduce a set of standards for the provision of private security, both on land and at sea.

The same process has been initiated by the German government which is working on regulations for vessels sailing under the German flag.

The time is right to set some binding standards as more and more PMSCs operate with unqualified personnel and/ or illegal weapons. A market shakeup is inevitable to provide the highest quality service to ship owners.

Individual service ISN develops safety and security concepts for ship owners worldwide. Our individual services range from merely consulting via on-board audits up to the operative deployment of armed escorts.

Our security personnel, being former members of special police or military units, have many years of professional experience and are especially trained for maritime security assignments.

We can provide the following: »» Highly experienced, trained and

selected (European) personnel »» Regular intelligence and piracy reports »» Vessel hardening to prevent hostile boarding »» Crew security training and drills »» Modern, effective and registered weapon systems

QuTiatiasp “The time eribustiur? is right to Dunt set some a quibus binding niam, adstandards qui sa veliatur as more sam PMSCs eos eatur, operate qui dia with unqualified quatio debit, personnel” quisit,

A proven concept ISN’s concept of operations for protecting cargo ships is based on the following: »» A prerequisite of physical and technical security measures, including razor wire, physical protection of sensitive areas and physical barriers to prevent access through gangways. »» The number of security personnel deployed on any given ship depends on the ship’s size and obstacles obstructing view from the bridge to ensure that, at any given time, the entire ship and its surroundings are in full view of the security team.

»» Early warning systems and the prevention of unauthorised boarding through the communication of warnings, evasive manoeuvres and the use of firearms when necessary. »» Use of a safe room capable of housing ship personnel for up to 96 hours. The safe room also serves as a control centre capable of controlling the ship’s course, monitoring activity on board the ship and communicating with emergency responders and rescue teams. »» Procedures for security personnel to respond to a violent attack on board, aimed at preventing unauthorised boarding and repelling an attack on board the ship.

Vessel protection in the Gulf of Guinea In response to the tremendous level of demand, ISN recently announced that it will also offer vessel protection in the Gulf of Guinea. Despite the prevalence of maritime piracy off the Nigerian coast and in the wider Gulf of Guinea, piracy in this region tends to receive less public attention than in the Horn of Africa and the Gulf of Aden. The growing frequency of attacks and the higher insurance premiums for shipping in the Gulf of Guinea led us to extend our offer of services to vessels calling at ports in the Niger Delta.

Meeting our clients’ needs by providing the highest standards is our main tasks as one of Germany’s pioneers in maritime security.

For further information visit: www.isn.eu.com

Picture Contact details

Logo Caption

Maritime Security International

Summer 2012

News Caption

Piracy in the spotlight The latest initiatives from around the world to tackle the problems of piracy

M

auritius is the latest in a series of countries to agree to take suspected pirates for prosecution. The memorandum of understanding allows for the transfer of suspected pirates from Royal Navy vessels to Mauritius for prosecution. The UK has also signed MOUs with the Seychelles (2010) and Tanzania (2012).

Commenting after the signing, UK Prime Minister David Cameron said:“I was delighted to meet with Prime Minister Ramgoolam to sign an agreement that will allow the Royal Navy to transfer suspected pirates to Mauritius for prosecution.

“This is an important step forward following the London and Istanbul conferences on Somalia this year and another sign that countries in the Indian Ocean region are stepping up their efforts against piracy. Piracy is a violent crime and pirates should be in no doubt that they will be arrested at sea, prosecuted in regional states and imprisoned.”

Fire first

of piracy – but there was nothing to indicate that the skiff was actively undertaking an act of piracy, it would be illegal for armed guards to use force against them.

“However, that would not, of course, preclude firing warning shots. All the evidence is that the pirates are cowards. They value their lives –they are not suicide merchants –and the indications are that when warning shots are fired, they scarper off pretty quickly,” he concluded.

BV security initiative Classification society Bureau Veritas (BV) has joined forces with French maritime security consultants Securymind to provide an auditing and verification service for companies providing armed guards to protect ships against piracy.

Security companies offering services to shipping will be audited against the requirements set down by the “Scheme for Quality Management Systems of Private Maritime Security Companies” established by Bureau Veritas and Securymind. The scheme is based on IMO guidance.

New guidance has been issue to UK flagged ships allowing armed guards to fire first to prevent a pirate attack. The intention was to make advice clearer than earlier versions, according to Foreign Office minister Henry Bellingham.

Security companies which meet these standards will be issued with an attestation by Bureau Veritas and will be listed in the BV Register of Private Maritime Security Companies.

He told a Commons debate on Somalia: “In the revised rules, we go into a lot more detail, making it clear, for example, that it is illegal to use force for retaliation or revenge. That might be perfectly obvious, but the guidance continues: ‘If the threat ceases, the defences of self defence, defence of another…no longer apply’,and if a private security detachment ‘believes a threat is imminent, it is not necessary for them to wait for the aggressor to strike the first blow before using reasonable and proportionate force to defend themselves’. For example, we make it clear that if ‘armed guards sighted a pirate skiff’ – a skiff that might be equipped to undertake acts

Roberto Nahon, Head of the Systems Certification and Training Department at Bureau Veritas, says: “Shipowners have experienced that armed guards are an effective deterrent to pirate attack. However, there are very many international security companies offering these guards and not all of them can be relied on to meet the right internationally agreed standards. That is why Bureau Veritas has put its auditing and maritime experience together with the security experience of Securymind to provide a service that will help owners to identify and choose from reliable and bona-fide security firms when selecting who will guard their ships.”

Summer 2012

Maritime Security International

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News IMO guidance

GUARDCON standard contract

Interim guidance to private maritime security companies (PMSCs) was agreed by IMO’s Maritime Safety Committee when it met at the organisation’s London headquarters for its 90th session from 16-25 May 2012.

There was an intense debate on how the international community should deal with issues related to the deployment of privately contracted armed security personnel on board ships and the carriage of arms on board.

The MSC agreed Interim Guidance to private maritime security companies providing contracted armed security personnel on board ships in the High Risk Area. The guidance covers: PMSC Professional Certification, PMSC company requirements, including the recommendation that PMSC’s should establish procedures to provide maritime security services to ship owners and ship operators and comply with all relevant legal requirements; management, including recommendations on selection, vetting and training of personnel for a Privately Contracted Armed Security Personnel team; deployment considerations, addressing the specific aspects of PCASP deployment and the role of the PMSC in ensuring efficient and successful deployments, including communications with the ship owner or operator, and including recommendations relating to management of firearms and ammunition from embarkation to disembarkation and use of force.

The MSC agreed that the International Organization for Standardization (ISO) would be best placed to develop international standards for PMSCs based on the IMO-developed guidance and with relevant IMO liaison and participation in the ISO process for standards’ development.

Security standards Security in Complex Environments Group chairman Chris Sanderson says that standards designed to ensure high levels of quality and professionalism of all Private Security Companies operating in a maritime environment would be in place before the end of 2012.

The Security in Complex Environments Group (SCEG) is a Special Interest Group within ADS. It brings together private security companies operating on land and sea around a common agenda of raising standards and introducing robust and independent accreditation for firms operating in complex and high-risk environments. ADS was appointed by UK ministers as the government’s industry partner for the regulation and accreditation of private security firms in June 2011.

Private protection programmes debut Two new private security initiatives are in the planning stage. Jardine Lloyd Thompson’s convoy escort programme and Typhon’s close vessel protection initaitive may come off the blocks shortly. Typhon has been quoted as saying it has secured enough funding to start operations in October.

Jardine Lloyd Thompson is understood to be still looking for funding to finance the purchase of a fleet for the convoy escort programme, Most of the funding for the Typhon initiative which involves the use of three container vessels, is understood to have come from the Far East. Typhon’s chairman, Simon Murray also chairs Hong Kong based investment fund GEMS.

Summer 2012

BIMCO published the the GUARDCON standard contract for the employment of security guards on vessels in late March. The contract has been developed to provide shipowners and private maritime security companies with a clearly worded and comprehensive standard contract to govern the employment and use of security guards, with or without firearms, on board merchant vessels.

According to BIMCO Deputy Secretary General, Søren Larsen: “GUARDCON has been drafted in just a little over three months by a small group of experts drawn from shipowners, underwriters, P&I Clubs and lawyers with first-hand experience of working with contracts for security services. The speed at which GUARDCON has been drafted is a considerable credit to the drafting group whose members devoted many long hours free of charge to the project.”

There have been some concerns raised by insurers about the issue of insurance for armed guards in the contract. Notably, concerns have been raised that some security companies do not have sufficient insurance cover.

According to Richard Neylon, a partner with law firm Holman Fenwick Willan: “By and large GUARDCON has got a warm reception, although there were issues about it which were a compromise. It does seem to be getting a good take up. There are a few key clauses we advise aren’t amended because they have be approved by industry and P& I in particular.”

EU NAVFOR Counter piracy forces from the EU Naval Force Somalia (EU NAVFOR) Operation Atalanta and NATO disrupted two pirated dhows and freed the crew taken hostage in the Gulf of Aden in the second week of August.

In a statement from EU NAVFOR “on 10 August, a suspicious dhow, reportedly pirated in Bosaso in Somalia, was located off the coast of Oman by the Spanish EU NAVFOR Maritime Patrol and Reconnaissance Aircraft (MPRA). The French EU Naval Force frigate La Fayette was dispatched to intercept and investigate the dhow. Early on Saturday morning an unopposed boarding found the pirates had left the dhow, leaving the vessel and the crew in good condition”.

According to the crew, the suspected pirates fled the scene on a second pirated dhow.

The German MPRA located the fleeing dhow. With this information, EU Naval Force frigate FGS Sachsen was able to intercept the second pirated dhow on Sunday evening, heading south towards the Somali coast. The Sachsen kept pressure on the suspected pirates and was joined by EU NAVFOR flagship ITS San Giusto and the NATO flagship HNLMS Rotterdam.

The presence and the deterrence of naval units, their helicopters and the sea craft deployed by Rotterdam, kept constant pressure on the suspected pirates preventing them to receive any aid from land or to escape to the shoreline.

After careful consideration by the Commanders of EU NAVFOR and NATO, HNLMS Rotterdam’s amphibious craft blocked the dhow’s path to the shoreline forcing it to stop. With EU NAVFOR ships and a helicopter providing surveillance and close protection, a Dutch team was able to board the dhow, freeing its crew and apprehending six suspected pirates. They are now detained onboard HNLMS Rotterdam, awaiting further decisions on the follow-up process.

“This concerted disruption is exemplary of the effective coordination between EU Naval Force Somalia Operation Atalanta and NATO Operation OCEAN SHIELD and the commitment to counteract piracy in the Gulf of Aden and the Western Indian Ocean”.

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Comment

8

Flag follows trade At a recent maritime security seminar in the UK, it was noted that there appeared a lack of strategy to the maritime security of key international sea trading lanes writes Paul Gibbins

W

here ‘flag should follow trade’, the recent spate of piracy off the Horn of Africa (HOA) has shattered any belief that trade can continue irrespective of a coastal state’s instability and the international community has struggled to safeguard sea lanes.

Nowhere is the lack of any coherent maritime security strategy more prevalent than in the Gulf of Guinea (GoG) and for a region continuing to provide highly prized resources to the International Community, there is a clear need to formulate and agree upon a comprehensive approach to counter the rise of maritime criminal activity affecting the area.

It is curious that a state of equilibrium has come about in countering piracy off East Africa. Attacks for 2012 are down in the Indian Ocean area and in a recent report by the International Maritime Bureau (IMB) it was stated that “Overall, 177 incidents were reported to the IMB Piracy Reporting Centre (PRC) in the first six months of 2012, compared to 266 incidents for the corresponding period in 2011.” Potengal Mukundan, the Director for the IMB said, “The naval actions play an essential role in frustrating the pirates. There is no alternative to their continued presence. The effective deployment of Best Management Practices, ship hardening and, in particular, the increased use of Privately Contracted Armed Security Personnel (PCASP), has also contributed to the falling numbers.”

The shipping industry is enjoying some semblance of normality in one ocean whilst experiencing the surge of a similar problem on the other side of the continent.Maritime criminal activity in the Gulf of Guinea is on the increase, with 32 incidents reported so far for 2012, including five

hijackings. This compared to 25 incidents for the whole of 2011 gives clear cause for concern.

Ship-owners are understandably anxious, their crews far more so, where the “smash and grab” robbery is violent, pernicious and extremely traumatic.There are many contributory factors affecting the maritime criminal activity in the Gulf, but just like occurrences of piracy over the years, its origins lie onshore where poverty, unemployment, corruption and free access to weapons give cause to launch attacks on commercial vessels offshore.

As witnessed in the Indian Ocean, it is a supreme challenge to gain consensus between affected nations towards a comprehensive approach in maintaining maritime security. To their credit, international navies have made an impact, but they can’t be everywhere and in an area the size of the Indian Ocean, the private sector has risen to the challenge of maintaining maritime security where the public sector falls short. Conversely, across the Gulf of Guinea, there are 10 nations trying to enforce some maritime security of their economic and territorial waters with varying public sector capability. For example, in Nigeria, the Nigerian Maritime Administration and Safety Agency (NIMASA), tasked with the statutory responsibility of providing security on the nation’s coastal waters, is working reasonably well in the littoral, but simply nudging the problem further offshore and in some cases into bordering nation’s waters, such as Benin. The international community, keen to maintain safe sea lanes has provided welcome assistance towards capacity building projects such as the force generation of coast guard vessels, but until the incentives to put to sea is addressed, any measure offshore is punitive at best.

Maritime Security International

Summer 2012

Comment Caption

Shipowners realise this and in a desperate bid to deter and counter attacks as well as continue trading in the GoG, they have adopted their own measures similar to those utilized to good effect off the HOA. Many vessels transiting the GoG are now fortified in accordance with BMP4 and since vessels under threat in territorial waters cannot transit with private armed security, they are forced to accept local (armed) Government Security Forces (GSF) as embarked security, often accompanied by (unarmed) private security advisors. Many vessels remain as far offshore as possible before committing themselves into territorial waters, although attacks are now occurring as far out as 135NM. As in the Indian Ocean and off the Horn of Africa, the private sector is sharing an increasing responsibility in delivering maritime security to the Gulf of Guinea. It comes with challenges, but thelack of an agreed maritime security strategybetween the 10 Gulf nation states continues to hamper efforts to stem the increase in maritime criminal activity and without that strategy, the region seems set to degenerate into greater instability, affecting trade, but also more importantly affecting seafarers.

Paul Gibbins is a freelance consultant and director providing strategic communications in challenging environments. www.pgcglobal.org

Summer 2012

Mohammad Saaili Shibin, the man convicted as the person in Somalia responsible for negotiating the ransom of an American yacht, the S/V Quest, and the Marida Marguerite, a German-owned vessel has received multiple life sentences by a US court.

