Feral Jundi

Monday, May 14, 2012

Maritime Security: JLT News–CEP Private Navy Will Have Full Funding By End Of Month

Filed under: Maritime Security — Tags: , , , — Matt @ 11:29 PM

This is interesting news and JLT has been fighting to get this funded and operational for awhile now. So it will be great to see this in action. Although a couple of ‘what ifs’ have popped up as I read through the plans.

The CEP is planning to buy seven 150-foot fast patrol boats, understood to be ex-Swedish Navy, and has already earmarked 11 former offshore supply vessels for purchase and conversion.
The ships will be equipped with fast semi-inflatables, called ribs, an array of non-lethal counter-measures, and 0.50 calibre heavy machine guns. They will be operated by a crew of five and carry eight armed security personnel each.
The programme will result in convoys of up to four merchant ships closely escorted by one CEP craft along the IRTC, with additional CEP ships in support, covering east and west-bound traffic.

So this will be 8 armed security personnel covering down on convoys of up up to four merchant ships?  These armed guards will be in small boats to deploy and intercept pirate attack groups?  Ok, so I imagine 1 guard and the commander of the guards will have to remain on the patrol craft in order to guard that and do command and control, and that would leave 6 guys in probably two inflatables (with 3 per craft). So that is two inflatables and one patrol craft to cover down on four merchant ships? Or 2 guys for each inflatable, for 3 craft?

With that kind of force structure, pirates would have quite the juicy target (four merchant ships) with bare minimum force protection (8 guys?). And what is interesting is that pirates usually attack in groups of two skiffs. But there is also precedent for pirates attacking in packs of up to 10 skiffs. (a recent attack with 6 skiffs and 40 pirates was stopped by the Iranians)

So I have to say that this CEP sounds nice, but I question the manpower levels, and especially given the possibility of an attacking force using a swarm.

It might even be worth the investment for a pirate action group to figure out a way to sink the CEP vessel, like using guided missiles purchased on the black market. (thanks to conflicts like Libya)  The reasoning here is that an investment in a couple of missiles, might result in the sinking of a CEP vessel and the capture of four merchant ships that could all bring in about 4 to 5 million dollars a piece. Maybe more if those vessels are highly valuable. So the folks at JLT should know, that a determined pirate force might attempt such an attack because of the potential for profit. Is it wise to just use one CEP patrol vessel per convoy, and especially if it takes awhile for air assets or reserve CEP vessels to show up and help?

The other thing is that JLT is trying to sell this as a cheaper option than guards on boats.  Which is fine, but only assigning one CEP patrol vessel to a convoy of four merchant ships is one of the reasons why they are able to go cheap. I mean ideally you would want enough vessels to cover down on both sides of the convoy. Either CEP vessels that cover port and starboard sides, or aft and  fore of the convoy. That way you don’t have vessels running from one side to the other to repel an assault.

Another point is that what if the one CEP vessel covering down on the convoy, breaks down?  Do all of the merchant ships stop while the CEP vessel waits for repairs? That is another advantage of keeping armed guards on the boats. Perhaps JLT should write into the contracts that in those cases of CEP vessels breaking down, that the armed detail could board the vessels and cover that way so they can continue on with the trip? Who knows and I imagine this stuff has been worked out.

Finally, the other reason why they are pushing for this convoy concept is because it get’s the firefight off of the merchant vessels and out in the open between the CEP and the pirates. That’s so companies can distance themselves from the liability of these types of engagements. It also keeps the firefight away from merchant vessels that have explosive or flammable materials on them. Although with a swarm attack, if a CEP vessel is occupied, then how do they expect to stop other pirate vessels from attacking while they are busy? So pirates will shoot at these vessels anyways, just to signal them to slow down or draw the attention of the CEP boats.

Now one option, that might be more expensive but would definitely cover down on 4 vessels properly, is a patrol craft with helicopter launching capability. Much like the Bob Barker vessel in the Sea Shepard fleet, or the MacArther vessel. Having an eye in the sky to watch over the convoy, as well as engage multiple targets from that helicopter would be an excellent capability. That is owning the high ground!

It’s a numbers game guys, and pirates will take advantage of that. At least with guards on the boat, the advantage is with them because they have the high ground and own a pretty stable platform to fight from. That, and the enemy has to deal with that guard force if it wants to take the ship. With no guards on the boat, pirates could distract and overwhelm the CEP in order to get folks on that boat. The probability of this happening is pretty low, but it is possible.

I am also wondering what is cheaper? Slower vessels with armed guards, consuming less fuel because of a reduced speed, or this convoy model? We will see, and the market of these protection types and the pirates will dictate how this goes.

