Feral Jundi

Thursday, October 28, 2010

Industry Talk: Russia Eyes Security Firms To Defend Assets Abroad

     Amid the global economic crisis, the security guard industry remains a haven for those Russians not afraid of danger or boredom.

     The Russian private security business has seen a number of cuts and layoffs in the last year. However, the workforce still accounts for up to 750,000 guards, making it one of the biggest in the country.

     Aleksandr Mikhin, a spokesperson for a Moscow-based Alligator Security Company, which has been in business for 16 years, says companies have started reconsidering their contracts with security firms, trying to optimize their spending.

     But security is usually the last thing businesses are ready to sacrifice. And in an economy such as this, increased concern about crime, vandalism and terrorism is forecast to raise the need for security. 

     Adil Mukashev, an independent expert on terrorism issues based in Almaty, Kazakhstan, said the security firms will likely employ ex-military from Russia’s mainly Muslim North Caucasus region, where an Islamist insurgency is raging.

“This will kill two birds with one stone — give men work in a region with high unemployment and drive them away from radical Islam,” Mukashev told Reuters.

    An interesting little side fact is that I get a lot of readers from Russia checking out the blog. With over 750,000 guards in Russia, now I know why! lol But what is really interesting is the idea of exporting this pool of guards to protect Russian assets abroad. This is the territory I like to explore.

     The article only mentioned oil and mineral assets abroad, but there are other areas that would be of Russia’s best interest to take part in. Specifically, if they plan on allowing NATO to use their railways to transport weapons and whatnot. This will make railways a bigger target for terrorists, and increased traffic will increase exposure. Especially in Northern Afghanistan, because the Taliban and company will do all they can to attack that railway or to steal from it. For investors to trust these lines, there must be adequate security for them.

     Private security firms also allow Russia to participate in Afghanistan, and yet not appear to be involved militarily with it’s own troops. So if they want to help NATO and get some sweet deals in return (dealing with Georgia, etc.), as well as not get sucked in militarily into Afghanistan, they could easily assist via private military firms. Trainers for all types of things, like police or military, or even the pilots of all these Mi-17’s that Afghanistan is buying, could all be drawn from private firms.

     Add to that the legions of Afghan war veterans that Russia has who could be called upon for these contracts. That’s if Russian parliament says it’s cool? The money is what will be doing the talking here, as well as the security situation and unemployment realities of that country. All I know is NATO seems to be pretty interested in including Russia into the Afghan game.

    There is also the maritime security industry, and I am sure Russia would be eyeing ways to protect their shipping assets privately as well. These companies could also offer their services elsewhere, if legally allowed to do so by Russia.

     I am also interested in the other quote up top about using this as a means of employing out of work folks and keeping them away from Jihad? Would sending them to Iraq to defend a company like LUKOIL be a good thing or a bad thing for a muslim from the Northern Caucasus? –Matt

Russia eyes security firms to defend assets abroad

Russia to continue supplying Afghan army and police

Hold it right there

Russia eyes security firms to defend assets abroad

October 28, 2010

* Russia wants private security for assets in conflict zones

* Ex-military personnel could be from volatile N. Caucasus

By Amie Ferris-Rotman

Russia is preparing legislation to set up private security firms using ex-soldiers and police to protect its oil, gas and mineral holdings in conflict zones abroad, a lawmaker and ex-KGB officer said in an interview.

Up to 1,000 security personnel would operate along the lines of U.S. and British private security firms, said Gennady Gudkov, a deputy in Russia’s lower house of parliament, known as the Duma.

“It will be expensive but unfortunately it is very necessary,” said Gudkov, an influential member of the pro-Kremlin Fair Russia party and a former KGB officer who sits on parliament’s safety committee.

“As long as Russian firms are operating abroad, this is in the interest of the state,” he told Reuters, referring to Russia’s need to protect strategically important companies.

(more…)

Sunday, October 24, 2010

Industry Talk: Foreclosure Freeze Could Put Security Clearances At Risk

     This popped up on my radar and I thought this was very interesting. I have not received any emails from contractors who are dealing with this problem, but I am sure it impacts a few out there. If anyone has experienced any issues related to this, feel free to comment below. –Matt

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Foreclosure freeze could put security clearances at risk

By Dina ElBoghdady and Dana Hedgpeth

October 20, 2010

The sudden moratorium on many foreclosures across the country has unexpectedly put some federal workers and contractors in jeopardy of losing their security clearances because of the heightened uncertainty clouding their finances, according to lawyers who handle these cases.

Employees with security clearances are monitored by the government for financial problems that would make them vulnerable to bribery or blackmail. And with many financial companies adopting some form of foreclosure freeze in recent weeks, it’s taking longer for some delinquent borrowers to resolve their mortgage cases and put their troubles behind them, the lawyers said.