Shibin was sentenced to ten concurrent life sentences for piracy, two consecutive life sentences for the use of a rocket propelled grenade/ automatic weapons during crimes of violence, ten years consecutive on six counts charging discharge of a firearm during a crime of violence, and two twenty year sentences for the remaining counts of discharge of a firearm during a crime of violence. Shibin is also required to pay restitution in the amount of approximately $5,408,000.

Neil MacBride, US Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Robert Doumar, Shibin was previously found guilty by a federal jury on April 27, 2012, of all counts of a superseding indictment. “Mohammed Shibin was a key participant in two of the most heinous acts of piracy in modern memory: last year, his confederates seized the S/V Quest and murdered four defenceless Americans, and in 2010 the crew members of the M/V Marida Marguerite were brutally tortured by Shibin and his pirate conspirators to extract a $5 million reward. The Somalia piracy criminal enterprise could not function without skilled negotiators like Shibin and his multiple life sentences should put all pirates on notice that the Justice Department will hold you accountable in an US. courtroom for crimes on the high seas. Shibin is the 18th Somali pirate my office has convicted.�

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Corporate viewpoint POLICY & FORUMS 10

Taking travel to a new dimension

T

Specialising in the maritime and offshore industry, G Travel offers a reliable, cost-effective service that gives customers confidence

Jason Barreto Managing director G Travel Limited Regent House Hubert Road Brentwood Essex CM14 4JE Tel: 01277897710/11 E-mail: marine@gtravel.co.uk or Jason.barreto@gtravel.co.uk Website: www.gtravel.no

he maritime and offshore industry has certainly had a turbulent time over the past few years. It has forced many maritime organisations to re-ook at the way they operate their business in terms of costs, resources and use of technology.

A key expenditure area for many of our clients is travel. The expense of moving their crew and shore-based staffed across the globe, in a time sensitive environment, is of paramount importance and needs to be controlled.

Travel policies, online booking tools, hotel, car rental and frequent flyer programs all help organisations to meet their travel budgets. But the competency of the travel agency is key in bringing all these elements together.

At G Travel we offer a reliable, cost-effective service that allows customers to focus on their key organisational needs and make them feel confident that we are taking care of their company’s travel requirements.

Our clients tell us that we have achieved promises made in service, cost and relationship and their feedback gives us the impetus to continue to drive our business forward, delivering greater value and higher levels of service.

Each and every customer is different and we recognise that fact. Our people take the time to thoroughly understand the client’s needs, listen to them carefully and then offer a service that meets their business objectives.

G Travel is an innovative and modern travel agency that specialises in maritime and offshore travel. We provide a dedicated travel service for many types of clients operating within the marine and oil/gas sectors, such as shipowning, ship-management and offshore drilling companies, as well as marine and offshore support businesses including maritime security organisations.

We also specialise in serving maritime security businesses, organising the travel for their personnel boarding vessels on transit in the Gulf of Aden, Indian Ocean, West Africa and other areas where the threat of piracy is present.

As an affiliate SAMI member, we have acquired an excellent reputation among many of the UK and international maritime security organisations and continue to support this important sector.

Our employees consist of experienced travel consultants with extensive knowledge from the airline and travel industry and are familiar in handling complex and time sensitive operations.

“Each and every customer is different and we recognise that. Our people take the time to thoroughly understand the client’s needs”

We are a fast-growing company and are constantly monitoring and keeping our focus on the service quality in all areas of our operations. Our network consists of offices in Norway, UK, Philippines, China, Singapore and Brazil, with partner offices in Greece and United Arab Emirates. We are also planning further expansions throughout 2012/2013 with offices in strategically important cities.

Sydney Bay

Maritime Security International

Summer 2012

The key to our success and growth is that we take the time to thoroughly understand our clients business and their travel related challenges.

We are than able to provide a tailor-made service that helps our customers achieve a cost-effective travel management programme.

Services • 24 hour service, seven days a week giving our customers the security they need at all times.

• Dedicated and experienced personnel • The best marine and offshore fares through our global offices and partners.

• Seat finder team and ”best buy policy” secures seats at the lowest available rate.

• Visa service, taking care of all immigrations requirements.

• Key account management – building a close relationship with our clients • Service Level Agreement (SLA) – monitoring and maintaining a high service level.

At G Travel, we are always trying to raise our standards and set new goals in customer service. Let us help your business find a new way.

Piracy

Talking tactics Successful hijacks may be down but violence is spreading

P

iracy off the African coastline has been evolving with a higher instance of violence against crew members in captivity and changes in tactics by pirate groups. Sandra Speares talks to Pottengal Mukundan of the International Maritime Bureau (IMB) about recent developments.

Piracy is nothing new to the International Maritime Bureau, which acts as the anti-crime arm of the International Chamber of Commerce and manages its anti-piracy unit.

Although the number of ships that are successfully being hijacked may have fallen – bearing in mind the advent of armed guards on ships and the monsoon season – there have nonetheless been a number of worrying developments, not least the spread of attacks to the Gulf of Guinea.

The other disturbing factor is events in the Gulf of Guinea, he says, and this is where the focus should be at the moment, given that attacks off Somalia have dropped due to the monsoon season. “In the Gulf of Guinea, there continue to be very violent attacks against vessels,” he says. These are taking place far out to sea and he says that recently there have been three attacks – two tankers and one container ship – from pirates in a skiff. The only way these skiffs could operate is with the availability of a mothership, following the Somali model.

The main purpose, he explains, is that when product tankers are hijacked they can be sailed away to a place where the cargo can be offloaded on to a smaller tanker. “When that operation is completed, normally the ship is released.”

Figures for this year show that by early July, 170 attacks had been reported to the IMB, with 19 vessels hijacked, 271 crew taken hostage and of these attacks 68 were off the coast of Somalia, of which 13 vessels were hijacked, with 195 crew taken hostage and two crew members killed.

Ships are typically kept for about 10 days, he says. The purpose of the attack is not to hold the crew to ransom, as in Somalia, but to steal the cargo.

Violence has been used and two crew members have been killed. There have also been reports of attacks in the Rivers State and, recently, two Nigerian military personnel were killed in an incident. There have also been other attacks on tankers that have been conducting ship to ship operations.

Disturbingly, Mukundan says 49 crew members are being held ashore.

“That is always worrying because they have been taken ashore and so it more difficult to be sure who you are talking to in terms of getting them back and also it is not certain in what condition they are being held”.

Although the situation is of concern, according to Mukundan it is possible to control it using aerial surveillance of ship-to-ship operations and then the navies can approach the tanker and catch the pirates. In that area, he says, it is only the Nigerian navy that has the resources to take action.

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12

Piracy

While Somali incidents were down during the monsoon, there were four incidents in June , two of which were in conditions exceeding Force 7, making it difficult for skiffs to operate. Because of weather conditions Mukundan says the pirates have recently started using mothership dhows to try to get alongside the target vessel.

In recent months, pirates have been going after dhows that they then use as motherships, he says. Attacks have also been taking place very high up in the Gulf of Oman, close to the Straits of Hormuz and the Iranian coast, which is a new development for Somali pirates. On one occasion a Chinese ship was boarded, but the Iranian Navy subsequently arrested the pirates.

Having a safe strip of coastline from which to operate is key to the Somali model of piracy and therefore that model is not transportable elsewhere because governments would stamp on it. A lot has been done in the past two years against piracy, particularly at sea, Mukundan says.

Taking measures against pirates

“We would like the naval forces to increase, not decrease as countries try to withdraw their vessels for budgetary reasons. The navies play a unique role because they are the only ones who can arrest pirates, and board suspected pirate vessels before they get in a position where they pose a threat”. They can also use heavy fire power against pirate bases ashore. “They are vital to the fight against piracy. “We need more naval vessels, not a reduction. That is very dangerous for shipping. Private armed security is increasing but that cannot replace naval action.”

While a lot of work has been done at sea, with the use of navies , Best Management Practices and armed guards, “unless there is a huge increase in the resources available, it is not easy to think of what more can be done at sea to protect vessels. We need to take some actions ashore”. This means removing the protective strip of coast that the pirates currently have, where vessels can anchor for six to seven months . IMB believes that direct investment in that area is needed to generate commerce and employment for locals. “If that is done, then it possible that the local population will turn away from the pirates. Without that strip the piracy model cannot operate.”

The ICC presented a paper at a meeting at the IMO on capacity building in Somalia, and Mukundan says the secretary general Koji Sekimitzu has been very supportive of the project. The Oceans Beyond Piracy programme released a paper earlier this year that estimated the economic cost of piracy was between $6.6bn-$6.9bn. The interesting point, Mukundan says, is that 80% of the costs are being met by the industry and only 20% by governments. The report said that 99.5% of costs were recurring costs – in other words, only 0.5% is being invested in solving the problem.

“The focus must be on getting investment into Somalia and perhaps rebuilding the fishery business along the coast. If it gives employment to the local people, who are upset by the cultural changes imposed upon them by the pirates, they will turn away from the pirates,” he says.

In a statement at the IMO made jointly by ICC secretary general JeanGuy Carrier and Pottengal Mukundan, they said that: “The ‘business’ approach requires from the UN and the governments measures to create an environment where business can invest. This does not have to wait for a

stable political solution in all of Somalia, which could take many years yet.

It is aimed at providing the right infrastructure locally for specific projects.

Local Somali businessmen and Somali diaspora may be the right people to take these initiatives forward. It is worth noting that despite all the travails of Somalia, there are substantial hundred million dollar businesses that operate successfully with representative premises all over the country.

“We refer here to the money remittance industry – the only ‘banking’ system that Somalia has – and the telecoms industry, which is as good as anywhere in the continent. These businessmen know how to resolve the business problems in Somalia and run businesses successfully in the local context.

With their active involvement, we have the best chance of a sustainable commercial solution in the troubled areas of this country. The principle here is to create the right environment and then let business invest and take the business risk. This is what they do best. It is a cost effective model.”

Treatment of crews is getting worse, and time spent in captivity is much longer – six to eight months and, in the case of the Iceberg, the crew has been held for over two years and two crew members have died in captivity.

The EU has lately allowed EU navies to take action against pirates stores and fuel dumps on shore, which has had “a very good effect against the pirates.”

Maritime Security International

Summer 2012

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Security organisations

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Fighting fit with four Graham Cundy of Protection Vessels International looks at the advantages of four-man protection teams

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he consequences of poor decision-making when protecting vessels from the threat of pirate hijack can mean the difference between life or death, kidnap or escape, quick and favourable litigation or protracted and costly losses, insurance or no insurance, forced incarceration or continued freedom, ownership of asset or the lengthy loss of asset.

When considering the consequences of operational decisions relating to protection of vessels, the main concern should always be in preventing loss of life and protecting the freedom of our clients and operatives. Protection Vessels International (PVI) has developed into the largest maritime private armed security company through ensuring that we utilise four-man guarding teams – except in exceptional circumstances – at the centre of our core operational provision and, in so doing, optimise the protection of its clients and operatives.

This position is not taken lightly. In an unregulated market, others are selling security and assurance into a recessed trading environment on the basis of two- and three-man teams. Cheaper they may be and, in clear and closely evaluated exceptions, such teams may have their place. However, in the main, they are flawed in terms of protecting a vessel and absolutely counter to the service we should all provide – security and its absolute assurance.

PVI’s stance stems from a close examination of the threat, which falls into four key categories: response, redundancy, re-enforcement and logistics.

Within UK Special Forces, a minimum provision required to protect a vessel is a four-man team, which is the bedrock of operational structure. The hardwon lessons of our operatives (who are all experienced Royal Marines and UK Special Forces) that apply to combat operations carry similar justification with respect to countering piracy. As with the protection of anything valuable,

the issue is to ensure that focus is not on the provision one is afforded when things are going well and response is not required, but rather ensuring that there is the highest standard of protection when things go wrong.

Deterrence, while important in a counter-piracy provision, is not the same as protection. The soft assurance of three guards on board is not the same as the hard-nosed facility to assure and protect with four.

Why four-man teams?

The average vessel requiring protection in our market requires observation and the facility to prevent an attack from all sides. The Master, who is legally responsible under flag state law for the actions on board his vessel, must be appraised of the tactical threat as it evolves. The Master must have best advice before he grants permission to escalate a response to attack; the security team leader’s place is and should always be at the side of the Master.

The remaining members of a four-man team will be sent port, starboard and to the stern, which is where the threat is greatest or situational awareness is considered to be lacking. In terms of watch, the watch roster for a fourman team allows for a sustainable eight-hour shift pattern with a doubling up of armed watch during high threat periods for an extended transit period.

In contrast, a three-man team increases the workload on the team. It can maintain a round-the-clock watch roster for only a short period before becoming overly fatigued. The same cannot be said for a two-man team; in this scenario the ship’s crew must be responsible at times to alert the security team. This subverts the very reason why trained guards are on board. Furthermore, there is a clear risk that the security team leader in a

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Summer 2012

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two- or three-man team will have to leave the Master to defend the vessel, while the crew’s time and resource is impacted.

Afghanistan, Iraq and other high threat areas, yet considerably more than a two- or three-man team.

Moreover, redundancy is a fundamental part of military evaluation – the loss of one man in a team of four through illness, incapacity, injury or weapon malfunction, be that routine or through hostile action, reduces firepower by 25%.

While pirate attack methodology remains for the most part unsophisticated, pirates do have the advantage of the isolation of the seas. External help from a naval task force is unlikely and a smart pirate would know that a prolonged probing engagement of the ship’s defences could easily start to diminish the defender’s ammunition. Consider then the consequences of only 600 rounds for a three-man team or 400 rounds for a two-man team and the logistical advantage swiftly turns to that of the pirates.

In a three-man team, the loss in combat power would be 33%. and for a two-man team the loss would be 50%. This is a degradation that PVI deems unacceptable.

Reinforcement The facility to reinforce is seen to be of increasing value, not less. The nature of the piracy threat is evolving. If pirates are to continue taking vessels, they must adapt. Attack reports suggest that pirates have up-skilled with improved weapon systems and, potentially, night vision devices. The use of so-called “swarm attacks”, where up to 15 skiffs attack at once, improves the chances of the aggressors.

A four-man team allows the team leader the ability to either fight on three sides of threat or to reinforce one side where the threat is greatest. A threeman security team allows only for either both sides to be covered by one man or one side and the stern and not an ability to reinforce unless the security team leader chooses to abandon the Master. If the team leader abandons the Master, the Master has, in theory, lost control.

