Pirates and privateers: managing the Indian Ocean's private security boom

The fight against Somali-based pirates is becoming a private battle as global defence cuts reduce naval counter-piracy deployments. Because governments have struggled to contain the spread of piracy in the Indian Ocean, shipping companies have turned to private military security companies to guarantee the safety of their crews and cargo. Private armed teams have proliferated on commercial shipping and several private armed vessels are operating in the region. Meanwhile, some governments are hiring out their own national militaries as security guards onboard ships. However, this private counter-piracy boom is creating fresh problems. Already shootings at sea have led to international disputes and accidental confrontations. And murky legal and consular difficulties loom. There is a legitimate role for private companies in fighting piracy. But the challenge for governments will be to recapture the policy agenda and define the limits of what that role is before it leads to new kinds of trouble on the high seas. Key findings: The maritime security business in the Indian Ocean is booming as ships turn to private military security companies to help in the fight against piracy. Over 140 companies now provide armed protection for ships in the Indian Ocean. At least 2700 individual contractors are employed as armed guards on ships and 18 floating armouries are operating in waters near the Gulf of Aden. 40 private armed patrol boats are now, or will soon be, operating in the Indian Ocean. The most sophisticated of these private navies is outfitting three large boats in Singapore - each with a crew of 20, capable of carrying 40 private marines, and equipped with a helicopter and drones. The use of these boats, and the aggressive tactics they employ, should be discouraged by governments and the International Maritime Organization. Because of shipping company demands for armed teams and shrinking defence budgets, governments are now privately hiring out their soldiers to provide security onboard commercial ships as ‘vessel protection detachments’. The use of these teams potentially has serious legal and political consequences for states should they be involved in disputes

Privateers in Australia’s conflict and disaster zones

The private security industry has become an established component in the conflict and disaster zones where the Australian Government operates and looks set to be an enduring feature of the security landscape. Although behind the United States, United Kingdom and South Africa, Australia is now a substantial contributor to the global private security industry. Australian companies provide security services across the globe, from Asia to Africa, to governments and private clients alike. Many Australians, mostly former ADF personnel, work as contractors for PSCs—leveraging their military skills to protect infrastructure and individuals. Australians are key players in the private security industry, relied upon for their expertise, combat experience and interoperability with US and UK militaries and private security operators. The Australian Government has been forging a greater leadership role in the private security arena. Australia has been among the most forthright supporters of nascent initiatives designed to regulate the established private security industry. Australian diplomats, academic specialists and international legal experts have actively driven initiatives like the Montreux Document, the International Code of Conduct for Private Security Providers, and the development of international standards for the private security industry. In August 2013, Australia become a foundation member and key government supporter of the Association of the International Code of Conduct for Private Security Providers, contributing seed funding to this non-government organisation (NGO), which aims to provide a forum to oversee PSC operations

Somalia and the Pirates. ESF Working Paper No. 33, 18 December 2009

Piracy is defined by The Hague Centre for Strategic Studies as an "act of boarding or attempting to board any ship with the apparent intent to commit theft or any other crime and with the apparent intent or capability to use force in furtherance of that act." And it is estimated that from 1995 to 2009, around 730 persons were killed or are presumed dead, approximately 3,850 seafarers were held hostage, around 230 were kidnapped and ransomed, nearly 800 were seriously injured and hundreds more were threatened with guns and knives. (See paper by Rob de Wijk). In November 2009, CEPS held a European Security Forum seminar, in collaboration with the Institute for Strategic Studies, the Centre for the Democratic Control of Armed Forces and the Geneva Centre for Security Policy, to focus on the issue of Somalia and the Pirates, chaired by Francois Heisbourg. Four eminent specialists in this field: David Anderson, Rob de Wijk, Steven Haines and Jonathon Stevenson looked at the links with Somalia, and the historical, legal, political and security dimensions of the troubling success of piracy in today’s world. Their conclusions and recommendations for future action are brought together in this ESF 33 Working Paper

India - India's growing conflict between trade and transport : issues and options

India was a rather marginal participant in world trade during the early years after independence. Since 1980, however, the structure and orientation of Indian export trades have undergone fundamental changes. Substantial progress has been made in diversifying the export base - manufactured goods have increased and the traditional bulk sector has shrunk. Key targets for the export of manufactured goods are the European, Japanese and North American markets. However, these markets are characterized by increasingly efficient trade logistics, including containerization and multimodal transport arrangements. To enable further trade growth, India is confronted with a need to tie into the highly organized international trade logistics networks, something the country is totally unprepared to cope with in terms of demanding logistical arrangements. There is a real danger that India's trade performance will deteriorate, if no corrective measures are taken. A highly fragmented service industry, outdated regulations, heavy Government control, a constrained private sector, and largely inadequate infrastructure have curtailed efforts to improve trade logistics, including containerization and multimodal transport arrangements in India. Major reforms are called for so that an effective framework for initiating urgently required system adjustments can be established.Environmental Economics&Policies,Economic Theory&Research,TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT,Transport and Trade Logistics,Common Carriers Industry

