Feral Jundi

Friday, March 9, 2012

Industry Talk: The EU’s EEAS To Spend €15mn On Private Security Firms This Year

Ashton’s €15-million-a-year special security budget is tiny compared to what member states shell out. According to foreign office figures provided to EUobserver, the UK between mid-2006 and mid-2010 spent €196 million on private security in Iraq alone.

Excellent news for the guys across the pond. In this article they list a bunch of the PSC’s that the EU uses in it’s foreign missions. It also lists the countries that they are using private security in.

The list of companies and the countries goes as follows:

Page Group: Afghanistan

Argus: Haiti, Lebanon, Libya, Yemen and Saudi Arabia.

Control Risks: Israel. 

Saladin: Pakistan.

*The EU foreign corps last year put Argus and Page, as well as French company Geos, Canadian firm GardaWorld and British company G4S on a special shortlist. The listing means that if a new job comes up, the EEAS can hire one of them in a decision which takes just two weeks, instead of a year-or-so, as with a normal EU tender.(from article below)

Very cool and I didn’t know that Argus was such a player in this game?  Here is a clip from their bio page:

Over time the company has specialized in protection, risk assessment and crisis management for international corporations and their foreign branches, but also for international organizations and diplomatic entities located in volatile countries.
Shortly before the end of the conflict in Bosnia and Herzegovina, the company established its business in Budapest, Hungary for strategic and geographic reasons. However, 97% of its activities are currently conducted outside of the European Union.
Argus Security Projects Ltd. currently has 600 staff members permanently deployed worldwide.

What I also like about this list of companies, to include the short list, is that you get an idea as to what the EU thinks is an acceptable company to work with. Both in cost, reputation, experience and capability. Although I will save my judgement on these companies, just because they could have been chosen because they are the cheapest?… It also shows what countries the EU has interest in and that they are compelled to hire private security to accomplish that mission.

The Saudi Arabia mission is obvious for it’s oil. Places like Libya have oil too, and Europe needs that oil bad. So getting into that country and securing their folks while they do their thing is a priority–all so they can influence and get a place at the ‘trough’ there. Before the revolution in Libya, Europe had a high amount of oil imports from Libya, and I imagine that they would like to get that back. Not only that, but get that source back to the level of ‘secure and dependable’. That is not easy and it takes some work in the diplomacy department to get that done. Interesting stuff. –Matt

 

Ashton to spend €15mn on private security firms
March 9, 2012
By Andrew Rettman
Catherine Ashton’s External Action Service (EEAS) is to spend €15 million on private security firms this year as part of broader efforts to protect diplomats overseas.
The money is to cover “fully integrated security services” at its outposts in Beirut, Benghazi, Islamabad, Jerusalem, Kabul, Port-au-Prince, Ryiadh, Saleh and Tripoli.
It will spend another €35 million on hiring day-to-day security staff for the rest of its 136 foreign delegations. Some other places are also considered risky (diplomats are asked not to take families to Baghdad and Monrovia), but do not qualify for the “fully integrated” treatment.
The Afghanistan mission is currently protected by armed, company-logo-wearing ex-military types, including former Nepalese Gurkhas, supplied by London-based firm Page Group. When the EU ambassador leaves his compound, he travels in a convoy of three cars with seven bodyguards. Last year, someone took a pot-shot at his office window while he was briefing staff. In 2010, he was nearly hit by a rocket at a tribal congress.

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Monday, February 27, 2012

France: Regulation, Expansion Of French PMSC’s Urged By Members Of Parliament

“Global sales of the sector(security) are difficult to evaluate, but the specialists put it between $100 billion and $200 billion a year,” the report said, adding that the Foreign Ministry puts the figure as high as $400 billion for the total market for security and defense services.
Some 5,000 security firms operate in the world market, which is changing continuously and sometimes with a hazy line between security and military practices, hence the usefulness of calling them security and defense service companies.
Of the French firms, average annual sales is 3 million euros ($4 million). The largest is GEOS with 40 million euros followed by Risk & Co with 28 million euros, the report said.

Very interesting article and France is now joining China in this ‘re-evaluation’ of PMSC viability. I think what we are seeing here is a realization by France that it is missing out on a massive market, and by not having a vibrant and competitive PMSC industry, that they are missing out strategically.