Logistics And while the importance of a four-man team operationally is crucial, logistical factors that are often overlooked by shipowners and operators have just as much bearing on the necessity for four-man teams. For example, the legal quantities of ammunition are restricted by most ports of embarkation to 200 rounds per weapon per man; a four-man team therefore holds eight hundred rounds at its disposal, a figure that would be seen as unrealistically paltry were similar security duties due to be conducted in

Summer 2012

PVI’s long-standing view is that you define yourself by all your actions, especially when the pressure is on. Our mantra is simple: don’t compromise when times are easy; don’t compromise when times are tough. The alternative is a paradox and a dangerous paradox at that – one where performance standards are not universally adopted, where purchase decisions are made in a recession in this new market. In a fragmented market, sellers offer more, or (apparently) the same, for less. This is the market – our advice to clients is to be very aware of its significant and potentially fatal variance.

Sometimes it is clear and ethical to make a stand. PVI is a maritime security company – we sell security; we sell assurance and we try to offer certainty.

Our operatives, we believe, are the best; our methodology is tried and tested. Anything less than tried and tested puts the lives of our clients at risk and puts the lives of our operatives at risk. The paradox of “anything less” is that competitors are not selling security at all. And it is only a matter of time before, in the current race to the lowest commercial compromise, an inadequately guarded vessel is taken. Given the potential for loss of crew, cargo and vessel and the likelihood of protracted and potentially a unfavourable legal processes subsequent to hijacking, four is an investment in assurance worth making.

Graham Cundy is a former commanding officer within the UK’s Special Forces whose responsibilities included the pursuit of HMG’s strategic interests in the areas of maritime counter terrorism and maritime military special operations.

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Nonlethal weapon Taking a proactive, intelligence-led approach to combatting piracy

Christer SjĂśdoff, GAC Group Vice President, Solutions

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non-lethal approach is fundamental to a sustainable, financially viable and effective approach to combatting sea crimes, including piracy in the longer term. Christer SjĂśdoff, GAC Group Vice President, Solutions, argues that the industry must look for a preventative solution to combatting sea crime in the long-term, rather than relying on armed guarding services.

The market for Privately Contracted Armed Security Personnel (PCASP) services has grown exponentially in recent years as owners and operators have responded to both the fear of an unknown threat and the external pressure to arm their vessels.

Their use has generated worldwide debate about the moral, legal and financial responsibilities of protecting crew, vessels and cargoes from potential attackers. Increased awareness and vigilance of the threat of piracy and the widespread adoption and integration of intelligence data into the way that shipping operates has opened the door to a financially viable, effective and global approach to combatting piracy and sea crime in the long term that is not wholly reliant on the use of arms.

At GAC, even if we don’t provide such services, we agree that employing armed guards under rare circumstances and where their use is proportional to the threat is both justified and an important means of protection. However, the use of non-lethal protective measures such as vessel hardening, robust crew training and the integration of maritime risk intelligence into operations globally must be the primary consideration for owners and operators before the use of arms is considered. Such proactive, non-lethal protective solutions must be the fundamental components of an industry-wide solution to tackling all sea crime.

Summer 2012

Looking beyond the threat: In any discussion of how best to provide a sustainable, affordable and effective means of combating sea crime, it is important to have a full understanding of the threat posed. Through the increased sharing of maritime intelligence across the industry, which has proliferated rapidly in recent months, we can be on the front foot. For the long term, as an industry, we must come to a realistic consensus on the severity of the threat of piracy and other sea crimes and create a viable long-term solution that is proportionate to the threats encountered.

To date, there have been no recorded incidents of any vessel with a freeboard over six metres and travelling more than 18 knots ever having been attacked, let alone hijacked. Considering pirate tactics off the coast of Somalia for example, we know that this is not a particularly sophisticated operation in terms of the methods used to attack vessels. Pirates can generally be outrun without risk of incident. Pirates in this region are operating in an opportunistic way, attacking non-hardened low and slow vessels, should they pass. Importantly, in developing a defensive strategy against attacks, we must be careful to avoid escalating the threat by relying exclusively on armed guards. This is where having a range of physical protective solutions in place and providing several layers of protection will discourage attacks.

Intelligent non-lethal protection A proactive, intelligence-led approach to combatting piracy and sea crime must include three fundamental elements: the use of live intelligence and risk analysis tools, vessel hardening devices beyond what is the standard today and a robust programme of crew training and pre-voyage preparation.

Maritime Security International

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Grant Hunter, Chief Ofcer for Legal and Contractual Affairs, BIMCO Yannis Calogeras, Product Manager for Gas Carriers and Tankers, Bureau Veritas

Stig Jakobsen, Head of Operations Department, MAN Diesel and Turbo

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Carien Droppers, Deputy Secretary General, Paris MOU Anne Skov Strüver, Head of Division, Maritime Søren Vinther Hansen, Senior Analyst, Propulsion Dynamics

Anders Engholm, CEO, Hafnia Management Katharina Stanzel, Managing Director, INTERTANKO

Nigel Anton, Managing Director & Head of Shipping Finance, Standard Chartered Bank

Michael Wilson, Chairman, INTERTANKO Vetting Committee and President, Laurin Maritine (America) Inc

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Security organisations Caption Š Unifire

The availability of live data aggregated from a wide range of sources to monitor developing threats is now key to helping us understand the threats we face and how we can best combat them. The spread of sea crime worldwide, far beyond Somalia and the Indian Ocean, demonstrates the need for preventative solutions on a global basis, not just in areas identified as high risk. Such intelligence must provide the backbone of a multi-layered anti-piracy defence strategy and be central to operational practice in order to mitigate risk.

Through its partnership with maritime intelligence agency AKE, GAC Protective Solutions provides a suite of intelligence services to help owners and operators to accurately assess the threat posed to their vessel and to take additional steps to mitigate the risk of attack. To ensure the effective use of maritime intelligence, we have integrated the risk alert system into our Fleetweb navigation and weather routing system provided

by GAC-SMHI, our partnership with the Swedish Meteorological and Hydrological Institute.

The Fleetweb system provides precise co-ordinates and incident details of pirate attacks and reported sea crimes worldwide to allow operators to immediately inform their ships of attacks in their vicinity and along their planned routes. The ability to share information globally, in real-time, is key to transforming the industry’s approach to tackling sea crime.

Of course, intelligence-driven solutions must be paired with a robust prevoyage training programme to ensure that all crew are able to accurately assess a threat and are aware of exactly how they should react in the event of an attempted attack. Training also ensures that a watertight process of escalation is put in place, should it be required. To maximise the effectiveness of pre-voyage planning, simulation exercises will provide crew members with practical experience of a threat scenario and help to identify a chain of command and action.

In partnership with AKE, GAC Protective Solutions provides a range of training courses delivered by experienced marshals who provide intensive pre-voyage drills. Such measures have proved highly successful and no vessel with a highly trained crew has been hijacked.

Summer 2012

Importantly, owners and operators should also utilise available vessel hardening devices to ensure that any potential attackers can identify that the vessel is not an easy target. There is a range of vessel hardening devices available on the market, and a substantial amount of money is being invested into research and development in this field to provide cost-efficient and effective means of protection.

Currently, GAC Protective Solutions provides owners and operators with a number of means for hardening vessels, including the use of Unifire’s SEASERPENT Water Cannon System, which rapidly floods pirate skiffs by delivering a jet of up to 80 litres of water per second. We also encourage the installation of reinforced citadel protection to ensure that even the most determined hijackers, if they are eventually able to board a vessel, cannot gain access.

A long-term solution There is a very strong case for ensuring that non-lethal protective measures should remain the starting point for ship owners and operators as part of a proactive, integrated and intelligent approach to assessing, monitoring, training for and protecting against the threat of all sea crime. While piracy is more prevalent in certain areas, sea crime is a global problem that requires a global solution. It is imperative that this solution is financially viable, operationally effective and equips owners and operators with the range of preventative measures they require in order to provide a safe working environment for their crew and the safe transit of vessels and cargo.

GAC Protective Solutions, Powered by AKE, offers a variety of solutions including hardware and training that would cost not less than US$5,000 a month per ship.

Realistically, we cannot afford to rely on armed guarding as our only go-to solution, as it comes at a considerable cost. This is not to say that there is no place for armed guards, but their use should be a last resort, deployed in addition to a suite of non-lethal defensive measures, rather than as an alternative. Such an industry-wide solution to combating sea crime must be globally deliverable, cost-effective to procure, simple to install and safe to deploy.

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Assessing risk Trying to avoid pirates in the first place is one approach

Murray Hammick, managing director of Chenega UK

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henega Federal UK announced the launch of its intelligence led, integrated maritime security service, Open Ocean on July 11 – a new service designed to provide shipowners, operators and managers with a comprehensive programme to meet their transit security needs when operating in areas at risk of pirate attack.

or adopting “static policy responses to the high risk area”. He includes in this category routing advice in exclusion zones and says he is not convinced that a routing policy or an exclusion zone is the right response to a “dynamic threat”. At best failing to use information and intelligence intelligently burns extra fuel and adds time costs he says. At worst, it can put ships and seafarers at risk.

According to Mike Powell, head of industry liaison for Chenega UK Ltd the shipping industry only relatively recently focused on transit security issues. “We lack capability and infrastructure and we need to acquire some quickly if we are to play our part in securing the safety of seafarers and the global transport network”. He believed that there was a “disconnect” between those flag states with significant safety capability and those without. While institutions and the international community do their best to respond, seafarers suffer, Powell said.

Another area of concern is vessel preparation and hardening. In general, Powell said, the industry had done a good job. Best Management Practice is now in its fourth version, “but I did hope to see comprehensive rewrites of vessel security plans and a fairly consistent level of advice and adoption of best management practice. I also expect to see some decent seamanlike common sense applied to the issue of procuring hardening materials and using the readily available in innovative ways in addition to advocating ‘hard to come by and expensive’ and there is plenty of that out there as well”.

A number of lessons have to be learned from a class of risk that represents a significant threat to the safety of seafarers and shipping but does not result in concerted and coordinated intervention from the wider international community. Somali piracy and incidents in the Gulf of Guinea could fall into this category, he said, although with respect to Somali piracy the international community has mobilised this took a long time, and Powell said he wondered how long it would take to get mobilised as far as the Gulf of Guinea is concerned.

Another element of concern is the increasing use of armed security personnel. Many companies are very small, he said and not suitable partners to manage the security of multi-million dollar assets. Some of them, he said failed to appreciate the certain risk that they might be introducing to ship operations which might be worse than the potential risk that the owner/operator was trying to avoid. An example he says is the dangers of discharging a firearm in conditions when pressure vacuum valves on the tanker are releasing vapour.

Despite the quantities of information available to companies operating in the piracy area, some owners and navigation teams can make “odd decisions” Powell said, including sailing significant additional distances without adding to safety, or sailing straight through areas of known risk

PMSC assessment and accreditation “remains a mess”, according to Powell .This despite the best efforts of organisation like SAMI and SKEG. Engagement of private maritime security companies can be complex, with reviews of contracts, standard operational procedures and rules for the use

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Security organisations

of force being some of the issues that need to be considered. There can be multiple payments involved in a transit sometimes, Powell said because the PMSC cannot mobilise the necessary funding.

BIMCO’s GUARDCON form has had a big role to play in streamlining the process, but a lot remains to be done, he said. He accepts that armed security guards are becoming important, particularly for seafarers but their deployment needs to be under strictly controlled conditions and as result of a managed risk based process and “not because of their own advertising or our own fear”.

Murray Hammick, managing director of Chenega UK says that the shipping has had to deal with the problems of responding to piracy in a rather “haphazard fashion” because of the lack of organisation and institutional regulation that applies to the Somalia situation. In consequence, he said, it is inevitable that the response by the industry is haphazard. The issue, he believed, is that piracy “should never affect you”. Chenega’s policy is create a situation where you avoid the problem.

He said the first impression from owners and charterers was they wanted the problem taken away. What concerned the company, he said is whether the level of due diligence inherent in the selection of a small security companies was demonstrable in a court of law. Chenega divides the process into a number of phases, firstly by trying to avoid the pirates in the first place.

The second phase is that if the ship is seen, that it isn’t selected because it is deemed to be well guarded.The third phase, if the ship is selected that is important that the hardening is competent. It the ship is boarded “you should be adequately trained and prepared”.

Good intelligence is key and Chenega teamed up with specialist maritime intelligence agency Dryad Maritime. He says that of the 200 to 300 transits on which Open Ocean and Dryad have collaborated during the last year, “not a single ship under Open Ocean’s protection has ever sighted a pirate”.

Chenega uses a number of security services to provide the armed vessel component including Acuitas, Regal Maritime Solutions and Spirit Security Services. “Security teams with Open Ocean are not just guns on deck” “We are not here to deliver guns we are here to deliver a system which above all avoids the use of guns because at the end of the day a life lost is a life lost.”

Jonathan Pethen of Securewest’s business development team says that the key issue at the moment is the correct and appropriate application of the use of force. This issue, he says has been highlighted in the minds of Securewest’s clients, not least after the shooting of two Indian fishermen by Italian security personnel on the Enrica Lexie in February. What the incident highlighted, he says is how important it is to have correct identification of potential threats before any use of force is considered.

One issue he pointed to was the fact that there may be as many as 19,000 fishing vessels operating from Yemen alone, and if one considers how many could be operating off the Indian coast, “it certainly puts the problem in perspective because the pirates will want to look as though they are fishing boats.

Summer 2012

“Just because you see a man with a gun in a boat doesn’t mean he is a pirate, because the fishermen themselves are now carrying guns”. It is, he says a matter of being able to spot the fact that, for example, ladders are being carried which clearly are not fishing gear, as opposed to other equipment which may be on the boat. “It is very much a question of making sure there is that positive identification of threat. I think in the past shipowners have taken the view that they wanted to hold off potential threats as far away as possible, but having now had those incidents, they are very much more aware that use of force has to be very much more measured.”

He says that in Securewest’s experience, simply showing there are weapons on board and firing warning shots in the air “is more than adequate in most instances to deter any further approaches”. Pirates, he says, are looking for soft targets, and the company is working with its clients to ensure that they do not fall into this category.

The other issue he stresses is the importance of vessel hardening. It is not a question of having either armed security or vessel hardening. The two must go together. “If we have done a risk assessment in advance of a transit determining that the vessel is not safe for our people to go on, we would not choose to go on the vessel”. He said that the company might advise on remedial action that could be taken so that their personnel could go onboard but “that is all part of the risk assessment upfront”.

Securewest’s insurance arrangements meet the IMO guidelines, he says and in terms of third party liability are of the order of $15m. He says the company’s clients consider that if things go wrong at sea this is going to happen quickly and becomes expensive very quickly as well, so it is important to have adequate levels of insurance.