Djibouti: changing influence in the Horn's strategic hub

Change in Djibouti’s economic and strategic options has been driven by four factors: the Ethiopian–Eritrean war of 1998–2000, the impact of Ethiopia's economic transformation and growth upon trade; shifts in US strategy since 9/11, and the upsurge in piracy along the Gulf of Aden and Somali coasts. With the expansion of the US AFRICOM base, the reconfiguration of France's military presence and the establishment of Japanese and other military facilities, Djibouti has become an international maritime and military laboratory where new forms of cooperation are being developed. Djibouti has accelerated plans for regional economic integration. Building on close ties with Ethiopia, existing port upgrades and electricity grid integration will be enhanced by the development of the northern port of Tadjourah. These strategic and economic shifts have yet to be matched by internal political reforms, and growth needs to be linked to strategies for job creation and a renewal of domestic political legitimacy

The international ocean transport industry in crisis : assessing the reasons and outlook

Until 1980, the world merchant fleet expanded rapidly in response to thriving seatrade markets. Since then, it has not grown much. The industry did not adjust effectively to periodic global recession, and the fleet's earnings deteriorated as the gap widened between the supply of tonnage and the demand for transport. The unpredictability of seatrade markets and the changing structure of demand for ocean transport complicated shipowners'efforts to retrench and draw up defensive strategies. Advances in ship design and ocean transport technologies allowed shipowners to adjust to the greater need for specialized vessels, but chose to retain their assets and their adoption was expensive. Most shipowners added a few new vessels after 1980, often supported by government subsidies. Government regulations created serious distortions in ocean transport and impeded free market adjustments. The most serious issues the industry faces are a critically overaged fleet and shortage of capital. Becauseof reduced freight earnings, maintenance has been neglected, leading to frequent structural failure. Ship casualties - often with serious envionmental damage - have reached alarming levels. The deteriorating safety record has caused insurance costs to escalate and has provoked calls for stricter liability rules, stringent technical standards, and rigorous inspection. Enforcement would make ocean transport more expensive. To meet expected demand for ocean transport safely and efficiently, a great deal of overaged tonnage must be replaced, maintenance must be improved, and new tonnage has to be added. The estimated cost: almost US$400 billion in constant 1992 prices. But traditional financing, through mortgage lending and government subsidy, is becoming scarce. Leasing or cashflow-based lending are promising alternatives, but they required predictable revenue streams based on long-term freight contracts predicated on cargo-owners'cooperation, which remains doubtful. No effective arrangements have been made to meet the industry's capital requirements, and doubts are more numerous than assurances in the industry. The crisis that has developed is unprecedented.Common Carriers Industry,Ports&Waterways,Transport and Trade Logistics,Water and Industry,Environmental Economics&Policies

Polar Oceans in Peril and a Planet at Risk

The snow-covered lands and icy waters of these polar regions are, for many people, the purest examples of true wilderness left on this planet. While the Arctic has been home to indigenous peoples for millennia, Antarctica has only played host to visiting explorers and scientists. Both polar oceans are, however, home to distinctive wildlife that has adapted to the extreme environmental conditions, such as the Arctic's polar bears and the Antarctic's penguins. Polar waters provide rich feeding grounds that sustain large populations of seabirds and marine mammals, including the majority of the world's great whales.Indicators of our planet's health, the poles provide us with an early warning that we are compromising the Earth's ability to sustain life as we know it. It is already too late to avoid profound negative changes at the poles. But, we can limit further impacts by establishing boundaries that stop the commercial fishing fleets and the oil and gas industries from plundering and polluting these already-damaged ecosystems.The profound physical changes happening at the ends of the Earth are a wake-up call that we ignore at our peril. How we treat the Polar Oceans has major consequences for the planet as a whole. Our generation has a unique opportunity and responsibility to take action to bring us back from the brink of runaway climate change, and to protect some of the most fragile and essential ecosystems on Earth.There is a compelling body of scientific evidence that demonstrates that setting aside large areas of the ocean from industrial activities, such as fishing and oil and gas extraction, provides protection for valuable species and habitats, maintains important ecosystem functions and allows degraded areas to recover. This is even more important for the Polar Oceans, since the Arctic and Antarctic are warming faster than the rest of the globe and so are under increased stress.Creating marine reserves in the Polar Oceans will make them both more resilient to the impacts of climate change and will help prevent further, catastrophic climate change.Greenpeace is calling upon the United Nations and governments around the world to commit to a course of action to save the Arctic and Antarctic

Terrorism and maritime shipment of nuclear material

Opponents of the nuclear industry often claim that material in transit is vulnerable to attack by terrorist groups who might seek to take the cargo and make a bomb, or otherwise cause a radiological incident. This paper lays out a range of conceivable objectives or attack scenarios in the context of maritime transportation and examines these in the light of what is known of the relevant security arrangements. It concludes that these arrangements provide a very substantial deterrent to any attempt at diversion or sabotage and that any such attempt would have little prospect of success, beyond the immediate media impact of whatever might have occurred