Feral Jundi

Thursday, March 29, 2012

Maritime Security: BIMCO Publishes Much Anticipated GUARDCON Contract

Filed under: Maritime Security — Tags: , , , , , , — Matt @ 10:25 AM

This is great news. BIMCO is the largest shipping association out there, and with it’s large membership pool, it has some pull. So when they come up with a standard contract for armed guards on boats, then that helps to create a single standard that all of the companies, lawyers and insurance providers can work from. This is important, because with a standard like this there is no guess work. Either your company meets the standard, or it does not. A standardized contract also helps to mitigate the principal agent problem, and it is a means to protect the interest of both parties.

As to commentary on the GUARDCON Contract, I would head over to Close Protection World’s Maritime Security Forum. The guys are already discussing it and it’s possible impact on the industry.

On a side note, it is interesting to me that a NGO like BIMCO has the ability to determine the appropriate rules for the use of force, and basically guide all of their members to use those rules. I am used to countries and their military leaders dictating what the appropriate rules are, just because they have the monopoly on the use of force throughout the world. In this case, a NGO is now dictating that. What an odd set of circumstances… –Matt

Copies and Information about GUARDCON Contract here.

 

BIMCO publishes much anticipated GUARDCON Contract
March 28, 2012
BIMCO is pleased to announce the publication of the GUARDCON standard contract for the employment of security guards on vessels. This brand new contract has been developed to provide ship owners and private maritime security companies (PMSC) 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. While BIMCO would not like to see the use of armed security guards on ships becoming institutionalised, it recognises that while the industry awaits a more permanent long term solution, armed guards currently provide an effective deterrent to piracy attacks.
BIMCO’s Chief Officer Legal and Contractual Affairs, Grant Hunter said “In response to ship owners’ increasing demand for security services, an ever growing number of private maritime security companies have entered the market to meet that demand. In the absence of a standard contract for these services, ship owners and their P&I Clubs are currently faced with the difficult and time consuming task of assessing large numbers of contracts from these security companies, all with varying terms and conditions.

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Thursday, March 22, 2012

Maritime Security: Piracy Fighters Use Floating Armories

Filed under: Maritime Security,Weapons Stuff — Tags: , , , , — Matt @ 12:03 PM

There are between 10 and 12 ships operating as floating armories at any one time. About half a dozen are located in the Red Sea, three off the United Arab Emirates and a couple off the island nation of Madagascar, said Thomas Jakobsson of Sea Marshals Ltd.
“Many companies are too small to be able to comply with regulations. It costs a lot of money,” he said. His company only used floating armories licensed by the Djibouti government and flew the flag of landlocked Mongolia, he said. He believed most of the rest were not operating legally, he said.

This is some interesting reportage on floating armories. It is a reality of maritime security operations out there and it is yet another option–versus buying the weapons and throwing them overboard before coming into port. Or having to deal with the myriad of confusing and conflicting laws of the various ports and countries. Arms on the high seas is a very touchy thing.

My concern with the practice of floating armories is the security of these vessels. Who regulates how this is to be accomplished? We are basically depending upon that vessel and it’s crew of protecting that cache of weapons, and hopefully all parties involved are taking their job seriously? Imagine a pirate force or terrorist group purposely attacking such a vessel in order to take those weapons by force?

On the other hand, it is within the best interest of that floating armory to secure their vessel. They also have plenty of weapons to do such a thing. It is the ultimate ‘armed guards on boats’. lol

As to the legality of such a thing? This would be another great use for the Letter of Marque. Or just call it a license, and the flagged vessel would receive a license from their sponsoring country for this kind of activity. Throw in a bond and some rules/laws to operate by, and now we would have some accountability here.

Another idea is to just use the military for this. If a country assigns specific naval units to assist in this matter, as well as do their anti-piracy thing, then we can have some government control over the distribution of weapons.

