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WORLD> Africa
Somali piracy fight offers lucrative market for security firms
(Agencies)
Updated: 2008-10-27 09:23

Ransoms can reach into the millions of dollars. That's a fortune in a failed state like Somalia, where almost half the people depend on aid and warlords plunder food shipments meant for starving children. The money goes to clan-based militias, some of which are fighting in Somalia's civil war.

The crew of the Ukrainian merchant vessel, the MV Faina stand on the deck of the ship October 19, 2008 after a US Navy request to check on their health and welfare. The Belize-flagged cargo ship, owned and operated by Kaalbye Shipping, Ukraine, was seized by pirates on September 25 and forced to proceed to anchorage off the Somali Coast. The ship is carrying 33 T-72 tanks and other weaponry. Picture taken October 19, 2008. [Agencies]

Cyrus Mody, the manager of the International Maritime Bureau, says private security personnel can offer useful advice to ship captains, but he worries not all companies have clear rules of engagement or have sought legal advice about the consequences of opening fire.

So far hijackings are rarely fatal: One Chinese sailor was executed by pirates when ransom negotiations were going badly, and the two other known deaths resulted from a ricochet and a heart attack.

Mody says armed guards onboard ships may encourage pirates to use their weapons or spark an arms race between predators and prey. Currently, pirates often fire indiscriminately during an attack but don't aim to kill or injure crew. The pirates usually use assault rifles but have rocket-propelled grenades; some reports also say they have mini-cannon.

"If someone onboard a ship pulls a gun, will the other side pull a grenade?" Mody asked.

British contractors stress the importance of intelligence and surveillance, a safe room for the crew to retreat to if the ship is boarded, and the range of non-lethal deterrence measures available.

"The standard approach is for (pirates) to come in with all guns blazing at the bridge because when a boat is stopped it's easier to board," said David Johnson, director of British security firm Eos. "But if you have guns onboard, you are going to escalate the situation. We don't want to turn that part of the world into the Wild West."

Johnson's employees don't carry arms, relying on tactics that can be as simple as greasing or electrifying hand rails, putting barbed wire around the freeboard, the lowest area of the deck, or installing high-pressure fire hoses directed at vulnerable areas of a ship.

One tugboat confused its attackers by going into a high-speed spin when pirates approached, causing the attackers to give up, and leaving the crew sick but safe.

High-tech but non-lethal weapons include dazzle guns, which produce disorienting flashes; microwave guns, which heat up the skin causing discomfort but no long-term damage; and acoustic devices that can blast a wave of painful sound across hundreds of yards.

Johnson believes his company's refusal to carry guns has helped attract business: inquiries have gone up three- to fourfold in the past few months.

Other companies do arm their employees, pointing out that while non-lethal weapons are also carried and greatly preferred, they can be taken out by bullets or a grenade, sustain damage from salt water, and may have a shorter range than some weapons of pirates.

Pirate attacks have driven up insurance premiums tenfold for ships plying the Gulf of Aden, increasing the cost of cargos that include a fifth of the world's oil. But some insurers will slash charges by up to 40 percent if boats hire their own security. Earlier this month, British security firm Hart launched the first joint venture with an insurance company, offering discounted premiums for ships sailing past Somalia that used Hart's guards.

The 20,000 ships that pass through the Gulf of Aden on the way to or from the Suez Canal each year can't avoid the 1,800 miles (2,900 kilometers) of Somali coastline without sailing around the entire continent of Africa.

The jump in interest in private contractors, spurred by last month's hijacking of a Ukrainian ship loaded with tanks and other weapons, has brought new players into the market and a flood of business for well-established firms.

Drum Cussac, a specialist maritime security company, says its business has increased 50 percent the last few months. Not operating in Iraq or Afghanistan, the firm has traditionally supplied security teams to luxury yachts like the French Le Ponant, which was hijacked last April with 22 crew members onboard.

Maritime operations manager Michael Angus says the yacht business has doubled. And now, he says, merchant ships such as bulk carriers or oil tankers are asking the company for teams of armed guards, making what was once a seasonal business off Somalia a year-round enterprise.

London-based Olive Group, which protects Shell operations in Iraq, began offering services in the Gulf of Aden earlier this year. Its security consultant, Crispian Cuss, says just the presence of armed guards may be a deterrent. Pirates get information on crews and cargos from contacts in ports or at shipping companies and avoid vessels with armed men on board, he said.

"No client's ship has been approached by pirates while we've been on them," he said.

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