Also, nice try JLT for trying to dispel this idea that the CEP is not a private navy. lol It certainly is a private navy, that’s unless a government now owns and runs the CEP and will be collecting all of the profit from this venture? –Matt

 

Private navy planned to counter pirate raids
David Black
May 13, 2012
A private navy costing US$70 million (Dh257m) is being set up to escort merchant ships through the pirate-infested Gulf of Aden.
It will comprise a fleet of 18 ships, based in Djibouti, and will offer to convoy merchant vessels along the Internationally Recognised Transit Corridor (IRTC).
This is the world’s most dangerous shipping lane, between the Red Sea and the Arabian Sea. The fleet will be operated by the Convoy Escort Programme (CEP), a British company launched by the international shipping insurers Jardine Lloyd Thompson (JLT) and the Lloyds of London underwriters Ascot.
Full funding will be in place by the end of next month, and the CEP hopes the fleet will be operational by December.
“The shipping industry needs to stand up and be counted,” said Angus Campbell, the CEP’s chief executive and a former director of Overseas Shipholding Group, the world’s second-biggest listed oil tanker company. “The time is now, not in four or five years’ time.”
Piracy in the region is costing the global economy an estimated US$7 billion a year. For the ship owners alone, every vessel sailing through the waters off Somalia is charged additional insurance premiums of between $50,000 and $80,000.

(more…)

Tuesday, November 22, 2011

Maritime Security: SeaHold GEOSHIPS Subsidiary Wins Contract For Anti-Piracy Vessel

“This is an exciting contract for us and vessel protection is an area of increasing concern. The escort vessel offers 24/7 protection to commercial vessels passing through high risk areas.
“It can establish the intent of crafts in the vicinity of the commercial vessel and intercept if needed. This safety cordon around the client vessel helps to protect it from potential criminal activity.” -BSL, managing director, Rennie Cameron

Congrats to all of the parties involved with this contract. Hopefully these vessels do the trick for escort work? The other part of this deal is what they have planned for the future.

Plans are already in place to consider expanding with BSL as ship managers, to four or five vessels in 2012, which would lead to a turnover of around £7.5 to £9.5million per annum.

Now I have yet to hear any recent news about JLT’s private navy deal, but it looks like these guys are certainly spinning up their own little armada and pressing forward? –Matt

 

SeaHold GEOSHIPS subsidiary wins contract for anti-piracy vessel
November 22, 2011
SeaHold GEOSHIPS Ltd’s subsidiary company Brooking Shipping Limited (BSL), has been awarded a contract for an ‘escort vessel’ which is anticipated to generate £1.9 million each year.
This is the first contract BSL has been awarded since being acquired by the shipping and marine contractor, GEOSHIPS.
BSL, the marine division of GEOSHIPS, has been appointed the escort vessel contract by Mercator International Limited, for the technical and crew management of the new build 36m vessel, Express Opportune, a fast support intervention vessel capable of 25 knots and specifically prepared for the anti-piracy role.
BSL took delivery of the vessel in Singapore and the contract is initially for six months with automatic extensions. The work will primarily be in support of commercial ships transiting the Arabian Gulf and East Africa areas.
Escort vessels act as a visible threat deterrent and enforce an exclusion zone around a commercial vessel. They also provide specialist security teams trained in the use of fast intercept craft and counter boarding operations.
For the initial six months, the value of the contract to the company is worth over £1million and a Letter of Intent has been received for a second escort vessel to operate in similar geographical regions.
GEOSHIPS, group chief financial officer, Neil Donald, said: “I am delighted that Brooklyn Shipping Ltd has secured its first contract under the GEOSHIPS umbrella and is diversifying its skills out with the oil and gas industry.
“Entering into this contract reinforces the firm’s continued commitment to optimising safety for crews. This type of vessel allows operators to take advantage of business in new areas that were previously considered too high risk to enter.”
BSL, managing director, Rennie Cameron, said: “This is an exciting contract for us and vessel protection is an area of increasing concern. The escort vessel offers 24/7 protection to commercial vessels passing through high risk areas.
“It can establish the intent of crafts in the vicinity of the commercial vessel and intercept if needed. This safety cordon around the client vessel helps to protect it from potential criminal activity.”
Plans are already in place to consider expanding with BSL as ship managers, to four or five vessels in 2012, which would lead to a turnover of around £7.5 to £9.5million per annum.
GEOSHIPS current fleet of three multi-purpose offshore vessels includes its first vessel Stril Explorer, which was taken on an 18 month charter earlier this year, and two new vessels, Loch Erisort and Loch Roag, which are on long term charters and will be delivered during 2012.
Story here.

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ESCORT VESSELS

Escorts can be provided for vessels transiting high risk areas or those engaged in specialist operations such as cable laying, rig moves and surveying. Escorts can be a platform for accommodation, maintenance and as a base for protection. The advantage of an escort vessel is the ability to intercept and determine the intent of approaching craft. This creates a cordon around the client vessel enabling it to operate safe from the risk of attack. It can also provide an early warning of benign craft such as fishing vessels and nets. Potential threats can be identified early and with the vessels clearly visable protection and trained security personnel onboardis often itself an effective deterrent against piracy and criminal activity.