(more…)

Thursday, October 14, 2010

Industry Talk: Aid Workers’ Security Situation Spurs Talks On Afghan Contractor Ban

        What happened to Linda Norgrove was tragic in two ways. First is if she was doing a critical job that put her in harms way, then she should have been given competent security folks who are professionals and capable. And second, the tragedy of her getting kidnapped and the government having to either rescue her or pay a ransom has become a PR nightmare for all involved.

     Of course in this case they felt it necessary to rescue her and that mission was not successful. So what is worse? Using private security or letting your people get kidnapped due to a lack of security? (it reminds me of the piracy debate) Which goes back to what this article is talking about.

     Afghanistan is a far more dangerous place these days and requires ‘true’ security professionals to safely transport crucial civilian specialists from point A to point B. With a shortage of dependable and professional local national security types, as well as a lack of available military escorts, private security contracted through experienced and capable companies are the final and best option in my view.

     Tim Lynch wrote a great post the other day that talked about Linda and the banning of security companies in Afghanistan. It is a good read and be sure to follow his posts as this situation develops.

     We will see how the State Department is able to navigate this one, because if they plan on continuing their missions out there they will need authorization by the Afghan government to continue using their security contractors on the roads. –Matt

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Aid workers’ security situation spurs talks on Afghan contractor ban

October 12, 2010

By Elise Labott

Concerned a ban on security contractors in Afghanistan will curtail the efforts of development workers, the State Department is feverishly negotiating with the Afghan government about a set of conditions that will allow private security details to operate in the country, senior U.S. officials told CNN.

The officials, who spoke on the condition of anonymity because of the sensitivity of the negotiations, said the United States is concerned about a four-month deadline Afghanistan’s president imposed last month to phase out the country’s 52 private security companies by year’s end. If implemented, the move would leave critical aid personnel unprotected and unable to continue their work, a key pillar of the U.S. strategy as it seeks to stabilize Afghanistan.

The U.S. is in intense negotiations with the Afghan interior ministry for a “clarification letter” that would spell out a consistent and uniform set of guidelines by which contractors would be allowed to remain in the country and under what conditions they can operate. The guidelines should be finished within the next week, they said.

(more…)

Sunday, October 3, 2010

Logistics: NATO Convoy Security Threatened By Events In Pakistan And PSC Disbanding In Afghanistan

     So now reality sets in.  Crybaby Karzai is now going to set up a state-run trucking protection system to take control of NATO convoy security?  Just one problem–they don’t have a clue on how to do it or where to get the manpower. Because if you take troops from essential war duties, and shuffle them around to fill those jobs that PSCs filled, then now we are negatively impacting strategies that depended on those troops.

     Also, who says that these Afghan soldiers won’t steal from the convoys or get into firefights with insurgents in local populations?  Because these forces will probably react the same way that Afghan PSC’s reacted doing the same job.  They will probably be worse, because they will have to do some serious OJT to catch up to the capability of PSC’s.

     My guess is that we will continue to see PSCs operate on the road to some degree, just because there is another issue here that trumps the politics of Crybaby Karzai.  NATO is highly dependent on these supplies coming in from Pakistan and elswhere, and if Karzai cannot quickly raise this 5,000 man trucking brigade, then I don’t see any other choice but to continue to rely on contractors.

     The other area to look at is the impact that events in Pakistan have on supplies being brought over those mountains.  NATO helicopters killed several Pakistani soldiers in a friendly fire accident during a cross border assault on a fleeing Taliban group, and that event has caused some serious secondary effects.  Specifically, it has caused an uproar in Pakistan and the government there has decided to shut down trucking as pay back. The insurgents are getting into the action as well, and ramping up attacks on these trucks.

    Which brings up the next point and story.  Supposedly, Pakistan is not protecting these trucks.  The trucking companies have been screaming for protection by the government, or the right to self protection with armed security, and the Pakistani government has done neither. Amazing.

     Now take a lack of security and put that together with the government’s blocking of trucks at the border, and you have an opportunity for the enemy. The insurgents are taking advantage of the riff between the US and Pakistan over this latest incident by attacking the symbols of the US–which is these trucks with fuel and supplies on them. These attacks make the insurgents look like the good guys so these attacks have twice the impact on the war effort. It wins over the support of the population, and it disrupts and destroys NATO logistics. –Matt

Afghan wrestles with protecting NATO supply routes

Little security for Nato supply convoys

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NATO Suplies

Pakistani fire fighters try to extinguish burning NATO supply trucks carrying military vehicles and oil following militants attack on the outskirts of Islamabad on June 9, 2010.

Afghan wrestles with protecting NATO supply routes

October 3, 2010

By DION NISSENBAUM

Afghanistan’s top security officials are urging President Hamid Karzai to establish a military-run trucking system to take control of critical NATO supply routes now protected by a ragtag network of unsavory private security firms that is scheduled to be disbanded by year-end.