These military floating armories would also be contributing greatly to the anti-piracy mission, because they would be ensuring that functioning weapons and ammunition are actually going into the hands of competent guard forces. A naval armory could be used to check licenses, competencies, bonds, etc. before issuing weapons. Hell, a shooting test and zeroing could be done on a military vessel, much like how infantry units do their thing on vessels. They could also hand off crucial intelligence, procedures, or even escorts to these companies, depending upon the routes they take and their mission. It would be an excellent public/private partnership. Something to think about as we navigate this stuff. –Matt

 

Piracy fighters use floating armories
By Katharine Houreld
March 22, 2012
Private security firms are storing their guns aboard floating armories in international waters so ships that want armed anti-piracy guards for East Africa’s pirate-infested waters can cut costs and circumvent laws limiting the import and export of weapons, industry officials say.
Companies and legal experts say the operation of the armories is a “legal gray area” because few, if any, governments have laws governing the practice. Some security companies have simply not informed the governments of the flag their ship is flying, industry officials said.
Some members of the private security sector are urging governments and industry leaders to impose standards on the unchecked practice of storing weapons offshore to equip anti-pirate forces off Somalia’s coast.
Storing guns on boats offshore really took off as a business last year. Britain — where many of the operators are from — is investigating the legality of the practice, which has received little publicity outside of shipping industry circles.
Floating armories have become a viable business in the wake of increased security practices by the maritime industry, which has struggled for years to combat attacks by Somali pirates. But those in the industry say the standards vary widely.

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Friday, March 16, 2012

Jobs: Halliday Finch–Multiple Security Related Positions, Somalia

Filed under: Africa,Jobs,Maritime Security,Somalia — Tags: , , , , — Matt @ 1:31 PM

Along with my prior post about Halliday Finch winning a major contract in Somalia, comes the jobs. I am not the recruiter for HF, and please follow this link if you would like to apply for any of these. Hopefully someone from the company can come up and answer any questions or fill in the blanks as to what they need. Good luck to anyone that applies. –Matt

Apply for the jobs here.

 

Fisheries Protection Officers (HF0111112)
Responsibilities typically will fall into two main areas: protection of relevant fisheries and enforcement of pertinent legislation. In regards to fisheries protection, a fishery officer will patrol wild sea fishery habitat, in addition to periodically inspect fishing vessels for adherence to fishing regulations.
The inspections will also serve as data collection for recording annual fishing harvests or documenting the impact of various aquatic species diseases.

Special Maritime Training Team (HF0111111)
We are looking to assemble an international team of 60 men who will recruit, train and deploy in an advisory capacity for the Somali Government in an anti piracy role. The candidates must have a Special Forces, Marine, or other military speciality.
They must have prior experience of training men in Africa and a proven track record of success at doing so. Language ability is a bonus. Ideal Candidates would be from UK, US, EU, or South Africa but will accept the right man from any country.

Close Protection Operatives (HF0111110)
Protection operatives needed for tasks in Africa for VVIP and VIP principals. African Experience essential.

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Somalia: Halliday Finch Signs Contract For Standing Up TFG’s National Coast Guard

Filed under: Industry Talk,Maritime Security,Somalia — Tags: , , , , , , , , , — Matt @ 1:20 PM

“With the help of several members of the international community and in partnership with Halliday Finch International we will deliver, under the auspices of the TFG Ministry of Defence and through theTFG Anti-Piracy Task Force, a National Coast Guard capability with immediate effect. In developing a national capability we recognise that we need the help and assistance of our regional partners and we will establish many of the training facilities and bases in their areas. Halliday Finch International will provide training and logistic support as well as other services.“

This is great news for Halliday Finch and I hope they can get in there and do some good. I wrote briefly about them in a prior post because they were mentioned as a replacement for Saracen after a UNSC resolution was passed.

Might I also add that HF has some serious connections. They are the personal protective detail for Sir Richard Branson when he visits Africa, they protect The Elders, and are the go to company for numerous celebrities that come to Africa for whatever reason. In other words, CEO Sam Mattock knows how to gain influence and rub elbows with the power brokers in Africa. Hence why this company has been able to edge their way into places like Somalia without a lot of protest or attention.

Now will they perform and actually deliver a good service?  Can they produce results and truly help the TFG in their goal of fighting piracy? Who knows and time will tell….