(more…)

Wednesday, February 16, 2011

Maritime Security: ICS Changes Policy, Backs Private Armed Guards To Beat Pirates

     Polemis said the decision had been made during a meeting in London last week because “many shipping companies have concluded that arming ships is a necessary alternative to avoiding the Indian Ocean completely, which would have a hugely damaging impact on the movement of world trade.” 

     This is big folks.  News like this can invigorate the demand for armed private security on boats and really fire up this aspect of the industry.  Which is good, because there are a ton of capable veterans/security specialists out there ready to jump on this stuff.

    Hell, with most of these maritime contracts being very short in duration, I could see guys actually planning to do a contract here or there just for a change of pace from Iraq or Afghanistan.  But on the down side, these short term contracts are what turns off some folks.  Meaning sometimes guys like stability within their contract, and they like to hang their hat on a good gig for awhile.

     And for the guys that are truly experienced and qualified to do this stuff, they will require a price to match or exceed what they would be earning for their efforts in Iraq or Afghanistan. The quotes I am hearing for pay for these types of gigs is kind of low if you ask me. Like I said, if the industry expands and there is a high demand for qualified individuals, the companies/clients will have to pay the price.  Because in this industry, you get what you pay for.

    What will really be exciting is to see what companies rise to the top as the best private naval companies? It will really be interesting to see how this private navy backed by JLT turns out?  Perhaps these talks are connected to the efforts of this insurance company and we will get some more scoop on their operations in the near future?

     Either way, I am glad to hear that the ICS (which represents around 80 percent of the world’s merchant fleet) has changed their minds and listened to reason in regards to armed guards on boats. It is the right thing to do and this industry will certainly do what it can to meet their needs. Plus, the economics of continuing to pay ransoms and fueling a piracy industry or the amount of time and money lost by re-routing ships in order to avoid this piracy scourge is also a huge factor in making this decision. –Matt

The Voice of International Shipping

The International Chamber of Shipping (ICS) and the International Shipping Federation (ISF) are the principal international trade association and employers’ organisation for merchant ship operators, representing all sectors and trades and about 80% of the world merchant fleet.

15 February 2011 – Shipping Industry Changes Stance on Armed Guards

ICS – whose Executive Committee comprising representatives of national shipowners’ associations from over 30 countries met in London last week – has decided to clarify its stance on the use of private armed security guards to defend merchant ships against attacks by Somali pirates. ICS members have also identified a vital need for the military to disable the hijacked ‘motherships’…

Best Management Practices to Deter Piracy in the Gulf of Aden and off the Coast of Somalia

Website for ICS/ISF here.

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Shippers back private armed guards to beat pirates

Feb 15, 2011

The International Chamber of Shipping (ICS) has changed its policy on private armed guards, and now accepts operators must be able to defend their ships against rising pirate attacks, the chamber said on Tuesday.

The ICS, which represents around 80 percent of the world’s merchant fleet, has so far discouraged its members from the use of private armed guards on its vessels.

“ICS has had to acknowledge that the decision to engage armed guards, whether military or private, is a decision to be made by the ship operator after due consideration of all of the risks, and subject to the approval of the vessel’s flag state and insurers,” the Chairman of the London-based ICS, Spyros M Polemis said in a statement.

Polemis said the decision had been made during a meeting in London last week because “many shipping companies have concluded that arming ships is a necessary alternative to avoiding the Indian Ocean completely, which would have a hugely damaging impact on the movement of world trade.”

(more…)

Tuesday, December 21, 2010

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

      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…)

Friday, October 8, 2010

Maritime Security: Ascot Underwriting Agrees To Join JLT’s Fight Against Somali Pirates

     Here is an update to the whole private navy thing. This is an important step to the process, and they are getting all their ‘ducks lined up in a row’. What these guys are waiting on now is for the British government to approve this. And get this, there might be a chance for an issuing of the Letter of Marque. It was discussed by some industry folks on that video I posted, and I am sure that conversation has been had elsewhere throughout this whole process?

     If this happens, this would be a very significant event in terms of the legal use of private industry for actions such as this. The historical significance would equally be awesome. Who knows and I will keep an eye out on this one. If anyone comes up with anything interesting, by all means let me know. –Matt

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Ascot agrees to join JLT’s fight against Somali pirates

07-10-2010

By Sam Barker

£10m joint venture would create fleet of armed patrol boats

Lloyd’s insurer Ascot Underwriting is working with JLT on the broker’s plans for a private navy to protect ships against Somali pirates.

The £10m JLT proposals would create a fleet of around 20 armed patrol boats to protect ships from Somali pirates. Ascot has proposed to underwrite the shipping escorted by the JLT private navy.

Ascot underwriter for marine hull Andrew Moulton said: “We have been working with JLT to provide a framework of potential insurance coverages in the event that the convoy escort programme receives support from the wider shipping community and, most importantly, gets the backing of EU Naval Force Somalia.”

(more…)

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