In terms of the master’s position and potential conflicts with the armed personnel team he says that Securewest’s personnel would have a meeting with the master as soon as possible to go through procedures. There would be constant communication between the master and the team at any point if an incident took place, he said. The company would also look at the ship security plan and would go through it with the master to make recommendations to improve it, including those relating to vessel hardening.

“It is quite surprising how fairly small changes can make a big different and sharing best practice is a very important part of what we do”.

Securewest was formed in 1987 and had been doing armed security before the Somali piracy issue came along and “that experience has enabled us to have the process and procedures as well as the experience in place to apply that into the commercial shipping market, he says. The company has also done unarmed security guarding, as far stowaways are concerned. “If a ship is in port, we provide an unarmed service, including gangway security and regular security round the vessel.”

Equally when a vessel is about to leave port it is a question of doing a search of the places where you might find people have stowed away.

Clearly if you leave port with stowaways on board and you get to sea and then discover them, sometimes it is necessary to turn around and take them back.”

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Vetting vision SAMI is trying to boost quality standards

Peter Cook

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AMI, the Security Association for the Maritime Industry is the brainchild of Peter Cook, who in 2008 started looking at the range and quality of security firms offering their services to the shipping industry.

He splits the client base into three groups, firstly owners, charterers and managers, secondly flag states and then marine insurance.

In considering the security companies available in the market, these fell into different categories – the better companies have overheads that had to be covered by what they were doing and what he calls “coffee shop cowboys” who had no overheads and could therefore undercut the more established operations.

His idea was to draw up a list of the reputable companies and set up a guild with the view of improving standards over time. He and his colleague Steven Jones did a large amount of lobbying among the different stakeholder groups and anticipated having between 35 and 50 companies in SAMI. “We now stand at 163 companies in 34 countries. It has been significantly more successful than we dreamed”.

So how did they measure whether the companies were good or not?

Firstly, by getting them to sign the International Code of Conduct for Private Security Service Providers which came out in 2010. The second was to pay a subscription to SAMI. The next stage he said was to establish a standard to give SAMI some weight. At the same time SAMI signed a memorandum of understanding

with the Marshall Islands so that Cook could act as security adviser to the Marshall Islands at the Maritime Safety Committee meeting last year when MSC Circulars 1405 and 1406 – which provide interim Guidance and Recommendations on use of Privately Contracted Armed Security Personnel (PCASP) – were written.

SAMI decided to draw on those to set its accreditation standard and set up the Standards Accreditation Working Group who looked at the circulars and at how the measurement of those standards could be implemented.

This process took about six months to complete. SAMI formulated a three stage accreditation programme. The first stage was due diligence, looking at all the documentation and whether the company had insurance in place. Stage two involved a headquarters audit looking at the company from an administrative, operations and logical perspective to ensure that the company has sufficient resilience so that if it was doing 20 transits at the same time if something when wrong with one of them, it would not affect the others.

Many companies will already have a significant number of personnel on their books that they have already checked and probably trained, he said.

There are probably a total of about 3000 trained personnel in the pool of people and the bigger companies will have far more people on their books.

However it is not possible to keep people on the payroll all the time, Cook says, because if they are not working they are being paid for nothing.

The number of companies is probably at saturation point at the moment – partly because of the economic situation, but also because the number of successful attacks has dropped leading people to imagine that the threat

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Steven Jones

is no longer there. “I think there will be an element of complacency”. The economic situation could also affect international navies ‘commitment to policing the area.

The Indian Navy has announced new provisions relating to the use of armed security personnel on its vessels aimed at enhancing its vigilance in the Indian EEZ and westward.

The maritime security industry is a relatively young one and unusually, the main players in the industry are striving for regulation. “They want to know what the rules are, and they want to operate on a level playing field,” Cook says. Although SAMI has 163 companies in membership, there will be more out there. He believes that there will be more consolidation and mergers in the business in order to ease the selection process for the client.

The Indian government has also announced plans to take further steps including: »» Banning sailing vessels in waters south or west of the line joining Salalah and Male. »» Active participation of India in the International Maritime Organization, Contact Group on Piracy off the Coast of Somalia (CGPCS) and other international fora. »» Constitution of an inter-ministerial group of officers to deal with any hostage situation arising out of hijacking at sea of merchant vessels with Indian crew on board.

He says that over the next 18 months the number of companies will probably shrink to about 50, and a lot of companies will be striving to differentiate themselves from the pack. Companies are being forced to reduce their prices because there is less take up. Companies are also being forced to reduce their team sizes, which could make the team more vulnerable. Although much has been made of the success rate of armed security teams, “if team sizes are going to be reduced, it is only a matter of time before a team will be caught out”.

Successful protection of vessels depend on a number of factors, not just naval resources, but armed security and the use of best management practices (BMP 4) which is getting a better take-up. “When you put all those together, that is why the number of attacks has been successfully reduced. If you were to take away one of those factors, I think we would see a significant increase.”

Summer 2012

The moves were announced by the Minister of Shipping, Shri G.K. Vasan The use of armed force on vessels has once again been called into question recently with the shooting of Indian fishermen on by security personnel on the USNS Rappahannock near Jebal Ali in the United Arab Emirates.

The Indian authorities have asked the UAE to investigate the incident further, in case which sparks further debate following the Enrica Lexie incident involving Italian security guards.

The Indian authorities have already warned that they may take action to extradite the individuals involved in the shooting, in which one fisherman died and three were wounded, or request the UAE authorities to prosecute them.

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Legal issues

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Making piracy a priority What are the legal issues when tackling piracy?

Stephen Askins, partner at international law firm Ince & Co

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number of legal issues surrounding the piracy issue have been aired recently, most notably at the United Arab Emirates Counter-Piracy conference held in Dubai in June, organised by the UAE Ministry of Foreign Affairs in conjunction with port operator DP World.

Legal issues raised revolved around the role of international law in the suppression of piracy and the need for new standards and compliance regulations. Other concerns on the legal agenda in recent times include whether a new convention should be introduced that would ensure pirates could be tried at an international tribunal like that in the Hague.

As Eugene Kontorovich, Professor at Northwestern University School of Law, pointed out in his opening paper to the Dubai conference, in theory the international prosecution of pirates “should be easy” as under international law any nation can try a pirate it catches, even if it has no connection with the crime.

However, while many nations have sent warships to protect shipping transiting the Gulf of Aden and the danger zone off the Somali coast, the issue of trying the pirates in national courts has been of less interest and many suspects have been released.

According to Kontorovich, legal efforts would be “better focused on removing impediments to vigorous private and naval efforts to defend against pirate attacks”. He suggested that countries may be reluctant to prosecute because, in the first instance, defendants in piracy cases may not

be caught in the act and also because of difficulties in preserving evidence, obtaining admissible proof that the defendants are old enough to stand trial and other technical problems.

He argues that while individual countries have prosecuted pirates in their own jurisdictions, there is a lack of willingness to prosecute in cases where their own nationals are not involved. An additional issue is that Somali pirates who are prosecuted and convicted of piracy could not be extradited following completion of their sentence because of human rights considerations and international law.

Kontorovich believes that the doctrine of non-refoulement “makes most states hesitant to handover suspected pirates to Somali authorities for trial, preferring instead to release them. Also, given that low-level pirates are typically young men and the pool of potential pirates in Somalia is large, so long as ransoms get paid, a country that agrees to try pirates could be accepting a large permanent pirate population for an indefinite time.”

“For arrangements with regional states to be successful, they must be durable. Kenya originally took the lead in accepting pirates captured by other states, but cancelled these arrangements after just one year, leaving the status of over a hundred Somalis that had been already transferred there in considerable doubt,” Kontorovich says.

“The Seychelles has stepped into the gap, and successfully conducted several cases in a very creditable manner. However, the Seychelles is a small country with serious judicial and penal capacity constraints. In fact,

Maritime Security International

Summer 2012

Legal issues

the Seychelles has begun re-transferring pirates that had been transferred to the Seychelles for trial back to Somalia for incarceration, raising many of the non-refoulement problems for European nations.

“Recently, the UK has facilitated the establishment of regional ‘prosecution cycles’ with countries such as the Seychelles, whereby pirates captured

by UK forces are passed to the Seychelles for trial and then transferred to regional territories of Somalia such as Somaliland where they serve sentences in UNODC-established penal facilities that have been constructed and are operated in line with international standards,” he says.

According to Stephen Askins, partner at international law firm Ince & Co, it has taken a long time for the international community to “get off the back foot and start giving piracy the priority it deserved”. In a paper commissioned for the Dubai conference, he said that the “change of mood can be traced back to the autumn of 2008 with the hijacking of the Sirius Star and the arms carrying Faina. A lack of political will meant that the international community failed to contain piracy at precisely the time that it began to proliferate and spread into the Indian Ocean.

“With the shortcomings of the international community, industry was left to create its own standards – and has proved itself adept in responding to the evolving tactics of pirates. As a somewhat inevitable drift towards the use of armed guards has taken place, the international community has mobilised to put in place much needed national and international standards in order to ensure that those people who are guarding vessels are regulated. These include the Best Management Practice Guidelines and Guidelines for the deployment of armed guards.” he says.

According to Askins: “There has been some frustration from the naval forces as to why more cannot be done by, for example, insurers to force greater compliance. He says it is difficult to enforce BMP. ”Owners can only be nudged into compliance and more likely insurers will make policies conditional on having one or two key Ship Protection Measures such as the deployment of razor wire or a condition that the

Summer 2012

vessel trades at a minimum distance from the coast of Somalia. Additionally, the Maritime Security Centre, Horn of Africa, has a policy of reporting what it sees as non-compliance by flag states, who then follow up with individual owners, a practice that has proved effective to enforce higher levels of compliance.

Some commentators are concerned that BMP 4 and other similar guidelines imposed by flag states have become almost mandatory in tone, a concern to shipowners because if a vessel is hijacked then there is a greater chance that cargo or charterers will be able to find fault in the conduct of the owners or master, which in turn might give rise to contractual liabilities.

However, notwithstanding the increase in the use of armed guards, it remains the fact that most vessels avoid being hijacked through good seamanship and the adherence to the principles of BMP than by anything else. BMP has proved to be a successful policy of self-protection, and indeed many of the generic principles within it can be applied in other high risk areas such as in the Gulf of Guinea, which is fast becoming a hot spot to rival the Gulf of Aden. “ The case of the Iceberg, he suggests has shown that pirates are prepared to wait for the ransom to be paid.“As pirates have been forced back to using dhows as mother-ships, we will have to wait to see how this affects their appetite to continue their hijacking activities and how they may be forced to change their tactics or the type of weapons they use.

In conclusion, Jacques Belle, legal expert for the Indian Ocean Commission anti-piracy cell, said in his paper to the conference that “the best remedy to solve the problem of piracy off the coast of Somalia is by establishing an effective co-operation framework between regional states combating piracy, both at the operational and the legal levels. This solution cannot be led by a single country, not even by a single international organisation: it requires a concerted action on the part of the international community as a whole. However, the IOC has so far demonstrated a remarkable effort in galvanising regional action in this area, and it is not surprising if today IOC has won a deserved reputation of being the ‘champion’ for mobilising regional states in the fight against piracy.”

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Corporate viewpoint POLICY & FORUMS 26

Is your policy fit for purpose?

I

Nick Roscoe explains why PMSCs should always take a long, hard look at their insurance policies

For more information, contact: Nick Roscoe at nicholas. roscoe@marsh.com Mark Jonas at mark.jonas@ marsh.com

n spite of an exemplary record to date, it is likely that, within the next 12 months, a Private Maritime Security Company (PMSC) will be extremely embarrassed – if not bankrupted – by having to pay a claim itself that should have fallen within its insurance. This may appear a controversial statement, but concerns over the inadequacy of insurance being bought

by PMSCs have been voiced through the press and behind closed doors in insurance circles for some time – and with some justification.

A number of organisations have taken constructive steps to address this issue.

The International Maritime Organisation (IMO) has made recommendations; the Baltic and International Maritime Council (BIMCO) has developed Guardcon; the P&I Clubs have provided valuable support and guidance to their shipowner members on a contract by contract basis; the Security Association for the Maritime Industry (SAMI) has played its part through its accreditation process; and other organisations have made contributions too. So why are so many PMSCs carrying inadequate insurance and where do they fall short?

While, inevitably, some PMSCs are prepared to under-insure as long as their premiums are low, we are encountering many companies that are oblivious to the deficiencies of their cover. In many cases, they believe that they have bought a high-quality product, normally because their policy provides cover to IMO or Guardcon limits. Yet a proper analysis of the wording soon establishes that what looks like a high-performance sports car on the outside is perhaps an old banger on the inside.

Problems can arise from buying different standalone policies from different insurers. By buying “off the peg”, there is a danger that some risks will be “double insured“ while others fall through the gaps between the policies.

Although wasteful, applying the insurance principles of “contribution” can run smoothly where the underwriters are in agreement. However, when they disagree, a PMSC can find itself incurring significant legal costs to establish, for example, whether the proximate cause of a loss was the planning of a transit, written by one underwriter, or its execution, written by another.

“Adapted” policies are another concern. Naturally some historic clauses lend themselves to the maritime security industry; others, however, do not. While there is no rule that can be applied to judge the good from the bad, a careful look at the exclusions, limitations and writebacks can give some clues. If, for

“We are encountering many companies that are oblivious to the deficiencies of their cover”

example, a policy includes a “watercraft exclusion” it was probably designed for onshore security and may be less relevant than one designed for a maritime venture. Also, if there is such an exclusion, the PMSC should make sure that the writeback is genuinely written back in full.

Nick Roscoe

Maritime Security International

Summer 2012

In other cases PMSCs have either misunderstood or been misled on some of the rudimentary issues. Examples include PMSCs that believe that they do not require Personal Accident (PA) cover because they have Maritime Employers Liability (MEL); and those that believe that they do not need a statutory domestic Employers Liability (EL) cover because they have a MEL policy.

We have come across companies that have bought an EL policy that insures them against a filing cabinet falling on someone in their office, but they do not have cover for what could happen to a guard at sea. The list goes on and we have not even mentioned the complexities of kidnap and ransom.

So when will this change? The pressures being exerted by the various industry bodies will continue to force improvements in insurance buying by PMSCs in increments, but many lessons are learned in the “school of hard knocks”.

A significant uninsured claim would be likely to accelerate the process, especially if the underwriters involved are unused to handling maritime claims.

Insurance Caption

War risks Cover for war risks terrorism has been on the P&I agenda

T

he International Group of P& I Club has been involved in lengthy and detailed consultation in recent months on the question of extending the scope of the Group’s pooling and reinsurance arrangements to include cover for war and terrorism risks. Under the current arrangements war and terrorism risks are subject to a general exclusion and any change must be agreed to by a three quarters majority. It is now clear that there is not a majority in favour of change.