That last part is the most important part because like most of Europe, France needs oil. In a world where oil producing countries are threatened by regional instability or the demand continues to push supply, countries are looking to all and any means of achieving strategic advantage for those resources. Having French companies on the ground, working day in and day out with these oil rich, war torn nations, or protecting the various key individuals and projects within these zones, is one way to ‘influence’ and grab a larger piece of the ‘oil pie’ in those regions.

To further emphasize this last part, here is the quote that perked me up.

A visit to Libya showed the significant presence of “Anglo-Saxon companies,” which have used the uncertain situation on the ground to develop their businesses.
“Their presence seems to favor British economic interests,” the report said. “It seems very desirable, within the framework of Libyan law, for our societies to form partnerships to set themselves up for the long term in this country, as there are strong expectations toward France,” the report said.

The other oil related indicator of need is maritime security. France does not want to depend upon other nation’s PMSC’s to protect their flagged vessels. And those flagged vessels transport commerce and oil/gas.  It is of national interest to ensure these vessels are protected and the economy of France is not negatively impacted by piracy. PMSC’s are a strategic asset that France can tap into to protect that interest.

 French Navy commandos aboard cargo ships. The daily cost of a Navy team is 2,000 euros, compared with 3,000 euros charged by a private company, the report said.
A Royal Dutch Navy team on a cargo ship costs 80,000 euros, reflecting the deployment of 18 personnel, including a nurse. But the demand for onboard protection outstrips supply of Navy teams, and a flourishing private market has sprung up.
Some French oil companies have asked for Navy teams but have had to go to the private sector because squads were unavailable, Betto said…British companies dominate this sector, including Triskel, APMSS and Solace, with a U.S. specialist, Advanfort. An estimated 170 companies specializing in armed maritime protection were set up in Britain from Jan. 1 to Sept. 30 last year, the report said.
The only French firm in this market is Gallice. With annual sales of 20 million euros, it offers armed protection through an Irish subsidiary in order to avoid tangling with French law, the report said.

So France is putting military details on private vessels, and because the need outstrips the supply, they are having to look to the private sector for security–which means using  British or other companies. I am sure that does not sit well with these French shipping companies. lol

Also, how is putting Naval commandos on private vessels  the best use of that resource? Shouldn’t they be doing more important missions, like hostage rescue? Using highly trained commandos for basic protective duties is not a wise choice for this particular mission, and especially when you only have a limited number of those commandos.

Some of the companies mentioned in this article are Argus and a Global X. I have not heard anything about these companies, but here are some quotes about them below.

The European Union uses Argus, a Hungarian-registered company, for building security in Libya. The firm is led by French nationals, and using diplomatic status, the personnel carry weapons…A group of French companies — Geodis, GIE Access, Sodexo and Thales — has formed the Global X company to bid for contracts in U.N. peacekeeping operations, which is seen as a huge market. Such contracts would provide jobs for former French service personnel and create a presence where active French soldiers are not deployed.

 UN peacekeeping operations?  Interesting. Global X would be a serious contender as well, just because having french speakers is a big plus for a few places in Africa. 

So there you have it. Libya and it’s oil, maritime security, and peacekeeping are the markets that France is looking at, and they estimate the global security and defense market to be a 400 billion dollar industry! Not only that, but PMSC’s are viewed as strategic assets, much how China is seeing this industry.

The US and Britain are already way ahead of most of the world when it comes to this industry thanks to ten years of constant war. But as more countries catch on, I imagine the market will evolve and become more interesting as time goes by.

The definition of the state and it’s monopoly on the use of force is changing as well. Countries are realizing that PMSC’s, if used properly, can be ‘real levers of influence’ to quote the report. If anyone has any info on these companies or the article below, feel free to comment. –Matt

 

Regulation, Expansion of French Private Security Firms Urged
Feb. 26, 2012
A bipartisan French parliamentary report is calling for recognition and regulation of private military companies, hoping to reverse the strong climate of rejection regarding security contractors.
The report, published Feb. 14 and co-authored by members Jean-Claude Viollet (Socialist) and Christian Menard (Union pour un Mouvement Populaire), points up the growth of business in private security and military activity over the last two decades, led by U.S. and British companies.
The sector has become so important, France can’t ignore it, the report said.

 

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