Feral Jundi

Thursday, April 12, 2012

Maritime Security: Jardine Lloyd Thompson Private Navy News…Still Raising Cash

Filed under: Maritime Security — Tags: , , , , — Matt @ 1:03 PM

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.’

(more…)

Tuesday, November 8, 2011

Maritime Security: JLT In The News–Private Navy To Start Within Five Months

Filed under: Maritime Security — Tags: , , , , — Matt @ 11:11 AM

The project, first discussed more than a year ago, experienced some delays in getting a state jurisdiction to register its vessels. Cyprus agreed to add the ships last month, following a U.S. State Department veto for registration in the Marshall Islands, Campbell said.

This is really the only quote I was interested in with this article. Of course JLT and these security contractors have been promising this private navy concept for awhile now, and it all revolves around getting backing from a country and from investors.

What I am interested in though, is Cyprus allowing these vessels to be state registered? That seems pretty close to issuing a Letter of Marque if you ask me? Especially if Cyprus registers these vessels, knowing full well that they will be purposely used for anti-piracy operations and escort duty. That they are endorsing a ‘private navy’.  Even if they have not issued a LoM, they might as well do so anyways, because in effect, Cyprus is blessing a privateer force. (mind you, historically speaking, LoM’s have been issued to early privateers to do exactly what these guys will be doing–escorting commerce through pirate infested waters)

The other thing to bring up here is that there just isn’t enough naval assets out there to cover all of the transits.  The reason for this is the poor economy and a reduction in naval forces and their missions. Especially missions protecting commerce in such a vast operational area. So enter private industry to fill in the void…..  But it is all still all talk, and when this private navy actually gets some investors, and we see video of them doing their thing, then I will truly be impressed. –Matt

 

Somalia Piracy Spurs Private Navy to Start Within Five Months
November 07, 2011
By Michelle Wiese Bockmann
The company behind the world’s first private navy to protect merchant ships against Somali pirates plans to start armed escorts through the Gulf of Aden within five months after attacks rose to a record this year.
Convoy Escort Programme Ltd., backed by the marine insurance industry, will initially deploy seven former naval patrol boats, each with armed security teams of eight people on board, Angus Campbell, chief executive officer, said by phone from Swarland, England today. The bullet-proofed boats will charge about $30,000 per ship traveling in a convoy of around four vessels over three to four days, he said.
“We are going to be a deterrent,” Campbell said. “We are not in the business of looking for trouble but if anybody tries to attack a vessel we are escorting, our security teams will deploy force if they have to act in self defence.”
Attacks reached a record this year and cost the global economy an estimated $7 billion to $12 billion annually, according to the United Nations’ International Maritime Organization. About 23,000 vessels carrying $1 trillion of trade pass through the Gulf of Aden every year, the U.K. government estimates.

(more…)

Tuesday, December 21, 2010

Maritime Security: The JLT ‘Private Navy’ Is Close To Kick-Off

Filed under: Africa,Letter Of Marque,Maritime Security,Somalia — Tags: , , , , , , , , , , — Matt @ 8:54 AM

      Woollerson would also like to see it involved in trying to remove the causes of Somali piracy through land-based initiatives.

     “I see the CEP as a self-destructing company. Maybe in many years’ time we will no longer be needed and could donate the tonnage to a Somali coastguard,” he said.

     This is a very interesting quote, and actually the entire article below is filled with some great stuff. Bravo to the author for getting the scoop and putting it out there for all to read. Here are my older posts with comments that first talked about this venture.

     Now for my take on the whole thing.  In order for this Convoy Escort Programme (CEP) to be a ‘self-destructing company’, it must take part in destroying their ‘Raison d’être’ –the pirates.  Escorting ships does not alone create this kind of market mechanism. Especially if they only plan on capturing 27% of the merchant traffic going through the GoA, and allowing the pirates to feast on the other 73% of the merchant traffic. If anything the consequence, intended or unintended, will be a higher concentration of armed pirates attacking undefended vessels.

    The other angle on this is that merchants and insurance companies will see how this works, and they too will fire up a similar business model.  That other 73% of the merchant market might shrink pretty fast with a higher concentration of pirates coming down on them, and an increase of insurance backed protective services available to them at a decent price.

    But this is where the quote up top really grabs me, and that is the land based initiatives of this CEP team.  Could there be something going on here, like JLT taking a hint from what is going on with Saracen International and their proposed private militia? I bet JLT wouldn’t mind attracting some of that funding coming from this middle eastern mystery donor either.

    Finally, there is the quote about a reputable flag state sponsoring these CEP vessels, and the concept of a government and military granting them ‘legitimacy’. That sounds like all the makings for a Letter of Marque or some kind of similar license to do what they are going to do. We will soon find out in the coming months exactly what kind of arrangement we have here. –Matt

‘Private Navy’ Is Close To Kick-Off

December 10, 2010

An insurance broker’s plan to create a “private navy” to combat Somali piracy is close to being launched.

Shipowners could be asked to back the project as early as late January or February with private military-escort vessels sailing alongside merchant ships by mid-2011.

A reputable flag state prepared to register the 18 patrol boats has been lined up, shipowner support is being canvassed and preparations made to secure funding for the vessels and crew.

Sean Woollerson of the Jardine Lloyd Thompson (JLT) insurance-broking group says there are still issues to overcome but the key task of securing government and military support to give the project “legitimacy” is almost there.

The venture, now branded as the Convoy Escort Programme (CEP), estimates it needs only £15m ($23.5m) to buy secondhand vessels suitable for use as patrol boats and the rest of the infrastructure.

Greek salvage entrepreneur George Tsavliris is already seeking support from fellow shipowners and Bimco has indicated a willingness to help facilitate the project.

(more…)

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