The Athens Convention is an issue that could be described as one that has hit the top of the agenda for the insurance industry and then subsided into the background over the past few years. Concern over the need for increased cover in the cruise industry has been particularly acute, not least in view of the number of passengers carried aboard current newbuildings.

According to the IG: “The most immediate consequence arises in the context of the EU Passenger Liability Regulation which enters into force in the EU and EEA on 31 December 2012. The Regulation incorporates the substance of the Athens Convention 2002 together with the Reservation and Implementation Guidelines adopted by the IMO in 2006”.

Sufficient levels of insurance for maritime security company has been an on-going concern for the insurance industry and BIMCO’s new GUARDCON form outlines the insurance requirements for armed personnel on vessels.

Passenger vessels operating in or flying the flag of an EU/EEA state which are subject to the Regulation will be required to have a state issued certificate on board confirming that there is insurance in place which meets the requirements of the Regulation. One of the requirements is that insurance or other financial security is in place to cover liability to passengers for injury and death arising out of acts of terrorism.

“The effect of the recent decisions by boards is that P&I Clubs will not be able to provide insurance or financial security for terrorism risks under the Regulation in reliance on the International Group’s pooling and reinsurance facility. The operators of vessels subject to the Regulation will therefore need alternative arrangements to be put in place. International Group Clubs are examining alternatives aimed at ensuring that members are in a position to comply.”

Summer 2012

GUARDCON

As Caitlin put in its recently produced report Piracy 2012 – Managing the Risk, “the private security company must have suitable insurance in effect, underwritten by a reputable insurer licensed to provide the specific classes of insurance in the areas of operation. The requirements of GUARDCON should be regarded as a norm even if the owner is using another contract.

Normally, the accrediting organisation will check the policies, but the owner should confirm that the full cover is up to date.”

The Catlin report says that “BIMCO designed the contract so that ship owners and security companies could negotiate and amend some of the more commercial terms, such as those relating to payments and fees.

At the same time, it strongly advises against amendments to the key clauses - those dealing with insurance, liabilities, the master’s authority, and permits and licences - as it says any changes could prejudice an owner’s P&I cover.“

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8 - 10 October 2012 Trident Hotel, Nariman Point, Mumbai

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Insurance Caption

“The insurance requirements in GUARDCON will ‘raise the bar’ for security companies, BIMCO acknowledges, and some financially weaker operations may not be able to meet their obligations. This is deliberate and is intended, along with the permits and licences provisions, to weed out operators who could place ship owners and their crews at risk.

According to the report as a minimum, the insurance should cover: public liability; professional indemnity; maritime employers’ liability; employers’ liability; workers’ compensation (if applicable); personal accident and medical evacuation and kidnap and ransom (if not covered by owner or charterer).

Additionally, the terms of the insurance policies should reflect liabilities imposed on the security company in the contract conditions, a number of which are not standard policy conditions, including such issues as jurisdiction of the contracts, deliberate acts including the use of force and joint insured status, Catlin says.

Piracy 2012 : Managing the Risk. www.catlin .com

CONWARTIME A key judgment for owners and operators was handed down by Mr Justice Teare relating to ability to reject a voyage order because of the exposure to war risk or piracy that is contained in the CONWARTIME contract.

According to law firm Holman Fenwick Willan since the Court of Appeal decision in the Product Star No 2 “it has often been argued that there should be a twofold test: the first limb is whether it appears in the owners’ reasonable judgement that there is a real likelihood of exposure to war risks; the second limb is whether there has been a material increase in that risk between the date of the charterparty and the date of the voyage order.

“Analysis of the first limb is by no means an easy matter. The second limb adds a layer of complexity and gives rise to potential inconsistencies in a chain of charters where there are significant differences between the dates of the respective charters. Teare J’s judgment will be welcomed because it appears to remove the need for the second limb of the test by confining

Summer 2012

the judgment in the Product Star to its specific facts and rejecting it as a judgment of general application.

“This is a key decision for both owners and charterers to be aware of, as it clarifies the operation of the liberty in the CONWARTIME Clause. The case is also relevant to charters that do not incorporate the CONWARTIME Clause, as the wording in the Product Star case itself was a bespoke war risks clause and CONWARTIME was not included. Every war risks clause must be interpreted in the light of the particular clause, charter wording and specific factual circumstances. However, there is apparently no general rule that the risks must increase/escalate for owners to be entitled to refuse orders pursuant to the war risks clause.

“In light of this case, owners fixing vessels should continue to specifically exclude countries/ports they view as excessively risky. The rights exercisable by owners under the war risks clause should be viewed as a fall back to these specific exclusions. Charterers will of course want to continue to reduce exclusions to a commercially achievable minimum and to specifically include countries/ports involved in any known trades. In this way, charterers can seek to reduce the likelihood that owners will be entitled to refuse orders under the relevant war risks clause.”

New Cover The Standard Club has expanded its range of insurance products to include a K&R policy designed for owners whose ships are transiting areas at high risk piracy.

According to the club It extends to all associated expenses including loss of hire, loss of ransom in transit, crew liabilities arising from kidnap, legal expenses and the cost of negotiators. The club will handle all claims resulting from the piracy cover and has an agreement with a specialist company to assist with any kidnap incident. Cover for ransom payments and associated expenses will normally be limited to $5m per insured event, $2.5m for loss of hire, but higher limits can be arranged.

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Kidnap and ransom

30

Leo Kissel, managing director of Hamburg-based Trident Special Risks

Kidnap: counting the cost Why should shipowners have kidnap and ransom insurance in place?

A

lthough discussions about whether or not to make ransom payments have been going on for some years, the payment of a ransom is likely to remain the only way to ensure the release of captured crews – and that means having a good kidnap and ransom policy in place.

all of which reduce risk for insurers. An increasing number of ship owners are aware of the need to put certain safety measures on their vessels, he says. “The other thing I see with my own clients is that $5m limits have become pretty much standard K&R cover and now, more and more clients are looking for $7.5m or possibly even $10m.”

With the ongoing problems of piracy in West Africa, Somalia and elsewhere, kidnap and ransom (K&R) insurance is one way owners can cover themselves. According to Leo Kissel, managing director of Hamburg-based Trident Special Risks, talk of banning ransoms raises a couple of moral problems: first, what happens to those seafarers who are already being held hostage and second, what happens to seafarers who are taken hostage in the future.

Kissel, however, says he is in a good position to deal with these demands because his business relationships mean that he is not obliged to approach several underwriters to cover a single transaction.

“At the moment, paying ransoms is the only viable means of freeing these people in a safe manner,” Kissel says. “If the UK Government decides to ban ransoms, are they going to go in and safely extract these people?

Discussions about banning ransom payments do not address either the moral issue, or the practicalities behind ransom payments.

The underwriting market for kidnap and ransom (K&R) is international – there are a number of players outside London that Trident Special Risks is in contact with and who can provide such cover.

Pricing for cover on the maritime side has reduced. One reason for this, Kissel says, is competition in the market, the advent of armed guards on vessels, the use of citadels or “panic rooms” on ships and training crew,

If the success rate for pirates is going down, causing ransom payments to go up, another concern Kissel has is that the media is projecting an overoptimistic view of the situation. “There are just as many pirate attacks now as last year, except success rates have gone down. If people start to think the situation is becoming safer, that is not the case. I think it is the wrong perception because then you might have shipowners being lax with their safety precautions. It is a weird situation at the moment,” he says.

For example, Kissel says Nigeria is a developing situation on the piracy front, one he believes will develop along the lines of the Somalia model, including the use of mother ships.

Nowadays, though, more and more armed guards are being deployed on ships, which Kissel says is a good thing. However, he says he sees a lot of armed guard companies that don’t have sufficient insurance coverage for the services they provide. “That is a big problem,” he says, and the situation is not improving. “My gut feeling tells me a lot of these people

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Summer 2012

Kidnap and ransom

think it is quick money, but it boils down to the professional services these companies provide to their clients. The one good thing that has happened in that arena has been BIMCO’S GUARDCON. I hope that it becomes standard procedure to have that in place because it weeds out the non-professional companies.” Kissel is seeing more companies coming to him for insurance coverage incorporating GUARDCON into their own systems. “When they employ armed guards, they make sure GUARDCON is the contract. It is becoming more prevalent in the market, which I feel is a good thing. There needs to be some sort of standard.”

So how does Trident position itself cost-wise? “Taking into account we are brokers, we scan the market. Because of our network, I have a very good idea about what kind of risk is placed, where and at what price. I am not hooked to one underwriter – that is something I refuse to do – because I am working for my clients. My clients are shipowners and charterers, so I am always looking for balance in pricing and value for money. For me to say ‘I can get the cheapest product’ is not correct.”

So is the K&R offering providing more effective cover than that offered by a hull and machinery policy or a war risk policy? “Obviously, a ship needs a hull and machinery policy and war risk policy – there is no debate about that as there are several risks covered that it needs to have. When you have a marine K&R policy you have guaranteed access to risk consultants. These are specialist companies and if your ship is hijacked, you call one number and the specialist will fly out to your company and if necessary sit with you 24 hours a day and guide you through the whole scenario.”

While specialists will provide guidance during ransom negotiations, Kissel says it is important that the final decision is taken by the shipowner. “It shouldn’t be something that is done by third parties or the underwriter,” he says. The other benefit, Kissel maintains, of having a K&R policy is “you are protecting your hull and machinery and war claims records”. If separate cover is not in place, premiums would go through the roof, he says.

Summer 2012

As far as escalation in ransom payments is concerned, Kissel acknowledges that the size of ransoms is going up and crews are spending more time in captivity. However, he believes that the size of ransoms is increasing because the success rate of the pirates is going down.

“They are trying to get the most out of the assets that they do have. This means they are trying to bloat that number up. They have been successful in doing that, which also means that the negotiation time can be longer and longer, especially if negotiators on the pirates’ side change. Right now we are looking at something like 150 days to 180 days,” he says.

Kissel says that he warns his clients that buying a K&R policy for $5m might not be enough. He advises his clients not to get policy cover for less than that and would probably suggest around $7.5m “to be on the safe side”. One recent trend that Kissel highlights, and one he says has not had as much coverage as it should do, is that of pirates separating the crew off from the ship and holding the crew themselves for ransom after the vessel has been freed. He believes that this trend is likely to escalate.

In the case of the crew being separated from the ship, the question is then raised as to what the role of the P&I Club is in that case? According to Kissel, that depends on P&I Club rules, but he believes “nobody knows”. He says he has spoken to a lot of industry players – hull and machinery and war underwriters – and using general average and sue and labour clauses are accepted market practice when considering the payment of a ransom for the return of the ship and cargo.

In the event of only the crew being involved, the question then arises as to whether general average is applicable to the situation. Kissel says he tells his clients that the marine K&R policy “should always provide for clarity of coverage. Whether the crew is on board, or taken away separately does not matter. You get what you pay for.”

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Interview POLICY & FORUMS 32

Hostage crisis What are the implications if Whitehall decides to ban ransom payments?

Sandra Speares talks to Allan Graveson, senior national secretary of seafarers union Nautilus International, about the issue

R

ecent comments by the UK government that it is considering banning the payment of ransoms to secure the release of hostages has caused widespread concern in the shipping industry.

Payment of ransoms has been the principal means of securing the release of seafarers taken hostage off the Somali coastline and Nautilus has not been the only shipping body to protest to UK Prime Minister David Cameron about the possible effect of banning their use in hostage situations.

Cameron has set up a task force to consider how to stop the payment of ransoms and when asked why he thought the Prime Minister had decided to look at the issue, Graveson says that his information is that the move has been “instigated by the United States”. While Cameron announced the initiative at the February conference on Somalia, “these things are not just plucked out of fresh air”, says Graveson and he believes the Americans wish to move in this direction.

Graveson also says that he has heard – but has not been able to confirm – that a presidential order on the ransom issue has already been signed in the US, but has not been put in effect.

At the Somalia conference in London, Cameron commented: “Let’s create an international taskforce on ransoms. And let’s set the ultimate ambition of stopping these payments because in the end they only ensure that crime pays.” Further comment came from Hilary Clinton welcoming “the UK’s initiative to create an international task force to discourage the payment

of ransoms to pirates and other groups to eliminate the profit motive and prevent the illicit flow of money and its corrosive effects”.

As far as the UK is concerned, different options are being considered, including an outright ban or ways in which ransom payment could be capped or reduced. “What I find particularly repugnant is they are looking to limit this purely to Somalia,” Graveson says. While kidnap and ransom insurance would still stand – so for example the chief executive of a company who was kidnapped elsewhere in the world could have a ransom paid for his or her release – but seafarers working for that same company and taken hostage

by Somali pirates could not have a ransom paid to secure their release.

“There is certainly a double standard here,” he says.

The industry is united on the issue of ransoms, Graveson says, including trade associations like Intertanko , BIMCO and the UK Chamber of Shipping, which are the only industry representatives in the task force. There are expected to be a total of four meetings of the task force. While the Prime Minister has told Nautilus that he wants the industry to “engage fully” with the task force, the union is unhappy with how the initial meeting was conducted. “The industry was only allowed to take three members and only allowed to attend for part of the meeting. They were not even informed of who else was represented at the meeting,” Graveson says.

Nautilus general secretary Mark Dickinson told the Prime Minister in a letter that “Nautilus has very real fears that the work and constitution of the task force has been pre-ordained in such a way as to negate genuine exchange of views” and that seafarer deaths should not be

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Interview Caption

considered as “collateral damage” in the war on piracy. “‘The consequences of what is now emerging from the initial meetings of the task force as a very real prospect are deeply disturbing and I believe the UK government must urgently reconsider the way in which this process is being conducted.

“The solution to piracy lies in preventing the crime in the first place, not in preventing the payments that secure the freedoms of the victims of that crime,” Dickinson said.

Graveson says he suspects those invited to sit on the task force may be ones on which political pressure can be brought to bear. He believes that the task force’s findings will be “non conclusive”, opening the way for the US to use “extra-territorial means, which can affect companies commercially in the United States and even extradite people from the UK”.

He does not think that the UK will actually put any legislation on the statute book, however. The 1782 Ransom Act was repealed in 1864 with the Prize Act entering into force. Ironically, Graveson says,the 1782 Ransom Act was not a matter of public policy of not paying ransom, but a means of not allowing ransoms to be paid to the French with whom Britain was at war.

“It has never been public policy in the United Kingdom, as a general rule, not to pay ransom,” he says. The limited exception under the Ransom Act only covered the French position.

