Private navy may help defeat pirates

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 £100 million ($214 million) a year.

The new navy, which has the agreement 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 1930km from their bases in the Horn of Africa and are about to launch a new wave of seaborne attacks following the monsoon season.

A multinational naval force, including a European Union fleet currently commanded by a British officer, has reduced dramatically the number of assaults in the Gulf of Aden in recent months.

But seizures continue with 16 ships and 354 sailors being currently held hostage.

Nato documents show that both ransom payments and the period that pirates are holding vessels have doubled in the past year to an average US$4 million ($5.5 million) 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.

They would act as escorts and fast-response vessels for ships passing through the Suez Canal and the Indian Ocean.

Jardine Lloyd Thompson Group (JLT), which insures 14 per cent of the world's commercial shipping fleet, said the "private navy" would work under the direct control of the military with clear rules of engagement valid under international law.

Sean Woollerson, a senior partner with JLT, said: "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 multinational force.

"We look after about 5000 ships and have had 10 vessels taken in total, including a seizure where one crew member was shot and killed.

"These are criminals extorting funds, so why not do something more proactive?"

The force, which would have set-up costs of about £10 million, would be funded by insurers and shipping companies in return for a reduction of anti-piracy insurance premiums, which average about £50,000 per voyage and can reach £300,000 for a supertanker. The maritime insurance industry, much of it based in London, has borne the brunt of the financial cost of piracy, paying out US$300 million in ransoms and associated costs in the past two years alone.

Major obstacles remain before the private navy can set sail, such as the legal status of a private force and its relationship with the Nato-controlled naval fleet. But major shipping companies and key insurers are keen to proceed with the plan.

Although private contractors already offer armed teams on board vessels, the idea of a sizeable industry-funded naval force is a major departure.

A source at one major shipping organisation said the proposal was "viable", although it was vital it did not lead to a downscaling of the international military force.

A Foreign Office spokesman said it had not yet received a "formal" proposal but said: "We believe that such a concept could be considered.

"It would need to be endorsed and supported by the UK in close discussion with coalition partners in current counter-piracy operations."

The prospect of the private sector intervening directly to protect the 6.8 billion tonnes of goods moved by sea each year is symptomatic of renewed alarm at the success of about 1000 pirates controlled by Somali clans in disrupting the 22,000 ships which pass through the Gulf of Aden annually.

Using light fishing skiffs and armed with rocket-propelled grenades, AK-47s and ladders, the raiders force crews to sail to the Somali coastline, where they are held hostage until the ship owner agrees to pay a ransom.

The Indian Ocean is an area so vast that naval commanders admit it cannot be policed effectively. Last year there were 217 attacks and 47 ship seizures.

- INDEPENDENT