With the Karzai-imposed deadline looming to close the private convoy-protection companies, Afghanistan officials told McClatchy Newspapers on Sunday that they want to create a state-run military brigade equipped with its own trucks and thousands of soldiers to carry essential NATO supplies around the country.

(more…)

Tuesday, September 28, 2010

Maritime Security: Insurance Firms Plan Private Navy To Take On Somali Pirates

Sean Woollerson, a senior partner with JLT, told The Independent: “We are looking at setting up a private navy to escort vessels through the danger zones. We would have armed personnel with fast boats escorting ships and make it very clear to any Somali vessels in the vicinity that they are entering a protected area.

“At the moment there is a disconnect between the private security sector and the international naval force. We think we can help remedy that and place this force under the control of the multi-national force. We look after about 5,000 ships and have had 10 vessels taken in total, including a seizure where one crew member was shot and killed. Piracy is a serious problem, these are criminals basically extorting funds, so why not do something more proactive?” 

*****

Jardine Lloyd Thompson Group (JLT), which insures 14 per cent of the world’s commercial shipping fleet, said the unprecedented “private navy” would work under the direct control of the military with clear rules of engagement valid under international law. Early discussions have also been held with the Ministry of Defence, the Department of Transport and the Foreign Office. 

*****

     I posted an article back in April that hinted at this private navy concept, and I had no idea that it would get to this level.  This is fantastic news and I totally support such a thing.  Mr. Woollerson is right and companies must do something more proactive.

    Now on to the control mechanism for this force. Perhaps now would be a time for Britain to re-evaluate their position on the Letter of Marque and Reprisal?  The Declaration of Paris might have been a nice concept at the time of ratification, but it removed a tool of the British government for dealing with non-state actors like pirates? They could actually license this private navy to do what it is doing.

     Within the terms of the license, that is where they can define who the companies answer too and what legal mechanisms they are to abide by. They can also put fail safe measures on this private navy, like an expiration date or something similar. Because if this private navy ‘would work under the direct control of the military with clear rules of engagement valid under international law’, then you guys might as well go all the way and issue the LoM?

    Another thing that I was thinking about here is that if JLT is successful with this insurance/private navy model, then will other insurance companies get the hint and be ‘proactive’ as well?  I guess time will tell and if the action does equate to a cost savings and safer voyages for the shipping industry, I am sure it will catch on.

    Finally, there is the cost factor.  It is extremely costly for the navies of the world to continue these anti-piracy operations using these large vessels/expensive air assets to go after pirates armed with AK’s in little motor boats. How is this sustainable economically? Eventually, the work load would have to be shared in order for it to continue, and perhaps private industry is looking into the future here. They are also looking at the fact that boats are still being taken, and all these fancy high tech navies are not able to stop these pirates. Nor is there anything being done on land, and the profitable piracy industry has no where to go but up.  Being proactive makes sense given the current state of things.

    Interesting stuff and I would like to know what company JLT will go through for raising this private navy?  If any readers, or even JLT can answer that one, that would be very cool. Hell, I will even post the recruitment ad for this ‘private navy’, and I will guarantee that JLT’s contractor will get a huge response. –Matt

Edit: 10/01/2010 -Be sure to check this show out in regards to the story. They discuss how the LoM could be used as a legal mechanism for this private navy.

Insurance firms plan private navy to take on Somali pirates

Somali Pirate Attacks Sink Premiums as Insurers Leap Aboard

Jardine Lloyd Thompson Group Plc

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Insurance firms plan private navy to take on Somali pirates

By Cahal Milmo

September 28, 2010

Patrol boats crewed by armed guards to protect valuable ships in Gulf of Aden

Insurers have drawn up plans for the world’s first private navy to try to turn the tide against Somali pirates who continue to plague the global shipping industry by hijacking vessels for ransoms of more than £100m a year, The Independent has learnt.

The new navy, which has the agreement in principle of several shipping groups and is being considered by the British Government, is the latest attempt to counter the increasingly sophisticated and aggressive piracy gangs who operate up to 1,200 miles from their bases in the Horn of Africa and are about to launch a new wave of seaborne attacks following the monsoon season.

A multi-national naval force, including an EU fleet currently commanded by a British officer, has dramatically reduced the number of assaults in the Gulf of Aden in recent months. But seizures continue with 16 ships and 354 sailors currently being held hostage. The Independent has seen Nato documents which show both ransom payments and the period that pirates are holding vessels have doubled in the last 12 months to an average $4m and 117 days respectively.

In response, a leading London insurer is pushing ahead with radical proposals to create a private fleet of about 20 patrol boats crewed by armed guards to bolster the international military presence off the Somali coast. They would act as escorts and fast-response vessels for shipping passing through the Suez Canal and the Indian Ocean.

(more…)

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