In the English High Court in the 2010 Masefield v Amlin judgment, subsequently upheld by the Court of Appeal, Mr Justice David Steel held that ransom payments are not only lawful, but that they are not contrary to public policy.

iii) So far as harm is concerned, it is true that payments of ransom encourage a repetition, the more so if there is insurance cover: the history of Somali piracy is an eloquent demonstration of that. But if the crews of the vessels are to be taken out of harm’s way, the only option is to pay the ransom.

Diplomatic or military intervention cannot usually be relied upon and failure to pay may put in jeopardy other crews.”

Nautilus – which represents 23,000 maritime professionals, many of which have had first-hand experience of piracy – says it fears seafarers will suffer if countries agree to restrict or criminalise the payment of ransoms to secure the release of captive ships and their crews.

“Ransoms remain the only way in which we can ensure the safe return of seafarers and it is clear from a number of cases that any attempt to frustrate the payment can put crew members into even greater danger,” Mark Dickinson told the Prime Minister.

In addition to the danger to seafarers, there is another danger that Graveson highlights, notably danger to the City of London. He argues that failure to pay a ransom to secure the release of a ship using a kidnap and ransom insurance policy might mean an owner could fall foul of section 78 of the Marine Insurance Act 1906, which requires the assured and his agents to take reasonable measures to avert or minimise a loss. “If you don’t pay your three million [in kidnap and ransom insurance] and you lose $350m, will the insurance pay out?” Maybe, he says, legislation could deal with this issue, although he believes the insurance industry could be badly damaged.”I just do not believe this government realises what it could do in the City of London.”

He commented that he was “wholly unpersuaded that it would be right to categorise the payment as contrary to public policy”:

The UK government commissioned Chatham House to write a report on issues surrounding the payment of ransoms which Graveson describes as “dreadful stuff” and which he suggests is not a case of “sexing up, but sexing down”.

i) As already noted the payment of ransom is not illegal as a matter of English law (nor I can assume as a matter of Somali, Swiss or Malaysian law).

It remains to be seen what the outcome of the task force deliberations will be at a time when the size of ransoms appears to be increasing.

ii) Circumstances have arisen where legislative action has intervened to make such payments illegal: see e.g. the Ransom Act 1782. The courts should refrain from entering into the same field.

Summer 2012

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ISPS

35

Caption

Scanning the horizon Is 100% scanning of containers entering the US a feasible option?

B

oth the safety of life at sea convention (SOLAS) and the International Ship and Port Facility Security Code have been targeted for attention in recent times with new amendments having been made and, for the US at least, a series of inspections of foreign ports to make sure they comply with ISPS requirements.

The deadline for the requirement for 100% scanning of containers entering the US was due to come into force on 1 July, but the US authorities have now extended this to July 2014.

Concern has been expressed, including in the US, of the feasibility of the 100% scanning approach given the sheer volume of containers that would need to be processed. A pilot test involving a number of ports had shown that there were logistical and technological challenges in achieving 100% scanning, according to evidence given by Homeland Security and Justice Director Stephen Caldwell to the sub-committee on border and maritime security.

The EU has also raised fears that the burden of 100% scanning of containers would affect the global supply chain and lead to higher costs of shipments to the US. The ISPS Code has not been without its critics in the years, with concerns over what might happen if a port became non-compliant as far as the code was concerned and what effect this might have on ships visiting the port.

Another issue that has arisen is that the demands for safety and security may conflict if, for example entry points to a vessel had to be locked for security purposes, but which might lead to seafarers being unable to escape from the vessel in an emergency. Concerns have also been raised by maritime charities such as the Mission to Seafarers about restrictions to shore leave due to security measures. This has been particularly prevalent in the US, which has been tightening restrictions on shore visits by foreign seafarers.

Summer 2012

As far as SOLAS is concerned, there has been a good deal of discussion in recent months on the accurate weighing of containers. While SOLAS requires shippers to make a declaration of the weight of the container, this requirement is not always met and this issue was brought to light at the time of the MSC Napoli grounding when over 100 containers were found to be over or underweight. Meanwhile, a number of industry bodies including BIMCO and the ICS want mandatory checks on containers to make sure they weigh what the declaration says they do.

The organisations put in a proposal to the International Maritime Organization which is due to be considered at the sub-committee on Dangerous Goods, Solid Cargoes and Containers in September. They argue that cargo misdeclarations put crews of ships and port workers at risk.

However the European Shippers Council is against such a move. The Council says: ”The maritime industry’s call for stricter IMO regulation on the declaration of container weights is the wrong remedy for the container transport safety issues the sector is dealing with”. According to the ESC, extra regulation of container weights will not solve the safety issues in container transport, is superfluous and hardly feasible.

“From reports of relatively recent accidents it has become clear that something needs to be done about the safety standards in container transport at sea and on land. Accidents with trucks that rolled over, the loss of containers at sea, collapsing container stacks and the capsizing of the containership MSC Napoli did increase the call for action. ESC’s concern is now that the discussion is entirely focused on a relatively small risk factor, when it comes down to the safety of container transport, namely misdeclared container weights.

“Instead of focusing on improving important causes mentioned in the reports like lacking procedures for lashing, ship maintenance and stowing, the maritime industry pleads for stricter regulation on container weights at shippers’ premises. Shippers believe this is a false remedy for an ill-defined disease.”

Maritime Security International

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Simple and Effective Design for Defense Against Piracy • Easily applied to any vessel • Passive non-lethal safeguard • No crew involvement necessary • Deployed in minutes • Suitable for all weather conditions

P-Trap is a simple and cost-effective defence against pirates. It creates a safety zone around the ship where it is vulnerable and keeps unwanted guests at a safe distance. (watch the demo on www.PTRAP.com). The Royal Dutch Navy, The Royal Dutch Coastguard, The Royal Netherlands Sea Rescue Organisation successfully tested the system. Contact us for more information.

Westmark BV | Phone +31 (0)33 461 48 44 info@westmarkbv.com | The Netherlands

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www.PTrap.com

Deterrents Caption

Caught in a P-Trap Henri L’Honoré Naber looks at a non-lethal application against pirates

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iracy is a growing concern to the shipping industry. Shipowners are desperately seeking ways to protect their ships against pirate attacks, while governments and military protection seem to lag behind in providing the required protection. Consequently, services of private armed guards are now seen as the best option to protect ships, with figures showing that ships with armed guards on board are attacked less. However, in the future this measure may end up in escalating violence.

As piracy does not only exist in the Northern Indian Ocean and adjacent waters, but also in West Africa, South East Asia, Bangladesh, Caribbean waters and along the South American coast, the problem arises that if in future armed guards are needed all over the world, becoming part of the permanent crew on board, this may be very costly for the ship operator.Add to this the fact that, in most ports, weapons on board merchant ships are not allowed.

However, piracy does not look like disappearing anytime soon. In the past few decades, we have seen the “waterbed effect”, whereby piracy disappears from one area in the world, but comes up in another area. This means that piracy will have to be considered as a permanent danger to merchant shipping.

At present, shipowners and ship operators seem to be dependent on armed protection. Governments with their shrinking financial means are loath to send their navies out to protect merchant fleets or even adapt legislation to enable private armed guards to do a reliable job.

Summer 2012

Protective shell Perhaps it is time now to find protective options that are legal in all countries worldwide – and which are less violent. Why couldn’t a counter piracy code embedded in an integral security management framework become part of the seafarers’ safety and security guidelines, as the ISM-code and the ISPS-code are? If we succeed in creating a reliable protective shell around merchant ships, this may be the answer.

At this moment, there are numerous initiatives underway in the shipping world. However, these are not harmonised because the shipping industry does not see much benefit in these options – although in the long term they may be more effective than the present situation, whereby armed guards are used.

One such invention is the P-Trap, which prevents pirates approaching merchant ships too closely. Following an intensive year of prototype development and rigorous testing, P-Trap is now distributed worldwide as a ship protection measure against piracy attacks. It is a reliable, passive and non-lethal option when crossing pirate-infested areas.

P-Trap is the brainchild of Lodewijk Westerbeek van Eerten – who prefers not to be called an inventor. The CEO of Westmark, which builds safeguards for seagoing vessels against piracy, actually has a nautical background. The worldwide piracy problem got him thinking about the possibility of simple and cost-friendly solutions to protect crews of large ocean steamers against violence. Testing in autumn 2009 proved that a 25-feet-high powered vessel

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P-trap which prevents pirates approaching merchant ships too closely

could be trapped by lines towed in the water. In February 2010, a full-scale test with members of the Royal Netherlands Marine Corps (RNLMC) was performed at the North Sea by the Netherlands Coast Guard, supported by the Royal Netherlands Navy and the Royal Netherlands Lifeboat Institution.

Four simulated attacks at various speeds were promising. The “pirates” were unable to approach the target ship closer than five metres.

After that, development accelerated and Lodwijk’s son, Maurits, came on board at Westmark. Maurits also has a nautical background, working at Det Norsk Veritas in Antwerp and Houston for several years before he joined the P-Trap development. Between December 2010 and November 2011, P-Trap swivel-boom versions were used on a large tanker, a Dutch dredging vessel and a semi-submersible vessel, all in the Gulf of Aden/Indian Ocean.

In October 2011 an improved P-Trap system was tested under rigorous circumstances - in wind speeds of Force 7-8, sea state of up to 5, with a ship speed of up to 10-12 knots. In the North Sea on the large semi submersible Dockwise vessel Mighty Servant 1. A 30-feet swivelboom was installed on the ship. Four Rigid Hull Inflatable Boats (RHIB) of the RNLMC were used as attacking pirate vessels. A total crew of ten Marines acted as pirates. A Navy tug and two lifeboats of the Royal Netherlands Lifeboat Institution escorted the vessels for assistance in case of emergency. A number of attacks at various speeds took place at the stern and at portside where the P-Trap was installed. In one occasion two RHIBs simultaneously attacked the Mighty Servant 1. All RHIBs were trapped in the protective zone around the ship and had to be recovered by the Navy tug.

P-Trap in action The P-Trap, or engine blocking system, creates a security zone around the perimeter of the ship and prevents approaches near the vessel and boarding attempts. Side booms extended from the bow on both sides of the ship carry a set of extremely long thin lines that are dragged just below the water surface, thus creating a barrier along the entire length of the ship. The wires are invisible because they are towed directly under the water surface. A pirate skiff or whaler entering the security zone will inevitably run into the lines. The propellor will become entangled and the engine will be disabled.

When a propellor is trapped, the line will break and the pirate vessel will be inoperable.

The key to the success of the P-Trap is in the wires. There are several ways to put them overboard and tow them outside the hull. One method is by a horizontal swivel arm and a spreader bar that is lowered to the waterline.

Another option is a bulkhead-mounted horizontal arm that extends overboard to hold the spreader bar.

The main characteristic of the P-Trap is to ensure the ship’s crew remains unharmed when the ship comes under pirate attack. The system is passive and needs no monitoring while safeguarding the vessel during day and night. The P-Trap can be combined with any other security measures on board, enabling ship operators to protect their vessels with their own unique combination. For pirates, this means more uncertainty when preparing an attack.

Resisting attack The P-Trap is a cost-friendly, tailor-made measure to resist pirate attacks.

It is easy to install, easy to operate and, being a passive system, it is not dangerous to the crew. Although the P-trap is a reliable counter piracy system, it will not be sufficient if applied as a single means of protection.

Like any similar protective measure, the P-Trap should be used in combination with other protective methods. It should be used as part of a security management system.

Westmark BV’s P-Trap was introduced to the market to give shipowners a reliable, passive, non-lethal defence system when crossing pirate-infested regions. It is now being distributed worldwide as a valuable ship protection measure against pirates. The innovative system is a cost-friendly addition to an overall counter-piracy management system.

Henri L’Honoré Naber is a piracy expert at Safer Seas Consultancy with more than 35 years of experience. He is a licensed Master Mariner and Member of the Board of the Netherlands Shipmasters’ Association.

Maritime Security International

Summer 2012

Deterrents Caption

Razor vision Kevlar, razor wire and carpet tiles are some ways to harden a vessel

B

MP 4 – the latest edition of best management practice for combating piracy attacks was released late last year and contains a number of recommendations relating to deterrents that can be used on ships to repel pirate attacks or make them less likely to succeed.

Advice contained in the document includes enhanced bridge protection such as providing Kevlar jackets and helmets available for the bridge team to provide a level of protection for those on the bridge during an attack. While most bridge windows are laminated, further protection against flying glass can be provided by the application of security glass film, often called blast resistant film. Fabricated steel or aluminium plates for the side and rear bridge windows and the bridge wing door windows, which may be rapidly secured in place in the event of an attack. The after part of both bridge wingscan be protected by a wall of sandbags.

BMP 4 outlines a range of other deterrents that can be used to “harden” the vessel against attack, and explains how to deploy razor wire, fire hoses and foam monitors , water cannons and ballast pumps to flood the deck with water thus providing a “ highly effective water curtain over the ship’s side. This may be achieved by allowing ballast tanks to overflow on to deck, by using existing pipe-work when in ballast condition, or by retrofitting pipe-work to allow flooding of the decks whilst in loaded condition”. BMP4 cautions that care must be taken to ensure that ballast tanks are not over-pressurised causing damage to hull and tanks, or vessel stability compromised.

Summer 2012

Steam , water spray rails and foam are just some of the other non lethal deterrents that can be used. Foam is effective as it is disorientating and very slippery making it difficult to climb through.

Murray Hammick, managing director of Chenega UK Ltd, which launched its Open Ocean service on July 11 said that in terms of vessel hardening there were a lot of products that were expensive, impractical and unavailable. “Anyone who calls in a port does not want to be told there is no Kevlar 27 available”. Hardening does not have to involve expensive solutions. For example carpet tiles stuck to the bulkheads of a ship can reduce the impact of a rocket propelled grenade. Chain link fences are also an effective means of repelling RPGs. The company also works with owners on the best use of citadels. “We believe you have to have a citadel that works with the rest of the ship’s operations and security systems. One question he raises is how many times when a security firm board a vessel does the team review the security plan and submit a revised one to the owner through the master.

“The answer is seldom if ever. That security plan should include every aspect of the ship including the citadel.” Other issues to be addressed include whether the security team join the crew in the citadel, or leave the ship. “Because no naval ship will board when they know there are members of the security team on deck.“ These are some of the issues that the Open Ocean initiative is dealing with, he says.

According to Sven Hanson, director of the PGS Group, when researching who the vulnerable people were in piracy attacks, unarmed maritime

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Deterrents

security providers were one of the vulnerable groups. He told Maritime London delegates in a recent presentation “if you understand the nuances involved in the reputational risk and the use of force, the very last that you want to do is engage with lethal force a pirate on the open sea”.

