The original intention was to get government or European Union funding for the programme, but when this did not materialise organisers decided to raise the money privately with the aim of forming a profit-making business.
Angus Campbell, chief executive of the CEP, said: ‘It is at a very active stage. We’ve done a lot of groundwork so we are ready when we raise the funds.’ He added: We hope to begin operations in the second half of this year.’
The CEP will buy insurance and use the cover to provide a guarantee to ship owners wishing to travel in convoys under its protection.
And the saga continues….. lol JLT has been doing everything they can to get this private navy concept going. So far, their hopes in getting government funding has been crushed. Which figures, seeing how austerity measures are forcing governments to be more selective with their cash. So now they are going after private investors.
Now what is interesting with their latest selling point is cost. Check this quote out.
At present, every vessel that sails through the waters in the region of Somalia must pay a massive additional premium on its marine insurance. The extra premium usually amounts to between $50,000 and $80,000, but the CEP intends to charge ship owners from $30,000 to $40,000 for its services.
That is quite the savings, but we will see how it really works once they are funded and underway. Hopefully they are able to raise the $70 million in their latest scheme, and get this private navy operational. –Matt
Insurers in bold plan to raise money to outgun Somalian pirates
By Jon Rees
10 March 2012 ?Convoys of ships with armed escorts could soon be operating in waters infested by Somalian pirates if a planned $70million (£45million) fundraising scheme succeeds.
The Convoy Escort Programme – a proposal from insurance broking group Jardine Lloyd Thompson – aims to raise the sum over the next month in order to equip a fleet of up to 18 vessels to escort convoys of about four ships at a time through the highly dangerous Gulf of Aden and across the Indian Ocean.
The original intention was to get government or European Union funding for the programme, but when this did not materialise organisers decided to raise the money privately with the aim of forming a profit-making business.
Angus Campbell, chief executive of the CEP, said: ‘It is at a very active stage. We’ve done a lot of groundwork so we are ready when we raise the funds.’ He added: We hope to begin operations in the second half of this year.’
The CEP will buy insurance and use the cover to provide a guarantee to ship owners wishing to travel in convoys under its protection.
At present, every vessel that sails through the waters in the region of Somalia must pay a massive additional premium on its marine insurance. The extra premium usually amounts to between $50,000 and $80,000, but the CEP intends to charge ship owners from $30,000 to $40,000 for its services.
Somalian piracy is estimated to cost the insurance industry between $10billion and $12billion a year, with ransoms estimated at up to $1.2billion each.
The CEP’s planned fleet of vessels will each be manned by eight guards and five marine crew. Those behind the idea are confident that they will be able to sign agreements to escort about 25 per cent of the ships that pass through the danger zone. They plan to take steps to ensure that delays to cargo are minimised.
The CEP has agreed with the Cyprus Maritime Administration that its vessels will sail under the island’s flag.
Pottengal Mukundan, chief executive of the Commercial Crime Services arm of the International Maritime Bureau, welcomed the scheme. ‘Anything that can prevent piracy in this area is to be supported,’ he said.
There have been 31 attacks by pirates off the Somali coast already this year with six hijacks and 86 crew taken hostage. At present, 199 crew are being held captive on 14 ships with a further 49 being held ashore.
Story here.