Another point I wanted to make is the money involved. According to the first article, the source of funding for this contract is very intriguing. Will they really make enough money from ‘fishing licenses’, or will this purely be a donor venture? I didn’t know they could potentially make that much from fishing licenses, but you never know. Also, from my prior post, it was Kuwait that donated this $52 million.

Now that the contract has been signed, Halliday Finch is seeking both national and private donors to fund the operation. Qatar, Mauritius, Nigeria and Angola have expressed interest, and the firm has already secured the $52 million required for the first year of operation. Halliday Finch has predicted that the 10-year project will cost approximately $900 million, and the organisation hopes that some proportion of the funding will eventually come from domestic revenue streams, including the sale of fishing licenses.

The other thing that perked me up was the quote from the press release. I would be curious about the full scope of services that HF will be delivering. Because to me, this could include a whole host of things, and especially in a failed state like Somalia.

Also, will they be using any sub-contractors in Somalia, like SKA or even Bancroft Global?

Halliday Finch International will provide training and logistic support as well as other services.“

Who knows and we will check in on this from time to time. A private security company trying to make things work in a place like Somalia, will have to work pretty damned hard to deliver and I wish them well. –Matt

 

From The Weekly Piracy Report on Somalia -Volume4
March, 05 2012
….TFG Ministry of Defence Announces Creation Of A National Coastguard
The TFG Ministry of Defence announced the establishment of the Somali Anti Piracy Task Force Coast Guard, in association with Halliday Finch International, a Nairobi-based private security company.The new force will be part of the Somali National Security Forces, and will consist of land, sea and air components.
In a press release issued this week, the Minister of Defence, Hussein Arab Essa announced:
“With the help of several members of the international community and in partnership with Halliday Finch International we will deliver, under the auspices of the TFG Ministry of Defence and through theTFG Anti-Piracy Task Force, a National Coast Guard capability with immediate effect. In developing a national capability we recognise that we need the help and assistance of our regional partners and we will establish many of the training facilities and bases in their areas. Halliday Finch International will provide training and logistic support as well as other services.”
Now that the contract has been signed, Halliday Finch is seeking both national and private donors to fund the operation. Qatar, Mauritius, Nigeria and Angola have expressed interest, and the firm has already secured the $52 million required for the first year of operation. Halliday Finch has predicted that the 10-year project will cost approximately $900 million, and the organisation hopes that some proportion of the funding will eventually come from domestic revenue streams, including the sale of fishing licenses.
Puntland’s Administration is already on board, and has agreed to plans to locate the initial training camp in Bosaso, according to Halliday Finch. In the first phase, 500 individuals (yet to be identified, but likely to come from the coastal communities) will be trained by international consultants and Somali security forces.
The ultimate plan is to integrate the numerous of maritime security efforts along the coast, which will require cooperation from the semi-autonomous region of Somaliland. Talks are ongoing, but coordination will likely be difficult given both Somaliland’s bid for secession and its immense pride over its own coastguard.
The initiative is but the latest TFG bid to promote security on the Somali coastline. In 2010, the TFG contracted private security company Saracen International to train its anti-piracy task force. Following allegations that Saracen had violated a UN arms embargo, the contract was cancelled in February 2010. Saracen swiftly shifted focus to its operations in Puntland, where it works with the Farole administration.
Story here.
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PRESS RELEASE FOR TFG MINISTRY OF DEFENCE THE SOMALI SOLUTION TO THE INTERNATIONAL PIRACY PROBLEM: ANTI PIRACY TASK FORCE (APTF) COASTGUARD INITIATIVE
25.02.2012 | The Transitional Federal Government of Somalia recognises the importance of securing Somalia’s territorial integrity. Significant effort and resources have already been devoted by the African Union, Somalia’s neighbours and the International Community to recover and secure Somalia’s borders, including its shores.

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Monday, February 27, 2012

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

Filed under: France,Industry Talk,Libya,Maritime Security — Tags: , , , , , , , — Matt @ 11:38 AM

“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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