What is needed is to project strength and have systems and operating procedures in place to deter the pirates. “Strength and guile” was the name of the game, he said, as well as a projection of force and a demonstration that you have an intent to protect the vessel, while having the guile to know that lethal force is the last thing you want to use.

Maritime security personnel firing indiscriminately at pirates with an AK 47 is not the solution to the problem. During the recent Maritime London presentation, Hanson displayed a sniper rifle which could target pirate skiffs at long range, with the aim of discouraging the attack before the skiff could approach the vessel.

Non lethal deterrents on the market to combat piracy include Unifire’s Force series Anti-Pirate Water Cannons System.

Unifire’s systems are also used for firefighting and riot control and delivering precise aim and control of up to 5000 litres per minute each, According to the company, Unifire’s anti-pirate cannons are powerful, effective, and simple to operate remotely, from the safety of the bridge or other secure locations..

“Made entirely of marine-grade stainless steel, the cannons are capable of flooding the threatening ship with water in seconds. They also deliver a powerful and impenetrable stream of water that blows away any person trying to gain access to the ship Unifire Force water cannons’ acid-proof stainless steel makes them corrosion-proof, light weight, and capable of withstanding extreme temperatures, the company says. All connection points on water cannon and MCU (Monitor Control Unit) have IP67 multi-connectors and they are resistant to ice and low temperatures.

that our LRAD-RX systems are becoming an important component in maritime escalation of force protocols to help combat terrorist and piracy threats,” Tom Brown, president and CEO said when the order was announced in May . “When a suspicious vessel fails or refuses to respond to radio calls, the LRAD-RX initiates the EOF through powerful voice broadcasts and deterrent tones. By unequivocally determining the intent of an approaching threat, the LRAD-RX assists armed security forces to avoid accidental shooting incidents while providing them time and distance to scale their response and make life and death decisions.”

LRAD-RX features a camera, high intensity searchlight (optional), a robust, IP-addressable full pan and tilt drive for precise aiming and tracking, and can be integrated with radar to provide automated vessel alerts. The LRAD-RX broadcasts highly intelligible, hails, warnings and instructions over distances up to 2 miles. Through the use of focused, multi-language voice commands and deterrent tones, the LRAD-RX creates increased standoff zones, determines intent, supports peaceful conflict resolution, and potentially prevents the use of deadly force.

“Our LRAD systems have proven to be highly effective for maritime security,” Brown added. “To date, LRAD systems have helped to prevent accidental shooting incidents and to peacefully resolve hundreds of maritime EOF situations throughout the world.”

According to the company “What makes the LRAD product unique is its ability to transmit your message with exceptional voice intelligibility and tonal clarity in a highly directional beam, even with significant ambient noise. The directionality of the LRAD device reduces the risk of exposing nearby personnel or peripheral bystanders to harmful audio levels. “ Recognising the growing threat of piracy not just around Somalia but throughout the world and the impact that this is having on the maritime industry, leading ship builder Samsung Heavy Industries developed a system it launched last year to deal with the problem.

The ‘Samsung Anti-Piracy Solution’, integrates three state-of-the-art technologies into a vessel with an important emphasis on safety:

Dasic Marine’s Nemesis 5000 water canon system is designed to be easy to install and operate and the Nemesis units are light weight (only 15kg) and durable. The units are flexible and can be mounted on brackets manufactured to suit any handrail, gunwale or fish plate.

A surveillance radar system which analyses the distance, speed and moving direction of ships within 10 kilometres to automatically detect and track any suspicious activity. Previous radars on ships could only detect and identify boats that were very close to the vessel.

Nemesis 5000 takes seawater from the vessel’s fire water system and creates a moving curtain of water jets, each with an impact equivalent to a ten pin bowling ball travelling at over 60 mph.

A night-vision technology that tracks and displays the movement of suspected vessels in real-time, generating high-quality infrared images.

Key benefits according to the company are the system increases crew safety, provides an effective unmanned reponse to a hostile boarding, provides 360 degree coverage or focused protection of vulnerable areas and it uses vessel utilities to their best advantage.

A high-pressure, remotely controlled water cannon that shoots a powerful stream of water as far as 70 metres to thwart the pirates’ approach. The cannon – which has a maximum pressure of 10 bars, or equal to the force of 10 kilograms applied to an area of 1 square centimetre – can be controlled remotely from the bridge, thus reducing the risk of exposure of the crew to potential gunfire attacks.

LRAD Corporation meanwhile recently received a a $1.7 million LRAD-RX systems order for Asian maritime security. “This order further confirms

Summer 2012

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MARITIME SECURITY AUDITING C O N S U LT I N G O P E R AT I V E A S S I G N M E N T A I R O P E R AT I O N S

ISN International Security Network GmbH Baden Airport | Montreal Ave. D 415 77836 Rheinmünster | Germany Phone: +49 (0) 7229 69 76 900 info@isn.eu.com | www.isn.eu.com

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Port security Caption

Port challenges Container theft and challenges; weighing containers; Port of London Authority

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he results of a recent survey conducted by the ICC International Maritime Bureau (IMB) in conjunction with an international trade association have served to underline the challenges associated with container security and theft from containers.

The recent survey of the Bureau of International Recycling (BIR) membership found that thefts occurred from consignments carried by all of the major container shipping lines, on shipments originating in many countries.

The common factor was that the thefts occurred in consignments almost exclusively bound for southern China – although this is more a reflection of the fact that the country is by far and away the biggest importer of scrap metals. Losses were, however, also reported in other parts of the world.

According to IMB Director Pottengal Mukundan: “We share the concerns of the BIR over the scale and nature of the theft of scrap metals in certain parts of the world. The results reveal that all too often valuable cargoes – notably copper scrap exports – are removed from shipping containers before they reach their intended recipients. The reported losses run into millions of dollars, with one BIR member reporting losses in excess of US$1m in a 12-month trading period.”

Most of the respondents reported that, usually, a small proportion of the goods carried in the containers were stolen, often between 1 and 5% of the total container-load, although there were cases where entire container loads had gone missing.

While in isolation such losses may appear to be negligible, the overall losses experienced are significant, given the relative price increases that such commodities have experienced over the past couple of years.

Summer 2012

In some cases where a part of cargo was stolen, it has been reported that the container seal (designed, in theory, to indicate whether or not a container has been opened between parties in different locations) remained intact despite the fact that someone had clearly gained access. In one case, torches and shovels were found inside the container once it reached its intended destination.

The IMB has investigated cases where organised gangs have found ways to obtain information on the contents of containers in transit, compromise individuals working in port authorities and haulage firms using incentives and threats, organise the theft of the goods in the container and have it spirited away or sold before the victims can mount an investigation.

Mukundan says: “Each individual loss is small and may not by itself spur the authorities to allocate resources to investigate and prosecute. It is essential therefore to collect data on all similar losses in an area. This pooled information could well indicate a much larger criminal activity that the authorities can focus on. This will lead to a meaningful investigation and identification of the methods and hauliers/truck drivers who may be involved in the conspiracy. Organisations such as the IMB are well suited to putting together such data augmented by other sources of relevant information, which the IMB works with on a daily basis. The collection of data is the first essential step in the response chain.”

Weighing in on the debate While the European Shippers Council has set its face against mandatory weighing of containers, the issue is due to be raised at the IMO in September by a number of trade associations. According to Craig Neame, a partner at Holman Fenwick Willan, the first question is ask is whether it is necessary

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for the industry to take the issue in hand and make sure that overweight containers are not loaded. Then there is the issue of how many incidents have been caused by overweight containers and whether reported incidents have been taken to court.

Cases that have not gone to court have been numerous. “In quite a few cases you will find that the alleged cause of the incident has been overweight stacks,” Neame says. Then there is the question of evaluating the cause of the incident, for example whether it was a misdeclaration on the part of the shipper, negligence at the terminal, pressure on the terminal by the ship operator, or the crew’s negligence. “Was the master ignoring the overweight containers because he was under pressure from the charterers for example?” says Neame.Responsibility for the incident would determine who was liable if the case went to court.

An overweight stack can compromise the safety of the crew. Containers can also be lost overboard, which could result in an expensive claim.

Neame says he believes there are good reasons for weighing containers although port terminals are worried they will acquire a liability they otherwise did not have and could potentially be sued by owners if they failed to meet the requirements or fined.

Olympic task Julian Parkes, the Port of London Authority (PLA) Habour master (safety management systems) and port security officer, is a busy man this year, with the recent celebrations on the Thames for the Queen’s Diamond Jubilee, not to mention the Olympic Games. The Port of London Authority is distinct from the Port of London because it does not operate a commercial activity in the port. “We are the statutory harbour authority and the navigation authority and as a result of that we are not a security authority so we have no specific role and responsibility in terms of port security,” says Parkes.

The PLA clearly has responsibilities under the International Ship and Port Facility Security Code (ISPS). That is limited in having an overview and monitoring security issues in the approach channels and the anchorages of the port. This is effectively carried out through the PLA’s vessel traffic

services system as a by-product of the 24/7 service provided, but Parkes stresses that VTS is essentially there for navigational safety.

“The infrastructure that we have that supports our safety role actually on occasion has benefits and provides support for the police and the security services in their role,” he says. For example in leading the maritime security plan for the Thames for the Olympics “one of the things they need to have is a good overview and maritime picture. That is achieved through the PLA VTS system, which has radar coverage from the outer limits to Greenwich and AIS coverage from the outer limits to Teddington,” he says.

The PLA is in constant communication with a lot of the traffic on the river – certainly as far as commercial traffic is concerned, although not always with smaller recreational vessels, which is where the police and security services focus. Although the PLA will obviously monitor commercial navigation, smaller recreational vessels only tend to be drawn to its attention if they are doing something wrong like not keeping to the right side of the channel or not keeping a proper lookout.

The PLA supports and advises other agencies and, in the case of the Olympics, the police, who were in control of the operation, supported by the military. One complication could be if for any reason the port had to go to a level three security threat, which is part of the ISPS Code, it would not be the ISPS security levels that would drive the police’s maritime plan on the Thames. “It is another interesting take on maritime security when you are trying to relate the international, commercial shipping security system against an individual country’s plan,” says Parkes. The PLA has enhanced its security in recent years, not just for ISPS purposes, but in order to protect the VTS and electronic infrastructure that supports it.

Parkes’ job is divided into two areas: first ISPS and recognising responsibilities under the code. The PLA also chairs the port security committee. The committee acts represents all 50 ISPS facilities for the port and acts as a focus for training, exercises and networking on ISPS security issues. Parkes visits all the ISPS-covered facilities every year and the PLA acts as a link between the enforcement of the Department for Transport and the ISPS facilities.

Maritime Security International

Summer 2012

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Smuggling

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Staying safe and secure How can shipowners avoid drugs, people smuggling and stowaways?

W

hile piracy has been the focus of attention for many shipowners in recent times, the threat of drugs, people smuggling and stowaways are other issues that shipping companies have to deal with, as well as security training.

Stowaway issues are often to be found in the places where piracy attacks are also taking place, notably on the African east and west coasts, and vessel owners and operators need to have a strategy in place to deal with stowaways – once detected – and those people who fall prey to people smugglers and have to be rescued at sea.

Insurers issue guidance on means to prevent stowaways boarding the vessel, which include, according to the UK Club’s checklist, ensuring that all access points are secured, in accordance with ISPS Code procedure, making sure there is always a member of the ship’s crew on the gangway and additional precautions, like the use of CCTV. “Agents should obtain and provide the ship with a list from the stevedore company that clearly identifies the number of stevedores working on the ship. It is essential that stevedores only embark and disembark by the ship’s gangway and their movements are constantly monitored whilst onboard,” according to the checklist.

All visitors that are expected on the ship should be known to the ship’s master, the crew member assigned to gangway watch duty and the agents, with their expected time of arrival and clear details of their intended business onboard. All visitors should be instructed to report to the crew

member assigned to gangway watch duties in the first instance.According to the club, a watch needs to be made for people trying to board the ship by mooring ropes, and a search of the ship should be made prior to departure, including of areas that are thought to be locked.

Stowaway clauses BIMCO revised its stowaway clause for time charterparties in 2009, commenting at the time that “from a contractual perspective, stowaways can expose owners to fines, delays, repatriation costs or even costs incurred in connection with the detention of stowaways in cases where a genuine request for political asylum has been made by them. These costs, such as those arising in connection with detention on board, victualling and repatriation of stowaways, are normally recoverable by the owners from their P&I Club subject to a deductible and when incurred by the owners in discharging their obligations towards, or making the necessary arrangements for, stowaways or refugees.”

Drug problems High profile cases like that of the Coral Sea, where crew members were arrested and tried for drug smuggling, although they were not in a position to know the drugs were there, have highlighted the dangers masters and crews face if drug smugglers use their vessel to transport their wares.

Changes to Venezuela’s drugs law that appear to shift the burden of proof on to the defendant have been the subject of warnings from P&I Clubs

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Summer 2012

Smuggling and the issue was again highlighted last year when a Bernhard Schulte managed bulk carrier and its entire crew were detained in the country after the national guard reportedly discovered 460kg of cocaine on board the 1997-built, 48,224 dwt Jürgen Schulte.

Training programmes Maritime training organisation Videotel has produced a number of training programmes, which include coping with stowaways, piracy and armed robbery, recognising suspicious behaviour and search techniques, as well as drugs. As the company points out: “all seafarers, both officers and ratings, are under threat from illegal drug dealing. All those who work at sea risk contact with drug dealers, particularly once they come ashore. This is because drug dealers see officers and ratings, especially your officers and ratings, both as possible customers and possible smugglers. But becoming involved, whether a customer or a smuggler, is the start of a criminal career.”

The company’s stowaway information covers not only best practice to stop them getting aboard, but what to do if they succeed.

Ship security Meanwhile, computer-based training specialist Seagull has been awarded Norwegian Maritime Authority (NMA) approval for a new, comprehensive ship security training package that is in full compliance with the Manila amendments to the STCW Convention and Code. These new security training courses will be available during September of this year.

The revised STCW, which came into force in January this year, introduces more stringent requirements for onboard security training, with particular provisions designed to ensure seafarers are properly trained in case their ship comes under attack by pirates.

Seagull has issued more than 10,000 Ship Security Officer certificates since 2003 and these SSO certificates remain in force until 1 January, 2017.

Anders Brunvoll, Seagull senior course instructor, says: “Getting NMA approval is very important for us, as we have in the past issued Ship Security Officer (SSO) certificates on behalf of NMA, the Norwegian flag state.

“With the new Security On Board training system we offer three courses and, with continued NMA backing, shipowners can be assured that certification through these courses will demonstrate the proficiency, as well as the competency, of their seafarers in security matters.”

The new courses have also been certified by classification society DNV through the SeaSkill programme. “This was a challenging process, which effectively required us to start again from basics and produce security training which has been fully checked by DNV against the revised STCW,” adds Brunvoll.

Under the Manila amendments to STCW, all seafarers need approved ship security training, varying according to the level of responsibility of the seafarer. All seafarers must receive generic security awareness and familiarisation training, while those with specific security related roles need appropriate training for their role.

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The new NMA-approved Security On Board training courses will be released in the third quarter of 2012. In the meantime, Seagull’s existing SSO course remains valid and any certificates issued based on this course will be internationally accepted until January 2017.

In the dock Finally, two men who attempted to smuggle nine Kuwaitis into the UK have been jailed for a total of 11 years in the UK. Tarik Mohammed was stopped by Border Force officers as he drove off the overnight ferry from Rotterdam at Hull King George Dock on 14 June last year.

The officers carried out a search of the vehicle and found nine would-be illegal immigrants hiding among clothing in the back of the van.

Hull Crown Court heard how investigations by the UK Border Agency led officers to his accomplice Mohamed Ghafil Al-Kulefi. Dutch national Mohammed and Kuwaiti, Al-Kulefi, pleaded guilty to nine counts of conspiracy to commit a breach of immigration law at an earlier hearing.

All nine stowaways were removed from the country by the same ferry. Simon Walker, Regional Director at the UK Border Agency, commented:“People smuggling is a serious crime, which exploits some of society’s most vulnerable and desperate people. The sentences handed out today reflect the severity with which those involved can expect to be treated.

“This case demonstrates the controls we have in place at all our borders.

It also illustrates the resources that the UK Border Agency is able to call on to make sure that those who seek to abuse the UK immigration system are brought to justice.”

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Offshore

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Reducing the offshore risks Safety and security around offshore oil and gas installations are increasingly important as exploration moves into ever-more hostile environments

Technip Bresil

F

ollowing the explosion of the Deepwater Horizon mobile offshore drilling unit in April 2010, a report carried out by the US Government Accountability Office found that “The Coast Guard has limited authority regarding the security of MODUs registered to foreign countries, such as the Deepwater Horizon. MODUs are subject to Coast Guard security regulations if firstly they are self-propelled or secondly they meet specific production or personnel levels.

and integrity of government institutions charged with protecting the public interest; and (3) securing the resources needed to provide a robust capability to execute the leasing function and adequate regulatory oversight.

Government agencies that regulate offshore activity should reorient their regulatory approaches to integrate more sophisticated risk assessment and risk management practices into their oversight of energy developers operating offshore.

“Whereas the Coast Guard may physically inspect a US-flagged MODU to ensure compliance with applicable security requirements, the Coast Guard’s oversight of foreign-flagged, self-propelled MODUs, such as the Deepwater Horizon, is more limited.” There were suggestions in the press following the Deepwater Horizon incident that USCG inspections had somehow been bypassed.

“They should shift their focus from prescriptive regulations covering only the operator to a foundation of augmented prescriptive regulations, including those relating to well design and integrity, supplemented by a proactive, risk-based performance approach that is specific to individual facilities, 252 National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling operations, and environments.

This would be similar to the ‘safety case’ approach that is used in the North Sea, which requires the operator and drilling rig owners to assess the risks associated with a specific operation, develop a co-ordinated plan to manage those risks, integrate all involved contractors in a safety management system and take responsibility for developing and managing the risk management process.”

The accident sparked an in-depth review by oil firms of their safety and security systems and the report into the accident by the Oil Spill Commission said that given “the near certainty that the oil and gas industry will seek to expand into ever more challenging environments in the years ahead, a more comprehensive overhaul of both leasing and the regulatory policies and institutions used to oversee offshore activities is required.

“The necessary overhaul, to be successful, must address three core issues: (1) reducing and managing risk more effectively using strategies that can keep pace with a technologically complex and rapidly evolving industry, particularly in high-risk and frontier areas; (2) assuring the independence

A number of security companies are specialised in providing risk assessment and other services to the offshore industry, including Poolebased Drum Cussac. One of the firm’s recent offshore assignments included being commissioned to provide a full risk assessment and security plan for a seismic survey company and its partner, off the coast of East Africa.

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Offshore As there had been no similar venture since the onset of the piracy problem in Somalia, the company called in Drum Cussac to provide a Threat and Vulnerability Risk Assessment.

Technip Nigeria

The security plan involved using three rigid hull inflatables, deploying 16 Drum Cussac personnel to provide security and supervise the Kenyan personnel involved in the project. Six Drum Cussac personnel were deployed on two client vessels to help the master and crew on safety and security measures.

Solace Global Maritime, meanwhile, has also been providing security for a number of platforms off the east coast of Africa.

The company explained that “using their experience in maritime security, the Solace Global Maritime operations team began to create a tailored service that suited the needs of the client, achieved ISPS code compliance for onshore and offshore oil and gas facilities and meet the high standards set by Solace Global Maritime security projects. The client’s area of operation was classified as ISPS Code level 2 security threat, and proposal and service provided by Solace Global Maritime reflected this.”

The services that Solace Global Maritime provided included: review of company policy for platform security; communication with local and national authorities to ensure permits and compliance; port security assessment and risk analysis; facility security planning and management ISPS regulated audits; monthly updates and reviews of procedure scenario training for client security officers, among other topics.

Subsea onshore and offshore operator Technip places considerable emphasis on safety and security and offshore construction manager Martin Lawson described in the company’s report on sustainability some of the measures put in place for the West Delta Deep Marine project off Egypt.

Under the contract, Ultra will supply upgraded versions of its submarine transducers that are stocked by the US Navy to support fleet requirements for new and restored units. The hull mounted transducers use sonar to detect and localise targets.

Rakesh Sharma, Chief Executive of Ultra, commented: “I am really pleased that the excellence of Ultra’s specialist sonar equipment has been recognised by the award of this IDIQ contract by the United States Navy.

This is an excellent example of Ultra delivering its strategies for growth by winning and expanding its positions on long-term programmes.

“This win also recognises how Ultra continuously improves its range of well proven products and services through a constant drive for innovation.”

“For this project, a complete HSE and security management system was implemented to meet the requirements of both Technip and our client Burullus. Several reference documents were developed in a joint approach. The success of the project was achieved through a very efficient emergency response system, supported by several onshore trainings and offshore exercises, as well as daily operational meetings focusing on HSE operations.

Ultra’s Offshore Oil & Gas Security and Safety Systems can track vessels up to a range of 25 nautical miles (NM) off an offshore/onshore installation.

Tracking of vessels is fully automatic and is unaffected by changes in weather and sea conditions. Radar track data is transmitted via a network or radio link to platform display modules, local and remote control rooms (offshore or onshore), and/or any company operated vessel within 35nm of the system.

“Several initiatives also helped make the project a success: a major incentive scheme for the Maadia Yard (Alexandria) personnel and a successful ‘dropped objects’ prevention campaign, among others.

What is specific about safety on board vessels and why is it particularly important? Safety is what gets you back home at the end of a project. It is the key priority onboard any vessel. The personnel safety is paramount and is everyone’s responsibility. I believe 75-95% of offshore accidents are due to human mistakes. That is why a massive emphasis is put on communicating, understanding one’s responsibility and anticipating any difficulty.”

The difficulties of ensuring the safety of offshore oil installations has recently been highlighted by Israel. While the country may be considering how to tap its natural gas resources in the Mediterranean, the cost of ensuring their security are likely to be expensive.

Ultra announced recently that its Ocean Systems business, based in Braintree, Massachusetts, has been awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract worth up to $49.2m by the US Navy. Work on the contract is due to be completed in 2017.

Summer 2012

“We will do our best, but without a major boost to our capabilities, our best will not be enough,” a senior military planner said in one of a series of Reuters’ interviews with Israeli decision-makers on the subject.

There are fears that investors might be scared off by the prospect of a possible attack against an installation – perhaps by Lebanon’s Hezbollah military group. Lebanon also claims the gas find as its own.

This all comes at a time of political instability in the region, not to mention Israeli finance cuts.

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“The TradeWinds Offshore Marine conference was a good platform for NCL and we appreciate the opportunity.”

Leong Seng Keat, Nam Cheong Ltd “The event was very successful and I really enjoyed it!”

Stig Erik Kyrkjeeide, Financial Analyst – Equity research, First Securities AS “There were many interesting presentations with useful debate.”

Vinicius S. Figueiredo, Manager Oil & Gas Department, BNDES – Brazilian Development Bank

Important topics to be covered this year include: • Where is the E&P activity taking place and how much is actually going on?

• What are the macro market forces at play for the OSV sector?

• Exploring vessel trends in design and operations: How are OSVs evolving?

• Financing: Exploring the latest developments in the funding scenarios for OSVs • PLUS: An exclusive Brokers Panel on Day 1 and Owners Panel on Day 2 – find out what the deal makers are predicting!

of brokers, owners, financiers and yards from each region on the speaker panel. TradeWinds Offshore Marine is the first conference of its kind with a truly global focus.

Markets to be covered include: North Sea, Brazil, Southeast Asia, India, China, and Australia with an expert representation

Visit our website to register for the conference and stay updated on event developments: www.nhstevents.com/events

+44 207 029 4165

How can you get a piece of the OSV success pie?

Sponsor TradeWinds Offshore Marine and align your brand with the industry’s leading publication and conference on offshore support vessels. Call +44 20 7029 4165 to speak with Greg Whitehead or email him: gregory. whitehead@nhstevents.com

info@nhstevents.com

www.nhstevents.com

Company news Heading British security Standfirst and intelligence company

5 St. John’s Lane London EC1M 4BH T: +44 (0) 20 7250 4742 E: office@acuitasonline.com W: www.acuitasonline.com @acuitasonline

A

cuitas offers armed vessel security detachments to clients seeking to mitigate the risk of piracy in designated High Risk Areas.

Incorporated and managed in the UK with a proven record of experience throughout Europe, the Former Soviet Union, Africa, and the Middle East, Acuitas marries the highest standards of corporate governance with an extensive and varied operational capability.

Acuitas is fully licensed and regulated by all relevant national and industry bodies and is appropriately insured for each of its business activities.

Acuitas strives to deliver the most effective and lasting risk management products to each of its clients, whatever the challenges they face. This ethos was the driving force behind Acuitas signing up to the Open Ocean integrated maritime security management system.

Open Ocean has been developed to provide an integrated response to the needs of the shipping industry faced with the ever-growing problem of having to ensure the security of their crews and ships. Open Ocean is not merely about putting armed teams on

Summer 2012

ships; rather, it is about stepping back and taking a long-term and strategic view of what it is that individual shipowners and operators need in order to allow them to carry on their business without interference by unlawful gangs at sea.

Open Ocean brings efficiencies, economies and effective measures to bear down on the problem of piracy

By addressing the problem as a complete system, Open Ocean brings efficiencies, economies and effective measures to bear down on the problem of piracy. In doing so, Open Ocean frees up shipping operators to do the job that

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they are so good at, namely to move vessels and cargo around the world in response to customer’s requirements.

Open Ocean is, above all, an intelligence-led operation that views the use of armed teams as a weapon of last resort-albeit a very necessary fallback option in many cases. Open Ocean allows customers to choose from a range of services from intelligence and routing advice, ship surveys and hardening, through to the deployment of some of the most highly regulated maritime security teams in the industry.

Backed by the Chenega Corporation with its significant financial and technical capabilities, Open Ocean is the logical choice for large and small operators looking for a serious contracting partner able to provide the highest standards of service, but also able to support operational capabilities with technical developments in the areas of communications and surveillance.

The Open Ocean team consists of a number of companies all dedicated to maintaining the highest standards of operation and Acuitas is a proud member of the group.

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Events POLICY & FORUMS 52

4-5 SEPTEMBER

13 NOVEMBER

Maritime Security & Defence at SMM

Turkish Shipping Summit Istanbul Turkey is defined as an emerging market economy but a largely developed one,

Important decisions for the future of maritime security and defence will be

with economists noting that in many ways it has weathered the credit crunch

made during the 25th SMM in Hamburg.

There will be three panel discussions with

better than others. Turkish shipping has changed enormously over the past two

eminent speakers, covering a range of different issues. Join in the debate. www. msd-smm.com

decades, the recent changes may be seen as for the worse considering the current shipping markets, but in the long run they have brought the country into the

12-13 SEPTEMBER

frontline of the industry. www.turkishshippingsummit.com/

ICS International Shipping Conference The conference will be held at the British Library in London with issues such as the use of armed guards and counter-piracy strategy on the agenda. www.marisec.org/conference.htm

23-25 OCTOBER Combating Piracy Week London Leading stakeholders in combating piracy will be speaking at this important event. http://combating-piracy.com

19-21 SEPTEMBER

14-15 NOVEMBER

Oil & Gas Critical Infrastructure & Asset Security Forum 2012 Taking place in Vienna, the programme will be covering security issues related to both offshore and onshore oil and gas arising out of civil unrest, terrorist activities, and a competitive global market.

The focus of the event will be on the key elements of using a variety of intrusion detection technologies to detect vibra-

Transport Security Expo London Transport Security Expo brings together the world’s leading experts from government, military, law enforcement and security services face to face with the aviation, maritime and public transport industries, to assess the threat level, examine the countermeasures in place and, where necessary, recommend alternate strategies to deal with these threats.

tions and sound, infrared and microwave barriers, CCTV for motion detection and

www.transec.com/

access control.

This publication is printed on PEFC certified paper.

PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.

27TH NOVEMBER Seatrade Middle East Maritime 2012 Dubai

8-10 OCTOBER India Shipping Summit Mumbai

The region’s foremost shipping event.

http://www.indiashippingsummit.com

Maritime Security International

www.seatrade-middleeast.com/

Summer 2012

Oil & Gas CritiCal infrastruCture & asset seCurity fOrum 19-21 September 2012 AuStriA trend Hotel pArk royAl pAlAce i ViennA i AuStriA

Revealing best practice strategies and technologies to respond to the latest and most urgent security threats affecting both offshore and onshore oil and gas

www.ogassetsecurity.com confirmed Speakers include

Thomas A Wuchte, Head of Transnational Threats Department, Action Against Terrorism Unit, OSCE

peter cook, Security Director & Founder, the Security Association for the maritime industry (SAmi)

captain S.b. tyagi, Deputy General Manager Security, GAil

Jakub ludvik, Chief Security Officer, rWe transgas

Zsolt Z贸lyomi, Director of Corporate Security, mol

ian mccredie, Former Vice President Corporate Security, Shell and CEO, Forbes research Group

For all Delegate and Sponsorship enquiries please contact Laurence Allen, Event Marketing Manager, on laurenceallen@dmgevents.com or call +44(0) 20 3615 0390

Sponsors and Exhibitors Include

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